CVD Equipment Corporation (NASDAQ: CVV), today announced its financial results for the third quarter ended September 30, 2023.
Emmanuel 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 third quarter revenue of $1.9 million, our year-to-date 2023 revenue of $20.0 million was 7.6% higher than the corresponding period in the prior fiscal year. While we are disappointed with our third quarter revenue, we continue to see 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. Our return to profitability is subject to our ability to receive additional system orders and continue our efforts to reduce our overall operating costs."
Third Quarter 2023 Financial Performance
Third Quarter 2023 Operational Performance
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) 407-3043 or international (201) 389-0926. 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 13742244.
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)
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Three Months Ended September 30, |
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Nine Months Ended
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|
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2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue |
|
$ |
6,234 |
|
|
$ |
8,119 |
|
|
$ |
19,998 |
|
|
$ |
18,579 |
|
Cost of revenue |
|
|
4,636 |
|
|
|
5,699 |
|
|
|
14,579 |
|
|
|
13,952 |
|
Gross profit |
|
|
1,598 |
|
|
|
2,420 |
|
|
|
5,419 |
|
|
|
4,627 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
704 |
|
|
|
518 |
|
|
|
1,865 |
|
|
|
1,397 |
|
Selling |
|
|
434 |
|
|
|
290 |
|
|
|
1,281 |
|
|
|
895 |
|
General and administrative and other * |
|
|
1,450 |
|
|
|
1,490 |
|
|
|
4,683 |
|
|
|
3,937 |
|
Total operating expenses |
|
|
2,588 |
|
|
|
2,298 |
|
|
|
7,829 |
|
|
|
6,229 |
|
Operating income (loss) |
|
|
(990 |
) |
|
|
122 |
|
|
|
(2,410 |
) |
|
|
(1,602 |
) |
Net income (loss) |
|
$ |
(753 |
) |
|
$ |
63 |
|
|
$ |
(1,906 |
) |
|
$ |
(1,773 |
) |
Basic and diluted income (loss) per share |
|
$ |
(0.11 |
) |
|
$ |
0.01 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.26 |
) |
* Nine months ended September 30, 2023 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)
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September 30, 2023 |
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December 31, 2022 |
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Assets |
|
|
|
|
|
|
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Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14,285 |
|
|
$ |
14,365 |
Accounts receivable, net |
|
|
2,585 |
|
|
|
3,788 |
Contract assets |
|
|
2,895 |
|
|
|
2,170 |
Inventories, net |
|
|
4,290 |
|
|
|
2,538 |
Other current assets |
|
|
848 |
|
|
|
797 |
Total current assets |
|
|
24,903 |
|
|
|
23,658 |
Employee retention credit receivable |
|
|
- |
|
|
|
1,529 |
Property, plant and equipment, net |
|
|
12,207 |
|
|
|
12,596 |
Intangible assets, net |
|
|
107 |
|
|
|
119 |
Other assets |
|
|
10 |
|
|
|
10 |
Total assets |
|
$ |
37,227 |
|
|
$ |
37,912 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
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Current liabilities |
|
$ |
8,723 |
|
|
$ |
8,164 |
Long-term debt, net of current portion |
|
|
288 |
|
|
|
349 |
Total stockholders' equity |
|
|
28,216 |
|
|
|
29,399 |
Total liabilities and stockholders' equity |
|
$ |
37,227 |
|
|
$ |
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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