CVV's 10th straight quarter of profitability:
CVD Equipment Corporation Announces First Quarter Results
Monday May 14, 6:47 pm ET
RONKONKOMA, N.Y., May 14 /PRNewswire-FirstCall/ -- CVD Equipment Corporation (Amex: CVV - News) today announced that it has achieved profitable results for the tenth consecutive quarter.
Revenue for the first quarter ending March 31, 2007 was approximately $3,811,000, compared to $3,211,000 for the quarter ending March 31, 2006, an increase of 18.7% as we continue to experience an increasing demand for our products. The overall gross profit percentage decreased slightly to 33.0% for the current quarter compared to 33.3% for the same period one year ago. As a result of our stepped-up efforts to increase our presence at trade shows in order to effectuate our sales expansion program, selling and shipping expenses increased by approximately $81,000 or 41.4% during the current three month period ending March 31, 2007 compared to the same respective period one year ago. General and administrative expenses for the three months ending March 31, 2007 increased by approximately $55,000 or 7.7% compared to the three months ending March 31, 2006 due to increases in benefit costs, insurance and energy costs.
Our operating income for the current quarter ending March 31, 2007 was $204,000 compared to $155,000 for the quarter ending March 31, 2006. Net income for the current quarter was approximately $96,000 or $0.03 per share basic and diluted compared to $113,000 or $0.04 basic and $0.03 diluted earnings per share for the quarter ending March 31, 2006. This decrease was primarily due to two factors: the receipt of $70,000 during the 1st quarter 2006, which was previously written off in 2004; and an increase in expenses in the current quarter associated with the expansion program we first discussed in the December 31, 2006 Form 10-K, to broaden the First Nano product line and pursue a significantly larger share of the R&D market and have begun to experience an increase in design and manufacturing costs associated with this program.
As of March 31, 2007 the Company's backlog was approximately $2,143,000, a decrease of $1,422,000 or 40.0% compared to $3,565,000 at December 31, 2006. Timing for completion of the backlog varies depending on the product mix, however, there is generally a one to six month lag in the completion and shipping of backlogged product. Backlog from quarter to quarter can vary based on the timing of order placements and shipments.
Leonard Rosenbaum, President and Chief Executive Officer stated, "We are pleased with the 18.9% increase in sales during the first quarter. Additionally, the success of our First Nano laboratory growing the record shattering long CNT array and for long CNT arrays on large diameter substrates (see Form 8-K filed on April 30, 2007) is very promising for bringing this technology from the research laboratory into production.
We anticipate that the additional sales, engineering and manufacturing expenditures we are currently incurring to broaden the First Nano product line will further add to the long term revenue and increased profitability of the company.
The decrease in backlog on March 31, 2007 as compared to March 31, 2006 is due to timing of order placements and shipments. Our quotation activity is up, and our order levels in April keep us on track to continue the revenue growth seen in 1st quarter 2007 and for all of 2006. We expect the expansion programs we have initiated will continue to fuel this growth.
CVD Equipment Corporation, is a global designer, manufacturer and supplier of equipment for use in manufacturing semiconductors, solar cells, carbon nanotubes, nanowires and equipment for surface mounting of components onto printed circuit boards,
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in CVD Equipment Corporation's filings with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on CVD Equipment Corporation's website does not constitute a part of this release.
CVD Equipment Corporation
Comparative Operating Results for the Three Months ended March 31,
2007 2006
Revenue $3,811,000 $3,211,000
Operating income 204,000 155,000
Net income 96,000 113,000
Net income
Per share basic $0.03 $0.04
Per share diluted 0.03 0.03
Weighted average shares of
common stock outstanding
Basic 3,284,589 3,132,689
Diluted 3,413,792 3,302,226
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Source: CVD Equipment Corporation
