CVD Equipment Corporation (CVD), a chemical vapor deposition system manufacturer, has released its third quarter financial results reporting revenues of $5.7m.
The New York-based company reported a net loss for the quarter of $138.009, or $0.02 per diluted share, compared to a net loss of $2.5m in the third quarter of 2018.
During the quarter, CVD received orders of approximately $7.9m, compared to approximately $6.5m and $3.3m in the first and second quarter of 2019, respectively, resulting in an increased order backlog of $6.7m on 30th September (2019).
CVD’s nine months 2019 revenue totalled $14.1m, compared to $19.6m in the first nine months of 2018. Net loss for the first nine month of 2019 was $3.7m compared to a net loss of $3.3m in the first nine months on 2018.
Commenting on the results, Thomas McNeill, Chief Financial Officer, said, “Our gross profit margin improved to 25% in Q3 2019 as compared to 10% in Q2 2019 and (11%) in Q2 2019. This was a result of i) improving operating efficiencies, ii) mix of product revenue, iii) increased revenue that improved contribution margins as compared to the prior two quarters in 2019, and iv) the cost containment measures we have taken.”
“In Q3 2019 we achieved a decrease of $388,000 in operating expenses as compared to Q2 2019. This decrease includes the effects of a one-time $200,000 recovery of the final contingent earnout related to our MesoScribe™ acquisition. Included in other income is the recognition of $207,000 of rental income in the third quarter of 2019.”
“Overall, we believe that the progress we have made again this quarter in continued cost containment measures, improvement in gross profit margins, and improve order flow has substantially progressed the company toward a return to profitability.”
Leonard Rosenbaum, CVD President and CEO, commented, “The company’s focus during the third quarter has been on i) getting out material facility up and running, ii) starting our MesoScribe™ facility back-up after moving from California to New York, and iii) pursuing additional equipment sales.”
“We have continued to increase our marketing efforts for equipment and materials, and we are now showcasing our materials facility operations and offering material coating services to new and existing customers.”
“We have continued working on our fluid reactor technology and additional testing will be done this quarter with the Centre of Biotechnology at Stony Brook University to further our novel, patent pending technology on an improve Extracorporeal Membrane Oxygenation (EMCO) device. We anticipate further collaboration for this promising technology and application.”