CENTRAL ISLIP, N.Y., (Business Wire) – May 16, 2016 – CVD Equipment Corporation (NASDAQ: CVV), a leading provider of chemical vapor deposition systems, today announced its first quarter 2016 financial results.
Total revenue for the three months ended March 31, 2016 was $5.0 million compared to $9.7 million in the first quarter of 2015, a decrease of 48.5%. One customer represented 58.8% and 54.6% of our revenue for the three months ended March 31, 2016 and 2015, respectively. With the near completion of outstanding contracts, we are focused on booking significant follow-on business with that customer as well as opportunities with new and other customers. Operating loss was $0.5 million compared to operating income of $1.2 million in the same period in 2015. Net loss of $338,000, or $0.05 per diluted share, was lower than net income of $668,000, or $0.11 per diluted share in the first quarter of 2015.
“We have made significant progress in our negotiations for a sizable order with our large aerospace customer,” said Leonard Rosenbaum, President and Chief Executive Officer. “While this does not immediately translate into a formal purchase order, we are continuing to move closer to a positive outcome which we expect in the near term. In the meantime, we have our resources and attention focused on pursuing other opportunities that should extend our market reach and improve our backlog for the second half of the year.”
New orders for the first quarter were $2.3 million compared to $5.2 million in orders in 2015, resulting in a backlog of $3.4 million as of March 31, 2016 compared to $16.6 million as of March 31, 2015. Approximately $0.4 million or 11.8% of the first quarter 2016 backlog is from our largest customer as compared to $9.7 million or 58.4% from that same customer in 2015.
The Company will hold a conference call to discuss its results today at 4:30 pm (Eastern Time). To participate in the live conference call, please dial toll free (877) 407-0784 or International (201) 689-8560. A telephone replay will be available for 7 days following the call. To access the replay, dial (877) 870-5176 or (858) 384-5517. The replay passcode is 13636584.
CVD Equipment Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
|Three Months Ended March 31|
|Diluted earnings per share||$(0.05)||$0.11|
CVD Equipment Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
|March 31, 2016||December 31, 2015|
|Cash and cash equivalents||$12,330||$13,073|
|Accounts Receivable, net||3,390||3,091|
|Costs and estimated earnings in excess of|
|billings on contracts in progress||4,326||4,635|
|Other current assets||85||167|
|Total current assets||23,953||24,551|
|Property, plant and equipment, net||14,656||14,828|
|Liabilities and stockholders’ equity|
|Accrued expenses and other current liabilities||3,281||3,446|
|Current portion of long-term debt||475||580|
|Billings in excess of costs and estimated|
|earnings on contracts in progress||30||—|
|Total current liabilities||4,203||4,642|
|Total stockholders’ equity||33,050||33,225|
|Total liabilities and stockholders’ equity||$40,444||$41,132|
Earnings release should be read in conjunction with Company’s Annual Report on Form 10-K for fiscal year ended December 31, 2015
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 our 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 our application laboratory, we provide process development support and process startup assistance with the focus on enabling tomorrow’s technologies™.
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.
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