CVD Announces Record Q1 Results

(NASDAQ: CVVNews) CVD Equipment Corporation, a leading provider of custom chemical vapor deposition systems, today announced revenue for the quarter ended March 31, 2012 was $7,155,000, a 15.3% increase over the revenue of $6,206,000 earned for the quarter ended March 31, 2011, and its highest revenue and net income for a quarter ending March 31 in the Company’s history.

Income from operations for the three months ended March 31, 2012 was $1,073,000 as compared to income from operations of $877,000 for the three months ended March 31, 2011, a 22% increase. Net income of $728,000 for the quarter ended March 31, 2012 resulted in a 6% increase over the net income of $687,000 for the quarter ended March 31, 2011, resulting in earnings of $0.12 per share, basic and diluted, for the current three months compared to earnings of $0.14 per share, basic and diluted, for the quarter ended March 31, 2011.

Backlog, at March 31, 2012, was $12,506,000, decreased 23% compared to the backlog of $16,198,000 at December 31, 2011.

The timing for completion of CVD’s backlog varies depending on the product mix and can be as long as two years. Order backlog usually is a reasonable management tool to indicate future revenues and profits, however it does not provide an assurance of future achievement of revenues or profits as order cancellations or delays are possible. Backlog from quarter to quarter can vary based on the timing of order placements and shipments.

Leonard Rosenbaum, President and Chief Executive Officer stated, “Due to (i) production constraints because of space limitations in our current facility, (ii) manpower to bring the new facility on-line and (iii) the expected move in the middle of this year, we have redirected some of our sales efforts away from immediate short term order growth and instead focused on longer term growth opportunities for new product platforms and material applications. Quotation levels remain high and we are confident that, once we move into our new facility, we will be able to continue our growth trend for both short and long term objectives.”
               

CVD Equipment Corporation

Comparative Operating Results for the Three Months ended March 31,

2012

2011
Revenue $7,155,000 $6,206,000
Cost of revenue $ 4,420,000 $ 3,921,000
Gross profit $2,735,000 $2,284,000
 
Operating expenses $1,662,000 $1,407,000
Net income $1,073,000 $687,000
Net income per common share
basic and diluted $0.12 $0.14
Weighted average shares of
common stock outstanding
Basic 5,976,582 4,821,125
Diluted 6,151,621 5,041,775
 

About CVD Equipment Corporation

CVD Equipment Corporation (NASDAQ: CVV) is a designer and manufacturer of custom and standard state-of-the-art equipment used in the development, design and manufacture of advanced electronic components, materials and coatings for research and industrial applications. CVD offers a broad range of chemical vapor deposition, gas control, and other equipment that is used by customers to research, design and manufacture semiconductors, solar cells, graphene, carbon nanotubes, nanowires, LEDs, MEMS, smart glass coatings, batteries, ultra capacitors, medical coatings, industrial coatings and equipment for surface mounting of printed circuit components.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release by CVD, as well as information included in oral or other written statements made or to be made by CVD, contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, industry specific and general business conditions, competitive market conditions, success of CVD's growth and sales strategies, possible customer changes in delivery schedules, cancellation of orders, delays in product shipments, delays in obtaining parts from suppliers, failure to satisfy customer acceptance requirements and other risk factors described in CVD’s SEC filings. All forward-looking statements are based on management's estimates, projections and assumptions as of the date hereof and CVD assumes no obligation to update this press release.

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