CVD Equipment Corporation Reports Fiscal Year 2009 Results
We achieved net earnings of approximately $179,000 or $0.04 per basic and diluted share for the fiscal year ending December 31, 2009 compared to $632,000 or $0.13 per basic and diluted share for the fiscal year 2008.
Revenue for fiscal year ending December 31, 2009 was $ 10,575,000 compared to $18,147,000 for fiscal year 2008. This 41.7% decline in revenue of approximately $7,572,000 was a result of (i) delays or reductions in capital expenditures by potential customers due to unfavorable economic conditions and (ii) a significant contract from a CVD division customer being breached during the fourth quarter of 2009. This contract was accounted for under the percentage of completion contract method of revenue recognition and had we been able to continue recognizing the revenue from that contract, our revenue for 2009 would have been approximately $14,139,000 and the decline in revenue 22.1%. For additional information please refer to the Report on Form 10-K for 2009.
Leonard Rosenbaum, President and Chief Executive Officer stated, "2009 was a difficult year with unfavorable economic conditions and the breach of a major contract by a CVD Division customer. The difficult economic conditions experienced in 2009 have not continued into 2010. Our quotation activity is very high and new order levels have increased. Additionally, we believe this trend will continue to increase in subsequent quarters. Our decision to focus on the CVD/First Nano product lines for our long-term revenue growth and profitability is still proving to be successful despite the conditions we experienced in 2009. Our EasyTube product line is widely accepted and continues to expand by serving University and Research Laboratories, startup companies and quality control departments 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. Our newest offering, the SiQC system is helping to analyze the feedstock to Solar polysilicon facilities. Our Application Laboratory is providing research and the further implementation of our business plan to offer Nano and Solar companies assistance in accelerating the commercialization of their next generation of products on CVD production equipment platforms. We recently delivered to Brookhaven National Laboratory (BNL) a major deposition system for their Light Source II Synchrotron project. This system is a major engineering step forward in technology and is key to BNL reaching an ambitious goal: x-ray nanofocusing that will enable researchers to explore what promises to be a whole new class of science. The direction the Company has taken is correct, we will continue to expand our technology, products, customer base and the revenues for 2010 should improve over 2009"
This earnings release should be read in conjunction with the Company s Annual Report on Form 10-K for the fiscal year ended December 31, 2009.
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.
