Financial Data and Key Metrics Changes - Fourth quarter 2023 revenue was 4.1million,adecreaseofapproximately4324.1 million, down 1.7millionorabout72.5 million, compared to an operating loss of 221,000intheprioryear[8]−Netlossforthequarterwas2.3 million, or 0.33pershare,comparedtonetincomeof1.5 million, or 0.23pershareinthefourthquarterof2022[8]−Grossprofitmarginforfiscal2023was210.4 million, primarily due to lower PVT 150 system revenues [5] - CVD Materials revenues were lower by about 2millionduetothesaleofasubsidiaryandthewind−downofoperations[15]−Systemrevenuesforthefourthquarterwereimpactedbyacostoverrunonalaunchcontract[7][29]MarketDataandKeyMetricsChanges−Backlogincreasedslightlyto18.4 million from 17.8millionyear−over−year[30]−CashandcashequivalentsatDecember31,2023,were14 million, down from 14.4millionthepreviousyear[18]CompanyStrategyandDevelopmentDirection−Thecompanyaimstoexpanditspresenceinhigh−powerelectronics,batterymaterials,aerospace,andindustrialapplications[13]−Recentordersincludea10 million multi-system order for silicon carbide CVD coating reactors, indicating a focus on industrial applications [14][37] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with both fourth quarter and full year performance, emphasizing the need to return to consistent profitability [3] - The company is cautious about predicting future results due to economic and geopolitical uncertainties [9] - Management noted that the demand for silicon carbide devices has been adjusted and pushed out, affecting order volumes [23][24] Other Important Information - Operating expenses increased due to higher employee-related costs and additional selling expenditures, partially offset by lower bonus costs [6] - The company is taking corrective actions to mitigate cost overruns experienced in the past [22] Q&A Session Summary Question: What caused the cost overrun and what measures are in place to prevent it from happening again? - Management acknowledged understanding the causes of the cost overrun and has implemented corrective actions to mitigate future occurrences [22] Question: Why have there been no new PVT 150 orders for about a year? - Management indicated that demand for silicon carbide devices has slowed, affecting order volumes, and noted a general marketplace slowdown [23][24] Question: What is the current backlog and how does it reflect future orders? - Management confirmed that the backlog is $18.4 million, with additional orders expected to increase this figure [34] Question: Are there other areas in the business that can compensate for the slowdown in electric vehicle enthusiasm? - Management highlighted that the company serves multiple markets, including aerospace and industrial applications, which may help offset the slowdown in electric vehicle demand [27][41]
