CVD Equipment (CVV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $6.3 million, up 25.2% year-over-year, driven by aerospace contracts and SDC segment growth, though offset by lower PVT-150 and spare parts sales.

• Backlog at June 30, 2024, was $24 million, up from $18.4 million at year-end but down from $27.1 million at March 31, 2024.

• Orders for the first half of 2024 totaled $16.9 million, up from $15.8 million in the same period of 2023, including a $10 million multi-system order for silicon carbide coating.

• Shipped the newly launched PVT-200 system for silicon carbide crystal growth, now under evaluation by a second customer.

• Management remains focused on electrification, aerospace, and industrial markets, building customer relationships, cost control, and achieving profitability.

Financial highlights

• Q2 2024 gross profit was $1.6 million (25.4% margin), with margin down from 27.4% in Q2 2023 due to contract mix.

• Operating loss for Q2 2024 was $0.9 million; net loss was $0.8 million ($0.11 per share), improved from $1.1 million ($0.16 per share) in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were $10 million, down from $14 million at year-end.

• Working capital at June 30, 2024, was $12.7 million.

• Orders for the first six months of 2024 totaled $16.9 million, up from $15.8 million in the same period of 2023.

Outlook and guidance

• Management expects continued order and revenue fluctuations due to the nature of emerging growth markets and order cycles.

• Cash and projected cash flow from operations are expected to cover working capital and capital expenditure needs for the next 12 months.

• Lower-than-expected EV adoption may reduce demand for silicon carbide and impact PVT system sales.