CVD Reports Fourth Quarter and Full Year 2016 Results

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

Revenue for the fourth quarter increased 50.0% to $7.3 million from $4.8 million in the third quarter, and decreased from $8.2 million in the same period last year. For the full year, revenue decreased 46.2% to $21.0 million compared to $39.0 million in 2015.

Net income for the fourth quarter was $770,000 or $0.12 per diluted share, compared to a net loss of ($85,000) or ($0.01) per diluted share in the prior quarter, and net income of $391,000 or $0.06 per diluted share in the fourth quarter of 2015. Net loss for the full year was ($149,000) or ($0.02) per diluted share compared to net income of $3.2 million or $0.51 per diluted share in 2015.

The 2016 fiscal year was heavily impacted by the delays encountered as a result of the protracted negotiations in securing a very significant order with a major aviation component supplier. This order was not finalized until June 22, 2016. The Company received orders totaling $42.6 million during the twelve months ended December 31, 2016, an increase of $18.6 million or 77.5% greater than the $24.0 million received in the prior year. This brought backlog to $27.8 million as of December 31, 2016 compared to $6.1 million as of December 31, 2015, an increase of 356%.

In December, through its wholly owned subsidiary, CVD Materials Corporation, the Company purchased certain assets (including all of the IP) formerly owned by Tantaline A/S of Nordborg, Denmark. This innovative tantalum chemical vapor technology, called Tantaline® treatment, is used to create a tantalum surface alloy on parts including valves, fittings, and process chambers that are prone to corrosion in harsh environments. These parts are used across a broad range of industries including chemical processing, oil & gas, mining, pharmaceutical, and medical.

“2016 set the stage for future growth and expansion of CVD. Although revenues declined in 2016, solid execution of our growth strategy resulted in a strong finish to the year,” said Leonard Rosenbaum, President and Chief Executive Officer. “During the second half of the year, we began to deliver on our backlog and rebuild the pipeline for our core business. With the addition of our new Tantaline® corrosion resistance product line, we have taken the first step into the materials arena by using our equipment and process capability to scale a difficult process to meet market demand. We plan to expand the applications of this technology while we pursue additional material coating opportunities that build on our equipment and process solution capabilities. Entering 2017, we are poised for growth with a strong backlog and a growing customer base.”

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 (844) 512-2921 or (412) 317-6671. The replay passcode is 13657230. A live and archived webcast of the call is also available on the company’s website at https://www.cvdequipment.com/events/category/investor-meetings/

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 and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands)

 
 

Three Months Ended December 31,

     

Twelve Months Ended December 31,

2016   2015 2016   2015
Revenue $ 7,325 $ 8,193 $ 20,955 $ 38,965
Gross profit 3,386 3,103 7,105 15,146
Operating expenses   2,202   2,106   7,829     10,554
Operating income/(loss) 1,184 997 (725 ) 4,592
Net income/(loss) 770 391 (149 ) 3,205
Diluted earnings per share $ 0.12 $ 0.06 $ (0.02 ) $ 0.51
 
 

CVD Equipment Corporation and Subsidiaries

Condensed Consolidated Balance Sheets
(In thousands)
 
  December 31, 2016       December 31, 2015
Assets
Current assets:
Cash and cash equivalents $ 21,677 $ 13,073
Accounts Receivable, net 608 3,091
Costs and estimated earnings in excess of
billings on contracts in progress 2,597 4,635
Inventories 3,287 2,987
Restricted cash --- 200
Deferred Taxes 428 398
Other current assets 235 167
Total current assets 28,832 24,551
Property, plant and equipment, net 14,439 14,827
Deferred taxes 2,012 1,607
Other assets 68 86
Intangible assets 254 60
Total assets $ 45,605 $ 41,131
 

Liabilities and stockholders' equity

Current liabilities:
Accounts payable $ 743 $ 308
Accrued expenses and other current liabilities 1,944 3,446
Current portion of long-term debt 300 580
Billings in excess of costs and estimated
earnings on contracts in progress 5,262 ---
Deferred revenue 78 308
Total current liabilities 8,327 4,642
Long-term debt 2,965 3,265
Total liabilities 11,292 7,907
 
Total stockholders' equity 34,313 33,225
Total liabilities and stockholders' equity $ 45,605 $ 41,132
 

Earnings release should be read in conjunction with Company’s Annual Report on Form 10-K for fiscal year ended December 31, 2016

Contacts

CVD Equipment Corporation
Gina Franco, (631) 981-7081
Fax: (631) 981-7095
investorrelations@cvdequipment.com
sales@cvdequipment.com

Contacts

CVD Equipment Corporation
Gina Franco, (631) 981-7081
Fax: (631) 981-7095
investorrelations@cvdequipment.com
sales@cvdequipment.com