CVD Equipment Corporation Reports Fiscal 2012 Results
On revenue of approximately $22,158,000 for the year ended December 31, 2012 the Company recorded net earnings of approximately $436,000 or $0.07 per basic and diluted share.
Early in 2011, having realized that the current facilities were inadequate to meet anticipated future production requirements, management set upon a plan of expansion. In May 2011 through the issuance of shares of common stock approximately $9,388,000 was raised. In March 2012, the Company closed on the purchase of a 120,000 square foot facility to which we subsequently added another 10,000 square feet to replace the 63,275 square feet that was then occupied in two buildings. Over the course of the remaining nine months of 2012, significant time and effort was spent renovating the facility to meet future goals and objectives. This time was also utilized to increase and train additional sales, engineering and production staff in order to maximize productivity once the move is complete. During this period CVD also increased its research from $955,000 in 2011 to $1,330,000 in 2012.
Additionally, order acceptance levels were purposely reduced to approximately $8,342,000 in order to maintain a more manageable backlog level during the transition into the new facility. Order backlog usually is a reasonable management tool to indicate future revenues and profits, however it does not provide an assurance of future achievement of revenues or profits as order cancellations or delays are possible. Backlog from quarter to quarter can vary based on the timing of order placements and shipments.
Net earnings of $436,000 were also negatively impacted by the sale of 979 Marconi Ave, Ronkonkoma, NY, the building which had housed CVD's Application Laboratory resulting in a capital loss of $694,000 and a reduction of $0.12 per share on our earnings. Our building located at 1860 Smithtown Ave., Ronkonkoma, NY is currently in contract, expected to generate a capital gain and is scheduled to close imminently.
The Company continues to maintain a strong cash position and a healthy working capital ratio despite the cash outlays for the new facility and the inherent inefficiencies of moving into new quarters.
Leonard Rosenbaum, President and Chief Executive Officer stated: "In 2011 we had major growth in equipment order levels and revenues. This growth stretched our Ronkonkoma manufacturing facility to its limit and restricted our ability to hire additional personnel to further increase our manufacturing capability. We expected this constraint would be eliminated starting in Q3, 2012 but it took us until mid March of 2013 to finally move into the new facility. This resulted in a very inefficient operation over the last six months due to the distractions and resource utilization associated with getting the new facility operational. Thankfully we are now at the end of this transition and we will now be able to turn our full attention back to operating the business.
"Our quotation level is very high and we anticipate 2013 will demonstrate that we have a very bright future. Our ability to work with customers to solve their process issues and to define, design and manufacture customized equipment needed to meet their production needs will continue to provide significant order levels. Our FirstNanoTM EasyTube® product family is keeping us in the forefront of technology and continues to expand by serving University, Industrial and Government Research Laboratories and Startup companies throughout the world in fields such as Nanotubes (Carbon and Boron Nitride), Graphene, Nanowires (Zinc Oxide, Gallium Nitride, Silicon,) Solar Cells, MEM's, Energy generation and storage, Semiconductors and Light Emitting Diodes. Our Application Laboratory together with our wholly owned subsidiary, CVD Materials Corporation are providing research and the further implementation of our business plan to offer our assistance in accelerating the commercialization of the next generation products on CVD production equipment platforms. The Company will further expand our technology, products and customer base in 2013."
CVD Equipment Corporation
Comparison of Consolidated Statements of Operations
For the Twelve Months Ended December 31, 2012 vs. December 31, 2011
Income before income taxes
- Per share basic
- Per share diluted
Earnings release should be read in conjunction with Company's Annual Report on Form 10-K for fiscal year ended December 31, 2012
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by CVD Equipment Corporation) contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as "forward-looking statements, "as such term is defined in Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, conditions, success of CVD Equipment Corporation's growth and sales strategies, the possibility of customer changes in delivery schedules, cancellation of orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and failure to satisfy customer acceptance requirements.
KEYWORDS: United States North America New York
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