CVD Equipment Reports Strong Q4 2024 Growth and Future Outlook
CVD Equipment Corporation CVV has released its financial results for the fourth quarter and the full fiscal year ending December 31, 2024.
Manny Lakios, President and CEO of CVD Equipment, stated, “For the fourth quarter of 2024, we achieved revenue of $7.4 million, marking an 80.3% increase compared to the same quarter last year. Our backlog as of December 31, 2024, stands at $19.4 million, significantly up from $18.4 million at the end of 2023.”
He noted, “Throughout 2024, we have observed a continuing recovery within the aerospace and defense markets. As mentioned earlier, in November, we secured a $3.5 million follow-on order for our CVI 3500™ system from a returning aerospace client.”
Lakios also addressed challenges in the silicon carbide market, stating, “This sector has faced issues due to overcapacity and falling wafer prices. The customer who received our first PVT200™ system, shipped in late 2024, is currently assessing its performance for potential further orders. We remain dedicated to supporting our existing PVT150™ systems while seeking new sales opportunities for both PVT150™ and PVT200™ systems.”
He added, “While the fourth quarter marks our second straight quarter of positive net income, we anticipate continued fluctuations in our orders and revenue levels, reflecting the volatile nature of our target growth markets. Moreover, the ongoing geopolitical climate and the potential for tariffs could impact our supply chain and cost structures in fiscal 2025 and beyond. Our focus remains on cultivating critical customer relationships, managing expenses prudently, and striving for long-term profitability and positive cash flow while emphasizing growth and return on investment.”
Fourth Quarter 2024 Financial Performance
- Revenue totaled $7.4 million, which reflects an increase of $4.1 million or 80.3% year-over-year, fueled by rising system revenue in our CVD segment and growth in gas delivery systems within our SDC segment.
- In this quarter, we recorded a $0.3 million non-cash charge to adjust our PVT150™ inventory to net realizable value based on market changes for 150 mm SiC wafers.
- Despite improvements in gross profit margin due to a favorable contract mix, this was offset by the inventory charge. The previous year’s quarter was affected by significant cost overruns on one contract.
- Our operating income was $35,000, a notable improvement compared to an operating loss of $2.5 million in the same quarter the previous year.
- Net income reached $132,000 or $0.02 per basic and diluted share, contrasting with a net loss of $2.3 million or $0.33 per basic and diluted share a year earlier.
- Cash and cash equivalents at December 31, 2024, were $12.6 million, down from $14.0 million one year prior.
Full Year 2024 Financial Performance
- Total revenue for 2024 was $26.9 million, up $2.8 million or 11.5% year-over-year, primarily driven by growing aerospace contracts and performance from our SDC segment. Notably, this revenue includes $0.8 million from final sales by our MesoScribe segment, which ceased operations in 2024.
- The gross profit margin percentage for 2024 climbed to 23.6% from 21.0% in the previous year, reflecting higher sales and improved margins on ongoing CVD contracts.
- Throughout the fiscal year, we acknowledged a $1.3 million non-cash charge to lower our PVT150™ inventory to net realizable value.
- Although our gross profit margin improved due to a favorable contract mix, it was partially affected by the aforementioned inventory charge.
- The Company reported total equipment sales gains of $0.7 million, primarily from our MesoScribe subsidiary.
- Operating loss for 2024 was $2.4 million.
- Net loss stood at $1.9 million or $0.28 basic and diluted share, compared to a net loss of $4.2 million or $0.62 per basic and diluted share in the prior year.
Fourth Quarter 2024 Operational Performance
- Orders in the fourth quarter amounted to $7.1 million, driven by sustained demand from the aerospace sector and for gas delivery equipment from our SDC segment.
- One significant order placed in the quarter was valued at $3.5 million for a new aerospace system, scheduled for delivery over the next 12 months.
Full Year 2024 Operational Performance
- Total new orders booked for the fiscal year were $28.1 million, representing an 8.9% increase from 2023’s bookings of $25.8 million. This growth corresponds to an uptick in aerospace and industrial orders.
- Our backlog as of December 31, 2024, was $19.4 million, an increase of $1.0 million from the previous year’s end.
- We continue to invest in research and development, as well as sales and marketing, with a focus on our three strategic markets: aerospace & defense, microelectronics/power electronics, and EV battery materials/energy storage.
