CVD Equipment Corporation Reports Record Fiscal 2011 Results
RONKONKOMA, N.Y., (Business Wire) – March 27, 2012 – CVD Equipment Corporation (NASDAQ: CVV) announced record revenue and earnings for the year ending December 31, 2011.
Our record revenue for fiscal year 2011 reached approximately $30,994,000 exceeding our annual 2010 revenue of $16,258,000 by 91%. We also achieved record net earnings of $3,779,000 or $0.69 per basic share and $0.67 per diluted share for the year ended December 31, 2011 which exceeded our net earnings of $532,000 or $0.11 per basic and diluted share for year ended December 31, 2010 by 610%.
Revenue for the three months ended December 31, 2011 was approximately $8,436,000 an increase of $3,313,000 or 65% over the $5,123,000 reached during the three months ended December 31, 2010. For the three months ended December 31, 2011, we achieved net earnings of approximately $1,075,000 or $0.18 per share basic and diluted compared to approximately $375,000 or $0.08 per share basic and diluted for the three months ended December 31, 2010.
During 2011, with our strengthened balance sheet, we were able to acquire a larger bank line of credit at a reduced interest rate; pay off various equipment loans and replace certain existing mortgages with term loans at a significantly lower interest rate; and purchase a new facility, that is almost twice the size of our current two facilities in Ronkonkoma, with a mortgage at an attractive interest rate.
Our backlog on December 31, 2011 was $16,198,000 an increase of $6,264,000 or 63% compared to $9,944,000 as of December 31, 2010. Timing for completion of order backlog varies depending on the product mix and can be as long as two years. Order backlog usually is a reasonable management tool to indicate future revenues and profits, however it does not provide an assurance of future achievement of revenues or profits as order cancellations or delays are possible. Backlog from quarter to quarter can vary based on the timing of order placements and shipments.
The increase in revenue and income is attributed to the conversion of backlog that started to increase in the second half of 2010. We continue to experience demand for our products that are needed in energy generation, energy storage, aerospace, medical, LEDs, graphene, nanowires and nanotubes. This creates a growing need for custom R&D and Production solutions using 1D, 2D and 3D nanotechnology and thin film coatings on glass, wafers and other substrates or materials.
Leonard Rosenbaum, President and Chief Executive Officer stated: “In 2011 we had major growth in both order levels and revenues. This growth stretched our Ronkonkoma manufacturing facility to its limit and restricted our ability to hire additional personnel to further increase our manufacturing capability. This constraint should be eliminated starting in Q3, 2012 since we recently closed on the purchase of a facility that is almost twice the size of the two facilities in Ronkonkoma that we currently occupy and will be selling. The monthly carrying charges for this significantly larger facility are less than the costs attributable to the two facilities we will be selling.
Our quotation level continues to grow and we anticipate 2012 to be another strong year. Our ability to work with customers to solve their process issues and to define, design and manufacture customized equipment needed to meet their production needs will continue to provide significant order levels in both the near and long term. Our First NanoTM EasyTube® product family keeps us in the forefront of technology and continues to expand by serving University, Industrial and Government Research Laboratories and Startup companies throughout the world in fields such as Nanotubes (Carbon and Boron Nitride), Graphene, Nanowires (Zinc Oxide, Gallium Nitride, Silicon,) Solar Cells, MEM’s, Energy generation and storage, Semiconductors and Light Emitting Diodes. Our Application Laboratory together with our wholly owned subsidiary, CVD Materials Corporation will provide research and the further implementation of our business plan to offer our assistance in accelerating the commercialization of the next generation products on CVD production equipment platforms. The Company will continue to expand our technology, products and customer base in 2012”.
CVD Equipment Corporation
Comparison of Consolidated Statements of Operations
For the Twelve Months Ended December 31, 2011 vs. December 31, 2010
|Income before income taxes||$4,787,640||741,567|
|Per share basic||$0.69||$0.11|
|Per share diluted||$0.67||$0.11|
Earnings release should be read in conjunction with Company’s Annual Report on Form 10-K for fiscal year ended December 31, 2011
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, 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 and failure to satisfy customer acceptance requirements.