News: Suppliers
18 November 2024
CVD Equipment’s Q3 revenue grows 31% year-on-year
For third-quarter 2024, CVD Equipment Corp of Central Islip, NY, USA (a designer and maker of chemical vapor deposition, thermal processing, physical vapor transport, gas and chemical delivery control systems, and other equipment and process solutions for developing and manufacturing materials and coatings) has reported revenue of $8.2m, up 31.4% on $6.2m a year ago. Growth is due mainly to higher CVD Equipment system revenue and an increase in gas delivery system revenue by the SDC segment, plus $0.8m from a modification of a customer contract.
“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,” says president & CEO Manny Lakios.
“We continue to see an ongoing recovery of our Aerospace & Defense market segment. In early November, we received a $3.5m 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,” notes Lakios. “That said, SiC wafer producers are quickly transitioning to 200mm 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 200mm 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.”
During the quarter, as a result of changes in the overall market for equipment for 150mm SiC wafers, the firm recognized a $1m non-cash charge to reduce PVT150 inventory to net realizable value.
Revenue growth supported an improvement in operating performance and system gross margins. Due to the improvement in contract mix, overall gross margin improved, but this was offset by the inventory charge.
CVD Equipment Corp recognized a $0.625m gain on the sale of equipment by its MesoScribe subsidiary. MesoScribe fulfilled its final orders of $0.7m during the quarter and ceased operations as of end-September.
Net income was $0.2m ($0.03 per share), an improvement on a net loss of $0.75m ($0.11 per share) a year ago.
Cash and cash equivalents at end-September 2024 were $10m, down from $14m at end-December 2023.
“Our order and revenue levels continue to fluctuate, given the nature of the emerging growth end-markets we serve,” notes Lakios.
Orders were $4.1m (level with a year ago), principally from the CVD Equipment segment. Orders for the first nine months of 2024 were $21m, up from $19.9m for the first nine months of 2023.
Order backlog at the end of September was $19.8m, down on $24m at end-June but still up on $18.4m at end-December 2023.
“We continue to make investments in both R&D and sales & marketing, focused on our three key strategic markets – aerospace & defense, high-power electronics and EV battery materials/energy storage,” notes Lakios.
CVD Equipment’s Q3 revenue down 23.2% year-on-year due to lower system revenue
