CVD Equipment Corporation (NASDAQ:CVV), a leading provider of
chemical vapor deposition systems, today announced its first
quarter 2018 financial results.
“In the first quarter, we continued to execute on the core
segment of our growth strategy by increasing our investment in the
development of our new CVD Materials facility,” said Len Rosenbaum,
President and Chief Executive Officer. “The new facility will
provide a cost-effective infrastructure to utilize the latest
technology to produce high quality materials for aerospace, medical
and electronic applications. We also further strengthened our
senior leadership team and increased our focus on sales to expand
and commercialize our exciting new technologies.”
Revenue for the first quarter was $9.2 million, compared to $9.8
million in the prior quarter and $9.7 million from the same period
last year. Net income for the first quarter was $0.6 million
compared to $1.6 million in the prior quarter and $1.0 million a
year ago. The reduction in net income is primarily a result of the
ongoing investment in the Materials business, the development of
the new facility, and shifting some engineering and production
personnel to the planning, outfitting and building of equipment for
the new facility. Net earnings per diluted share were $0.09
compared to $0.24 in the fourth quarter of 2017 and $0.16 a year
ago. Backlog as of March 31, 2018 was $9.8 million compared to
$15.5 million on December 31, 2017.
CVD’s significant investment in the Materials facility will
transform the Company over the long term: 1) CVD holds the
proprietary knowledge and has the capability to build the
production systems required to meet demand; 2) CVD possesses the
intimate knowledge necessary to operate the systems in a
cost-effective manner, providing a significant operational and
financial competitive advantage; and 3) CVD is well capitalized to
invest in the overhead and capital expenses required to take the
Company to the next level. Execution of this growth strategy should
provide an additional, diverse and stable revenue stream that
should significantly improve growth and profitability over the
long-term.
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 (844)
512-2921 or (412) 317-6671. The replay passcode is 13679606. A live
and archived webcast of the call is also available on the Company’s
website at:
www.cvdequipment.com/event/first-quarter-2018-earnings-conference-call/.
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 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
(In thousands)
Three Months Ended March 31
2018
2017
Revenue $ 9,154 $ 9,651 Gross profit 3,761 5,480
Operating expenses
2,850
2,454
Operating income 911 1,717 Net income 558 1,708 Diluted earnings
per share $ 0.09 $ 0.16
CVD Equipment Corporation and
Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
March 31, 2018 December 31, 2017
Assets Current assets: Cash and cash equivalents $
13,135
$
14,211
Accounts Receivable, net 8,979 2,059 Contract assets 3,719 8,397
Inventories 2,730 2,966 Other current assets 221
167 Total current assets 28,784 27,800
Property, plant and equipment, net 29,504 28,839 Deferred taxes
1,611 1,690 Other assets 206 68 Intangible assets 536
662
Total assets $ 60,641
$ 58,978
Liabilities and stockholders'
equity Current liabilities: Accounts payable $ 1,104 $ 1,175
Accrued expenses and other current liabilities 2,563 2,739 Current
portion of long-term debt 651 647 Current portion acquisition
related contingent payments 100 100 Contract liabilities 1,515 466
Deferred revenue 533 292 Total current liabilities
6,466
5,419
Long-term acquisition related contingent payments
200 200 Long-term debt,
net of current portion 12,540
12,705 Long-term debt 12,740
12,905
Total liabilities 19,206 18,324
Total stockholders' equity 41,435
40,654
Total liabilities and stockholders'
equity $ 60,641 $ 58,978
Earnings release should be read in conjunction
with Company’s Annual Report on Form 10-K for fiscal year ended
December 31, 2017
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version on businesswire.com: https://www.businesswire.com/news/home/20180515006311/en/
For further information about CVD Equipment Corporation:Gina
Franco, 631-981-7081Fax:
631-981-7095investorrelations@cvdequipment.com
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