CEO sees further growth in orders and revenue through year end but expresses disappointment at Court ruling on dispute with Taiwan Glass.
CVD Equipment Corporation, a leading provider of custom chemical vapor deposition systems, announced 17 November 2014 its financial results for the three and nine months ended September 30, 2014.
Revenue rose 88% to USD 8,867,000 for the three months ended September 30, 2014 compared to USD 4,707,000 for the three months ended September 30, 2013. Revenue for the current quarter also exceeded by 45% the revenue of USD 6,107,000 for the prior quarter ended June 30, 2014. Year to date revenue rose 49% to USD 19,360,000 for the nine months ended September 30, 2014 compared to USD 13,004,000 for the nine months ended September 30, 2013.
Bookings increased by 139% to approximately USD 27,500,000 for the nine months ended September 30, 2014 compared to USD 11,500,000 for the nine months ended September 30, 2013. The backlog as of September 30, 2014 increased to USD 12,058,000 compared to USD 3,990,000 as of September 30, 2013. Although timing for completion of backlog varies depending on the product mix and can be as long as two years, CVD Equipment believes a significant portion of its current backlog will be completed within the next twelve months.
Net income for the three months ended September 30, 2014 was USD 858,000 or USD 0.14 per share basic and diluted compared to a net loss of (USD 438,000) or (USD 0.07) per share basic and diluted for the three months ended September 30, 2013. For the nine month period ended September 30, 2014 net income was USD 792,000 or USD 0.13 per basic and diluted share compared to a net loss of (USD 5,000) or USD 0.00 per basic and diluted share for the nine months ended September 30, 2013.
Cash increased USD 1,995,000 to approximately USD 11,400,000 from USD 9,401,000 at June 30, 2014 as we continued to maintain a strong cash position.
Subsequent to the close of 3Q 2014, by Opinion and Order dated November 13, 2014 the US District Court, SDNY granted a motion by Taiwan Glass for partial summary judgment and ordered the entry of judgment in favor of Taiwan Glass against CVD Equipment in the amount of USD 3,564,000 plus interest. The Court has scheduled a conference for November 21, 2014 to determine how to proceed. The company is considering its options, including the appeal of the judgment. The result of this decision will be accounted for on a prospective basis.
Leonard Rosenbaum, President and Chief Executive Officer stated: “We are pleased with the growth in orders and revenue which we have experienced so far this year and we are continuing to pursue additional opportunities in our key markets. These efforts continue to be successful as our bookings momentum has continued into Q-4 and our three principal markets: aerospace manufacturing; medical device manufacturing and research laboratories (university and industrial) continue to show significant activity. We anticipate that our orders and revenue will continue to grow through the end of the year and beyond.
“Our Application Laboratory continues to advance technology for Graphene, Nanowires and Nanotube materials and work with potential end users to apply this technology to advance nano materials into large volume, value added products. Custom CVD solutions and systems which we provide help enable our industrial customers to scale up their production requirements.
“With regards to the judgment, we disagree with and are very disappointed with the Court’s ruling in connection with this contractual dispute regarding events which took place over five years ago. However, this will not affect our determination or ability to continue to build upon our many successes and we remain confident that we will continue to grow orders and revenue as well as the reputation of CVD as a leading designer and manufacturer of custom and standard state-of-the-art equipment.”
CVD Equipment Corporation (NASDAQ: CVV) is a designer and manufacturer of custom and standard state-of-the-art equipment used in the development, design and manufacture of advanced electronic components, materials and coatings for research and industrial applications. CVD offers a broad range of chemical vapor deposition, gas control, and other equipment that is used by customers to research, design and manufacture semiconductors, solar cells, graphene, carbon nanotubes, nanowires, LEDs, MEMS, smart glass coatings, batteries, ultra capacitors, medical coatings, industrial coatings and equipment for surface mounting of printed circuit components. CVD’s application laboratory focuses on higher efficiency nano and nano to macro material manufacturing for a wide variety of growth markets, which are marketed through its wholly owned subsidiary CVD Materials Corporation.