CVD Announces Record First-Half Revenue

CVD Equipment Corporation (NASDAQ: CVVNews), a leading provider of custom chemical vapor deposition systems, today announced that it had achieved record first-half revenue of $14,249,000 for the six months ended June 30, 2012, representing a 3.9% increase over the $13,713,000 of revenue for the six months ended June 30, 2011.

Revenue for the three months ended June 30, 2012 was $7,094,000 compared to $7,155,000 in the three months ended June 30, 2011, a 3.9% decrease despite the significant effort required for planning and preparing the Company’s relocation to new headquarters scheduled to occur by October 15, 2012.

Gross margins for the three and six months ended June 30, 2012 increased by 2.7% and 2.0% respectively compared to the same periods in 2011.

Pre-tax income (excluding the sale of a building) for the three and six months ended June 30, 2012 increased by 1.0% and 8.4% respectively compared to the same periods in 2011.

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. The building that housed CVD’s Application Laboratory has been sold, resulting in a capital loss of approximately $694,000 or $0.12 per share pre-tax for this quarter. This loss reduced net earnings per share to $.05 per share basic and diluted for the three months ended June 30, 2012 and to $0.18 per share basic and $0.17 per share diluted for the six months ended June 30, 2012. Sale of the 2 nd building currently housing CVD/First Nano is in contract, expected to generate a capital gain, and scheduled to close no later than October 15, 2012. The Company anticipates the net effect of these two real estate transactions, when completed, will result in an overall net capital gain.

In addition to the condensed statement of operations in accordance with GAAP, we have included a pro-forma statement of income from operations excluding the effect of the capital loss on the sale of the building which housed the Application Laboratory.

Leonard Rosenbaum, President and Chief Executive Officer stated, “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. Our new significantly larger facility will enable our growth to continue both in equipment and materials with no significant increase in operating costs.”

 

CVD Equipment Corporation

Comparative Operating Results for the Three Months Ended June 30,

(In thousands, except for per share amounts)
 
           

Includes Sale of Building
     

Excludes Sale of Building
            Three Months Ended       Three Months Ended
           

June 30
     

June 30, Pro Forma
           

2012
     

2011
     

2012
     

2011
Revenue         $ 7,094     $ 7,508     $ 7,094     $ 7,508
Cost of revenue           4,184       4,635       4,184       4,635
Gross profit           2,910       2,873       2,910       2,873
                                     
Selling, general & administrative           1,705       1,671       1,705       1,671
Loss on sale of building           694       --       --       --
Operating income           511       1,202       1,205       1,202
                                     
Other income (expenses)           (30)       (38)       (30)       (38)
Income before income taxes           481       1,163       1,175       1,163
Income tax expense           160       385                
Net income           321       778                
EPS Basic         $ 0.05     $ 0.15                
EPS Diluted           0.05       .014                
Weighted average shares:                                    
Common stock - Basic           5,992       5,984                
Common stock - Diluted           6,161       6,154                
 
 

CVD Equipment Corporation

Comparative Operating Results for the Six Months Ended June 30,

(In thousands, except for per share amounts)
 
           

Includes Sale of Building
     

Excludes Sale of Building
            Six Months Ended       Six Months Ended
           

June 30
     

June 30, Pro Forma
           

2012
     

2011
     

2012
     

2011
Revenue         $ 14,249     $ 13,713     $ 14,249     $ 13,719
Cost of revenue           8,604       8,557       8,604       8,557
Gross profit           5,645       5,157       5,645       5,157
                                     
Selling, general & administrative           3,367       3,078       3,367       3,078
Loss on sale of building           694       --       --       --
Operating income           1,584       2,079       2,278       2,079
                                     
Other income (expenses)           (44)       (5)       (30)       (5)
Income before income taxes           1,540       2,074       2,248       2,074
Income tax expense           492       609                
Net income           1,048       1,466                
EPS Basic         $ 0.18     $ 0.29                
EPS Diluted           0.17       .028                
Weighted average shares:                                    
Common stock – Basic           5,992       5,984                
Common stock – Diluted           6,161       6,154                
 

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.

Copyright Business Wire 2010

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