CVD Equipment (CVV) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $8.2 million, up 31.4% year-over-year, driven by aerospace contracts, SDC segment growth, and final MesoScribe sales, with year-to-date revenue at $19.5 million, down 2.8% from the prior year period.

• Backlog at September 30, 2024, was $19.8 million, up from year-end 2023, supported by major aerospace and industrial orders.

• Q3 bookings were $4.1 million; year-to-date bookings totaled $21.0 million, including a $10.0 million multisystem industrial order.

• MesoScribe subsidiary ceased operations after fulfilling final orders, resulting in a $0.6 million gain on equipment sale.

• Cash and equivalents were $10.0 million at quarter-end, down from $14.0 million at December 31, 2023.

Financial highlights

• Q3 2024 gross profit was $1.8 million (22.4% margin), up from $1.6 million (25.6%) in Q3 2023, but impacted by a $1.0 million non-cash inventory write-down for PVT150.

• Operating income was $77,000, reversing a $1.0 million loss in Q3 2023.

• Net income for Q3 was $209,000 ($0.03 per share), compared to a net loss of $753,000 ($0.30 per share) in Q3 2023.

• Working capital at September 30, 2024, was $13.3 million.

• YTD cash used in operations was $3.7 million, mainly due to net loss, increased receivables, and reduced contract liabilities.

Outlook and guidance

• Management expects existing cash, receivables, backlog, and future income to cover working capital and capital equipment needs for the next 12 months.

• Focus remains on growth in aerospace, electrification, and industrial markets, with attention to profitability, cash flow, and cost management.

• SiC wafer market remains dynamic with overcapacity and price declines; company progressing with 200mm PVT system shipments.