News

1 April 2010

 

CVD Equipment reports sixth consecutive profitable year, despite 42% revenue drop

CVD Equipment Corp of Ronkonkoma, NY, USA has reported profitable results for the sixth consecutive year in 2009. However, net earnings of $179,000 ($0.04 per basic and diluted share) were down on 2008's $632,000 ($0.13 per basic and diluted share).

Revenue was $10.57m, down 41.7% on 2008's $18.15m due to: (i) delays or reductions in capital expenditures by potential customers due to the unfavorable economic conditions; and (ii) a significant contract from a CVD division customer being breached during fourth-quarter 2009 (accounted for under the percentage of completion contract method of revenue recognition). If the firm had been able to continue recognizing revenue from that contract, revenue for 2009 would have been about $14.14m (down 22.1% on 2008).

“The difficult economic conditions experienced in 2009 have not continued into 2010,” notes president & CEO Leonard Rosenbaum. “Our quotation activity is very high and new order levels have increased... We believe this trend will continue to increase in subsequent quarters,” he adds.

CVD Equipment Corp operates three divisions. In addition to the Stainless Design Concepts Division (which manufactures ultra-high-purity gas and chemical delivery systems) and the Conceptronic/Research International Division (which supplies reflow ovens and rework stations to the PCB assembly market and ball attach ovens for back-end semiconductor packaging), the CVD/First Nano Division consists of the CVD product group (which designs and builds pilot and production equipment for custom chemical vapor deposition processes) and the First Nano product group (which makes EasyTube equipment for growing nanowire, nanotube and thin-film materials) as well as an Application Laboratory (where it develops processes and solutions for commercializing emerging technology in the nano/solar fields and develops/optimizes custom material manufacturing processes). 

“Our decision to focus on the CVD/First Nano product lines for our long-term revenue growth and profitability is still proving to be successful despite the conditions we experienced in 2009,” Rosenbaum continues. “Our EasyTube product line is widely accepted and continues to expand by serving university and research laboratories, startup companies, and quality control departments throughout the world in fields such as nanotubes (carbon and boron nitride), graphene, nanowires (zinc oxide, gallium nitride, silicon), solar cells, MEMS (micro-electro-mechanical systems), energy, semiconductors, and light-emitting diodes,” he says. “Our newest offering, the SiQC system, is helping to analyze the feedstock to solar polysilicon facilities. Our Application Laboratory is providing research and the further implementation of our business plan to offer nano and solar companies assistance in accelerating the commercialization of their next generation of products on CVD production equipment platforms,” Rosenbaum adds. “We will continue to expand our technology, products, and customer base, and the revenues for 2010 should improve over 2009.”

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