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CVD(CVV) - 2024 Q1 - Quarterly Report
CVVCVD(CVV)2024-05-13 20:00

Revenue Performance - Revenue for Q1 2024 was 4.922million,adecreaseof43.54.922 million, a decrease of 43.5% compared to 8.695 million in Q1 2023[11] - For the three months ended March 31, 2024, total revenue decreased by 3.8millionor433.8 million or 43% to 4.9 million compared to 8.7millionintheprioryear[77]CVDEquipmentsegmentrevenuedeclinedby8.7 million in the prior year[77] - CVD Equipment segment revenue declined by 2.9 million or 50% to 2.9million,whiletheSDCsegmentrevenuedecreasedby2.9 million, while the SDC segment revenue decreased by 0.3 million or 12% to 1.9million[78][79]Consolidatedrevenueforthecompanyreached1.9 million[78][79] - Consolidated revenue for the company reached 4,922 million, with CVD Equipment contributing 2,947millionandSDCcontributing2,947 million and SDC contributing 1,931 million[87] Profitability and Losses - Gross profit for Q1 2024 was 859thousand,downfrom859 thousand, down from 2.434 million in Q1 2023, reflecting a gross margin of approximately 17.4%[11] - Operating loss for Q1 2024 was (1.623)million,comparedtoanoperatinglossof(1.623) million, compared to an operating loss of (187) thousand in Q1 2023[11] - Net loss for Q1 2024 was (1.472)million,resultinginalosspershareof(1.472) million, resulting in a loss per share of (0.22), compared to a net loss of (40)thousandandalosspershareof(40) thousand and a loss per share of (0.01) in Q1 2023[11] - Gross profit for the same period declined by 1.6millionor651.6 million or 65% to 859,000, resulting in a gross profit margin of 17.5% compared to 28.0% in the previous year[69] - The company reported an operating loss of 1,623million,withCVDEquipmentexperiencingalossof1,623 million, with CVD Equipment experiencing a loss of 1,405 million[87] - The overall financial performance indicates a need for strategic adjustments to address the significant operating losses[87] Assets and Liabilities - Total current assets increased to 23.336millionasofMarch31,2024,comparedto23.336 million as of March 31, 2024, compared to 22.841 million at the end of 2023[10] - Total liabilities rose to 10.445millionasofMarch31,2024,upfrom10.445 million as of March 31, 2024, up from 8.822 million at the end of 2023[10] - Stockholders' equity decreased to 24.998millionasofMarch31,2024,downfrom24.998 million as of March 31, 2024, down from 26.203 million at the end of 2023[10] - The company reported total inventories of 4,925millionasofMarch31,2024,comparedto4,925 million as of March 31, 2024, compared to 4,454 million as of December 31, 2023[30] - Total assets for the company were reported at 35,443million,withCVDEquipmentsassetsat35,443 million, with CVD Equipment's assets at 31,412 million[87] Cash Flow and Investments - The company reported cash and cash equivalents of 11.893millionasofMarch31,2024,downfrom11.893 million as of March 31, 2024, down from 14.025 million at the end of 2023[10] - Cash and cash equivalents decreased to 11,893millionattheendoftheperiodfrom11,893 million at the end of the period from 14,025 million at the beginning of the period[14] - Net cash used in operating activities was 2,043million,animprovementfrom2,043 million, an improvement from 3,272 million in the prior year[14] - Net cash used in investing activities for the three months ended March 31, 2024, included capital expenditures of 70,000[85]Thecompanyinvested70,000[85] - The company invested 76 million in the purchase of property, plant, and equipment[87] Research and Development - Research and development expenses increased to 746thousandinQ12024,comparedto746 thousand in Q1 2024, compared to 602 thousand in Q1 2023, indicating a focus on innovation[11] - Research and development expenses rose by 144,000or24144,000 or 24% to 746,000 compared to the previous year[77] - The company plans to develop new products for the high power electronics market, including the PVT200 for growing silicon carbide crystals[67] Operational Challenges - The company operates in a challenging economic environment, facing impacts from geopolitical conflicts and supply chain disruptions[66] - Supply chain disruptions have led to longer lead times and inflationary pressures, impacting revenue recognition[91] Customer and Market Dynamics - The company had a significant concentration of credit risk, with one customer accounting for 67.2% of total accounts receivable as of March 31, 2024[50] - The revenue from the SDC segment represented 40% of overall revenue for the three months ended March 31, 2024, compared to 25% in the prior year[79] - Total bookings for Q1 2024 were approximately 13.6million,asignificantincreasefrom13.6 million, a significant increase from 2.9 million in Q1 2023[96] - The company increased its backlog from 18.4millionatDecember31,2023,to18.4 million at December 31, 2023, to 27.1 million as of March 31, 2024[71] Stock Options and Compensation - The company recorded stock-based compensation of 267millionforthethreemonthsendedMarch31,2024,comparedto267 million for the three months ended March 31, 2024, compared to 135 million in the prior year[14] - The company granted 5,000 stock options with a weighted average fair value of $3.30 during the three months ended March 31, 2024[58]