CVD Equipment Corporation, a provider of chemical vapour deposition systems and materials has announced its first quarter (Q1) 2019 financial results.
Q1 revenue was $3.5m compared to $9.2m in Q1 2018, a decrease of $5.7m or 62.0%.
Net loss for Q1 was $2.2m, or $0.33 per diluted share, compared to a net profit of $0.6m or $0.09 per diluted share in Q1 2018.
CVD received new orders of approximately $6.5m in Q1 and order backlog at 31st March was approximately $6m.
“We anticipate the cost containment measures we have been implementing should align our expenses to our order rates, thereby reducing future operating losses and should return the company to profitability by the first quarter of 2020,” said Thomas McNeil, Chief Financial Officer of CVD.
“While 2019 was a difficult year for CVD, the company has accelerated its focus on the materials business. During 2018, the company invested $2.5m in building improvements and machinery related to CVD Materials, $0.4m in the first quarter of 2019 and other materials facility related expenses,” said Leonard Rosenbaum, President and CEO of CVD.
“With the operations at our new materials facility coming online during the third quarter of 2019, and our continued investment in building improvements and machinery we will enhance our marketing efforts by showcasing our operations to new and existing customers.”
“In addition, we will complete the move of our Mesoscribe operations from California by the end of May (2019), with integration to be completed by July (2019). The consolidating of Mesoscribe operations into our materials facility should enhance our ability to execute on operational improvements, as well as reduce operational costs.”