Core Insights - CVD Equipment Corporation's shares have declined 6.7% since the earnings report for Q3 2025, underperforming the S&P 500 Index which gained 1.9% during the same period [1] - The company reported revenues of $7.4 million for Q3 2025, a decrease of 9.6% from $8.2 million a year earlier, but gross profit increased by 37.2% to $2.4 million, resulting in a gross margin improvement to 32.7% from 21.5% [2][11] - Net income for the quarter rose 89.2% to $0.4 million, or $0.06 per diluted share, compared to $0.2 million, or $0.03 per share, in the prior-year period [2] Revenue Breakdown - CVD Equipment division revenues remained flat at $5.7 million year-over-year, with improved margins due to a contract modification that recognized $1 million in revenues [3] - The SDC ultra-high-purity gas and chemical delivery business experienced a 7.3% revenue decline to $1.9 million, impacted by fewer contracts and a one-time certification charge of approximately $0.1 million [3] - MesoScribe, which has ceased operations, contributed negligibly compared to $0.7 million a year ago [3] Order Intake and Backlog - Third-quarter 2025 bookings were $2.2 million, down from $4.1 million in the same period last year, indicating weaker demand [4] - Year-to-date bookings fell to $9.5 million from $21 million a year earlier, with the backlog decreasing to $8 million from $13.2 million as of June 30, 2025 [5] Financial Position - CVD Equipment ended the quarter with $8.4 million in cash and cash equivalents, down from $12.6 million at the end of 2024, primarily due to working-capital fluctuations [6] - Working capital improved to $14.6 million as of September 30, 2025, from $13.8 million at the end of 2024 [6] Management Commentary - Management highlighted a challenging demand environment, citing external headwinds such as uncertainty around tariffs and reduced U.S. government funding [7] - A comprehensive transformation strategy was approved, focusing on outsourcing components, reducing headcount, and aiming to lower annual operating costs by about $2 million starting in 2026 [8] Strategic Focus - The company will concentrate on core strengths in engineering design, assembly, and customer service while exploring strategic alternatives for non-core businesses [9] - Management acknowledged potential non-cash impairment charges if long-lived assets are sold below book value [9] Market Factors - External factors such as macroeconomic conditions and policy uncertainties are impacting near-term bookings, with management targeting niches like aerospace and defense materials and EV battery materials [12] Guidance and Outlook - CVD Equipment did not provide formal quantitative guidance but emphasized qualitative drivers for returning to profitability, including securing new orders and executing cost-reduction plans [13] - Anticipated severance charges of approximately $0.1 million are expected as workforce reductions are implemented [14] Recent Developments - The company secured an order from Stony Brook University for two PVT150 systems, reinforcing its position in the SiC market [15] - No acquisitions or divestitures were completed during the quarter, but management is exploring strategic alternatives that could lead to portfolio changes [16]

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Financial Data and Key Metrics Changes - For Q3 2025, revenue was $7.4 million, a 9.6% decrease from the prior year quarter, but a 44.9% increase compared to Q2 2025 [3] - Year-to-date revenue reached $20.8 million, which is 7.1% higher than the same period in 2024 [3] - Gross profit for the quarter was $2.4 million, with a gross margin of 32.7%, compared to $1.8 million and 21.5% in the prior year quarter [8][9] - Net income for Q3 2025 was $384,000 or $0.06 per diluted share, compared to $203,000 or $0.03 per diluted share in Q3 2024 [9] Business Line Data and Key Metrics Changes - Revenue from the CVD equipment segment was primarily driven by three key customers, representing approximately 55% of total revenue for the quarter [8] - The SDC segment reported $1.7 million in revenue, down slightly from $1.9 million in Q3 2024 due to fewer contracts in progress, but it continues to have a strong backlog [8] Market Data and Key Metrics Changes - Orders for Q3 totaled $2.2 million, primarily driven by demand in the SDC segment for gas delivery systems [3] - Total orders for the first nine months of 2025 were $9.5 million compared to $21 million in the same period last year [3][4] Company Strategy and Development Direction - The company is implementing a comprehensive transformation strategy to reduce fixed operating costs and create a more agile organization [4] - Key elements of the transformation include transitioning to outsourced fabrication for certain components and a workforce reduction expected to save approximately $2 million annually starting in 2026 [4][5] - The focus remains on core strengths such as engineering design, assembly, test, installation, and customer service while exploring strategic alternatives for certain businesses and product lines [5] Management's Comments on Operating Environment and Future Outlook - Management noted that bookings were influenced by external factors such as proposed tariffs, reduced U.S. government funding, and timing in product adoption within growth markets [4] - The company remains encouraged by opportunities in target markets such as aerospace and defense, industrial applications, and electric vehicle battery materials [5][6] - Management emphasized the importance of new equipment orders, cost management, and successful implementation of the transformation plan for returning to consistent profitability [10] Other Important Information - At September 30, 2025, the company held $8.4 million in cash and cash equivalents, down from $12.6 million at the end of 2024 [9][10] - The company expects to incur approximately $100,000 in severance and related charges in Q4 2025 as part of the transformation plan [10] Q&A Session Summary Question: Insights on markets for composite applications for combustion turbines - Management indicated that while ceramic matrix composites are used in hot sections of engines, future opportunities may arise in nuclear reactors and pellet encapsulation [16] Question: Details on materials outsourcing locations - Management confirmed that outsourcing will primarily focus on suppliers in the U.S. and may extend to Canada, emphasizing a mix of external and internal components [19][20]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) CVD EQUIPMENT CORPORATION (Name of Registrant in Its Charter) New York 11-2621692 State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 355 South Technology Drive Central Islip, New York 11722 (Address of principal executive of ices) (631) 981-7081 (Registrant's Telephone Number, Including Area Code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXC ...

