CVD Equipment Corporation has achieved record-breaking revenue for both the three- and nine-month periods ended Sept. 30, 2015.
CVD’s revenue rose 20.1% to a record-breaking level of $10.6 million for the current quarter ending Sept. 30, 2015, compared to $8.9 million in revenue for the quarter ended Sept. 30, 2014. For the current nine month period, CVD’s revenue rose 59.0% to a record-breaking $30.8 million compared to $19.4 million in revenue for the nine month period ended Sept. 30, 2014. CVD also reported net earnings of $0.8 million or $0.13 per basic and diluted share and $2.8 million or $0.46 per share basic and $0.45 per share diluted for those respective periods compared to earnings of $0.9 million or $0.14 per share basic and diluted and $0.8 million or $0.13 per share basic and diluted for the three and nine months ended September 30, 2014.
The company incurred legal fees and settlement costs of $1.2 million during the quarter ended Sept. 30, 2015, and $1.6 million during the nine months ended Sept. 30, 2015, related to the settlement of an outstanding claim. Without this non-recurring charge, CVD would have achieved net income of $2.0 million or $0.32 per diluted share for the three months ended Sept. 30, 2015, and $4.4 million or $0.69 per diluted share for the nine months ended Sept. 30, 2015.
New orders for the quarter were $2.9 million, as a result, the company’s backlog decreased to $11.5 million at Sept. 30, 2015, a decrease of 5.0% compared to the $12.1 million backlog at Sept. 30, 2014. The company received $21.2 million in new orders during the nine months ended Sept. 30, 2015, compared to $27.5 million in new orders received during the nine months ended Sept. 30, 2014, a decrease of 22.9%. The timing of the receipt of an order is subject to various factors, most of which are not under our control. As a result, our order levels from period to period, tend to be uneven. Order levels attained in one period are not necessarily indicative of order levels that will be attained in future periods. Although timing for completion of backlog varies depending on the product mix and can be longer.
The company continues to maintain a strong cash position and a healthy working capital ratio.
Repeat customer activity driving growth
Leonard Rosenbaum, President and Chief Executive Officer, stated, “A significant portion of our orders this year came from existing customers who rely on CVD to further expand their production capacity with both repeat and new innovative equipment. We continue to manufacture, deliver and start-up these large orders, especially orders for the initial systems with new technology that our customers need to execute on their significant production plans. We expect to continue to be a key supplier in that expansion strategy over the coming years.
“As new technologies develop we use our talents to design and manufacture the state of the art process equipment that is needed to prove these concepts. We work with our customers from the research state, to launching the process in production and in the capacity ramp to full production. In doing this, we have made significant advances in custom chemical deposition equipment for medical, aerospace, nanomaterials, and other applications. As we work with our customers in research and equipment development we continue building the technology base that fuels our growth.”