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(CVV) - 2024 Q1 - Quarterly Report