CVD Equipment Corporation Announces Record 3 and 9 Month Revenues
Thursday November 13, 9:15 am ET
RONKONKOMA, N.Y.--(BUSINESS WIRE)--CVD Equipment Corporation (Nasdaq: CVV) today announced that it has achieved record 3 and 9 month revenues and its sixteenth consecutive profitable quarter. Revenue for the three and nine months ending September 30, 2008 was approximately $4,884,000 and $13,196,000, respectively, compared to $3,303,000 and $10,185,000, respectively, for the three and nine months ending September 30, 2007, an increase of 47.9% and 29.6% as we continue to experience an increasing demand for our products. The revenues achieved in the current three month period exceeded the record revenues previously achieved in the three month period ended June 30, 2008 by 14.4%. We attribute the increase in revenue to the intensified marketing and selling effort for all of our products that began in 2007. Our overall gross profit percentage decreased to 26.6% and 27.8% for the current three and nine months compared to 32.2% and 34.3% for the same periods one year ago. The decrease is a result of implementing our previously stated expansion plans of adding engineering and production personnel necessitated by the increase in quotation activity, orders, expansion of our First Nano Laboratory and new product development in the Solar, Energy, Nanomaterials and Semiconductor fields. Selling, general and administrative expenses for the three and nine months ending September 30, 2008 increased by approximately $336,000 and $632,000 or 37.7% and 21.8%, respectively, to support our continued sales growth and expanded product development.
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Our net income for the current three and nine months was approximately $129,000 and $155,000 respectively, or $0.03 per share basic and diluted for both periods, compared to $276,000 or $0.08 per share basic and diluted for the three months ending September 30, 2007 and $537,000 or $0.16 per share basic and diluted for the nine months ending September 30, 2007. The decrease was primarily attributable to a settlement agreement resolving litigation in 2007, in which we agreed to accept payment of $541,600.
As of September 30, 2008 the Company’s backlog was approximately $5,240,000, an increase of $153,000 or 3.0% compared to the backlog of $5,087,000 at December 31, 2007 and a 30.4% increase compared to the backlog of 4,017,000 at June 30, 2008.
Leonard Rosenbaum, President and Chief Executive Officer stated, “Our record revenues, record order levels and significant quotation activity continue to show a strong acceptance of our equipment and process solutions. For the third quarter we continued expanding our sales, engineering and manufacturing efforts to further broaden the First Nano and CVD product lines and meet delivery requirements. We are also addressing significant applications that will incorporate CVD proprietary and patent pending thin film solutions for enabling tomorrow’s technology™ needs in the solar and energy markets.
The first thin film market segment is a continuous thin film Atmospheric Pressure Chemical Vapor Deposition (APCVD) of Transparent Conductive Oxide (TCO) coatings for Photovoltaics (Solar Energy) and Low-E coatings (energy efficient windows).
The second thin film market segment is a high throughput Silicon Epitaxial Chemical Vapor Deposition System for a lower cost manufacturing solution in the solar and power semiconductor markets. The ability to economically deposit a quality silicon thin film onto a re-usable, inferior or non-silicon substrate and thereby form the basis for a solar cell will significantly reduce overall manufacturing costs and the need for high quality silicon substrates.
The large demand for products that address rising energy costs creates a growing demand for manufacturing solutions using thin film coatings on glass, wafers and other substrates. Using our application laboratory we will perfect and expand the multiple areas where these thin film manufacturing solutions can be applied and further optimize our proprietary and patent pending technologies for cost and performance. The solar, energy and power semiconductor markets we are addressing with multiple products have significant growth opportunities for technologies that deliver favorable price benefits.”
This press release contains forward-looking statements set within the meaning of the Private Securities Litigation Reform Act of 1995, except for historical information contained herein; the matters set forth in this news release are forward-looking statements. Readers should note that the forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including, without limitation, the uncertainties discussed under the caption “Risk Factors” in the Company’s Registration Statement on Form S-1 filed with the SEC on July 3, 2007, as subsequently amended, which discussion is incorporated herein by reference. Readers should also read the periodic filings and current Form 8-K reports of the Company.
CVD Equipment Corporation
Comparative Operating Results for the
Three and Nine Months ended September 30
Three months Ended
Nine Months Ended
9/30/08 9/30/07 9/30/08 9/30/07
Revenue $ 4,884,000 $ 3,303,000 $ 13,196,000 $ 10,185,000
Cost of revenue 3,587,000 2,238,000 9,530,000 6,693,000
Gross profit 1,297,000 1,065,000 3,666,000 3,492,000
Operating expenses 1,228,000 892,000 3,529,000 2,897,000
Operating income 69,000 173,000
137,000
595,000
Net income 129,000 276,000 155,000 537,000
Net income
Per share basic $ 0.03 $ 0.08 $ 0.03 $ 0.16
Per share diluted 0.03 0.08 0.03 0.16
Weighted average
shares of common
stock outstanding
Basic 4,734,717 3,395,321 4,733,416 3,327,256
Diluted 4,785,180 3,517,740 4,770,063 3,461,411 |
