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CVD Equipment Corporation Reports Third Quarter 2007 Financial Results
Twelfth consecutive quarter of profitability;
Record backlog as of September 30, 2007
RONKONKOMA, N.Y., (PR Newswire)-November 15, 2007-(Amex: CVV - News) CVD Equipment Corporation
announced today results for the third quarter ending September 30, 2007.
Three months ending September 30, 2007 (Third Quarter)
Revenue was $3.3 million, compared to $3.6 million, a decrease of 9.2% for the same period one year ago. The decrease is primarily attributable to a decrease in sales of reflow ovens from our Conceptronic Division.
Overall gross profit margin was 32.2% compared to 39.0% for the same period one year ago. This decrease is due primarily to costs
associated with our expansion plans.
Other income was $518,000 compared to $10,000 for the same period one year ago. This increase was primarily the result of a
settlement of litigation in our favor.
Income before taxes was $629,000 compared to $406,000 an increase of 54.9% for the same period one year ago.
Nine months ending September 30, 2007
Revenue was $10.2 million compared to $10.0 million, an increase of 2.3% for the same period one year ago. The increase is
primarily attributable to an increase in sales of CVD and First Nano products.
Overall gross profit margin was 34.3% compared to 35.7% for the same period one year ago. This decrease is due primarily to costs
associated with our expansion plans.
Other income was $557,000 compared to $97,000 for the same period one year ago. This increase is primarily attributable to the
above-mentioned settlement of litigation in our favor.
Income before taxes was $985,000 compared to $658,000 an increase of 49.7% for the same period one year ago.
Net income was $537,000, or $0.18 per basic and diluted share, compared to $365,000, or $0.12 and $0.11 per basic and diluted share,
respectively for the same period one year ago.
Backlog
As of September 30, 2007 our backlog increased 104.6% to $4,982,000 when compared to the $2,547,000 backlog as of June 30, 2007.
Timing for completion of the backlog varies depending on the product mix; however, there is generally a one to six month lag in
the completion and shipping of backlogged product. Backlog from quarter to quarter can vary based on the timing of order placements
and shipments.
Leonard Rosenbaum, President and Chief Executive Officer stated
"We are pleased with the progress we have made during the quarter, as our expansion plans continue to unfold. At the end of the
third quarter we raised $5 million in additional capital, which has positioned us well to further our planned expansion."
"The sales and marketing program launched at the beginning of the year is working, as seen by the significant increase in backlog
and our increased quotation activity. We expect the CVD/First Nano products and expansion plans to continue to drive future growth.
By working together with our customers, our vision of 'enabling tomorrow's technology' will become a reality."
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) is a designer and manufacturer of standard and custom state-of-the-art equipment used in the
development, design and manufacture of advanced electronic components, materials and coatings for research and industrial applications.
We offer a broad range of chemical vapor deposition, gas control, and other equipment that is used by our customers to research,
design and manufacture semiconductors, solar cells, carbon nanotubes, nanowires, LEDs, MEMS, industrial coatings and for surface
mounting of components onto printed circuit boards.
Selected Income Statement Data - Consolidated
Three
Months
Ended
Six Months
Ended
9/30/07
9/30/06 9/30/07
9/30/06 Revenue
$3,303,000 $3,636,000
$10,185,000
$9,958,000 Operating
Income $173,000 $454,000
$595,000 $734,000 Net
Income $
276,000 $229,000
$537,000 $365,000 Net Income Per share
basic $0.08 $0.07
$0.16 $0.12 Per share
diluted $0.08 $0.07 $0.16
$0.11 Weighted averages shares of common stock
outstanding Basic
3,395,321
3,198,247 3,327,256
3,155,710 Diluted
3,517,740
3,267,781
3,461,411
3,258,526
Selected
Balance Sheet Data – Consolidated
September 30,
2007 December 31,
2006
Cash
and equivalents
$4,294,000
$257,000
Total
stockholders’ equity
$13,077,000
$7,200,000
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 that term is defined in
the Private Securities Litigation Reform Act of 1995. 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, industry specific and general
business conditions, competitive market 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, failure to
satisfy customer acceptance requirements and other risk
factors described in CVD Equipment Corporation's SEC filings.
All forward-looking statements are based on management's
estimates, projections and assumptions as of the date hereof
and CVD Equipment Corporation assumes no obligation to update
this press release.
For
further information Contact: CVD Equipment Corporation, Karen Hamberg,
Phone: 631-981-7081, Fax: 631-981-7095
or email: info@cvdequipment.com
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