CVD Announces Record First-Half Revenue

RONKONKOMA, N.Y., (Business Wire) – August 14, 2012 - (NASDAQ: CVVNews) CVD Equipment Corporation, a leading provider of custom chemical vapor deposition systems, today announced that it had achieved record first-half revenue of $14,249,000 for the six months ended June 30, 2012, representing a 3.9% increase over the $13,713,000 of revenue for the six months ended June 30, 2011.

Revenue for the three months ended June 30, 2012 was $7,094,000 compared to $7,155,000 in the three months ended June 30, 2011, a 3.9% decrease despite the significant effort required for planning and preparing the Company’s relocation to new headquarters scheduled to occur by October 15, 2012.

Gross margins for the three and six months ended June 30, 2012 increased by 2.7% and 2.0% respectively compared to the same periods in 2011.

Pre-tax income (excluding the sale of a building) for the three and six months ended June 30, 2012 increased by 1.0% and 8.4% respectively compared to the same periods in 2011.

Having determined that larger quarters were required to facilitate the growth of CVD, First Nano and the Application Laboratory, the Company is replacing its two Long Island buildings with a new building (also on Long Island) which will double the facility size.   The building that housed CVD’s Application Laboratory has been sold, resulting in a capital loss of approximately $694,000 or $0.12 per share pre-tax for this quarter.  This loss reduced net earnings per share to $.05 per share basic and diluted for the three months ended June 30, 2012 and to $0.18 per share basic and $0.17 per share diluted for the six months ended June 30, 2012.  Sale of the 2nd building currently housing CVD/First Nano is in contract, expected to generate a capital gain, and scheduled to close no later than October 15, 2012.  The Company anticipates the net effect of these two real estate transactions, when completed, will result in an overall net capital gain.

In addition to the condensed statement of operations in accordance with GAAP, we have included a pro-forma statement of income from operations excluding the effect of the capital loss on the sale of the building which housed the Application Laboratory.

Leonard Rosenbaum, President and Chief Executive Officer stated, “Starting in Q2 we re-directed some of our manpower toward the new facility into which we will start moving shortly.  We have also started to expand our sales effort with additional representatives, sales assistants, and direct sales personnel.  Although we have allowed our backlog to decrease to a more manageable level to ease the transition into our new quarters, based on the continuing high level of interest in our products we are confident that orders will increase going forward.  Space limitations in our current facility hindered our ability to expand production and add engineering and management personnel.  Our new significantly larger facility will enable our growth to continue both in equipment and materials with no significant increase in operating costs.”

CVD Equipment Corporation
Comparative Operating Results for the Three Months Ended June 30,
(In thousands, except for per share amounts)

         Includes Sale of Building  Excludes Sale of Building
Three Months Ended Three Months Ended
June 30 June 30, Pro Forma
2012 2011 2012 2011
Revenue $ 7,094 $ 7,508 $ 7,094 $ 7,508
Cost of revenue 4,184 4,635 4,184 4,635
Gross profit 2,910 2,873 2,910 2,873
Selling, general & administrative 1,705 1,671 1,705 1,671
Loss on sale of building 694 -- -- --
Operating income 511 1,202 1,205 1,202
Other income (expenses) (30) (38) (30) (38)
Income before income taxes 481 1,163 1,175 1,163
Income tax expense 160 385
Net income 321 778
- EPS Basic $ 0.05 $ 0.15
- EPS Diluted 0.05 .014
Weighted average shares:
Common stock - Basic 5,992 5,984
Common stock - Diluted 6,161 6,154

CVD Equipment Corporation
Comparative Operating Results for the Six Months Ended June 30,
(In thousands, except for per share amounts)

         Includes Sale of Building  Excludes Sale of Building
Six Months Ended Six Months Ended
June 30 June 30, Pro Forma
2012 2011 2012 2011
Revenue $ 14,249 $ 13,713 $ 14,249 $ 13,719
Cost of revenue 8,604 8,557 8,604 8,557
Gross profit 5,645 5,157 5,645 5,157
Selling, general & administrative 3,367 3,078 3,367 3,078
Loss on sale of building 694 -- -- --
Operating income 1,584 2,079 2,278 2,079
Other income (expenses) (44) (5) (30) (5)
Income before income taxes 1,540 2,074 2,248 2,074
Income tax expense 492 609
Net income 1,048 1,466
- EPS Basic $ 0.18 $ 0.29
- EPS Diluted 0.17 .028
Weighted average shares:
Common stock - Basic 5,992 5,984
Common stock - Diluted 6,161 6,154

 

About CVD Equipment Corporation

CVD Equipment Corporation (NASDAQ: CVV) is a designer and manufacturer of custom and standard state-of-the-art equipment used in the development, design and manufacture of advanced electronic components, materials and coatings for research and industrial applications.  CVD offers a broad range of chemical vapor deposition, gas control, and other equipment that is used by customers to research, design and manufacture semiconductors, solar cells, graphene, carbon nanotubes, nanowires, LEDs, MEMS, smart glass coatings, batteries, ultra capacitors, medical coatings, industrial coatings and equipment for surface mounting of printed circuit components.

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.

For further information please contact Karen Hamberg or CVD Investor Relations by Phone: (631) 981-7081, Fax: (631) 981-7095 or Email: investorrelations@CVDequipment.com