Core Viewpoint - CVD Equipment Corporation experienced a significant revenue increase in Q1 2025, but its stock has declined sharply since the earnings report, indicating market concerns despite improved financial performance [1][2]. Financial Performance - Revenues rose 68.9% year over year to $8.3 million from $4.9 million, also marking a 12.2% increase from Q4 2024 [2] - Gross profit increased to $2.7 million from $0.8 million, with gross margin expanding to 32.4% from 16.2% [3] - Operating income improved to $0.3 million from a loss of $1.6 million, and net income was $0.4 million, or $0.05 per diluted share, compared to a loss of $1.5 million, or $0.22 per share, in Q1 2024 [4] Order Activity and Backlog - First-quarter 2025 orders totaled $2.8 million, down from previous levels, leading to a backlog reduction from $19.4 million at the end of 2024 to $13.8 million at the end of March 2025 [4] - A $1.2 million semiconductor system order was secured in early April 2025, expected to support near-term revenue [5] Management Insights - CEO Emmanuel Lakios acknowledged improved revenue but cautioned about volatile market conditions and the impact of recently imposed tariffs on costs and future order rates [6] - The company implemented cost control measures, including workforce reductions, to manage demand variability while focusing on long-term profitability [7] Cash Flow and Working Capital - Cash balance decreased from $12.6 million at the end of 2024 to $10.2 million at the end of March 2025, but working capital improved to $14.5 million from $13.8 million [8] - Management expressed confidence that current cash reserves and projected operating cash flow will meet working capital needs over the next 12 months [10] Operational Adjustments - A restructuring initiative was implemented to align operating costs with customer demand, involving workforce reductions and a review of cost efficiencies [11]