CVD revenue rose 20.1% to record-breaking levels
CVD Equipment Corporation (NASDAQ: CVV) announced that it has achieved record-breaking revenue for both the three and nine month periods ended September 30, 2015.
CVD’s revenue rose 20.1% to a record-breaking level of $10.6 million for the current quarter ending September 30, 2015 compared to $8.9 million in revenue for the quarter ended September 30, 2014. For the current nine month period, CVD’s revenue rose 59.0% to a record-breaking $30.8 million compared to $19.4 million in revenue for the nine month period ended September 30, 2014. CVD also reported net earnings of $0.8 million or $0.13 per basic and diluted share and $2.8 million or $0.46 per share basic and $0.45 per share diluted for those respective periods compared to earnings of $0.9 million or $0.14 per share basic and diluted and $0.8 million or $0.13 per share basic and diluted for the three and nine months ended September 30, 2014.
The company incurred legal fees and settlement costs of $1.2 million during the quarter ended September 30, 2015 and $1.6 million during the nine months ended September 30, 2015 related to the settlement of an outstanding claim. Without this non-recurring charge, CVD would have achieved net income of $2.0 million or $0.32 per diluted share for the three months ended September 30, 2015 and $4.4 million or $0.69 per diluted share for the nine months ended September 30, 2015
New orders for the quarter were $2.9 million, as a result, the company’s backlog decreased to $11.5 million at September 30, 2015, a decrease of 5.0% compared to the $12.1 million backlog at September 30, 2014. The Company received $21.2 million in new orders during the nine months ended September 30, 2015 compared to $27.5 million in new orders received during the nine months ended September 30, 2014, a decrease of 22.9%. The timing of the receipt of an order is subject to various factors, most of which are not under our control. As a result, our order levels from period to period, tend to be uneven. Order levels attained in one period are not necessarily indicative of order levels that will be attained in future periods. Although timing for completion of backlog varies depending on the product mix and can be longer.
The company continues to maintain a strong cash position and a healthy working capital ratio.
Leonard Rosenbaum, President and Chief Executive Officer stated: “A significant portion of our orders this year came from existing customers who rely on CVD to further expand their production capacity with both repeat and new innovative equipment. We continue to manufacture, deliver and start-up these large orders, especially orders for the initial systems with new technology that our customers need to execute on their significant production plans. We expect to continue to be a key supplier in that expansion strategy over the coming years.
“As new technologies develop we use our talents to design and manufacture the state of the art process equipment that is needed to prove these concepts. We work with our customers from the research state, to launching the process in production and in the capacity ramp to full production. In doing this, we have made significant advances in custom chemical deposition equipment for medical, aerospace, nanomaterials and other applications. As we work with our customers in research and equipment development we continue building the technology base that fuels our growth.”