CVD Equipment Corporation Announces 3rd Quarter Results
RONKONKOMA, N.Y., (Business Wire) – November 15, 2010 - CVD Equipment Corporation (NASDAQ: CVV – News) today announced its financial results for the three and nine months ended September 30, 2010.
Our revenue for the three and nine month periods ended September 30, 2010 reached approximately $4,032,000 and $11,135,000 respectively, an increase of 13.4% and 1.4% above the revenue of $3,557,000 and $10,984,000 respectively for the three and nine month periods ended September 30, 2009. Our net income of approximately $143,000 and $156,000, $0.03 per share basic and diluted for the current three and nine month periods exceeded our net income of $103,000, $.02 per share basic and diluted, for the three months ended September 30, 2009 and the net income of $27,000, $.01 per share basic and diluted for the nine months ended September 30, 2009 by 38.8% and 478.8% respectively. The increased order levels we began to experience earlier this year as a result of increased interest in energy generation, energy savings, nanotechnology, semiconductor and MEMS fields, as well as the improved availability of funds for our customers to purchase capital equipment are beginning to be converted into revenue. Profitability during the first six months of 2010 was a result of our cost containment efforts whereas, 3rd quarter profitability was additionally driven by increased revenue, a trend we expect to continue. The gross profit margins for the nine months ended September 30, 2010 increased to 33.7% compared to 31.8% for the nine months ended September 30, 2010.
During the first nine months of 2010, our markets for equipment sales improved and we received approximately $17.2 million in new orders, the highest level of orders ever received during a January to September nine month period. This is a strong indication that we are positioned with the right products and capabilities to meet our customer requirements. Based on the markets we serve in Nanotechnology and Energy, we expect this trend to continue both in the short and long term.
We continue to utilize and expand our Application Laboratory capabilities for new product developments and increasing customer material requirements in the Alternative Energy, Solar, Nanomaterial and Semiconductor fields. The addition early this year of selling CVDGraphene™ materials, is being well received by researchers worldwide in the electronic, material and bio science fields. These material sales are helping to generate additional First Nano equipment sales.
As of September 30, 2010 our backlog was approximately $7,634,000, an increase of 200% and 71% over the backlog of $2,549,000 at December 31, 2009 and $4,464,000 at June 30, 2010. Timing for completion of the backlog varies depending on the product mix and can be as long as two years. Order backlog is usually a reasonable management tool to indicate expected revenues and projected profits, however, it does not provide assurance of future achievement or profits as order cancellations and project delays are possible. Quarter to quarter backlog can vary based on the timing of order placements and shipments.
Leonard Rosenbaum, President and Chief Executive Officer states, “During the three months ended September 30, 2010 order levels are trending upward across a broad range of products. This trend has continued into the next period, as we received approximately $5,061,000 of new orders during the month of October. The $5M per month order levels reached in September and October, perhaps not sustainable continuously in the short term, are an indication of the continued steady growing acceptance of our products and solutions over many years. We do however expect continued quarter to quarter order level increases in the foreseeable future.
Our First Nano product line has become a leading platform for R&D at industrial, government and university research laboratories. Our custom CVD products are providing industrial manufacturing equipment and process solutions for a wide range of applications. Our state-of-the-art systems and solutions are being used by customers throughout the world in the fields of Solar, Superconductivity, Electronics, Energy and Nanotechnology. We will continue to add new products and customers to augment the products and loyal customer relationships we have developed over 28 years. Our designs, technologies and manufacturing capabilities are the backbone of our Company and will continue to provide opportunities for continued business growth. I repeat what I said in announcing our 2nd Quarter results… this growth trend is not an aberration, it is the result of the hard work of our dedicated employees that started 28 years ago and it continues to gain mass like a snowball going down a hill.”
About CVD Equipment Corporation
CVD Equipment Corporation is a global designer and manufacturer of equipment for use in research and manufacturing of semiconductors, solar cells, nanotubes, nanowires, graphene, products requiring chemical vapor deposition and equipment for gas handling and surface mounting of components onto printed circuit boards.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release by CVD Equipment Corporation (CVD), as well as information included in oral or other written statements made or to be made by CVD, 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's growth and sales strategies, possible customer changes in delivery schedules, cancellation of orders, delays in product shipments, delays in obtaining parts from suppliers, failure to satisfy customer acceptance requirements and other risk factors described in CVD’s SEC filings. All forward-looking statements are based on management's estimates, projections and assumptions as of the date hereof and CVD assumes no obligation to update this press release.
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