CVD Equipment Corporation (NASDAQ: CVV), a leading provider of
chemical vapor deposition systems and materials, today announced
its first quarter 2019 financial results.
CVD first quarter 2019 revenue was $3.5 million as compared to
$9.2 million in the first quarter of 2018, a decrease of $5.7
million or 62.0%. Net loss for the first quarter was $2.2 million,
or $0.33 per diluted share, as compared to a net profit of $.6
million or $.09 per diluted share in the first quarter of 2018.
The Company has received new orders of approximately $6.5
million in the first quarter of 2019 and order backlog at March 31,
2019 was approximately $6.0 million. The Company’s return to
profitability is dependent upon, among other things, the receipt of
new equipment orders, the ramp up of the materials business and
managing planned expenditures and operating expenses. Thomas
McNeill, Chief Financial Officer, said “We anticipate the cost
containment measures we have been implementing should align our
expenses to our order rates, thereby reducing future operating
losses and should return the Company to profitability by the first
quarter of 2020.”
“While 2018 was a difficult year for CVD, the Company has
accelerated its focus on the materials business. During 2018, the
Company invested $2.5 million in building improvements and
machinery related to CVD Materials, $.4 million in the first
quarter of 2019 and other materials facility related expenses. With
the operations at our new materials facility coming online during
the third quarter of 2019, and our continued investment in building
improvements and machinery we will enhance our marketing efforts by
showcasing our operations to new and existing customers. In
addition, we will complete the move of our Mesoscribe operations
from California by the end of May 2019, with integration to be
completed by July 2019. The consolidating of Mesoscribe operations
into our materials facility should enhance our ability to execute
on operational improvements, as well as reduce operational costs.
The expanded materials operations will enhance our capabilities in
providing i) corrosion resistant coatings through our Tantaline®
subsidiary for medical, pharma, oil and gas applications, ii)
sensors through our MesoScribe™ subsidiary for defense, aerospace
and turbine applications, and iii) through our CVD Materials
subsidiary for carbon composite materials, medical coatings,
electronic substrate materials and further expansion into other
coatings for defense, aerospace, medical, and industrial
applications,” said Leonard Rosenbaum, President and Chief
Executive Officer.
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) 407-2991 or
International (201) 389-0925. A telephone replay will be available
for 7 days following the call. To access the replay, dial (877)
660-6853 or international (201) 612-7415. The replay passcode is
13690756. A live and archived webcast of the call is also available
on the company’s website at www.cvdequipment.com/events.
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, or failure
to receive 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 For the
Three Months Ended March 31, 2019 and 2018 (In thousands)
Three Months
Ended
2019
2018
Revenue $ 3,469 $ 9,154 Gross profit (388 ) 3,761 Operating
expenses 2,177 2,850 Operating
(loss) income (2,565 ) 911 Net (loss) income (2,177 )
558 Diluted (loss) earnings per share ($0.33 )
$ 0.09
Condensed Consolidated Balance
Sheets As of March 31, 2019 and December 31, 2018 (In
thousands)
2019
2018
Assets Current Assets Cash and cash equivalents $ 11,253 $
11,439 Accounts receivable, net 2,104 4,065 Contract assets 1,089
1,358 Inventories, net 1,745 1,862 Other current assets 771
723 Total Current Assets $ 16,962 $ 19,447 Property, plant
and equipment, net 30,596 30,403 Other assets 3,070
2,665 Total Assets $ 50,628 $ 52,515
Liabilities and
Stockholders' Equity Current Liabilities $ 4,330 $ 4,071 Total
Long-Term Liabilities 11,884 12,052 Total Stockholders’ Equity
34,414 36,392 Total Liabilities and Stockholders’
Equity $ 50,628 $ 52,515
CVD earnings release should be read in conjunction with the
Company’s filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-K for fiscal year ended
December 31, 2018
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version on businesswire.com: https://www.businesswire.com/news/home/20190509005712/en/
For further information about this topic please contact:Gina
FrancoPhone: (631) 981-7081Fax: (631) 981-7095Email:
investorrelations@cvdequipment.com
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