CVD Equipment Corporation (CVD) (NASDAQ:CVV) announced revenue
and earnings for the year ending December 31, 2014. The Company
achieved a new record for bookings as it received over $45 million
in orders during 2014, surpassing total orders received in any
prior year, while also achieving a near record revenue of ~ $28
million in 2014, an increase of ~ 57% compared to ~ $18 million in
2013.
The Company’s backlog grew substantially year over year
exceeding $21 million, on December 31, 2014 compared to ~ $4
million at December 31, 2013. Although timing for completion of
order backlog varies depending on the product mix and can be as
long as two years, it is anticipated that our current backlog will
be completed by the end of the current year. Order backlog usually
is a reasonable management tool to indicate future revenues and
profits, however it does not provide assurance of future
achievement of revenues or profits as order cancellations or delays
are possible. Backlog can vary based on the timing of order
placements and shipments.
The demand for CVD’s equipment, which has been led by the
aerospace and medical industries, has never been greater. Now that
the Company is firmly ensconced in its new facility, management is
confident in its ability to build equipment in a timely manner,
satisfy increased order levels and achieve increased revenues.
In January 2015, following an adverse court ruling during
December 2014 in the long outstanding Taiwan Glass (TG) litigation,
the Company entered into an agreement to pay TG $4.925 million,
inclusive of interest, in settlement of all claims. CVD also
incurred an additional $1.8 million in legal fees attributable to
this matter in 2014. Therefore, CVD incurred ~$6.7 million in
charges attributable to this matter during fiscal 2014. Without
this non-recurring charge, CVD would have achieved net income,
~$1.9 million or $0.32 per diluted share compared to our reported
net loss for the year of ~$2.5 million or $0.40 per diluted share.
The reconciliation of non-GAAP net income is illustrated in the
table below.
Leonard Rosenbaum, President and Chief Executive Officer stated,
“2014 was a very busy year. We increased our order level to a
record high and our revenues increased substantially. We have
entered 2015 with a significant backlog and expect to continue to
add to the backlog throughout the year as we pursue additional
opportunities in our key markets of aerospace, medical, research
laboratories (university and industrial) and custom chemical vapor
deposition systems.”
Mr. Rosenbaum added, “Our Application Laboratory continues to
advance technology for Graphene, Nanowires and Nanotube materials
and work with potential end users to apply this technology to
advance these nano materials into large volume, value added
products. Our custom CVD solutions and systems which we can provide
help to enable our industrial customers to scale up their
production requirements.
“Overall we anticipate 2015 to be a very strong year for our
Company as the markets we have and will continue to pursue are
increasing in demand. Thank you for your continued support.”
CVD Equipment Corporation
Selected Other Data (Unaudited)
For the Twelve Months Ended
(in thousands except per share information)
Reconciliation of Non-GAAP
measure-operating expenses And operating income excluding certain
items
12/31/2014
12/31/2013
Bookings $ 45,065 $ 13,459 Ending Backlog 21,074 3,917
Revenue, as reported $ 27,990 $ 17,884 Gross profit, as
reported 11,525 6,710 Operating expenses, as reported 15,289
8,516 Adjustments:
Nonrecurring loss and legal fees on
litigation settlement
6,691 223 Nonrecurring gain on sale of building -- (887 )
Nonrecurring bad debt expense -- 1,281
Non-GAAP operating expenses 8,598 7,899 Non-GAAP operating
income/(loss) 2,927 (1,189 ) Income/(loss) net of tax as
reported (2,474 ) (560 ) Adjustments, net of tax
Nonrecurring loss and legal fees on
litigation settlement
4,416 -- Nonrecurring gain on sale of building -- (585 )
Nonrecurring bad debt expense -- 845
Non-GAAP income/(loss), net of tax 1,942 (300 ) Diluted
earnings per share, as reported ($ 0.40 ) ($ 0.09 ) Add back:
Per share impact of Non-GAAP adjustments,
net of tax
0.72 0.14 Non-GAAP per share earnings 0.32 0.05
The Private Securities Litigation Reform Act of 1995 provides a
“safe harbor” for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements or other written statements made or to be made by
CVD Equipment Corporation) contains statements that are
forward-looking. All statements other than statements of historical
fact are hereby identified as “forward-looking statements,” as such
term is defined in Section 27A of the Securities Exchange Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Such forward looking information involves a
number of known and unknown risks and uncertainties that could
cause actual results to differ materially from those discussed or
anticipated by management. Potential risks and uncertainties
include, among other factors, conditions, success of CVD Equipment
Corporation’s growth and sales strategies, the possibility of
customer changes in delivery schedules, cancellation of orders,
potential delays in product shipments, delays in obtaining
inventory parts from suppliers and failure to satisfy customer
acceptance requirements.
The above includes a summary of the Company's financial results
for 2014 and 2013, but is not intended to replace the full
financial disclosure reported on Form 10-K that the Company filed
with the Securities and Exchange Commission on March 31, 2015.
Please refer to that document for additional information.
CVD Equipment CorporationKaren Hamberg,
631-981-7081Fax:
631-981-7095investorrelations@CVDequipment.comSales@CVDequipment.com
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