Financial Performance - Third quarter 2025 revenue was $7.4 million, a decrease of 9.6% from the prior-year quarter, while year-to-date revenue increased by 7.1% to $20.8 million[5] - The company reported a net income of $384,000, or $0.06 per share, compared to $203,000, or $0.03 per share in the third quarter of 2024[5] - Gross margin improved to 32.7%, up from 21.5% in the prior-year quarter, due to a better contract mix in the CVD Equipment segment[5] - Cash and cash equivalents decreased to $8.4 million as of September 30, 2025, down from $12.6 million as of December 31, 2024[5] Backlog and Workforce - As of September 30, 2025, the backlog was $8.0 million, down from $13.2 million as of June 30, 2025[5] - The company plans to reduce its CVD Equipment division's workforce by December 31, 2025, which is expected to save approximately $2.0 million in annual operating costs for fiscal 2026[4] - The company anticipates incurring approximately $0.1 million in severance and other charges related to the workforce reduction plan[7] Strategic Initiatives - The company is implementing a revised sales strategy utilizing distributors and outside sales representatives to enhance market opportunities[10] - Strategic initiatives include transitioning to outsourced fabrication for certain components to improve operational efficiency[4] - CVD Equipment Corporation remains focused on key markets such as aerospace and defense, silicon carbide high-power electronics, and electric vehicle battery materials[6]

Core Viewpoint - CanAlaska Uranium Ltd. has successfully completed a brokered private placement, raising approximately $15 million through the issuance of common shares, aimed at funding exploration activities in Saskatchewan [1][4]. Group 1: Offering Details - The private placement consisted of 9,757,500 common shares, generating gross proceeds of $14,999,880 [1]. - The offering included 7,333,300 charity flow-through common shares priced at C$1.50 each and 2,424,200 charity flow-through common shares priced at C$1.65 each [1]. - The offering was led by Desjardins Capital Markets as the sole bookrunner, with a total cash commission of $899,992.80 paid to the agents involved [2]. Group 2: Use of Proceeds - The proceeds from the offering will be used for Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures [4]. - The company plans to incur qualifying expenditures related to the exploration of its West McArthur project and other projects in Saskatchewan, with all expenditures to be renounced in favor of the subscribers by December 31, 2025 [4]. Group 3: Company Overview - CanAlaska Uranium is a prominent explorer of uranium in the Athabasca Basin, owning approximately 500,000 hectares of uranium properties [6]. - The company is focused on high-grade uranium expansion at the West McArthur project, with plans for significant exploration activities in 2026 [6].

Core Viewpoint - CVD Equipment Corporation has received an order for two PVT150™ Physical Vapor Transport Systems from Stony Brook University for their new semiconductor research center focused on silicon carbide crystal growth and other wide band gap materials [1] Company Summary - CVD Equipment Corporation (NASDAQ: CVV) is involved in providing equipment for semiconductor research and development [1] - The order from Stony Brook University signifies a commitment to advancing research in silicon carbide and wide band gap materials, which are critical for the semiconductor industry [1] Industry Summary - The establishment of the "onsemi Silicon Carbide Crystal Growth Center" at Stony Brook University highlights the growing importance of silicon carbide in semiconductor applications [1] - Research in wide band gap materials is essential for developing next-generation electronic devices, indicating a trend towards more advanced semiconductor technologies [1]

