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CVD Reports Second Quarter 2016 Results

August 11, 2016 4:05 PM

CENTRAL ISLIP, N.Y.--(BUSINESS WIRE)-- CVD Equipment Corporation (NASDAQ:CVV), a leading provider of chemical vapor deposition systems, today announced its second quarter 2016 financial results.

Total revenue for the second quarter ended June 30, 2016 was $3.7 million compared to $10.4 million in the second quarter of 2015, a decrease of 64.1%. Operating loss was $1.0 million compared to operating income of $1.5 million for the same period in 2015. Net loss was $0.5 million, or $0.08 per diluted share, compared to net income of $1.3 million, or $0.21 per diluted share in the second quarter of 2015.

New orders for the second quarter were $31.9 million compared to $13.1 million in orders in 2015, resulting in backlog of $31.0 million as of June 30, 2016 compared to $19.3 million as of June 30, 2015. Approximately $29.5 million or 95.2% of the June 30, 2016 backlog is from one customer as compared to $8.4 million or 43.5% on June 30, 2015.

“The $30 million additional order received from an aviation component supplier was the highlight of this quarter. These fiber coating systems will be a cornerstone for their new high volume facility,” said Leonard Rosenbaum, President and Chief Executive Officer. “This milestone order is a clear confirmation of the demand for our advanced technology in the aerospace industry and potentially other applications. We believe that we are in a strong position to build and diversify our backlog across a variety of advanced technology markets.”

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 (877) 870-5176 or (858) 384-5517. The replay passcode is 13636584.

CVD Equipment Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands)

Three Months Ended June 30 Six Months Ended June 30
2016 2015 2016 2015
Revenue $3,744 10,434 $8,747 20,127
Gross profit 494 4,157 2,027 7,917
Operating expenses

1,475

2,640

3,540

5,193

Operating (loss)/income (980) 1,517 (1,513) 2,724
Net (loss)/income (496) 1,335 (833) 2,003
Diluted earnings per share $(0.08) $0.21 $(0.13) $0.32

CVD Equipment Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

June 30, 2016 December 31, 2015
Assets
Current assets:
Cash and cash equivalents $14,037 $13,073
Accounts Receivable, net 7,771 3,091
Costs and estimated earnings in excess of
billings on contracts in progress 2,860 4,635
Inventories 3,085 2,987
Restricted cash -- 200
Deferred Taxes 822 398
Other current assets 28 167
Total current assets 28,603 24,551
Property, plant and equipment, net 14,455 14,828
Deferred taxes 1,816 1,607
Other assets 75 86
Intangible assets 51 60
Total assets $45,000 $41,132
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $348 $308
Accrued expenses and other current liabilities 2,747 3,446
Current portion of long-term debt 370 580
Billings in excess of costs and estimated
earnings on contracts in progress 5,193 --
Deferred revenue

27

308

Total current liabilities 8,685 4,642
Long-term debt 3,115 3,265
Total liabilities 11,800 7,907
Total stockholders' equity 33,200 33,225
Total liabilities and stockholders' equity $45,000 $41,132

This earnings release should be read in conjunction with Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2016 and the Annual Report on Form 10-K for the fiscal year ended December 31, 2015.

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™.

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.

CVD Equipment Corporation

Gina Franco, 631-981-7081

Fax: 631-981-7095

[email protected]

[email protected]

Source: CVD Equipment Corporation

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