Management Conference Call and Webcast
CVD Equipment will host a conference call to review these results today at 5:00 PM Eastern Time. Participants can join the call by dialing toll-free (877) 407-2991 or (201) 389-0925 for international calls. A replay will be accessible for seven days at (877) 660-6853 or (201) 612-7415, with the passcode 13752303.
A live and archived webcast of the call will also be available on the company’s website at www.cvdequipment.com/events, with the archived version uploaded approximately two hours after the live event concludes.
About CVD Equipment Corporation
CVD Equipment Corporation CVV designs, develops, and manufactures a broad range of chemical vapor deposition, thermal processing, physical vapor transport, gas, and chemical delivery systems, serving various market sectors.
Insights on CVD Equipment Corporation’s Market Strategy and Performance
CVD Equipment Corporation specializes in delivery control systems and process solutions employed in the development and production of materials and coatings for industrial applications and research. Their products find utility in both production settings and research and development environments across academic institutions and corporate entities. Major sectors targeted by the company include:
- Aerospace & Defense (ceramic matrix composites)
- High Power Electronics (silicon carbide)
- Electric Vehicle (EV) Battery Materials / Energy Storage (carbon nanotubes, graphene, and silicon nanowires)
The company also operates an application laboratory where customers can collaborate with CVD’s scientists and engineers. This partnership allows clients to optimize their process performance by bringing their tools into the laboratory for hands-on support.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Certain information in this press release includes statements that are categorized as forward-looking. These statements, defined under Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, do not pertain to historical facts but reflect expectations and intentions regarding future events.
Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that could lead to actual results differing materially from those discussed. These potential risks include, but are not limited to:
- Market and business conditions
- The success of CVD’s growth and sales strategies
- Customer changes in delivery schedules
- Order cancellations or failures to receive orders
- Delays in product shipments or inventory parts procurement from suppliers
- Competition within current and future product lines, especially PVT systems
- Challenges in obtaining financing on favorable terms
- Uncertainties regarding product development in the high power electronics market
- Concerns surrounding future profitability and company expansion
- Potential issues acquiring raw materials from international markets due to geopolitical concerns
For a comprehensive overview of risks and uncertainties, refer to the Company’s Annual Report on Form 10-K for the year ending December 31, 2024, along with other filings with the Securities and Exchange Commission. The Company claims protection under the safe harbor provisions for any forward-looking statements in this announcement and has no obligations to update such statements due to new information, future developments, or otherwise. Please note that past performance does not guarantee future results.
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CVD Equipment Corporation and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data – Unaudited) |
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Three Months Ended December 31, |
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Year Ended |
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# Financial Performance Summary for 2023 and 2024
|
|
2024 |
|
|
2023 |
|||||||||||||||
|
Revenue |
|
$ |
7,414 |
|
|
$ |
4,111 |
|
|
$ |
26,876 |
|
|
$ |
24,109 |
|
|||
|
Cost of Revenue |
|
|
5,387 |
|
|
|
4,459 |
|
|
|
20,545 |
|
|||||||
# Financial Summary: Key Metrics and Earnings Reports
|
|
|
19,038 |
|
||
|
Gross profit |
|
|
2,027 |
(348) |
|
|
Operating expenses |
|
|
|
|
|
|
Research and development |
|
|
6,331 |
|
|
|
|
|
|
5,071 |
|
|
Financial Data Reveals Key Insights into Company Performance
|
Selling |
|
|
388 |
|
|
|
351 |
|
|
|
|
1,656 |
|
|
|
1,632 |
|
||
|
General and administrative and other |
|
|
1,124 |
|
|
Overall, the financial data presented in the table indicates varied figures in sales and administrative costs. The selling expenses alone totaled 388, with an additional figure of 1,656 noted in other costs. General and administrative expenses reached 1,124.# Equipment Sales Impact Operating Expenses: Key Financial Insights
|
|
1,041 |
|
|
|
5,181 |
|
|
|
* 5,724 |
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Gains on sales of equipment |
|
|
(92 |
) |
|
|
– |
|
|
|
(717 |
) |
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|
– |
|
|||
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Total operating expenses, net |
|
|
1,992 |
|
|
|
Company Reports Significant Operating and Net Income Losses
|
2,123 |
8,747 |
9,952 |
|||||||||||||||
|
Operating income (loss) |
35 |
(2,471) |
(2,416) |
(4,881) |
|||||||||||||
|
Net income (loss) |
$ |
132 |
$ |
(2,274) |
# CVD Equipment Corporation Reports Financial Losses in Recent Quarter
## Summary of Income and Losses
CVD Equipment Corporation disclosed significant financial results for the current quarter. The company’s basic and diluted income (loss) per share is reported as follows:
– **Basic and diluted income (loss) per share:**
– Current quarter: $0.02
– Previous quarter: $(0.33)
– Same quarter last year: $(0.28)
– Year-to-date: $(0.62)
The figures indicate a complex financial landscape, with losses from operations heavily influencing the financial performance.
