Business
CVD Reports Fourth Quarter and Year-end 2020 Results
CENTRAL ISLIP, N.Y.--(BUSINESS WIRE)-- CVD Equipment Corporation (NASDAQ: CVV), a leading provider of chemical vapor deposition systems and materials, today
About this update from Cvd Equipment Corporation
[{"type":"text","content":" CENTRAL ISLIP, N.Y.--(BUSINESS WIRE)--\nCVD Equipment Corporation (NASDAQ: CVV), a leading provider of chemical vapor deposition systems and materials, today announced its fourth quarter and year-end 2020 financial results.\n\nCVD fourth quarter 2020 revenue was $3.2 million as compared to $5.6 million in the fourth quarter of 2019, a decrease of $2.4 million or 42.9%. Net loss for the fourth quarter 2020 was $5.3 million, or $0.80 per diluted share, which includes an impairment charge of $3.6 million related to the Company’s Tantaline product line, as compared to a net loss of $2.6 million or $.40 per diluted share in the fourth quarter of 2019. CVD’s total 2020 revenue was $16.9 million as compared to $19.6 million in 2019, a decrease of $2.7 million or 13.9%. The net loss for the year ended 2020 was $6.1 million, or $0.91 per diluted share, which includes an impairment charge of $3.6 million related to the Company’s Tantaline product line, as compared to a net loss of $6.3 million or $.96 per diluted share in the year ended 2019.\n\nThe Company’s backlog was $5.7 million at December 31, 2020 as compared to $8.9 million at December 31, 2019, a reduction of $3.2 million or 36%. While revenue for each of Q3 and Q4 2019 and Q1 2020 was in the range of $5.5 million - $6 million, the Company experienced significant negative effects from the COVID-19 pandemic including reductions of new orders commencing in the middle of Q1 2020. This reduced order level negatively affected revenue in each of the last three quarters of 2020 and into 2021.\n\nThomas McNeill, Chief Financial Officer, said, “In order to increase our liquidity and to provide necessary working capital to support our on-going business and operations, we have decided to sell our facility located at 555 North Research Place, Central Islip, NY, and on March 29, 2021 we entered into an agreement to sell this building for a purchase price of $24,360,000, subject to the satisfaction or waiver of certain conditions to closing or contingencies. A portion of the sale proceeds would be used to satisfy the existing mortgage debt of approximately $9.3 million at December 31, 2020, and to pay various transaction-related costs in an amount to be determined. Any excess proceeds will be used for general working capital purposes. Further, we have determined the 555 Building is not needed...