Financial Data and Key Metrics Changes - First quarter 2024 revenue was $4.9 million, a decrease of $3.8 million or 43% compared to $8.7 million in the first quarter of 2023 [22][3] - Gross profit for the first quarter was $0.9 million, with a gross profit margin of 17.5%, down from $2.4 million and 28% in the same period last year [6][22] - The operating loss for Q1 2024 was $1.6 million, compared to an operating loss of $0.2 million in Q1 2023 [7] - Net loss for the first quarter was $1.5 million or $0.22 per share, compared to a net loss of $40,000 or $0.01 per share in Q1 2023 [25] Business Segment Data and Key Metrics Changes - Revenue from the CVD Equipment segment decreased by $2.9 million, while the SDC segment saw a $0.4 million decrease, and the CVD Materials segment decreased by $0.6 million due to the disposition of Tantaline and the wind-down of MesoScribe's operations [5] - SDC segment revenues were 16% lower than Q1 2023 but 44% higher than Q4 2023 due to increased demand for gas and chemical delivery systems [23] Market Data and Key Metrics Changes - The backlog increased from $18.4 million at year-end to $27.1 million at March 31, 2024, driven by a $10 million multisystem order for silicon carbide CVD coating systems [4] Company Strategy and Development Direction - The company remains focused on achieving profitability while managing costs and cash flow, and is committed to growth and return on investment [3] - Strategic efforts include funding research, development, and marketing activities to penetrate key market opportunities [4] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with the first quarter performance but remains cautiously optimistic about future growth [3][11] - The return to profitability is contingent on new equipment orders, mitigating supply chain disruptions, and managing capital expenditures and operating expenses [26] Other Important Information - Cash and cash equivalents at March 31, 2024, were $11.9 million, down from $14 million at December 31, 2023 [25] - Working capital at March 31, 2024, was $13.1 million, compared to $14.3 million at the end of 2023 [45] Q&A Session Summary Question: What is the revenue recognition cadence for the $10 million silicon carbide protective coating order and the $3.6 million new PVT200 order? - The $10 million order will be recognized over time, while the PVT200 order will be recognized at the point of shipment [39] Question: Is the reduction in SG&A from $1.6 million to $1.3 million a good run rate going forward? - Management indicated that the reduction aligns with current operational realities and does not affect engineering programs [41] Question: How many employees were let go to achieve the current cost structure? - Specific numbers were not disclosed, but the reduction in workforce was part of the cost management strategy [42]

Revenue Performance - Revenue for Q1 2024 was $4.922 million, a decrease of 43.5% compared to $8.695 million in Q1 2023[11] - For the three months ended March 31, 2024, total revenue decreased by $3.8 million or 43% to $4.9 million compared to $8.7 million in the prior year[77] - CVD Equipment segment revenue declined by $2.9 million or 50% to $2.9 million, while the SDC segment revenue decreased by $0.3 million or 12% to $1.9 million[78][79] - Consolidated revenue for the company reached $4,922 million, with CVD Equipment contributing $2,947 million and SDC contributing $1,931 million[87] Profitability and Losses - Gross profit for Q1 2024 was $859 thousand, down from $2.434 million in Q1 2023, reflecting a gross margin of approximately 17.4%[11] - Operating loss for Q1 2024 was $(1.623) million, compared to an operating loss of $(187) thousand in Q1 2023[11] - Net loss for Q1 2024 was $(1.472) million, resulting in a loss per share of $(0.22), compared to a net loss of $(40) thousand and a loss per share of $(0.01) in Q1 2023[11] - Gross profit for the same period declined by $1.6 million or 65% to $859,000, resulting in a gross profit margin of 17.5% compared to 28.0% in the previous year[69] - The company reported an operating loss of $1,623 million, with CVD Equipment experiencing a loss of $1,405 million[87] - The overall financial performance indicates a need for strategic adjustments to address the significant operating losses[87] Assets and Liabilities - Total current assets increased to $23.336 million as of March 31, 2024, compared