CVD Reports 108% Order Increase in Q2

CVD Equipment Corporation (NASDAQ:CVV), a leading provider of custom chemical vapor deposition systems, today announced its financial results for the three and six months ended June 30, 2014.

CVD reported new orders of approximately $5,364,000 for the three months ended June 30, 2014 compared to new orders totaling $2,574,000 for the three months ended June 30, 2013, an increase of 108%. Revenue for the three months ended June 30, 2014 was $6,107,000 compared to $4,848,000 for the three months ended June 30, 2013, an increase of 26%. The Company recorded pre-tax income of $141,000 and net income of $202,000 or $0.03 per share basic and diluted during this 2nd quarter of 2014 compared to pre-tax income of $1,005,000 and $874,000 or $0.14 per share basic and diluted for the three months ended June 30, 2013. Last year’s results for the three months ended June 30, 2013 included the one-time capital gain of $887,000 on the sale of our former headquarters.

CVD reported new orders of approximately $21,089,000 for the six months ending June 30, 2014, an increase of 267% over the $5,748,000 of new orders for the six months ended June 30, 2013. Revenue for the six months ended June 30, 2014 was approximately $10,492,000, surpassing by 26.4% the revenue of $8,298,000 achieved in the six months ended June 30, 2013. The Company recorded pre-tax income of $92,000 during the six months ended June 30, 2014 compared to pre-tax income of $102,000 for the six months ended June 30, 2013. During the six months ended June 30, 2014, the Company sustained a net loss of $($66,000) or ($0.01) per share both basic and diluted, primarily the result of a one-time write off of state-level deferred tax assets of $381,000 due to the elimination of NYS income tax for qualified manufacturing companies such as CVD. During the six months ended June 30, 2013, the Company reported net income of $434,000 which included a one-time capital gain of $887,000 on the sale of our former headquarters.

The Company continues to maintain a strong cash position of approximately $9,400,000. The backlog as of June 30, 2014 was approximately $14,514,000 compared to the backlog of $5,516,000 as of June 30, 2013. Although timing for completion of backlog varies depending on the product mix and can be as long as two years, the Company believes a significant portion of its current backlog will be completed within the next twelve months.

Leonard Rosenbaum, President and Chief Executive Officer, stated: “We continue to see opportunities in the key markets we are pursuing. Chemical vapor deposition applications in aerospace, medical, research and production equipment for nano materials will continue to drive our business. We are happy to announce that in the later part of Q2, 2014 we received a follow on order from a major medical supply company for additional deposition systems to coat implants. The use of chemical vapor deposition equipment in the medical and aerospace fields will continue growing in the future.

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