CVD Reports Second Quarter 2017 Results

CENTRAL ISLIP, N.Y., (Business Wire) – Aug 14, 2017 - CVD Equipment Corporation (NASDAQ: CVV), a leading provider of chemical vapor deposition systems, today announced its second quarter 2017 financial results.

Revenue for the second quarter was $10.8 million, an increase of 12.2% over the prior quarter and 189.3% from the same period last year. During the quarter, the Company received approximately $6.0 million in new orders. Backlog as of June 30, 2017, was $24.8 million.

“Solid execution of our growth strategy led to record revenue and strong profitability in the quarter,” said Leonard Rosenbaum, President and Chief Executive Officer. “As we deliver and execute on our large aviation project and rebuild our core business pipeline, we are achieving exceptional results. The strong performance of our systems in the field and our ongoing development of additional coating products will generate future demand in a variety of new and adjacent markets.”

Net income for the second quarter was $1.3 million compared to $1.0 million in the prior quarter and a loss of ($496,000) a year ago. Net earnings per diluted share increased to $0.20 from $0.16 in the first quarter and a net loss of ($0.08) in the second quarter of 2016.

The Company will hold a conference call to discuss its results today at 4:30 pm (Eastern Time). To participate in the live conference call, please dial toll free (877) 407-0784 or International (201) 689-8560. A telephone replay will be available for 7 days following the call. To access the replay, dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13667684. A live and archived webcast of the call is also available on the Company’s website at https://www.cvdequipment.com/event/second-quarter-2017-earnings-conference-call/

 

CVD Equipment Corporation and Subsidiaries
Condensed Consolidated Statements of Operations

(In thousands except per share information)

Three Months Ended June 30 Six Months Ended June 30
2017 2016 2017 2016
Revenue $10,830 3,744 $20,480 8,747
Gross profit 4,410 494 8,582 2,027
Operating expenses 2,580 1,475 5,034 3,540
Operating income/(loss) 1,830 (980) 3,548 (1,513)
Net income/(loss) 1,257 (496) 2,281 (833)
Diluted earnings per share $0.20 $(0.08) $0.36 $(0.13)
CVD Equipment Corporation and Subsidiaries
Condensed Consolidated Balance Sheets

(In thousands)

June 30, 2017 December 31, 2016
Assets
Current assets:
     Cash and cash equivalents $21,477 $21,677
     Accounts Receivable, net 1,852 608
     Costs and estimated earnings in excess of
     billings on contracts in progress 3,027 2,597
     Inventories 3,102 3,287
     Other current assets 344 235
        Total current assets 29,802 28,404
Property, plant and equipment, net 14,280 14,439
Deferred taxes 1,952 2,440
Other assets 272 68
Intangible assets 240 254
        Total assets $46,546 $45,605
Liabilities and stockholders' equity
Current liabilities:
     Accounts payable $1,173 $743
     Accrued expenses and other current liabilities 2,122 1,943
     Current portion of long-term debt 300 300
     Billings in excess of costs and estimated
     earnings on contracts in progress 2,985 5,262
     Deferred revenue 99 78
        Total current liabilities 6,678 8,326
Long-term debt 2,816 2,966
        Total liabilities 9,494 11,292
Total stockholders' equity 37,052 34,313
 
Total liabilities and stockholders' equity $46,546 $45,605

Earnings release should be read in conjunction with Company’s Annual Report on Form 10-K for fiscal year ended December 31, 2016

About CVD Equipment Corporation

CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and manufactures a broad range of chemical vapor deposition, gas control, and other state-of-the-art equipment and process solutions used to develop and manufacture materials and coatings for research and industrial applications. This equipment is used by our customers to research, design, and manufacture these materials or coatings for aerospace engine components, medical implants, semiconductors, solar cells, smart glass, carbon nanotubes, nanowires, LEDs, MEMS, and other applications. Through our application laboratory, we provide process development support and process startup assistance with the focus on enabling tomorrow’s technologies™. Its wholly owned subsidiary CVD Materials Corporation provides advanced metal surface treatments and coatings serving demanding applications in the biomedical, petroleum, pharmaceutical, and many other industrial markets.

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 about CVD Equipment Corporation please contact:
Gina Franco
Phone: (631) 981-7081
Fax: (631) 981-7095
Email: investorrelations@cvdequipment.com