CVD Equipment Corporation Reports Fourth Quarter and Fiscal Year 2023 Financial Results
Fourth Quarter 2023 Financial Performance
-
Revenue of
$4.1 million , down$3.1 million or 43.2% year over year primarily due to lower system revenues. - Gross profit margin percentage was a negative 8.5% due to a large contract that experienced significant cost overruns during the quarter.
-
Operating loss of
$2.5 million . -
Net loss of
$2.3 million or$0.33 basic and diluted share, compared to a net income of$1.5 million or$0.23 per basic and diluted share during the prior year fourth quarter. Net income in 2022 included$1.5 million of other income related to the recognition of Employee Retention Credits related to fiscal 2021. -
Cash and cash equivalents of
$14.0 million as ofDecember 31, 2023 .
Full Year 2023 Financial Performance
-
Revenue of
$24.1 million , down$1.7 million or 6.6% year over year primarily due to the disposition of Tantaline and the wind down of MesoScribe’s operations. - Our gross profit margin percentage was 21.0% in 2023 as compared to 25.7% in the prior year due to a large contract in 2023 that experienced significant cost overruns and other higher margin system contracts in 2022.
-
Operating loss of
$4.9 million . -
Net loss of
$4.2 million or$0.62 basic and diluted share, compared to a net loss of$0.2 million or$0.03 per basic and diluted share in the prior year. Net loss in 2022 included$1.5 million of other income related to the recognition of Employee Retention Credits.
Fourth Quarter 2023 Operational Performance
-
Orders for the fourth quarter were
$5.8 million driven by continued demand in the aerospace sector and in our SDC segment for gas delivery equipment. -
Received a
$2.1 million system order in the aerospace sector that will be delivered over the next 12 months. -
Received a
$1.0 million order in our SDC segment for gas delivery equipment. -
During the fourth quarter, we developed a plan to reduce our operating costs to be consistent with current customer demand. This resulted in a reductionin our work force in early
January 2024 . We continue to evaluate opportunities to reduce our operating costs.
Full Year 2023 Operational Performance
-
Booking of new orders from customers was
$25.8 million , representing a decrease of approximately 22.1% compared to 2022 bookings of$33.1 million . The decline in bookings was related to large orders of PVT150 systems that were received in 2022. -
Backlog as of
December 31, 2023 of$18.4 million , an increase from$17.8 million from the prior year end.
The success of our PVT150 and PVT200 marketing efforts is dependent on the performance of our equipment in the field, overall market conditions, our customers’ ability to qualify their end product with their customers and our customers’ ability to obtain the funding necessary to purchase our equipment.
Management Conference Call and Webcast
The Company will hold a conference call to discuss its results today at
A live and archived webcast of the call will also be available on the company's website at www.cvdequipment.com/events. The archived webcast will be available at the same location approximately two hours following the end of the live event.
About
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES |
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Condensed Consolidated Statements of Operations |
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(In thousands, except per share data - Unaudited) |
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Three Months Ended
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Year Ended
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2023 |
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2022 |
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2023 |
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2022 |
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Revenue |
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$ |
4,111 |
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$ |
7,234 |
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$ |
24,109 |
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$ |
25,813 |
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Cost of revenue |
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|
4,459 |
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|
|
|
5,234 |
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|
|
|
19,038 |
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|
|
|
19,186 |
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Gross profit |
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|
(348 |
) |
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|
|
2,000 |
|
|
|
|
5,071 |
|
|
|
|
6,627 |
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Operating expenses |
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|
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|
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|
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|
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Research and development |
|
|
731 |
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|
|
|
509 |
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2,596 |
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|
|
|
1,906 |
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Selling |
|
|
351 |
|
|
|
321 |
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|
|
1,632 |
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|
|
|
1,216 |
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General and administrative and other |
|
|
1,041 |
|
|
|
1,391 |
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(2) 5,724 |
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|
|
|
5,328 |
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Total operating expenses |
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|
2,123 |
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|
|
|
2,221 |
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|
|
9,952 |
|
|
|
|
8,450 |
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Operating loss |
|
|
(2,471 |
) |
|
|
(221 |
) |
|
|
(4,881 |
) |
|
|
|
(1,823 |
) |
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Net income (loss) |
|
$ |
(2,274 |
) |
|
|
$ |
(1) 1,549 |
|
|
$ |
(4,180 |
) |
|
|
$ |
(224 |
) |
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Basic and diluted income (loss) per share |
|
$ |
(0.33 |
) |
|
$ |
0.23 |
|
|
|
$ |
(0.62 |
) |
|
|
$ |
(0.03 |
) |
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(1) Net income for three months and year ended |
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(2) Year ended |
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES |
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Condensed Consolidated Balance Sheets |
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(In thousands - Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
14,025 |
|
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$ |
14,365 |
Accounts receivable, net |
|
|
1,906 |
|
|
|
3,788 |
Contract assets |
|
|
1,604 |
|
|
|
2,170 |
Inventories, net |
|
|
4,454 |
|
|
|
2,538 |
Other current assets |
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|
852 |
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|
|
797 |
Total current assets |
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22,841 |
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|
23,658 |
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Employee retention credit receivable |
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- |
|
|
|
1,529 |
Property, plant and equipment, net |
12,166 |
12,596 |
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Intangible assets, net |
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|
9 |
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|
|
119 |
Other assets |
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|
9 |
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|
|
10 |
Total assets |
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$ |
35,025 |
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$ |
37,912 |
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Liabilities and Stockholders' Equity |
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Current liabilities |
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$ |
8,554 |
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$ |
8,164 |
Long-term debt, net of current portion |
|
|
268 |
|
|
|
349 |
Total stockholders’ equity |
|
|
26,203 |
|
|
|
29,399 |
Total liabilities and stockholders’ equity |
|
$ |
35,025 |
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|
$ |
37,912 |
This earnings release should be read in conjunction with the Company’s filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240328335104/en/
For further information about this topic please contact:
Phone: (631) 981-7081
Email: investorrelations@cvdequipment.com
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