CVD Equipment Corporation Reports Second Quarter Results
CENTRAL ISLIP, N.Y., (Business Wire) – August 14, 2013 – (NASDAQ: CVV – News) CVD Equipment Corporation, a leading provider of custom chemical vapor deposition systems, today announced its financial results for the three and six months ended June 30, 2013.
On revenue of approximately $4,848,000 for the three months ended June 30, 2013 which surpassed by 40.5% the revenue achieved in the previous quarter, the Company recorded pre-tax income of $1,005,000 and net income of approximately $874,000 or $0.14 per share both basic and diluted compared to a pre-tax loss of ($903,000) and a net loss of ($440,000) or a ($0.07) loss per basic and diluted share for the quarter ended March 31, 2013. For the six months ended June 30, 2013 the Company achieved revenue of $8,298,000 with net income of approximately $434,000 or $.07 per share basic and diluted. In April, the Company sold its former headquarters which resulted in a gain of approximately $887,000.
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 substantially completed, CVD has returned to profitability in Q2. The Company continues to maintain a strong cash position and a healthy working capital. The backlog as of June 30, 2013 was approximately $5,516,000. However, as stated in the Company’s May 15, 2013 press release, “during this transition period order acceptance levels were reduced to maintain a more manageable backlog level and CVD 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.
Leonard Rosenbaum, President and Chief Executive Officer stated:
“Issues associated with moving into our expanded facility are now behind us. As painful as it has been for everyone involved, this was a required step to enable future growth opportunities. Our employees as well as the customers, suppliers, and shareholders that have visited our new facility see our potential. We are convinced that our new 2X larger facility is a turning point for the Company that will enable us to generate higher sustainable growth rates.
“I will now try to give some insight into our potential future and thoughts behind the relocation.
“In our September 7, 2010 press release we announced receiving an order in excess of $2.5 million from a large aviation component supplier for CVD coating systems. In our May 7, 2012 press release we announced receiving a multi-million dollar design only order from a major aviation components manufacturer to design a custom CVD system solution for their next generation of composite products. I am happy to announce we just received an initial $1 million follow-on order to commence manufacturing on some portions of a much larger system and we anticipate that additional multi-million dollar portions will be awarded in the near term.
“Earlier this year, we delivered a next generation production CVD system to a major medical manufacturer for coatings on implants. The unit is operational and meeting the enhanced system production requirements. We anticipate follow on multiple production system orders later this year.
“In addition we also received orders for two large Graphene systems – one for a square 300mm substrate and the other for a round 200mm substrate. Our application laboratory is playing an important part in our ability to deliver next generation equipment that meets the evolving needs of this growing material area. Our expanded application laboratory now enables us to work with an increasing selected customer base in the fields of Nanotubes, Nanowires, Graphene, TCO coatings and other deposition requirements. If you have not looked recently at our Website where our conference presentations are published, I urge you to do so. You will be able to see some of the directions we are headed into with the intent of advancing these nano materials into large volume, value added products.
“Our First Nano research equipment and CVD custom production solution products will now benefit from our ability to meet volume requirements, provide custom CVD solutions with faster deliveries and do this for a larger customer base.
“Our quotation level continues to grow each year and we anticipate that 2013 will demonstrate we have a very bright future. Our ability to work with more customers to solve their process issues by defining, designing and manufacturing equipment and material needed to meet their production needs adds sustainable low risk growth.”
CVD Equipment Corporation
Comparison of Consolidated Statements of Operations
For the
|
Three Months Ended |
Six Months Ended |
|||||
|
6/30/2013 |
6/30/2012 |
6/30/2013 |
6/30/2012 |
|||
| Revenue |
$4,848,000 |
$7,094,000 |
$8,298,000 |
$14,249,000 |
||
| Gross profit |
1,785,000 |
2,910,000 |
2,572,000 |
5,645,000 |
||
| Operating income |
1,043,000 |
511,000 |
173,000 |
1,584,000 |
||
| Pre-tax income |
1,005,000 |
481,000 |
102,000 |
1,540,000 |
||
| Net income |
874,000 |
321,000 |
102,000 |
1,540,000 |
||
| Net earnings | ||||||
|
0.14 |
$ 0.05 |
$ 0.07 |
$ 0.18 |
||
|
0.14 |
$ 0.05 |
$ 0.07 |
$ 0.17 |
||
| Stock Outstanding | ||||||
|
6,069,977 |
5,992,330 |
6,062,898 |
5,984,392 |
||
|
6,179,965 |
6,162,172 |
6,177,832 |
6,153,955 |
||
Earnings release should be read in conjunction with Company’s Annual Report on Form 10-K for fiscal year
ended December 31, 2012
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) is a designer and manufacturer of custom and standard state-of-the-art equipment used in the development, design and manufacture of advanced electronic components, materials and coatings for research and industrial applications. CVD offers a broad range of chemical vapor deposition, gas control, and other equipment that is used by customers to research, design and manufacture semiconductors, solar cells, graphene, carbon nanotubes, nanowires, LEDs, MEMS, smart glass coatings, batteries, ultra capacitors, medical coatings, industrial coatings and equipment for surface mounting of printed circuit components.
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 about CVD Equipment Corporation please contact Karen Hamberg Phone: (631) 981-7081, Fax: (631) 981-7095 or Email:investorrelations@CVDequipment.com or Sales@CVDequipment.com