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(CVV) - 2023 Q3 - Quarterly Report