CVD Equipment Corporation Announces Sale of its Tantaline Subsidiary
May 30 2023 - 4:05PM
Business Wire
CVD Equipment Corporation (NASDAQ: CVV), a leading provider of
chemical vapor deposition and thermal process equipment, today
announced the sale of its subsidiary, Tantaline CVD ApS (Tantaline)
located in Denmark.
The sales price consists principally of an earn-out provision
based on any net income that Tantaline may earn during the
five-year period ending December 31, 2027. The Company expects to
record a loss on the sale of approximately $250,000 during the
quarter ending June 30, 2023.
The revenues and net income of Tantaline for the most recent
fiscal year ended December 31, 2022 were $1.7 million and $0.4
million, respectively. The revenues and net income of Tantaline for
the three months ended March 31, 2023 were $0.4 million and $0.1
million, respectively.
In 2021, CVD Equipment initiated a strategic assessment of its
business, specifically evaluating the growth and profitability of
each of the Company’s product lines, that included Tantaline which
provides corrosion resistant surface treatments. Tantaline had
recently experienced a decline in revenues and would have required
further capital investment. The disposition of this non-core
product line allows the Company to continue to focus on its core
growth markets of high-power electronics, EV battery
materials/energy storage and aerospace & defense.
“We remain committed to our strategic plan to achieve consistent
long-term profitability, growth and return on investment. Aligned
with our Company’s core competencies, we will continue evaluating
market opportunities with high growth potential and continue
focusing on “enabling tomorrow’s technologies™ within
strategic growth markets.” said Emmanuel Lakios, President and CEO
of CVD Equipment Corporation.
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and
manufactures a broad range of chemical vapor deposition, thermal
processing, physical vapor transport, gas and chemical delivery
control systems, and other equipment and process solutions used to
develop and manufacture materials and coatings for industrial
applications and research. Our products are used in production
environments as well as research and development centers, both
academic and corporate. Major target markets include high power
electronics (silicon carbide), EV battery materials / energy
storage (carbon nanotubes, graphene and silicon nanowires) and
aerospace & defense (ceramic matrix composites). Through its
application laboratory, the Company allows customers the option to
bring their process tools to our laboratory and to work
collaboratively with our scientists and engineers to optimize
process performance.
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, market and business conditions, the
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,
competition in our existing and potential future product lines of
business, including our PVT150 system; our ability to obtain
financing on acceptable terms if and when needed; uncertainty as to
our ability to develop new products for the high power electronics
market; uncertainty as to our future profitability; uncertainty as
to any future expansion of the Company; uncertainty as to our
ability to adequately obtain raw materials and components from
foreign markets in light of geopolitical developments; and other
risks and uncertainties that are described in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2022 and the
Company’s other filings with the Securities and Exchange
Commission. For forward-looking statements in this release, the
Company claims the protection of the safe harbor of the Private
Securities Litigation Reform Act of 1995. The Company assumes no
obligations to update or supplement any forward-looking statements
whether as a result of new information, future events or otherwise.
Past performance is not a guarantee of future results.
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version on businesswire.com: https://www.businesswire.com/news/home/20230530005556/en/
For further information about this topic please contact:
Richard Catalano, Vice President & CFO Phone: (631)
981-7081 Email: investorrelations@cvdequipment.com
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