Terrible financials? They are profitable, with a pile of cash and low debt.
With the sale of its former headquarters having been completed early in the 2nd quarter and the transition into its new and significantly larger facility substantially completed, CVD has returned to profitability in Q2. The Company continues to maintain a strong cash position and a healthy working capital. The backlog as of June 30, 2013 was approximately $5,516,000. However, as stated in the Company’s May 15, 2013 press release, “during this transition period order acceptance levels were reduced to maintain a more manageable backlog level and CVD is poised for growth in revenue and order backlog during the 2nd half of 2013”. Order backlog usually is a reasonable management tool to indicate future revenues and profits. However it does not provide an assurance of future achievement of revenues or profits as order cancellations or delays are possible. Backlog from quarter to quarter can vary based on the timing of order placements and shipments.
Leonard Rosenbaum, President and Chief Executive Officer stated:
“Issues associated with moving into our expanded facility are now behind us. As painful as it has been for everyone involved, this was a required step to enable future growth opportunities. Our employees as well as the customers, suppliers, and shareholders that have visited our new facility see our potential. We are convinced that our new 2X larger facility is a turning point for the Company that will enable us to generate higher sustainable growth rates.
“I will now try to give some insight into our potential future and thoughts behind the relocation.
“In our September 7, 2010 press release we announced receiving an order in excess of $2.5 million from a large aviation component supplier for CVD coating systems. In our May 7, 2012 press release we announced receiving a multi-million dollar design only order from a major aviation components manufacturer to design a custom CVD system solution for their next generation of composite products. I am happy to announce we just received an initial $1 million follow-on order to commence manufacturing on some portions of a much larger system and we anticipate that additional multi-million dollar portions will be awarded in the near term.
“Earlier this year, we delivered a next generation production CVD system to a major medical manufacturer for coatings on implants. The unit is operational and meeting the enhanced system production requirements. We anticipate follow on multiple production system orders later this year.
“In addition we also received orders for two large Graphene systems – one for a square 300mm substrate and the other for a round 200mm substrate. Our application laboratory is playing an important part in our ability to deliver next generation equipment that meets the evolving needs of this growing material area. Our expanded application laboratory now enables us to work with an increasing selected customer base in the fields of Nanotubes, Nanowires, Graphene, TCO coatings and other deposition requirements. If you have not looked recently at our Website where our conference presentations are published, I urge you to do so. You will be able to see some of the directions we are headed into with the intent of advancing these nano materials into large volume, value added products.