Excellent year end EPS report with record sales, 9th consecutive quarter of profits and strong rise in cash flow. CVV is up in the aftermarket:
CVD Equipment Corporation Reports Fourth Quarter and Fiscal Year 2006 Results
Monday March 26, 4:48 pm ET
RONKONKOMA, N.Y., March 26 /PRNewswire-FirstCall/ -- CVD Equipment Corporation (Amex: CVV - News), a global designer, manufacturer and supplier of equipment for use in manufacturing semiconductors, solar cells, carbon nanotubes, nanowires and equipment for surface mounting of components onto printed circuit boards, today announced that it has achieved profitable results for the third consecutive year.
Revenue for the fiscal year ended December 31, 2006 was a record $13,356,000 compared to $11,225,000 for the fiscal year 2005, representing an increase of $2,131,000 or 19.0%. The increase in demand for custom CVD systems coupled with requests for equipment provided by the First Nano product line, which we acquired in May, 2005, has fueled this increase. Earnings for the current fiscal year, before stock option costs and taxes were $1,066,000 compared to $455,000 for the year ended December 31, 2005. This represents an increase of 134.3%. As required by SFAS 123-R, stock option costs of $169,000 were expensed in the current period, while no stock option costs were expensed in the prior period. Earnings before interest, taxes, depreciation and amortization (EBITDA), were $1,478,000 for the year ended December 31, 2006 compared to $1,025,000 for the year ended December 31, 2005, an increase of 44.2%. Net income for the current fiscal year was approximately $604,000, or $0.19 per basic and diluted share. This compares to net income of $391,000, or $0.13 per basic and $0.12 per diluted share for fiscal 2005, an increase of 54.5%.
Revenue for the fourth quarter of fiscal 2006 was approximately $3,398,000 while fiscal 2005 fourth quarter revenue was $2,967,000 representing a 14.5% increase. The Company has continued to experience an increase in demand for its custom product line in addition to demand for equipment provided by the First Nano product line. Net income for the three months ended December 31, 2006 was $239,000 compared to $62,000 for the three months ended December 31, 2005 representing an increase of 285.5%.
At December 31, 2006, our order backlog, which is comprised of customer orders that are expected to ship within the next six months, increased by 34.6% to $3,565,000 compared to $2,648,000 at December 31, 2005. Our backlog at any specific point in time is not necessarily indicative of actual revenues or earnings for any succeeding period due to possible customer changes in delivery schedules or cancellation of orders, and because backlog does not provide any assurance of a profit from those orders.
Leonard Rosenbaum, President and Chief Executive Officer stated, "I am pleased not only with our year end 2006 results, but with the progress we have made over the years in our engineering, manufacturing and production departments. This is our ninth consecutive profitable quarter and a record year in revenue. Our business plan of internal growth, growth through acquisitions, controlling costs thru vertical integration and leveraging our engineering and manufacturing across a diverse product line is working.
Going forward, we expect 2007 to be an interesting year. The years CVD has spent in engineering a variety of systems and software enables us to rapidly employ the building blocks we routinely use to engineer finished products. Our Windows based software platform allows for rapid configuration to all of our products. This real time, proprietary software provides our customers with a powerful tool to understand and optimize their process whether in research or production. Our vertical integration in manufacturing allows us to bring in raw metal and parts and send out finished products. These factors have significantly reduced our costs and the time it takes from order to shipment. It has taken many years of investment and dedicated hard work by our employees to reach this point and we will continue to build on this base.
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.
This earnings release should be read in conjunction with the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006.
CVD Equipment Corporation
Summary of Consolidated Statements of Operations
Years Ended December 31,
2006 2005
Revenue $ 13,355,778 $ 11,225,316
Income before stock option
expense and taxes 1,066,177 455,481
Income before taxes 896,913 455,481
Net Income 604,326 390,911
Net Earnings
Per share basic $ 0.19 $ 0.13
Per share diluted $ 0.19 $ 0.12
Weighted Average Shares of
Common Stock Outstanding
Basic 3,169,177 3,097,698
Diluted 3,263,533 3,220,097
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Source: CVD Equipment Corporation |