Core Viewpoint - CVD Equipment Corporation (CVV) has experienced significant stock declines following disappointing earnings results for Q2 2025, with a 20% drop compared to a 1.2% gain in the S&P 500 Index during the same period [1] Revenue and Earnings Performance - Q2 2025 revenues were reported at $5.1 million, a decrease of 19.4% from $6.3 million in Q2 2024 [2] - Gross profit fell by 30.4% year-over-year to $1.1 million, with gross margin narrowing to 20.9% from 24.3% [2] - The company recorded a net loss of $1.1 million, or $0.15 per share, compared to a net loss of $0.8 million, or $0.11 per share, in the same quarter of the previous year [2] Segment Performance - The CVD Equipment division generated $3.4 million in revenues, down 17.1% from $4.1 million year-over-year [3] - The SDC gas delivery systems unit reported revenues of $1.7 million, a decline of 25.1% from $2.3 million [3] - Year-to-date revenues reached $13.4 million, up 19.2% from $11.3 million in the first half of 2024, driven by the CVD Equipment segment [3] Key Business Metrics - Bookings for Q2 were approximately $4.5 million, an increase from $3.2 million in Q2 2024 [4] - Total bookings for the first half of 2025 were $7.3 million, down from $16.9 million a year earlier [4] - Backlog as of June 30, 2025, was $13.2 million, slightly down from $13.8 million at the end of March [4] Financial Position - Cash and cash equivalents totaled $7 million at the end of the quarter, down from $12.6 million at the end of 2024 [5] - Accounts receivable increased by $3.6 million, with expectations of collection in Q3 [5] - Working capital remained stable at $13.9 million compared to $13.8 million as of December 31, 2024 [5] Management Commentary - The CEO highlighted uncertainties due to proposed tariffs, reduced U.S. government funding, and gradual technology adoption [6] - The company is managing expenses and headcount while monitoring customer demand and geopolitical factors [6] Strategic Opportunities - The CEO emphasized growth opportunities in aerospace, defense, industrial silicon carbide applications, high-power SiC electronics, and EV battery materials [7] - Progress was noted with the CVD4000 SiC coating reactor system, which was shipped to an industrial customer in July 2025 [7] Influencing Factors - The revenue decline was attributed to reduced contracts in progress for both CVD Equipment and SDC segments, partially offset by higher non-system sales [8] - Gross margin contraction was due to lower volumes and higher costs from inflation and tariffs on imported components [8] - Customer concentration was significant, with two customers accounting for 23.4% and 17.7% of revenues [9] Guidance and Future Outlook - No formal numerical guidance was issued, but management reiterated a long-term growth strategy in key sectors while maintaining expense control [10] - Confidence was expressed that existing cash, anticipated receivable collections, and backlog revenues would support operations for the next 12 months [10] Other Developments - The company reported progress in shipping FirstNano systems for microelectronics and carbon nanotube applications in 2025 [11] - No acquisitions, divestitures, or restructuring actions were disclosed for the quarter [11]

Financial Data and Key Metrics Changes - The company's revenue for Q2 2025 was $5.1 million, a decrease of 38.5% compared to the same period in 2024, which had revenue of $8.3 million [4][10] - Year-to-date revenue reached $13.4 million, representing a 19.2% increase from the prior year period [5] - The net loss for Q2 2025 was $1.1 million, or $0.15 per share, compared to a net loss of $800,000, or $0.11 per share, in Q2 2024 [12] Business Line Data and Key Metrics Changes - Revenue from the CVD equipment segment decreased by $700,000, while the FCC segment saw a $600,000 decline [10] - The CVD equipment revenue decreased by 17.4% primarily due to lower revenues from contracts in progress [10] - FCC segment revenue was $1.4 million, down from $2.2 million in Q2 2024, attributed to fewer contracts in progress [11] Market Data and Key Metrics Changes - Orders for the second quarter were $4.5 million, driven by strong demand in the FCC segment for gas delivery equipment [5] - Total orders for 2025 were $7.3 million, significantly lower than $16.9 million in 2024 [5] - The backlog as of June 30, 2025, was $13.2 million, down from $13.8 million at March 31, 2025 [7] Company Strategy and Development Direction - The company is focused on growing its presence in key markets such as aerospace, defense, and industrial applications [7] - There is an ongoing commitment to expense management while pursuing new product launches, including the CVD4000 silicon carbide coating reactor system [8][10] - The company is exploring potential uses for silicon carbide in the nuclear energy market and pursuing opportunities in electric vehicle battery materials [7] Management's Comments on Operating Environment and Future Outlook - Management highlighted uncertainties related to proposed tariffs and reduced U.S. government funding as factors impacting business [5] - The company is actively monitoring customer demand and geopolitical landscapes to manage operating expenses [6] - Future profitability is contingent on new equipment orders and managing inflationary pressures [12] Other Important Information - Cash and cash equivalents as of June 30, 2025, were $7 million, down from $12.6 million at the end of 2024 [12] - The company believes its cash flow will be sufficient to meet working capital and capital expense requirements for the next twelve months [13] Q&A Session Summary Question: Inquiry about NDA client specifics - The client under the NDA is domestic, located in the United States, but the company has agreements with both domestic and international clients [18][19] Question: Impact of tariffs on orders - Tariffs affect the cost of goods sold, particularly for components sourced from Europe and Asia, but the company is managing these inflationary pressures [20] Question: Revenue recognition for July delivery - Revenue is recognized using the overtime concept, meaning it will be reported in the quarter when the product is manufactured [21]