CVD(US:CVV)2019-11-13 00:11Financial Data and Key Metrics Changes - In Q3 2019, the company's revenue was $5.7 million, an increase of $1.7 million or 41.6% compared to $4 million in Q3 2018 [7] - The net loss for Q3 2019 was $138,000 or $0.02 per diluted share, significantly improved from a net loss of $2.5 million or $0.39 per diluted share in Q3 2018 [7] - For the first nine months of 2019, revenues were $14.1 million, down from $19.6 million in 2018, a decrease of $5.5 million or 28.1% [8] - The gross profit margin improved to 25% in Q3 2019, compared to 10% in Q2 2019 and negative 11% in Q1 2019 [11] Business Line Data and Key Metrics Changes - The increase in Q3 revenue was primarily due to higher sales of spare parts and equipment [8] - The company received new orders of approximately $7.9 million in Q3 2019, compared to $3.3 million in Q2 and $6.5 million in Q1 2019, leading to an order backlog of $6.7 million as of September 30, 2019, up from $4.5 million at June 30 [10] Market Data and Key Metrics Changes - The company is focusing on high-margin growth markets in materials for corrosion resistance, medical, aerospace, and defense coatings to stabilize equipment sales [6] Company Strategy and Development Direction - The company is enhancing its marketing efforts for equipment and materials sales, showcasing its material facility operations and offering coating services to new and existing customers [4] - The company anticipates that the operational start of Tantaline U.S. manufacturing in Q4 will contribute to improved sales [5] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to profitability, citing improved order flow, cost containment measures, and enhanced gross profit margins [13][16] - The company is committed to monitoring orders and expenditures while focusing on returning to profitable quarterly results [6] Other Important Information - Cash and cash equivalents were $6.7 million at September 30, 2019, down from $11.4 million at December 31, 2018, with working capital decreasing to $9.7 million [14] - The company invested $2.1 million in capital expenditures related to building improvements and machinery for CVD Materials operations [15] Q&A Session Summary Question: Are the bookings of $7.9 million all legacy business or do they include new material handling business? - Management indicated that the $7.9 million includes both legacy business and some components from new material handling [17] Question: When will Tantaline operations be fully operational? - Management stated that Tantaline operations will start in Q4 but will take most of the first half of the next year to be fully operational [20] Question: Is there room for further cost reductions? - Management confirmed that cost containment is an ongoing process and they are always looking for efficiencies [23] Question: Will the company be hiring additional personnel as orders increase? - Management expressed hope to announce additional hirings as orders increase, indicating they do not intend to reduce beneficial personnel [24] Question: Is the company actively seeking a replacement tenant for the space given back? - Management confirmed that they are actively pursuing a replacement tenant through a broker [25] Question: What is the potential revenue for the Meso division in the coming years? - Management affirmed that the Meso division has the potential to become a significant revenue contributor, possibly reaching $5 million to $20 million in a few years [28]