CVD Equipment Corporation, a New-York-based manufacturer of chemical vapour deposition systems has reported its second quarter (Q2) 2019 financial results.
Revenue for the quarter was $4.9m compared to $6.4m in Q2 2018, a decrease of $1.5m or 23.6%.
Net loss for the quarter was $1.4m, or $0.21 per diluted share, compared to a net loss of $1.3m or $.21 per diluted share in Q2 2018.
CVD received orders of approximately $3.3m in Q2 compared to approximately $6.5m in the first quarter. This resulted in a decrease in order backlog on 30th June (2019) of approximately $4.5m compared to approximately $6m on 31st March 2019.
First half 2019
CVD revenue for the first half of 2019 totalled $8.4m compared to $15.6m in the first half of 2018, a decrease of $7.2m or 46.1%.
Net loss for the first half of 2019 was $3.6m, or $0.55 per diluted share, compared to a net loss of $.7m or $.12 per diluted share in the first half of 2018.
Commenting on the results, Thomas McNeill, Chief Financial Officer, said, “We improved our gross profit margin to 10% in Q2 2019 as compared to (11%) in Q1 2019, the result of improving operating efficiencies as well as increased revenue generating improved contribution margins compared to Q1 2019.”
“Our operating expense cost containment measures this year have resulted in a sequential decrease of $141,000 in our operating expenses during the second quarter and we will see further reductions from those implemented actions in Q3.”
“We believe that the cost containment measures we have been implementing should better align our expenses to order rates, thereby positioning the company to a return to cost profitability.”
Leonard Rosenbaum, President and Chief Executive Officer, said, “The company’s focus during the second quarter has been on getting our material facility up and running in the third quarter, moving the MesoScribe™ facility from California to New York, and pursuing additional equipment sales.”
“The company invested $2.5m during 2018 in building improvements, machinery, and other expenses related to CVD Materials, and $1.4m in the first half of 2019. With the operations at our new materials starting to come online during the third quarter of 2019, we have been increasing our marketing efforts by showcasing our new facility operations and offering material coating services to new and existing customers.”