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RONKONKOMA, N.Y., (PR Newswire)--March 31, 2004 --CVD Equipment Corporation (Amex: CVV - News), a global designer, manufacturer and supplier of equipment primarily used in the semiconductor and printed circuit board industries, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2004.
Revenue for the fourth quarter of fiscal 2004 was approximately $4,326,000, compared to
$1,629,000 in the preceding quarter, and $2,044,000 for the same quarter in 2003. Net income for the fourth quarter of 2004 was approximately $736,000, or $0.24 per basic and diluted share. This compares to a net loss of approximately $331,000 or ($0.11) per basic and diluted share in the preceding quarter, and net income of approximately $56,000 or $0.02 per basic and diluted share for the same quarter in 2003.
Revenues for the 2004 fiscal year were $9,874,000 compared to $9,788,000 for the fiscal year 2003, representing an increase of 0.9%. The Company's gross profit margin increased to 33.7% in 2004 compared to 23.5% in 2003, an increase of 10.2%. The improved gross profit margin resulted from the time and efforts spent by the Company during 2004 in redesigning and reengineering some of its product lines into a more cost effective and efficient system.
Net income for the year 2004 was $70,724 or $0.02 per basic and diluted share, compared with a net loss of $336,950 or ($0.11) per basic and diluted share in 2003.
Due to overall softness in the economy for the past two years, existing and potential customers had reduced or delayed their capital expenditures. This resulted in the primary source of revenues from the CVD and SDC Divisions, that manufacture customized chemical vapor deposition equipment and gas and chemical delivery systems, to be negatively impacted. However, during the latter portion of 2004, the CVD and SDC Divisions began to experience an increase in orders and sales as a result of an improving market.
At December 31, 2004, our order backlog, which is comprised of customer orders that are expected to ship within the next six months, increased by 39.8% to approximately $2,430,000 from $1,738,000 at December 31, 2003. Our backlog at any specific point in time is not necessarily indicative of actual revenues or earnings for any succeeding period due to possible customer changes in delivery schedules or cancellation of orders, and because backlog does not provide any assurance of a profit from those orders.
Leonard Rosenbaum, President and Chief Executive Officer stated "We are extremely pleased with our fourth quarter 2004 results and return to profitability for fiscal 2004. I thank all of our
employees for their efforts. At this point in time for fiscal year 2005 we see a cautious increase in capital spending with very competitive pricing. Our vertical integration, engineering capabilities, continued cost reductions and increases in productivity should enable us to expand our markets even under these difficult market conditions."
CVD Equipment Corporation designs, develops, manufactures, markets, installs and services equipment primarily for the semiconductor industry. Our products include (1) both batch and single wafer systems used for depositing, rapid thermal processing, annealing, diffusion and etching of semiconductor films, (2) gas and liquid flow control systems, (3) ultra high purity gas and chemical piping delivery systems, (4) standard and custom quartzware and (5) reflow furnaces and rework stations for surface mounting of components onto printed circuit boards.
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.
This earnings release should be read in conjunction with the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004.
For further information Contact: Investor Relations, Phone: 631 981-7081, Fax: 631 981-7095 or email: investorrelations@cvdequipment.com |
