Financial Data and Key Metrics Changes - First quarter 2024 revenue was $4.9 million, a decrease of $3.8 million or 43% compared to $8.7 million in the first quarter of 2023 [22][3] - Gross profit for the first quarter was $0.9 million, with a gross profit margin of 17.5%, down from $2.4 million and 28% in the same period last year [6][22] - The operating loss for Q1 2024 was $1.6 million, compared to an operating loss of $0.2 million in Q1 2023 [7] - Net loss for the first quarter was $1.5 million or $0.22 per share, compared to a net loss of $40,000 or $0.01 per share in Q1 2023 [25] Business Segment Data and Key Metrics Changes - Revenue from the CVD Equipment segment decreased by $2.9 million, while the SDC segment saw a $0.4 million decrease, and the CVD Materials segment decreased by $0.6 million due to the disposition of Tantaline and the wind-down of MesoScribe's operations [5] - SDC segment revenues were 16% lower than Q1 2023 but 44% higher than Q4 2023 due to increased demand for gas and chemical delivery systems [23] Market Data and Key Metrics Changes - The backlog increased from $18.4 million at year-end to $27.1 million at March 31, 2024, driven by a $10 million multisystem order for silicon carbide CVD coating systems [4] Company Strategy and Development Direction - The company remains focused on achieving profitability while managing costs and cash flow, and is committed to growth and return on investment [3] - Strategic efforts include funding research, development, and marketing activities to penetrate key market opportunities [4] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with the first quarter performance but remains cautiously optimistic about future growth [3][11] - The return to profitability is contingent on new equipment orders, mitigating supply chain disruptions, and managing capital expenditures and operating expenses [26] Other Important Information - Cash and cash equivalents at March 31, 2024, were $11.9 million, down from $14 million at December 31, 2023 [25] - Working capital at March 31, 2024, was $13.1 million, compared to $14.3 million at the end of 2023 [45] Q&A Session Summary Question: What is the revenue recognition cadence for the $10 million silicon carbide protective coating order and the $3.6 million new PVT200 order? - The $10 million order will be recognized over time, while the PVT200 order will be recognized at the point of shipment [39] Question: Is the reduction in SG&A from $1.6 million to $1.3 million a good run rate going forward? - Management indicated that the reduction aligns with current operational realities and does not affect engineering programs [41] Question: How many employees were let go to achieve the current cost structure? - Specific numbers were not disclosed, but the reduction in workforce was part of the cost management strategy [42]
CVD(CVV) - 2024 Q1 - Earnings Call Transcript