CVD Equipment Corporation (NASDAQ: CVV), today announced its
financial results for the fourth quarter and fiscal year ended
December 31, 2022.
Fourth Quarter 2022 Financial Results
- Revenue of $7.2 million
- Operating loss of $221,000
- Net income of $1.5 million, including the recognition of an
Employee Retention Credit of $1.5 million
- Net income per basic and diluted share of $0.23
- Bookings of $9.2 million
- December 31, 2022 backlog of $17.8 million
- Cash and cash equivalents of $14.4 million
Full Year 2022 Financial Results
- Revenue of $25.8 million
- Operating loss of $1.8 million,
- Net loss of $224,000, including the recognition of an Employee
Retention Credit of $1.5 million
- Net loss per basic and diluted share of $0.03
- Bookings of $33.1 million
Manny Lakios, President and CEO of CVD Equipment Corporation,
commented:
“We are pleased to report strong revenue growth for fiscal 2022,
an increase of 57% over the prior fiscal year. Our fourth quarter
revenue, while lower than our third quarter of 2022, was 53% higher
than our fourth quarter in 2021.”
“During the fourth quarter and full fiscal year 2022, we
recognized net income of $1.5 million and a net loss of $224,000,
respectively. Both periods included the recognition of other income
of $1.5 million for an Employee Retention Credit after we completed
an analysis that determined the Company was eligible to receive
this credit for certain quarters during fiscal 2021. These amounts
compared to a net loss of $1.2 million for the fourth quarter of
2021 and net income of $4.7 million for the full year 2021. Net
income for the full fiscal year 2021 included a gain on sale of
building of $6.9 million and a gain on forgiveness of a PPP loan of
$2.4 million.”
“CVD Equipment Corporation’s primary objective over the past two
years has been to bring the company to profitability through a
focus on products that serve high growth markets, specifically
high-power electronics, EV battery materials / energy storage and
aerospace & defense – all of which have the objective of
improving energy efficiency.”
“In the high-power electronics market, we saw demand for silicon
carbide wafers to support high power electronics for energy storage
and transmission/charging resulting in a multi-system order from a
US-based, silicon carbide wafer manufacturer. Through December 31,
2022, we have received orders for 30 of our PVT150 physical vapor
transport systems from this customer, which uses our systems to
grow silicon carbide crystals that are made into 150mm silicon
carbide wafers. During the second half of 2022, we initiated the
marketing launch of the PVT150 on our website and at a leading
trade show. We plan to increase our marketing efforts for the PVT
product line as well as expand our product offerings to
manufacturers of silicon carbide wafers.”
“In battery materials and energy storage market, we experienced
increased interest and demand for nanotechnology materials
including carbon nanotubes (CNTs), graphene and silicon nanowires
(Si-NWs) to support the development and manufacturing for battery
materials used in electric vehicles. We received two system orders
in 2021 to deposit coatings onto powders used in silicon-graphite
anodes, including a production system and a second for research and
material development. Both systems were completed in 2022.”
“In aerospace & defense, we are a leading manufacturer of
chemical vapor infiltration (CVI) and tow-coating systems to
manufacture ceramic matrix composite (CMC) materials for aerospace
gas turbine jet engine applications. CMCs can withstand extreme
temperatures and are one-third the weight of nickel alloys. CMCs
allow jet engines to run hotter thereby consuming fuel more
efficiently and emitting fewer pollutants. While the aerospace
industry has been impacted by the COVID-19 pandemic, according to
industry forecasts, the demand for CMCs for jet engines is expected
to grow in the future. During 2022, we received an order for a
production CVI system to manufacture CMCs for aerospace gas turbine
jet engines for approximately $3.7 million. Our customers now
include two of the leading manufacturers of aerospace gas turbine
engines.”
“Historically, our revenues and orders have fluctuated based on
changes in order rate as well as other factors in our manufacturing
process that impacts the timing of revenue recognition.
Accordingly, orders received from customers and revenue recognized
may fluctuate from quarter to quarter. We are committed to stay the
course of our strategy to achieve consistent long-term
profitability, with a focus on growth and return on investment. We
look forward to communicating with you in our upcoming conference
call.”
