CVD Equipment Corporation (NASDAQ: CVV), a leading provider of
chemical vapor deposition systems and materials, today announced
its third quarter 2019 financial results.
CVD third quarter 2019 revenue was $5.7 million as compared to
$4.0 million in third quarter of 2018, an increase of $1.7 million
or 41.6%. Net loss for third quarter 2019 was $138,009, or $0.02
per diluted share, as compared to a net loss of $2.5 million or
$.39 per diluted share in third quarter of 2018. CVD nine months
2019 revenue was $14.1 million as compared to $19.6 million in the
first nine months of 2018, a decrease of $5.5 million or 28.1%. Net
loss for the first nine months of 2019 was $3.7 million, or $0.57
per diluted share, as compared to a net loss of $3.3 million or
$.51 per diluted share in the first nine months of 2018.
The Company received orders of approximately $7.9 million in the
third quarter of 2019, as compared to approximately $6.5 million
and $3.3 million in the first and second quarter of 2019,
respectively. This resulted in an increased order backlog of $6.7
million at September 30, 2019 as compared to June 30, 2019 of $4.5
million.
Thomas McNeill, Chief Financial Officer, said “Our gross profit
margin improved to 25% in Q3 2019 as compared to 10% in Q2 2019 and
(11%) in Q1 2019. This was a result of i) improving operating
efficiencies, ii) mix of product revenue, iii) increased revenue
that improved contribution margins as compared to the prior two
quarters in 2019 and iv) the cost containment measures we have
taken. In Q3 2019 we achieved a decrease of $388,000 in operating
expenses as compared to Q2 2019. This decrease includes the effects
of a one-time $200,000 recovery of the final contingent earnout
related to our MesoScribe™ acquisition. Included in other income is
the recognition of $207,000 of rental income in the third quarter
of 2019. Overall, we believe that the progress we made again this
quarter in continued cost containment measures, improvement in
gross profit margins, and improved order flow has substantially
progressed the Company toward a return to profitability.”
Leonard Rosenbaum, President and Chief Executive Officer, said
“The Company’s focus during the 3rd quarter has been on i) getting
our materials facility up and running, ii) starting our MesoScribe™
facility back-up after moving from California to New York, and iii)
pursuing additional equipment sales. The Company invested $2.5
million during 2018 in building improvements, machinery, and other
expenses related to CVD Materials, and $2.1 million in the first
nine months of 2019. Mesoscribe™ is now operating and Tantaline® US
equipment continues to be installed and tested. We have continued
to increase our marketing efforts for equipment and materials and
we are now showcasing our materials facility operations and
offering material coating services to new and existing customers.
The expanded materials operations will enhance our capabilities in
providing i) corrosion resistant coatings through Tantaline® for
medical, pharma, oil and gas applications, ii) sensors through
MesoScribe™ for defense, aerospace and turbine applications, and
iii) through our CVD Materials subsidiary for carbon composite
materials, medical coatings, electronic substrate materials and
further expansion into other coatings for defense, aerospace,
medical, and industrial applications.
“We have continued working on our fluid reactor technology and
additional testing will be done this quarter with the Center of
Biotechnology at Stony Brook University to further our novel,
patent pending technology on an improved Extracorporeal Membrane
Oxygenation (ECMO) device. We anticipate further collaboration for
this promising technology and application.”
The Company will hold a conference call to discuss its results
today at 4:30 pm (Eastern Time). To participate in the live
conference call, please dial toll free (877) 407-2991 or
International (201) 389-0925. A telephone replay will be available
for 7 days following the call. To access the replay, dial (877)
660-6853 or international (201) 612-7415. The replay passcode is
13696340. A live and archived webcast of the call is also available
on the company’s website at www.cvdequipment.com/events.
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and
manufactures a broad range of chemical vapor deposition, gas
control, and other state-of-the-art equipment and process solutions
used to develop and manufacture materials and coatings for research
and industrial applications. This equipment is used by its
customers to research, design, and manufacture these materials or
coatings for aerospace engine components, medical implants,
semiconductors, solar cells, smart glass, carbon nanotubes,
nanowires, LEDs, MEMS, and other applications. Through its
application laboratory, the Company provides process development
support and process startup assistance with the focus on enabling
tomorrow’s technologies™. It’s wholly owned subsidiary CVD
Materials Corporation provides advanced materials and metal surface
treatments and coatings to serve demanding applications in the
electronic, biomedical, petroleum, pharmaceutical, and many other
industrial markets.
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, or failure
to receive orders, potential delays in product shipments, delays in
obtaining inventory parts from suppliers and failure to satisfy
customer acceptance requirements.
CVD EQUIPMENT CORPORATION AND
SUBSIDIARIES
Condensed Consolidated
Statements of Operations
For the Three and Nine Months
Ended September 30, 2019 and 2018
(In thousands)
Three Months Ended
Nine Months Ended
2019
2018
2019
2018
Revenue
$ 5,705
$ 4,028
$ 14,100
$ 19,617
Gross profit
1,400
(56)
1,505
4,821
Operating expenses
1,649
2,797
5,862
8,144
Operating loss
(249)
(2,853)
(4,357)
(3,323)
Net loss
(138)
(2,503)
(3,708)
(3,275)
Diluted loss per share
$ (0.02)
$ (0.39)
$ (0.57)
$ (0.51)
Condensed Consolidated Balance
Sheets
As of September 30, 2019 and
December 31, 2018
(In thousands)
2019
2018
Assets
Current Assets
Cash and cash equivalents
$ 6,739
$ 11,439
Accounts receivable, net
3,072
4,065
Contract assets
2,588
1,358
Inventories
1,769
1,862
Other current assets
312
723
Total Current Assets
$ 14,480
$19,447
Property, plant and equipment, net
31,786
30,403
Other assets
3,268
2,665
Total Assets
$ 49,534
$ 52,515
Liabilities and Stockholders'
Equity
Current Liabilities
$ 4,825
$ 4,071
Total Long-Term Liabilities
11,548
12,052
Total Stockholders’ Equity
33,161
36,392
Total Liabilities and Stockholders’
Equity
$ 49,534
$ 52,515
CVD earnings release should be read in conjunction with the
Company’s filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-K for fiscal year ended
December 31, 2018
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191112005833/en/
For further information about this topic please contact: Thomas
McNeill Phone: (631) 981-7081 Fax: (631) 981-7095 Email:
investorrelations@cvdequipment.com
CVD Equipment (NASDAQ:CVV)
Historical Stock Chart
From Mar 2024 to Apr 2024
CVD Equipment (NASDAQ:CVV)
Historical Stock Chart
From Apr 2023 to Apr 2024