to $22.841 million at the end of 2023[10] - Total liabilities rose to $10.445 million as of March 31, 2024, up from $8.822 million at the end of 2023[10] - Stockholders' equity decreased to $24.998 million as of March 31, 2024, down from $26.203 million at the end of 2023[10] - The company reported total inventories of $4,925 million as of March 31, 2024, compared to $4,454 million as of December 31, 2023[30] - Total assets for the company were reported at $35,443 million, with CVD Equipment's assets at $31,412 million[87] Cash Flow and Investments - The company reported cash and cash equivalents of $11.893 million as of March 31, 2024, down from $14.025 million at the end of 2023[10] - Cash and cash equivalents decreased to $11,893 million at the end of the period from $14,025 million at the beginning of the period[14] - Net cash used in operating activities was $2,043 million, an improvement from $3,272 million in the prior year[14] - Net cash used in investing activities for the three months ended March 31, 2024, included capital expenditures of $70,000[85] - The company invested $76 million in the purchase of property, plant, and equipment[87] Research and Development - Research and development expenses increased to $746 thousand in Q1 2024, compared to $602 thousand in Q1 2023, indicating a focus on innovation[11] - Research and development expenses rose by $144,000 or 24% to $746,000 compared to the previous year[77] - The company plans to develop new products for the high power electronics market, including the PVT200 for growing silicon carbide crystals[67] Operational Challenges - The company operates in a challenging economic environment, facing impacts from geopolitical conflicts and supply chain disruptions[66] - Supply chain disruptions have led to longer lead times and inflationary pressures, impacting revenue recognition[91] Customer and Market Dynamics - The company had a significant concentration of credit risk, with one customer accounting for 67.2% of total accounts receivable as of March 31, 2024[50] - The revenue from the SDC segment represented 40% of overall revenue for the three months ended March 31, 2024, compared to 25% in the prior year[79] - Total bookings for Q1 2024 were approximately $13.6 million, a significant increase from $2.9 million in Q1 2023[96] - The company increased its backlog from $18.4 million at December 31, 2023, to $27.1 million as of March 31, 2024[71] Stock Options and Compensation - The company recorded stock-based compensation of $267 million for the three months ended March 31, 2024, compared to $135 million in the prior year[14] - The company granted 5,000 stock options with a weighted average fair value of $3.30 during the three months ended March 31, 2024[58]

[CVD Equipment Corporation First Quarter 2024 Financial Results](index=1&type=section&id=CVD_Equipment_Corporation_First_Quarter_2024_Financial_Results) [Management Commentary](index=1&type=section&id=Management_Commentary) CEO Manny Lakios attributed Q1 2024 revenue decline to market volatility, emphasizing strategic profitability and growth, with backlog increasing to $27.1 million - Q1 2024 revenue was **$4.9 million**, a significant decrease attributed to volatile end markets[2](index=2&type=chunk) - The company maintains strategic focus on achieving profitability, managing costs, and investing in growth and ROI[2](index=2&type=chunk) - Key Q1 orders for PVT200 and SiC CVD coating reactors increased backlog from **$18.4 million** to **$27.1 million** by March 31, 2024[2](index=2&type=chunk) [First Quarter 2024 Performance](index=1&type=section&id=First_Quarter_2024_Performance) Q1 2024 saw a **43.4% revenue decrease** to **$4.9 million** and a **$1.5 million net loss**, offset by **$13.5 million** in new orders and cost reductions [Financial Highlights](index=1&type=section&id=Financial_Highlights) Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | | Revenue | $4.9 million | -43.4% | | Gross Profit Margin | 17.5% | Decreased | | Operating Loss | $(1.6) million | Worsened from $(0.2)M | | Net Loss | $(1.5) million | Worsened from $(40)K | | Net Loss per Share | $(0.22) | Worsened from $(0.01) | | Cash & Cash Equivalents | $11.9 million | Decreased by $2.1M from YE 2023 | [Operational Highlights](index=1&type=section&id=Operational_Highlights) - Orders totaled **$13.5 million** in Q1, primarily from aerospace and SDC