Business
CVD Equipment Corporation Reports Third Quarter 2023 Financial Results
CENTRAL ISLIP, N.Y--(BUSINESS WIRE)-- CVD Equipment Corporation (NASDAQ: CVV), today announced its financial results for the third quarter ended September
About this update from Cvd Equipment Corporation
[{"type":"text","content":" CENTRAL ISLIP, N.Y--(BUSINESS WIRE)--\nCVD Equipment Corporation (NASDAQ: CVV), today announced its financial results for the third quarter ended September 30, 2023.\n\n\nEmmanuel Lakios, President and CEO of CVD Equipment Corporation, commented, “As previously communicated, our order and revenue levels have historically fluctuated, which is often typical in the highly cyclical process equipment industry. As such, while we saw a year over year decline in third quarter revenue of $1.9 million, our year-to-date 2023 revenue of $20.0 million was 7.6% higher than the corresponding period in the prior fiscal year. While we are disappointed with our third quarter revenue, we continue to see opportunities in key strategic markets of high-power electronics, battery materials/energy storage and aerospace and defense. We remain committed to stay the course on our strategy to achieve consistent long-term profitability, with a focus on growth and return on investment. Our return to profitability is subject to our ability to receive additional system orders and continue our efforts to reduce our overall operating costs.”\n\n\nThird Quarter 2023 Financial Performance\n\n\n\nRevenue of $6.2 million, down 23.2% as compared to the third quarter of 2022, primarily due to lower system revenues.\n\n\n\nOrders for the third quarter were $4.1 million driven by continued demand in the aerospace sector.\n\n\n\nBacklog as of September 30, 2023 of $16.6 million, a decrease from $18.8 million at June 30, 2023.\n\n\n\nOur gross profit margin percentage was consistent with recent quarters at 25.6% and less than the prior year quarter of 29.8% principally due to lower revenues and changes in contract mix.\n\n\n\nOperating loss of $1.0 million.\n\n\n\nAs a result of a modification to certain customer contracts, revenue recognition for certain contracts changed from “point in time” to “over time”. As a result of this contract modification, we recorded an increase in revenue of $0.8 million during the third quarter of 2023 that was deferred as of June 30, 2023 and recognized on the date of the contract modification.\n\n\n\nNet loss of $0.8 million or $0.11 basic and diluted share, compared to a net income of $63,000 or $0.01 per basic and diluted share during the prior year third quarter.\n\n\n\nCash and cash equivalents as of September 30, 2023 of $14.3 milli...