[March 31, 2015] |
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CVD Files 10K - Record Orders for 2014 Reported
CVD Equipment Corporation (CVD) (NASDAQ:CVV) announced revenue and
earnings for the year ending December 31, 2014. The Company achieved a
new record for bookings as it received over $45 million in orders during
2014, surpassing total orders received in any prior year, while also
achieving a near record revenue of ~ $28 million in 2014, an increase of
~ 57% compared to ~ $18 million in 2013.
The Company's backlog grew substantially year over year exceeding $21
million, on December 31, 2014 compared to ~ $4 million at December 31,
2013. Although timing for completion of order backlog varies depending
on the product mix and can be as long as two years, it is anticipated
that our current backlog will be completed by the end of the current
year. Order backlog usually is a reasonable management tool to indicate
future revenues and profits, however it does not provide assurance of
future achievement of revenues or profits as order cancellations or
delays are possible. Backlog can vary based on the timing of order
placements and shipments.
The demand for CVD's equipment, which has been led by the aerospace and
medical industries, has never been greater. Now that the Company is
firmly ensconced in its new facility, management is confident in its
ability to build equipment in a timely manner, satisfy increased order
levels and achieve increased revenues.
In January 2015, following an adverse court ruling during December 2014
in the long outstanding Taiwan Glass (TG) litigation, the Company
entered into an agreement to pay TG $4.925 million, inclusive of
interest, in settlement of all claims. CVD also incurred an additional
$1.8 million in legal fees attributable to this matter in 2014.
Therefore, CVD incurred ~$6.7 million in charges attributable to this
matter during fiscal 2014. Without this non-recurring charge, CVD would
have achieved net income, ~$1.9 million or $0.32 per diluted share
compared to our reported net loss for the year of ~$2.5 million or $0.40
per diluted share. The reconciliation of non-GAAP net income is
illustrated in the table below.
Leonard Rosenbaum, President and Chief Executive Officer stated, "2014
was a very busy year. We increased our order level to a record high and
our revenues increased substantially. We have entered 2015 with a
significant backlog and expect to continue to add to the backlog
throughout the year as we pursue additional opportunities in our key
markets of aerospace, medical, research laboratories (university and
industrial) and custom chemical vapor deposition systems."
Mr. Rosenbaum added, "Our Application Laboratory continues to advance
technology for Graphene, Nanowires and Nanotube materials and work with
potential end users to apply this technology to advance these nano
materials into large volume, value added products. Our custom CVD
solutions and systems which we can provide help to enable our industrial
customers to scale up their production requirements.
"Overall we anticipate 2015 to be a very strong year for our Company as
the markets we have and will continue to pursue are increasing in
demand. Thank you for your continued support."
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CVD Equipment Corporation
Selected Other Data (Unaudited)
For the Twelve Months Ended
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(in thousands except per share information)
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Reconciliation of Non-GAAP measure-operating expenses
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And operating income excluding certain items
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12/31/2014
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12/31/2013
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Bookings
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$
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45,065
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$
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13,459
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Ending Backlog
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21,074
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3,917
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Revenue, as reported
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$
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27,990
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$
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17,884
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Gross profit, as reported
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11,525
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6,710
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Operating expenses, as reported
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15,289
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8,516
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Adjustments:
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Nonrecurring loss and legal fees on litigation settlement
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6,691
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223
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Nonrecurring gain on sale of building
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--
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(887
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Nonrecurring bad debt expense
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--
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1,281
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Non-GAAP operating expenses
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8,598
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7,899
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Non-GAAP operating income/(loss)
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2,927
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(1,189
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Income/(loss) net of tax as reported
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(2,474
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(560
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Adjustments, net of tax
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Nonrecurring loss and legal fees on litigation settlement
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4,416
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--
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Nonrecurring gain on sale of building
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--
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(585
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Nonrecurring bad debt expense
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--
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845
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Non-GAAP income/(loss), net of tax
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1,942
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(300
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)
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Diluted earnings per share, as reported
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($ 0.40
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)
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($ 0.09
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Add back:
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Per share impact of Non-GAAP adjustments, net of tax
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0.72
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0.14
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Non-GAAP per share earnings
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0.32
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0.05
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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.
The above includes a summary of the Company's financial results for 2014
and 2013, but is not intended to replace the full financial disclosure
reported on Form 10-K that the Company filed with the Securities and
Exchange Commission on March 31, 2015. Please refer to that document for
additional information.
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