CVD(CVV) - 2025 Q1 - Quarterly Results

CEO's Statement and Outlook The CEO reported a 69% YoY revenue increase to $8.3 million and a third consecutive quarter of net income, while addressing a reduced backlog and new tariff challenges Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Change (YoY) | Change (QoQ) | | :--- | :--- | :--- | :--- | | Revenue | $8.3 million | +69.0% | +12.2% | | Net Income | $360,000 | - | 3rd consecutive quarter of net income | | Backlog | $13.8 million | - | from $19.4 million at Dec 31, 2024 | - Revenue growth was primarily driven by two contracts in the industrial and aerospace markets, along with strong demand for gas delivery equipment from the SDC segment[2] - The company is facing uncertainty due to recently imposed tariffs, which could affect component costs and economic conditions, potentially impacting the order rate[2] Financial and Operational Highlights Q1 2025 saw strong financial improvement with 69% YoY revenue growth and profitability, alongside modest new orders, a reduced backlog, and workforce reductions First Quarter 2025 Financial Performance Q1 2025 financial performance improved significantly with 69% revenue growth to $8.3 million, a gross profit margin of 32.4%, and a net income of $360,000, despite a decrease in cash to $10.2 million Q1 2025 vs Q1 2024 Financial Comparison (in thousands, except percentages and EPS) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $8,174 | $4,922 | | Gross Profit Margin | 32.4% | 16.2% | | Operating Income (Loss) | $269 | $(1,623) | | Net Income (Loss) | $360 | $(1,472) | | Basic & Diluted EPS | $0.05 | $(0.22) | - The improvement in gross margin was attributed to higher revenues, better absorption of overhead, and improved margins on contracts in progress[4] - Cash and cash equivalents stood at $10.2 million as of March 31, 2025, a decrease from $12.6 million at the end of 2024[4] First Quarter 2025 Operational Performance Q1 2025 operational performance included $2.8 million in new orders, a $1.2 million post-quarter semiconductor system order, and a workforce reduction to align with demand - First-quarter orders amounted to $2.8 million, mainly from the SDC segment[8] - A significant $1.2 million order for a semiconductor system was received in early April 2025, which is not included in the Q1 backlog[8] - The company implemented a plan to reduce operating costs, resulting in a workforce reduction during the quarter[8] Financial Statements Unaudited Q1 2025 financial statements show significant YoY revenue growth and profitability, with a slight decrease in total assets and reduced current liabilities Condensed Consolidated Statements of Operations Q1 2025 statements show revenue of $8.17 million, gross profit of $2.70 million, operating income of $269,000, and net income of $360,000, a significant turnaround from prior year losses Condensed Consolidated Statements of Operations (In thousands, except per share data) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Revenue | $8,174 | $4,922 | | Cost of revenue | 5,621 | 4,125 | | Gross profit | 2,695 | 797 | | Total operating expenses | 2,426 | 2,420 | | Operating income (loss) | 269 | (1,623) | | Net income (loss) | $360 | $(1,472) | | Basic and diluted income (loss) per share | $0.05 | $(0.22) | Condensed Consolidated Balance Sheets As of March 31, 2025, total assets were $31.08 million (down from $31.69 million), driven by reduced cash, while total liabilities decreased and equity increased Condensed Consolidated Balance Sheets (In thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $10,219 | $12,598 | | Total current assets | 19,469 | 19,986 | | Total assets | $31,080 | $31,686 | | Liabilities and stockholders' equity | | | | Current liabilities | $4,929 | $6,137 | | Total liabilities | 5,088 | 6,318 | | Total stockholders' equity | 25,992 | 25,368 | | Total liabilities and stockholders' equity | $31,080 | $31,686 | Additional Information This section covers business operations, target markets, investor relations, Q1 2025 conference call details, and forward-looking statement disclosures Conference Call Information A conference call for Q1 2025 results is scheduled for May 13, 2025, at 5:00 PM ET, with webcast and replay options available - A conference call is scheduled for May 13, 2025, at 5:00 PM ET, with a live webcast available on the company's website and a telephone replay for 7 days[6] About CVD Equipment Corporation CVD Equipment Corporation designs and manufactures chemical vapor deposition and thermal processing systems for industrial and R&D sectors, targeting aerospace, high power electronics, and EV battery materials - The company designs and manufactures chemical vapor deposition, thermal processing, and other related equipment for developing and manufacturing materials and coatings[7] - Major target markets include aerospace & defense (ceramic matrix composites), high power electronics (silicon carbide), and EV battery materials / energy storage[7] Forward-Looking Statements This section outlines forward-looking statements and potential risks, including market conditions, sales strategies, order changes, supply chain delays, competition, and geopolitical factors - The company claims "safe harbor" protection for forward-looking statements[9] - Potential risks include market conditions, customer delivery schedule changes, order cancellations, supply chain delays, competition, and ability to obtain raw materials from foreign markets[9]