RONKONKOMA, N.Y., Nov. 14 /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 that it has achieved profitable results for the eighth consecutive quarter.
Revenue for the three and nine months ending September 30, 2006 was $3,636,000 and $9,958,000 respectively compared to $2,851,000 and $8,258,000 for the three and nine months ending September 30, 2005 representing an increase of 27.5% and 20.6% for the respective periods. This increase in revenue can be attributed to the increased demand for custom CVD systems along with the demand for our First Nano equipment product line. The gross profit increased by 51.0% and 21.6% to $1,417,000 and $3,553,000, in the current three and nine month period respectively, compared to $937,000 and $2,923,000, for the same three and nine month periods one year ago. Gross margin percentage increased during the three and nine months ending September 30, 2006 to 39.0% and 35.7% respectively, compared to 32.9% and 35.4% for the same respective periods one year earlier. The Company was able to increase its gross margin notwithstanding increased labor costs as a result of the increased personnel added to develop and expand sales of the First Nano equipment line as well as incurring rising employee benefit and energy costs. Earnings for the current three and nine month periods, before stock option costs and taxes were approximately $449,000 and $786,000 compared to $24,000 and $396,000 for the same periods one year ago. As required by SFAS 123-R, stock option costs of $43,000 and $129,000 respectively, were expensed in the current periods, while no stock option costs were expensed during the same respective periods in 2005. Income before taxes for the three and nine months ended September 30, 2006 was $406,000 and $658,000 compared to $24,000 and $396,000 for the three and nine months ended September 2005. As a result of utilizing in full, its prior years' net operating losses, net income for the three months ended September 30, 2006 was $229,000 or $.07 per share basic and diluted compared to $35,000 or $.01 per share basic and diluted for the three months ended September 30, 2005. Net income for the nine months ended September 30, 2006 was $365,000 or $.12 per share basic and $.11 per share diluted, compared to $329,000 or $.11 per share basic and $.10 per share diluted for the nine months ended September 30, 2005.
At September 30, 2006 our order backlog, comprised of customer orders that are expected to ship within the next six months, increased by 18.7% to approximately $3,143,000 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, "I am pleased with the results we have generated so far this year and based on our backlog, quotation activity, discussions with customers and results being achieved on carbon nanotubes in our First Nano laboratory, I anticipate a continuation of our current positive performance. Our First Nano systems are being well received by the scientific community and we will be broadening the product offering as we go forward. Many of our systems being shipped are repeat customer orders showing that our past performance has been meeting our customer needs. Our design and manufacturing personnel have done a great job."
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
Summary Consolidated Statements of Operations
Three Months Ended Nine Months Ended
9/30/06 9/30/05 9/30/06 9/30/05
Revenue $3,635,531 $2,851,327 $9,958,136 $8,257,961
Income before stock
option expense and taxes 449,337 24,451 786,440 395,899
Income before taxes 406,374 24,451 657,551 395,899
Net Income 228,851 34,789 364,861 329,069
Net Income
Per share basic $0.07 $0.01 $0.12 $0.11
Per share diluted 0.07 0.01 0.11 0.10
Weighted Average Shares of
Common Stock Outstanding
Basic 3,198,247 3,122,463 3,155,710 3,087,553
Diluted 3,267,781 3,274,803 3,258,526 3,194,565
