CVD Equipment Corporation has announced its first quarter 2016 financial results, with total revenue for the three months ended March 31, 2016, at $5.0 million compared to $9.7 million in the first quarter of 2015, a decrease of 48.5 percent.
“We have made significant progress in our negotiations for a sizable order with our large aerospace customer,” said Leonard Rosenbaum, President and Chief Executive Officer.
“While this does not immediately translate into a formal purchase order, we are continuing to move closer to a positive outcome which we expect in the near term. In the meantime, we have our resources and attention focused on pursuing other opportunities that should extend our market reach and improve our backlog for the second half of the year.”
Sky high, sky low
CVD has relied on large purchase orders from the aerospace industry for several years, designing coatings and other equipment for numerous applications.
One customer represented 58.8 percent and 54.6 percent of the company’s revenue for the three months ended March 31, 2016, and 2015, respectively. With the near completion of outstanding contracts, they state they are focused on booking significant follow-on business with that customer as well as opportunities with new and other customers.
Operating loss was $0.5 million compared to operating income of $1.2 million in the same period in 2015. Net loss of $338,000, or $0.05 per diluted share, was lower than net income of $668,000, or $0.11 per diluted share in the first quarter of 2015.
New orders for the first quarter were $2.3 million compared to $5.2 million in orders in 2015, resulting in a backlog of $3.4 million as of March 31, 2016 compared to $16.6 million as of March 31, 2015. Approximately $0.4 million or 11.8 percent of the first quarter 2016 backlog is from our largest customer as compared to $9.7 million or 58.4 percent from that same customer in 2015.