segments[4](index=4&type=chunk) - Secured a key order for the new PVT200 system for **200 mm** silicon carbide wafer manufacturing, marking the second customer[10](index=10&type=chunk) - Won a multi-system order of approximately **$10 million** for SiC protective coatings, with shipments scheduled for 2025[10](index=10&type=chunk) - Implemented a cost reduction plan in Q1 2024, including workforce reduction, to align operating costs with current demand[10](index=10&type=chunk) [Financial Statements](index=3&type=section&id=Financial_Statements) Unaudited Q1 2024 financial statements show revenue decreased to **$4.9 million** and net loss widened to **$1.5 million**, with total assets at **$35.4 million** [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed_Consolidated_Statements_of_Operations) Statements of Operations (Unaudited, in thousands, except per share data) | | Three Months Ended March 31, | | :--- | :---: | :---: | | | **2024** | **2023** | | **Revenue** | **$4,922** | **$8,695** | | Cost of revenue | $4,063 | $6,261 | | **Gross profit** | **$859** | **$2,434** | | Total operating expenses | $2,482 | $2,621 | | **Operating loss** | **$(1,623)** | **$(187)** | | **Net loss** | **$(1,472)** | **$(40)** | | **Basic and diluted loss per share** | **$(0.22)** | **$(0.01)** | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed_Consolidated_Balance_Sheets) Balance Sheets (Unaudited, in thousands) | | **March 31, 2024** | **December 31, 2023** | | :--- | :---: | :---: | | **Assets** | | | | Cash and cash equivalents | $11,893 | $14,025 | | Total current assets | $23,336 | $22,841 | | **Total assets** | **$35,443** | **$35,025** | | **Liabilities and Stockholders' Equity** | | | | Current liabilities | $10,198 | $8,554 | | **Total stockholders' equity** | **$24,998** | **$26,203** | | **Total liabilities and stockholders' equity** | **$35,443** | **$35,025** | [Company and Event Information](index=2&type=section&id=Company_and_Event_Information) CVD Equipment Corp. designs and manufactures chemical vapor deposition and thermal processing systems, with Q1 2024 earnings call details provided - CVD Equipment Corp. designs, develops, and manufactures chemical vapor deposition and thermal processing systems for industrial and research applications[8](index=8&type=chunk) - Major target markets include high power electronics, EV battery materials, aerospace & defense, and industrial applications[8](index=8&type=chunk) - The company hosted a conference call and webcast to discuss Q1 2024 results on May 13, 2024[6](index=6&type=chunk)[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking_Statements) The release contains forward-looking statements protected by safe harbor provisions, subject to risks including market conditions, sales strategies, and supply chain issues - The release contains forward-looking statements, protected under the safe harbor of the Private Securities Litigation Reform Act of 1995[9](index=9&type=chunk) - Potential risks include market conditions, growth strategy success, customer schedule changes, supply chain delays, and competition in product lines like PVT systems[9](index=9&type=chunk)

Financial Data and Key Metrics Changes - Fourth quarter 2023 revenue was $4.1 million, a decrease of approximately 43% compared to the prior year period [3][7] - Fiscal 2023 revenue totaled $24.1 million, down $1.7 million or about 7% from the previous year [5][16] - Operating loss for the fourth quarter was $2.5 million, compared to an operating loss of $221,000 in the prior year [8] - Net loss for the quarter was $2.3 million, or $0.33 per share, compared to net income of $1.5 million, or $0.23 per share in the fourth quarter of 2022 [8] - Gross profit margin for fiscal 2023 was 21%, down from 26% in the prior year [15] Business Line Data and Key Metrics Changes - CVD equipment segment revenue decreased by approximately $0.4 million, primarily due to lower PVT 150 system revenues [5] - CVD Materials revenues were lower by about $2 million due to the sale of a subsidiary and the wind-down of operations [15] - System revenues for the fourth quarter were impacted by a cost overrun on a launch contract [7][29] Market Data and Key Metrics Changes - Backlog increased slightly to $18.4 million from $17.8 million year-over-year [30] - Cash and cash equivalents at December 31, 2023, were $14 million, down from $14.4 million the previous year [18] Company Strategy and Development Direction - The company aims to expand its presence in high-power electronics, battery materials, aerospace, and industrial applications [13] - Recent orders include a $10 million multi-system order for silicon carbide CVD coating reactors, indicating a focus on industrial applications [14][37] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with both fourth quarter and full year performance, emphasizing the need to return to consistent profitability [3] - The company is cautious about predicting future results due to economic and geopolitical uncertainties [9] - Management noted that the demand for silicon carbide devices has been adjusted and pushed out, affecting order volumes [23][24] Other Important Information - Operating expenses increased due to higher employee-related costs and additional selling expenditures, partially offset by lower bonus costs [6] - The company is taking corrective actions to mitigate cost overruns experienced in the past [22] Q&A Session Summary Question: What caused the cost overrun and what measures are in place to prevent it from happening again? - Management acknowledged understanding the causes of the cost overrun and has implemented corrective actions to mitigate future occurrences [22] Question: Why have there been no new PVT 150 orders for about a year? - Management indicated that demand for silicon carbide devices has slowed, affecting order volumes, and noted a general marketplace slowdown [23][24] Question: What is the current backlog and how does it reflect future orders? - Management confirmed that the backlog is $18.4 million, with additional orders expected to increase this figure [34] Question: Are there other areas in the business that can compensate for the slowdown in electric vehicle enthusiasm? - Management highlighted that the company serves multiple markets, including aerospace and industrial applications, which may help offset the slowdown in electric vehicle demand [27][41]

Revenue Performance - Fourth quarter 2023 revenue was $4.1 million, down $3.1 million or 43.2% year over year due to lower system revenues [28]. - Full year 2023 revenue totaled $24.1 million, a decrease of $1.7 million or 6.6% compared to the prior year [20]. - New orders booked in 2023 totaled $25.8 million, a decrease of approximately 22.1% compared to 2022 bookings of $33.1 million [30]. Profitability - Gross profit margin for 2023 was 21.0%, down from 25.7% in the previous year, attributed to significant cost overruns on a large contract [20]. - Operating loss for the fourth quarter was $2.5 million, while the full year operating loss was $4.9 million [28][11]. - Net loss for the fourth quarter was $2.3 million or $0.33 per share, compared to a net income of $1.5 million or $0.23 per share in the prior year [28]. Cash Position - Cash and cash equivalents as of December 31, 2023, were $14.0 million, slightly down from $14.4 million a year earlier [28]. Backlog and Orders - Backlog as of December 31, 2023, was $18.4 million, an increase from $17.8 million at the end of the prior year [30]. - The company received a $10 million multisystem order for a SiC CVD coating reactor from an industrial customer [19]. Cost Management - The company plans to reduce operating costs in response to current customer demand, resulting in a workforce reduction in early January 2024 [21].

We experienced increased costs on certain materials and components as well as delays in supply chain delivery, which may also impact our ability to recognize revenue and reduce our gross profit margins, as well as extend our manufacturing lead times and reduce our manufacturing efficiencies. We have commenced placing orders with more lead time to help mitigate the manufacturing delays, as well as assessing other suppliers or components to attempt to mitigate the potential cost impacts. In addition, we are u ...

CVD Equipment Corporation (NASDAQ:CVV) Q3 2023 Earnings Conference Call November 14, 2023 5:00 PM ET Company Participants Emmanuel Lakios – President and Chief Executive Officer Rich Catalano – Executive Vice President and Chief Financial Officer Conference Call Participants Brett Reiss – Janney Montgomery Scott Operator Greetings and thank you for standing by. Welcome to CVD Equipment Corporation’s Third Quarter Fiscal Year 2023 Earnings Call. As a reminder, this conference is being recorded. We will begin ...

