CVD Files 10K – Record Orders for 2014 Reported
By Business Wire News
CENTRAL ISLIP, N.Y.
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 $0.40 per diluted share. The reconciliation of non-GAAP net income is illustrated in the table below.
Leonard Rosenbaum, President and Chief Executive Officer stated, “2014 was a very busy year. We increased our order level to a record high and our revenues increased substantially. We have entered 2015 with a significant backlog and expect to continue to add to the backlog throughout the year as we pursue additional opportunities in our key markets of aerospace, medical, research laboratories (university and industrial) and custom chemical vapor deposition systems.”
Mr. Rosenbaum added, “Our Application Laboratory continues to advance technology for Graphene, Nanowires and Nanotube materials and work with potential end users to apply this technology to advance these nano materials into large volume, value added products. Our custom CVD solutions and systems which we can provide help to enable our industrial customers to scale up their production requirements.
“Overall we anticipate 2015 to be a very strong year for our Company as the markets we have and will continue to pursue are increasing in demand. Thank you for your continued support.”
CVD Equipment Corporation
Selected Other Data (Unaudited)
For the Twelve Months Ended
|(in thousands except per share information)|
|Reconciliation of Non-GAAP measure-operating expenses|
|And operating income excluding certain items|
|Revenue, as reported||$||27,990||$||17,884|
|Gross profit, as reported||11,525||6,710|
|Operating expenses, as reported||15,289||8,516|
Nonrecurring loss and legal fees on litigation settlement
|Nonrecurring gain on sale of building||—||(887||)|
|Nonrecurring bad debt expense||—||1,281|
|Non-GAAP operating expenses||8,598||7,899|
|Non-GAAP operating income/(loss)||2,927||(1,189||)|
|Income/(loss) net of tax as reported||(2,474||)||(560||)|
|Adjustments, net of tax|
Nonrecurring loss and legal fees on litigation settlement
|Nonrecurring gain on sale of building||—||(585||)|
|Nonrecurring bad debt expense||—||845|
|Non-GAAP income/(loss), net of tax||1,942||(300||)|
|Diluted earnings per share, as reported||($ 0.40||)||($ 0.09||)|
Per share impact of Non-GAAP adjustments, net of tax
|Non-GAAP per share earnings||0.32||0.05|
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.