### Details of Financial Impact
The recent report identifies a total loss including:
– **Losses attributed to subsidiaries:**
– Loss on the sale of Tantaline subsidiary amounting to $0.2 million.
– An impairment charge related to MesoScribe fixed assets of $0.1 million.
These charges amplify the financial burdens the company is facing, contributing to the overall loss figures shared.
## Condensed Consolidated Balance Sheets
Moving onto the balance sheet, CVD Equipment Corporation’s condensed consolidated balance sheets are presented (in thousands, unaudited). The financial highlights are not yet available in this record, but will be discussed in subsequent reports.
### Current Financial Structure
As of the latest reporting dates, specific data points on assets, liabilities, and shareholder equity are expected to shed light on the company’s overall financial health. Analysts look forward to understanding the strategic responses CVD Equipment will deploy to mitigate recorded losses.
—
Overall, the report evidences CVD Equipment’s ongoing struggle with profitability, underscoring the need for strategic reevaluation as it navigates through the adverse impacts of recent operational decisions.# Financial Snapshot: Company Assets as of December 31, 2023
## Overview of Assets
As we review the financial data for the close of the financial year on December 31, 2023, it is important to note the key elements of the company’s asset composition as it positions itself for the coming year, 2024.
### Total Assets on December 31, 2023
The total assets of the company have a significant role in assessing its financial health. The asset breakdown is categorized into current and contracted assets, which are crucial for evaluating liquidity and operational capacity.
#### Current Assets Breakdown
– **Cash and Cash Equivalents**
This line item holds significant importance as it reflects the company’s immediate liquidity. As of December 31, 2023, the total cash and cash equivalents amounted to **$14,025**. This contrasts with **$12,598** from the previous year, indicating a positive trend in liquid assets.
– **Accounts Receivable, Net**
Current receivables, net of allowances, reported at **$1,906** illustrate the company’s efficient collection processes. Last year, this figure was at **$2,149**.
– **Contract Assets**
While specifics on contract assets have yet to be assessed, they will play an important role in the forward-looking financial strategies of the company.
### Key Comparisons and Trends
By analyzing the year’s performance, stakeholders can observe significant trends in asset management. The increase in cash and cash equivalents suggests that the company has bolstered its liquidity, potentially providing more room for operational flexibility and future investments.
Current metrics not only highlight short-term financial health but also provide an essential insight into ongoing operational effectiveness. As the company prepares for 2024, understanding these current asset trends will be paramount in shaping strategic decisions and maintaining competitive advantages in the market.# Financial Breakdown of Current Assets and Equipment
## Current Asset Overview
|
2,226 |
|
|
|
1,604 |
|||
|
Inventories |
|
|
2,115 |
|
|
|
4,454 |
|
Other current assets |
|
|
898 |
|
|
|
852 |
|
Total current assets |
|
19,986 |
|
|
22,841 |
||
|
Property, plant and equipment, net |
|
|
11,699 |
|
|
|
12,166 |
|
Other assets |
|
|
# Financial Snapshot: Overview of Total Assets and Liabilities
## Total Assets Overview
|
1 |
|
|
|
18 |
|||
|
Total assets |
|
$ |
31,686 |
|
|
$ |
35,025 |
## Liabilities and Stockholders’ Equity
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Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
6,137 |
|
|
$ |
8,554 |
# Summary
The first table outlines the total assets, indicating a rise from $31,686 to $35,025. The second table presents liabilities and stockholders’ equity, showing current liabilities of $6,137 and long-term debt specifics that remain to be detailed. This financial snapshot provides a concise summary of the company’s asset and liability position.
Company Reports Total Stockholders’ Equity of Over $25 Billion
|
|
181 |
|
|
|
268 |
||
|
Total stockholders’ equity |
|
|
25,368 |
|
|
|
26,203 |
|
Total liabilities and stockholders’ equity |
|
$ |
31,686 |
|
|
$ |
35,025 |
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 the fiscal year ended December 31, 2024.
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For further information about this topic please contact:
Richard Catalano, Executive Vice President & CFO
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Email: [email protected]
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