CVD Equipment Corporation, provider of chemical vapour deposition systems, has reported its Q1 2018 financial results.
Len Rosenbaum, President and CEO, said, “In the first quarter, we continued to execute on the core segment of our growth strategy by increasing our investment in the development of our new CVD materials facility.”
He continued, “The new facility will provide a cost-effective infrastructure to utilise the latest technology to produce high quality materials for aerospace, medical and electronic applications. We also further strengthened our senior leadership team and increased our focus on sales to expand and commercialise our exciting new technologies.”
The company’s revenue for the first quarter was $9.2m, compared to $9.8m in the prior quarter and $9.7m from the same period last year. Net income for the first quarter was $0.6m compared to $1.6m in the prior quarter and $1.0m a year ago. The reduction in net income is primarily a result of the ongoing investment in the Materials business, the development of the new facility, and shifting some engineering and production personnel to the planning, outfitting and building of equipment for the new facility. Net earnings per diluted share were $0.09 compared to $0.24 in the fourth quarter of 2017 and $0.16 a year ago. Backlog as of 31st March, 2018 was $9.8m compared to $15.5m on 31st December, 2017.
In the press release the company made the following three statements:
1) CVD holds the proprietary knowledge and has the capability to build the production systems required to meet demand.
2) CVD possesses the intimate knowledge necessary to operate the systems in a cost-effective manner, providing a significant operational and financial competitive advantage.
3) CVD is well capitalised to invest in the overhead and capital expenses required to take the company to the next level. Execution of this growth strategy should provide an additional, diverse and stable revenue stream that should significantly improve growth and profitability over the long-term.