CVD Equipment Corporation Reports Second Quarter 2023 Financial Results
August 14 2023 - 4:01PM
Business Wire
CVD Equipment Corporation (NASDAQ: CVV), today announced its
financial results for the second quarter ended June 30, 2023.
Manny Lakios, President and CEO of CVD Equipment Corporation,
commented, “As previously communicated, our order and revenue
levels have historically fluctuated, which is often typical in the
highly cyclical process equipment industry. As such, while we saw a
year over year decline in second quarter revenue, we are pleased
that our first half 2023 revenues of $13.8 million were 31.6%
higher than the corresponding period in the prior fiscal year.
We’ve made significant progress disposing of non-core entities,
allowing our team to focus on our equipment product lines and
compelling pipeline of customer opportunities in key strategic
markets of high-power electronics, battery materials/energy storage
and aerospace and defense. We remain committed to stay the course
on our strategy to achieve consistent long-term profitability, with
a focus on growth and return on investment.”
Second Quarter 2023 Financial Performance
- Revenue of $5.1 million, down 12.7% year over year primarily
due to lower system revenues
- Orders for the second quarter increased to $12.9 million driven
by demand in two of our three strategic markets
- Backlog as of June 30, 2023 of $18.8 million, an increase from
$12.0 million at March 31, 2023
- Our gross profit margin percentage improved to 27.4% as
compared to the prior year quarter due to a more profitable mix of
contracts
- Operating loss of $1.2 million
- Net loss of $1.1 million or $0.16 basic and diluted share,
compared to a net loss of $0.8 million or $0.12 per basic and
diluted share during the prior year second quarter
- Operating loss and net loss both include non-recurring charges
of $0.3 million consisting of a loss on the sale of our Tantaline
subsidiary of $0.2 million and an impairment charge of $0.1 million
resulting from our decision to wind down our MesoScribe business
later in 2023
- Cash and cash equivalents as of June 30, 2023 of $13.0
million
Second Quarter 2023 Operational Performance
- Received approximately $8.7 million of multiple systems orders
in the aerospace sector that will ship over the next 12 months.
Also contributing to the second quarter order bookings was a
battery nanomaterial production system of approximately $1.8
million.
- We continue to make investments in both research and
development and sales and marketing focused on our three key
strategic markets.
- In the high-power electronics market, while we have not
received orders for our PVT150 to date in 2023, we continue our
marketing efforts, including direct outreach to multiple potential
customers as well as attendance at key silicon carbide related
trade shows and conferences. The success of our PVT150 and PVT200
marketing efforts is dependent on the performance of our equipment
in the field, overall market conditions, our customers’ ability to
qualify their end product with their customers and their ability to
obtain the funding required to purchase our equipment.
- We completed the disposal of our Tantaline subsidiary in late
May 2023.
- On August 8, 2023, the Company entered into a purchase and
license agreement with a third party to sell certain assets and
license certain proprietary information of MesoScribe in exchange
for $0.9 million. The purchase price is payable in several
installments and contingent upon certain performance metrics and
other milestones.
Management Conference Call and Webcast
The Company will hold a conference call to discuss its results
today at 5:00 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. To access the replay, dial (877) 660-6853 or
international (201) 612-7415. The replay passcode is 13740382.
A live and archived webcast of the call will also be available
on the company's website at www.cvdequipment.com/events. The
archived webcast will be available at the same location
approximately two hours following the end of the live event.
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.
CVD EQUIPMENT CORPORATION AND
SUBSIDIARIES
Condensed Consolidated
Statements of Operations
(In thousands, except per share
data)
(Unaudited)
Three Months Ended
June
30,
Six Months Ended
June
30,
2023
2022
2023
2022
Revenue
$
5,069
$
5,809
$
13,764
$
10,461
Gross profit
1,388
1,441
3,821
2,207
Operating expenses
* 2,620
2,188
* 5,241
3,927
Operating loss
(1,232)
(747)
(1,420)
(1,720)
Net loss
$
(1,113)
$
(839)
$
(1,142)
$
(1,836)
Basic and diluted loss per share
$
(0.16)
$
(0.12)
$
(0.17)
$
(0.27)
* Includes loss on sale of Tantaline subsidiary of $0.2 million
and an impairment charge related to MesoScribe fixed assets of $0.1
million.
CVD EQUIPMENT CORPORATION AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
June 30,
2023
December 31,
2022
Assets
Current assets
Cash and cash equivalents
$
13,033
$
14,365
Accounts receivable, net
2,156
3,788
Contract assets
2,951
2,170
Inventories, net
4,150
2,538
Employee retention credit receivable
1,529
-
Other current assets
543
797
Total current assets
24,362
23,658
Employee retention credit receivable
-
1,529
Property, plant and equipment, net
12,300
12,596
Intangible assets, net
111
119
Other assets
10
10
Total assets
$
36,783
$
37,912
Liabilities and Stockholders'
Equity
Current liabilities
$
7,755
$
8,164
Long-term debt, net of current portion
309
349
Total stockholders’ equity
28,719
29,399
Total liabilities and stockholders’
equity
$
36,783
$
37,912
This 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, 2022.
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version on businesswire.com: https://www.businesswire.com/news/home/20230814870336/en/
Richard Catalano, Vice President & CFO Phone:
(631) 981-7081 Email:
investorrelations@cvdequipment.com
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