CVD Equipment Corporation Reports Fiscal Year 2007 Results
RONKONKOMA, N.Y., March 31 /PRNewswire-FirstCall/ -- CVD Equipment Corporation (NASDAQ:CVV) announced today that it has achieved profitable results for the fourth consecutive year.
Revenue - for fiscal year ending December 31, 2007 is $13,578,000 compared to $13,356,000 for fiscal year 2006, an increase of 1.7%.
Gross Profit Margin - for fiscal year ending December 31, 2007 is 34.4% compared to 35.1% for fiscal year 2006. A 39.4% increase in Research and Development costs and the addition of personnel associated with the CVD/First Nano division expansion is the main cause for the decrease in gross profit margin.
Net Earnings - for fiscal year ending December 31, 2007 is approximately $777,000 or $0.21 per basic and $.20 per diluted share compared to $604,000, or $0.19 per basic and diluted share for fiscal year 2006, an increase of approximately $173,000 or 28.6%.
Our decision to focus on the CVD/First Nano product lines for our long-term revenue growth and profitability has proven to be successful. Annual revenue posted by the CVD/First Nano division for our custom Chemical Vapor Deposition and First Nano, EasyTube products increased over fiscal 2006 by approximately 17.7% or $1,218,000 to $8,081,000.
At December 31, 2007, our order backlog, which is comprised of customer orders that are expected to ship within the next six months, increased by 42.7% to $5,087,000 compared to $3,565,000 at December 31, 2006 which was a 34.6% increase over our December 31, 2005 backlog of $2,648,000. We continue to experience in 2008, a strong demand for both, our custom Chemical Vapor Deposition and First Nano, EasyTube product line. Our backlog at any specific point in time is not necessarily indicative of actual revenues or earnings for any succeeding period due to possible customer changes in delivery schedules or cancellation of orders, and because backlog does not provide any assurance of a profit from those orders.
Leonard Rosenbaum, President and Chief Executive Officer stated, "In 2007 we started to expand our research, engineering and manufacturing capability. With the additional funds raised by a completed public stock offering in the 4th quarter of 2007, we were able to continue implementing our plan for a significant company expansion. In February 2008, we purchased an additional building where we will relocate our First Nano Laboratory in the 2nd quarter of 2008. In addition to the First Nano Laboratory expansion, we are introducing additional First Nano, EasyTube equipment platforms to capture a larger portion of the multi-billion dollar Research and Development money that is spent each year. Our EasyTube product line has been widely accepted and is serving University and Research Laboratories throughout the world in fields such as Nanotubes (Carbon and Boron Nitride), Graphene, Nanowires (Zinc Oxide, Gallium Nitride, Silicon), Solar Cells, MEM's, Energy, Semiconductors and Light Emitting Diodes. The new facility allows expansion of our in-house research and the further implementation of our business plan to offer Nano and Solar companies assistance in bringing to commercialization the next generation of products on CVD production equipment platforms."
"We anticipate 2008 will be a year of increasing revenues."
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.
This earnings release should be read in conjunction with the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2007.
CVD Equipment Corporation
Summary of Consolidated Statements of Operations
Years Ended December 31,
Revenue $13,577,772 $13,355,778
Net Income 777,086 604,326
Per share basic $0.21 $0.19
Per share diluted $0.20 $0.19
Basic 3,667,833 3,169,177
Diluted 3,825,271 3,263,533
Source: CVD Equipment Corporation