CENTRAL ISLIP, N.Y. - CVD Equipment Corporation (NASDAQ: CVV), a provider of chemical vapor deposition systems, announced it has received a $3.5 million order for a Chemical Vapor Infiltration (CVI) production system. This system is slated for the manufacture of advanced materials aimed at enhancing energy efficiency in gas turbine engines.
The company, recognized for its specialized equipment in the aerospace sector, is focusing on Ceramic Matrix Composites (CMCs). These composites are increasingly utilized in gas turbine engines due to their lighter weight and reduced cooling requirements compared to traditional nickel-based components.
CVD Equipment's product offerings include a variety of systems to support the aerospace market. These encompass CMC manufacturing for gas turbine engines, ultra-high temperature ceramic coatings for hypersonic applications, and silicon coatings for CMC components. Additionally, the company provides research and development systems to facilitate the creation of next-generation materials.
Emmanuel Lakios, President and CEO of CVD Equipment, expressed satisfaction with the aerospace industry's recovery from the pandemic-induced downturn. He noted the anticipated growth in the aerospace and defense market over the next decade and underscored the company's commitment to supporting their customers' production and research needs. This latest order expands CVD Equipment's installed base of standard CVI production systems.
CVD Equipment designs and manufactures a broad range of equipment used in the development and production of materials and coatings for various industrial applications. Their target markets include aerospace & defense, high power electronics, and energy storage sectors.
The information in this article is based on a press release statement from CVD Equipment Corporation. The forward-looking statements in the press release are identified as such and involve risks and uncertainties that could cause actual results to differ materially from those anticipated. The company claims the protection of the safe harbor of the Private Securities Litigation Reform Act of 1995 for these statements and acknowledges that future events may affect their validity.
In other recent news, CVD Equipment Corporation disclosed its Q2 2024 financial results, highlighting a 25.2% year-over-year increase in revenue to $6.3 million. However, the company also reported an operational loss and a reduction in cash equivalents. The company's recent developments include the shipment of its new PVT200 system, which is currently under evaluation for production. Furthermore, CVD Equipment Corporation's backlog of orders was reported at $24 million as of June 2024.
Despite these positive developments, the company experienced a net loss of $761,000 or $0.11 per share for Q2 2024. Management remains focused on returning to profitability, which hinges on new equipment orders and the ability to manage inflationary pressures and expenses. The company's cash and projected cash flow are expected to support working capital and capital expenditure needs for the next 12 months.
Analysts have noted that while the company's revenue has increased, the gross profit margin decreased to 25.4% from 27.4% in the same quarter of the previous year. The CVD Materials segment revenue also decreased due to the disposition of Tantaline and the exit from the MesoScribe business. However, the SDC segment's revenue was 29% higher than the same quarter in the previous year, and orders for the first six months of 2024 were higher than the same period in 2023.
InvestingPro Insights
CVD Equipment Corporation's recent $3.5 million order for a Chemical Vapor Infiltration production system comes at a crucial time for the company, as revealed by recent financial data from InvestingPro. The company's market capitalization stands at $19.42 million, reflecting its position as a small-cap player in the specialized equipment sector.
InvestingPro data shows that CVD Equipment's revenue for the last twelve months as of Q2 2023 was $21.61 million, with a concerning revenue growth decline of -25.77% over the same period. However, there's a silver lining as the quarterly revenue growth for Q2 2023 showed a positive 25.17% increase, potentially indicating a turnaround in the company's fortunes.
This recent order aligns with two key InvestingPro Tips for CVD Equipment. Firstly, the company "holds more cash than debt on its balance sheet," which provides financial flexibility to fulfill large orders and invest in growth opportunities. Secondly, CVD is "trading at a low revenue valuation multiple," suggesting that the stock might be undervalued relative to its sales performance.
It's worth noting that InvestingPro has identified several additional tips that could provide valuable insights into CVD Equipment's financial health and market position. Investors interested in a more comprehensive analysis can access these tips and more detailed metrics through the InvestingPro product.
Despite the positive news of the recent order, investors should be aware that CVD Equipment's stock "has taken a big hit over the last six months," with a -42.91% price total return. This decline, coupled with the company's current challenges, underscores the importance of thorough research and analysis before making investment decisions.
For those seeking a deeper understanding of CVD Equipment's financial situation and market prospects, InvestingPro offers a total of 9 additional tips, providing a more comprehensive view of the company's strengths and challenges in the current market environment.
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