CVD Equipment Corporation achieved record first-half revenue of $14.2 million for the six months ended June 30, 2012, a 3.9 percent increase over the same six-month period in 2011.
Revenue for the three months ended June 30, 2012, however, was just over $7 million – down 3.9 percent on the same three month period in 2011, despite the significant effort required for planning and preparing the company’s relocation to new headquarters.
Relocation is scheduled to occur by October 15, 2012.
Gross margins for the three and six months ended June 30, 2012 increased by 2.7 percent and two percent respectively, compared to the same periods in 2011.
CVD is currently positioning itself for further growth in the future, relocating to newer, bigger headquarters and while that transition is in process, throttling back slightly its order backlog. With both these factors in mind, the company naturally expects orders to increase going forward.
“Although we have allowed our backlog to decrease to a more manageable level to ease the transition into our new quarters, based on the continuing high level of interest in our products we are confident that orders will increase going forward”
Leonard Rosenbaum, president and CEO explained, “Starting in Q2 we re-directed some of our manpower toward the new facility into which we will start moving shortly. We have also started to expand our sales effort with additional representatives, sales assistants, and direct sales personnel.”
“Although we have allowed our backlog to decrease to a more manageable level to ease the transition into our new quarters, based on the continuing high level of interest in our products we are confident that orders will increase going forward. Space limitations in our current facility hindered our ability to expand production and add engineering and management personnel.”
He concluded, “Our new significantly larger facility will enable our growth to continue both in equipment and materials with no significant increase in operating costs.”
Having determined that larger quarters were required to facilitate the growth of CVD, First Nano and the Application Laboratory, the company is replacing its two Long Island buildings with a new building (also on Long Island) which will double the facility size.