CVD Equipment Corporation Reports First Quarter Results
CENTRAL ISLIP, N.Y., (Business Wire) – May 15, 2013 – CVD Equipment Corporation (NASDAQ):CVV) announces revenue and earnings for the three months ended March 31, 2013.
On revenue of approximately $3,450,000 for the three months ended March 31, 2013 the Company recorded a net loss of approximately ($440,000) or a ($0.07) per basic and diluted share loss.
The first quarter results continued to reflect the negative impact on current results of operations from the transition to CVD’s new and expanded facility, into which it relocated at the end of March 2013. As the Company previously reported, during this transition period, order acceptance levels were reduced to maintain a more manageable backlog level. CVD also increased and trained additional sales, engineering, production and laboratory staff in order to maximize future productivity in its new facility.
With the sale of its former headquarters having been completed early in the 2nd quarter, and the transition into its new and significantly larger facility nearing completion, the Company is poised for growth in revenue and order backlog during the 2nd half of 2013. Order backlog usually is a reasonable management tool to indicate future revenues and profits, however it does not provide an assurance of future achievement of revenues or profits as order cancellations or delays are possible. Backlog from quarter to quarter can vary based on the timing of order placements and shipments.
The Company continues to maintain a strong cash position and a healthy working capital ratio despite the cash outlays for the new facility and the inherent inefficiencies of moving into new quarters.
Leonard Rosenbaum, President and Chief Executive Officer stated: “The new facility is being well received by our customers and we are convinced the move will be a turning point for the Company in generating higher sustainable growth rates. New facility issues are diminishing and we are turning our attention back to operating the business for long term growth in i) our First Nano product line for research and development equipment to Universities, Industrial and Government Research Laboratories and Start-Up companies, ii) our CVD products for production materials and iii) ourApplication Laboratory to develop processes and new materials. The products we sell cover a wide range of applications in Aerospace, Medical, Glass Coatings, Solar, Energy, LED’s and Nanotechnology – Nanotubes (Carbon and Boron Nitride), Graphene, Nanowires (Zinc Oxide, Gallium Nitride, Silicon).
Our quotation level is very high and we anticipate 2013 will demonstrate that we have a very bright future in our new facility. Our ability to work with customers to solve their process issues and to define, design and manufacture customized equipment needed to meet their production needs will provide significant order levels.
I want to thank our employees for helping to make this expansion and transition possible and our shareholders for their support over this difficult period. I feel everyone will look back and say it was well worth the effort. Thank you!”
CVD Equipment Corporation
Comparison of Consolidated Statements of Operations
For the Three Months Ended March 31, 2013 vs. March 31, 2012
|
2013 |
2012 |
||||
| Revenue |
$3,450,000 |
$7,155,000 |
|||
|
(Loss)/income before income taxes |
(902,000) |
1,060,000 |
|||
| Net (loss)/income |
(440,000) |
728,000 |
|||
| Net (loss)/earnings | |||||
|
$ (0.07) |
$ 0.12 |
|||
|
$ (0.07) |
$ 0.12 |
|||
| Stock Outstanding | |||||
|
6,055,657 |
5,976,582 |
|||
|
6,055,657 |
6,151,621 |
Earnings release should be read in conjunction with Company’s Annual Report on Form 10-K for fiscal year ended December 31, 2012 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.
For further information please contact Karen Hamberg or CVD Investor Relations by Phone: (631) 981-7081, Fax: (631) 981-7095 or Email: investorrelations@CVDequipment.com