Management Conference Call and Webcast
The Company will hold a conference call to discuss its results
today at 5:00 pm (Eastern Time). To participate in the live
conference call, please dial toll free (877) 407-2991 or
International (201) 389-0925. A telephone replay will be available
for 7 days. To access the replay, dial (877) 660-6853 or
international (201) 612-7415. The replay passcode is 13736698.
A live and archived webcast of the call will also be available
on the company's website at www.cvdequipment.com/events. The
archived webcast will be available at the same location
approximately two hours following the end of the live event.
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and
manufactures a broad range of chemical vapor deposition, physical
vapor transport, gas and chemical delivery control systems, and
other equipment and process solutions used to develop and
manufacture materials and coatings for industrial applications and
research. Our products are used in production environments as well
as research and development centers, both academic and corporate.
Major target markets include high power electronics (silicon
carbide), EV battery materials / energy storage (carbon nanotubes,
graphene and silicon nanowires) and aerospace & defense
(ceramic matrix composites). Through its application laboratory,
the Company allows customers the option to bring their process
tools to our laboratory and to work collaboratively with our
scientists and engineers to optimize process performance.
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, market and business conditions, the
success of CVD Equipment Corporation’s growth and sales strategies,
the possibility of customer changes in delivery schedules,
cancellation of, or failure to receive orders, potential delays in
product shipments, delays in obtaining inventory parts from
suppliers and failure to satisfy customer acceptance requirements,
competition in our existing and potential future product lines of
business, including our PVT150 system; our ability to obtain
financing on acceptable terms if and when needed; uncertainty as to
our ability to develop new products for the high power electronics
market; uncertainty as to our future profitability; uncertainty as
to any future expansion of the Company; uncertainty as to our
ability to adequately obtain raw materials and components from
foreign markets in light of geopolitical developments; and the
continued effect of the COVID-19 pandemic on our business and
operations (including with respect to supply chain disruptions),
and those of our customers, suppliers and other third parties and
other risks and uncertainties that are described in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2021 and
the Company’s other filings with the Securities and Exchange
Commission. For forward-looking statements in this release, the
Company claims the protection of the safe harbor of the Private
Securities Litigation Reform Act of 1995. The Company assumes no
obligations to update or supplement any forward-looking statements
whether as a result of new information, future events or otherwise.
Past performance is not a guarantee of future results.
CVD EQUIPMENT CORPORATION AND
SUBSIDIARIES
Condensed Consolidated
Statements of Operations
(In thousands, except per share
data)
(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Revenue
$
7,234
$
4,717
$
25,813
$
16,447
Gross profit
2,000
772
6,627
3,077
Operating expenses
2,221
1,812
8,450
7,741
Operating (loss)
(221)
(1,040
)
(1,823
)
(4,664
)
Net income (loss)
$
1,549
(1)
$
(1,191
)
$
(224)
(1)
$
4,747
(2)
Basic and diluted income (loss) per
share
$
0.23
$
(0.18)
$
(0.03)
$
0.71
(1)
Net income for the three months and year
ended December 31, 2022 includes $1.5 million of other income
related to the recognition of Employee Retention Credits for two
quarterly periods in 2021.
(2)
Net income for the year ended December 31,
2021 includes a $6.9 million gain on sale of a building and a $2.4
million gain on forgiveness of a PPP loan.
CVD EQUIPMENT CORPORATION AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
December 31,
2022
December 31,
2021
Assets
Current assets
Cash and cash equivalents
$
14,365
$
16,651
Accounts receivable, net
3,788
1,446
Contract assets
2,170
2,538
Inventories, net
2,538
1,225
Income taxes receivable
-
716
Other current assets
797
494
Total current assets
23,658
23,070
Employee retention credit receivable
1,529
-
Property, plant and equipment, net
12,596
12,261
Other assets
129
193
Total assets
$
37,912
$
35,524
Liabilities and Stockholders'
Equity
Current liabilities
$
8,164
$
6,336
Long-term debt, net of current portion
349
-
Total stockholders’ equity
29,399
29,188
Total liabilities and stockholders’
equity
$
37,912
$
35,524
This earnings release should be read in conjunction with the
Company’s filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-K for fiscal year ended
December 31, 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230327005519/en/
Richard Catalano, Vice President & CFO Phone:
(631) 981-7081 Fax: (631) 981-7095 Email:
investorrelations@cvdequipment.com
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