CVD Equipment Corporation announced its financial results for the third quarter ended September 30, 2024.

Manny Lakios, President and CEO of CVD Equipment Corporation, commented, “We are pleased that CVD’s third quarter 2024 revenue was $8.2 million, representing a 31.4% increase from the prior year period, which supported an improvement in operating performance and system gross margins. It is also encouraging that our September 30th backlog was $19.8 million, meaningfully higher than our 2023 year-end backlog. We are staying the course on our strategic efforts to build critical customer relationships, while carefully managing our costs to achieve our goal of long-term profitability and positive cash flow, while simultaneously focusing on growth and return on investment.”

“We continue to see an ongoing recovery of our Aerospace and Defense market segment. In early November, we received a $3.5 million follow on order for our CVI/CVD3500 system from an existing aerospace customer.”

“The silicon carbide market has remained quite dynamic, with ongoing overcapacity and declining wafer pricing,” continued Mr. Lakios. “That said, SiC wafer producers are quickly transitioning to 200 mm production to stay competitive, and CVD is making progress with the shipment of our first PVT200™ system during the third quarter. As we stated previously, this was a strategic order for SiC 200 mm crystal boule growth that we received in the first quarter of 2024.  The performance of the system is currently being evaluated for production by our now second PVT account. In addition, we are continuing to support both our PVT150™ and PVT200™ products in the field.”

Mr. Lakios added, “Our order and revenue levels continue to fluctuate given the nature of the emerging growth end markets we serve.”

Third Quarter 2024 Financial Performance

  • Revenue of $8.2 million, an increase of 31.4% year over year primarily due to higher CVD Equipment system revenues and an increase in gas delivery system revenues by our SDC segment.
  • In the third quarter of 2023, we recognized an increase in revenue of $0.8 million that was the result of a modification of a customer contract.
  • Backlog as of September 30, 2024 of $19.8 million, a decrease from $24.0 million at June 30, 2024 and increase from $18.4 million at December 31, 2023.
  • During the quarter, we recognized a $1.0 million non-cash charge to reduce our PVT150™ inventory to net realizable value. This charge was recognized as a result of changes in the overall market for equipment for 150 mm SiC wafers.
  • Our gross profit margin percentage improved due to improvements in contract mix but was offset by the inventory charge.
  • The Company recognized a $0.6 million gain on the sale of equipment by its MesoScribe subsidiary.
  • MesoScribe fulfilled its final orders of $0.7 million during the quarter and ceased operations as of September 30, 2024.
  • Operating income of $77,000 as compared to an operating loss of $1.0 million in the prior year third quarter.
  • Net income of $0.2 million or $0.03 per basic and diluted share, compared to a net loss of $0.8 million or $0.30 per basic and diluted share during the prior year third quarter.
  • Cash and cash equivalents as of September 30, 2024 of $10.0 million as compared to $14.0 million as of December 31, 2024.

Third Quarter 2024 Operational Performance

  • Orders for the third quarter were $4.1 million principally from our CVD Equipment segment as compared to $4.1 million in the prior year third quarter. Orders for the first nine months of 2024 were $21.0 million as compared to $19.9 million for the first nine months of 2023.
  • We continue to make investments in both research and development and sales and marketing, focused on our three key strategic markets – aerospace & defense, high power electronics and EV battery materials / energy storage.

Original – CVD Equipment