RONKONKOMA, N.Y., May 15 /PRNewswire-FirstCall/ -- CVD Equipment Corporation , a global designer, manufacturer and supplier of equipment for use in manufacturing semiconductors, solar cells, carbon nanotubes, nanowires and equipment for surface mounting of components onto printed circuit boards, today announced its financial results for the first quarter ended March 31, 2006.
Revenue for the first quarter ending March 31, 2006 was approximately $3,211,000, compared to $2,398,000 for the quarter ending March 31, 2005, representing an increase of 33.9%. The overall gross profit percentage increased slightly to 33.3% for the current quarter compared to 32.2% for the same period one year ago. These increases were partially offset by a 28.6% increase in selling, general and administrative expenses for the three months ended March 31, 2006 over the corresponding period one year ago. This increase in selling, general and administrative expenses was due to additional personnel and higher energy costs as well as stock based compensation costs of approximately $54,000 which were not recognized last year. This resulted in the Company generating net income of approximately $113,000 or $0.04 per share basic and $0.03 per share diluted for the current three month period compared to net income of approximately $1,000 or $0.0 per share basic and diluted for the three months ended March 31, 2005.
At March 31, 2006 our order backlog, which is comprised of customer orders that are expected to ship within the next six months, increased by 9.0% to approximately $2,786,000 from $2,648,000 at December 31, 2005. 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 these orders.
Leonard Rosenbaum, President and Chief Executive Officer stated, "We are pleased with our increase in revenues and profitability for the quarter as compared to last year. Quotation and order levels have remained strong and we expect our vertical integration to provide CVD with a significant benefit this year."
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in CVD Equipment Corporation's filings with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on CVD Equipment Corporation's website does not constitute a part of this release.
CVD Equipment Corporation
Comparative Operating Results for the Three Months ended March 31,
2006 2005
Revenue $3,211,000 $2,398,000
Net Income 113,000 1,000
Net Income
Per share basic $0.04 $0.00
Per share diluted 0.03 0.00
Weighted Average Shares of
Common Stock Outstanding
Basic 3,132,689 3,039,100
Diluted 3,302,226 3,048,815