Financial Performance - Revenue for the three months ended September 30, 2023, was $6,234 thousand, a decrease of 23.2% compared to $8,119 thousand for the same period in 2022[31] - Gross profit for the three months ended September 30, 2023, was $1,598 thousand, down 33.9% from $2,420 thousand in the prior year[31] - Operating loss for the three months ended September 30, 2023, was $(990) thousand, compared to an operating income of $122 thousand for the same period in 2022[31] - Net loss for the three months ended September 30, 2023, was $(753) thousand, compared to a net income of $63 thousand in the same period last year[31] - Total revenue for the nine months ended September 30, 2023, was $19,998 million, a decrease of 2.9% compared to $20,579 million for the same period in 2022[52] - Energy segment revenue for the nine months ended September 30, 2023, was $4,435 million, down 34.7% from $6,763 million in the same period of 2022[52] - Aerospace segment revenue increased to $4,000 million for the nine months ended September 30, 2023, compared to $1,375 million in the same period of 2022, reflecting a significant growth[52] - Industrial segment revenue for the nine months ended September 30, 2023, was $7,316 million, a slight decrease from $7,296 million in the same period of 2022[52] - Research segment revenue increased to $4,247 million for the nine months ended September 30, 2023, compared to $3,145 million in the same period of 2022, indicating a growth of 35.2%[52] - Total stockholders' equity decreased to $28,216 million as of September 30, 2023, from $29,399 million at the end of 2022[58] Expenses and Losses - Research and development expenses increased to $704 thousand for the three months ended September 30, 2023, up 35.9% from $518 thousand in the prior year[31] - Total operating expenses increased to $2,588 million in Q3 2023, up 12.6% from $2,298 million in Q3 2022[31] - The company recorded stock-based compensation expense of approximately $44,783 thousand for the three-month period ended September 30, 2023[86] - The CVD Equipment segment had an operating loss of $323,000 for the three months ended September 30, 2023[117] - The CVD Equipment segment reported an operating loss of $1.39 million for the nine months ended September 30, 2023, while the SDC segment generated an operating income of $1.12 million[95] Cash and Assets - The company had $14.3 million in cash and cash equivalents as of September 30, 2023, which is expected to meet working capital and capital equipment requirements over the next 12 months[37] - Total assets as of September 30, 2023, were $37,227 thousand, a decrease from $37,912 thousand as of December 31, 2022[28] - The company had cash and cash equivalents of $14.3 million as of September 30, 2023, compared to $14.4 million at December 31, 2022[76] - Total liabilities and stockholders' equity amounted to $37,227 million as of September 30, 2023, down from $37,912 million at the end of 2022[58] - Total inventories increased to $4,290 million as of September 30, 2023, from $2,538 million at December 31, 2022[83] Customer Concentration and Revenue Recognition - Two customers represented 40.3% and 10.3% of revenues during the three months ended September 30, 2023, indicating significant customer concentration risk[50] - The accounts receivable balance as of September 30, 2023, included amounts from three customers totaling 53.6% of total accounts receivable[101] - The Company recognized $0.8 million of deferred revenue during the three months ended September 30, 2023, due to a contract modification[43] - The Company has unrecognized contract revenue of approximately $15.5 million as of September 30, 2023, which is expected to be recognized within the next twelve months[105] - The Company’s revenue recognition follows ASC 606, with performance obligations recognized over time or at a point in time based on contract criteria[70] Operational Changes and Future Plans - The company plans to cease operations of MesoScribe by the end of 2024 after fulfilling remaining orders[122] - The company expects to complete the sale of certain proprietary assets related to its plasma spray technology for an aggregate purchase price of $0.9 million, with $0.6 million received as deposits[145][146] - The company faces challenges due to supply chain disruptions, inflationary pressures, and geopolitical conflicts impacting its ability to procure raw materials[125] - The company is focusing on developing new products for the high power electronics market, including plans to launch a PVT200 system for growing silicon carbide crystals[127] Segment Performance - The CVD Equipment segment generated revenue of $4.795 million, while the SDC segment contributed $1.572 million, and CVD Materials segment accounted for $90,000 in revenue for the three months ended September 30, 2023[117] - MesoScribe reported revenues of $90,000 and a net loss of ($30,000) for the three months ended September 30, 2023[99] - For the nine months ended September 30, 2023, MesoScribe's revenue was $0.6 million, with a net income of $49,000, including an impairment charge of $0.1 million[99] - Total revenue for the Energy segment was $970,000 for the three months ended September 30, 2023[103] - The Aerospace segment generated $2.511 million in revenue for the same period[103] - Industrial segment revenue was $695,000, while the Research segment brought in $504,000 for the three months ended September 30, 2023[103]

CVD Equipment Corporation (NASDAQ:CVV) Q2 2023 Earnings Conference Call August 14, 2023 5:00 PM ET Company Participants Emmanuel Lakios – President and Chief Executive Officer Richard Catalano – Executive Vice President and Chief Financial Officer Conference Call Participants Brett Reiss – Janney Montgomery Scott Operator Greetings. Thank you for standing by. Welcome to CVD Equipment Corporation’s Second Quarter Fiscal Year 2023 Earnings Call. As a reminder, this call is being recorded. We will begin with s ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from ____ to _____ Commission file number: 1-16525 CVD EQUIPMENT CORPORATION (Name of Registrant in Its Charter) New York 11-2621692 State or Other ...