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CVD(CVV) - 2024 Q3 - Earnings Call Transcript
CVVCVD(CVV)2024-11-14 01:21
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Financial Data and Key Metrics Changes - The company's revenue for Q3 2024 was 8.2million,a31.48.2 million, a 31.4% increase from the prior year and a 29.1% increase compared to Q2 2024, while year-to-date revenue was 19.5 million, down 2.8% from the prior year period [7][13] - Gross profit for Q3 2024 was 1.8million,withagrossprofitmarginof22.41.8 million, with a gross profit margin of 22.4%, compared to a gross profit of 1.6 million and a margin of 25.6% in Q3 2023 [18] - Operating income for Q3 2024 was 77,000,comparedtoanoperatinglossof77,000, compared to an operating loss of 1 million in Q3 2023 [20] - Net income for Q3 2024 was 209,000,or209,000, or 0.03 per share, compared to a net loss of 753,000,or753,000, or 0.30 per share in Q3 2023 [21] Business Line Data and Key Metrics Changes - Revenue from the CVD Equipment segment increased by 0.9million,or18.50.9 million, or 18.5%, compared to the prior year quarter, primarily due to higher revenues from aerospace contracts [14][16] - The SDC segment saw a revenue increase of 27.5% compared to Q3 2023, driven by strong demand for gas delivery systems [16] - The MesoScribe subsidiary ceased operations effective September 30, 2024, after fulfilling its final orders, contributing a gain of 0.6 million from the sale of equipment [15] Market Data and Key Metrics Changes - Orders for Q3 2024 were 4.1million,primarilydrivenbydemandintheCVDsegment,withtotalordersforthefirstninemonthsof2024at4.1 million, primarily driven by demand in the CVD segment, with total orders for the first nine months of 2024 at 21 million, up from 19.9millioninthesameperiodof2023[9]−ThebacklogasofSeptember30,2024,was19.9 million in the same period of 2023 [9] - The backlog as of September 30, 2024, was 19.8 million, a 7.6% increase from the year-end backlog of 2023 [10] Company Strategy and Development Direction - The company aims to build critical customer relationships, achieve profitability, manage cash flow and costs, while focusing on growth and return on investment [12] - The company is addressing overcapacity and declining wafer prices in the 150-millimeter silicon carbide market by transitioning to 200-millimeter production [11] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue and order levels fluctuate due to the nature of emerging growth end markets [23] - The company believes that cash and cash equivalents, along with projected cash flow from operations, will be sufficient to meet working capital and capital expenditure requirements for the next 12 months [24] Other Important Information - The company recorded a non-cash charge of approximately 1milliontoreducethenetrealizablevalueofPVT150inventoryduetomarketconditions[17]−WorkingcapitalatSeptember30,2024,was1 million to reduce the net realizable value of PVT150 inventory due to market conditions [17] - Working capital at September 30, 2024, was 13.3 million, down from $14.3 million at the end of December 2023 [22] Q&A Session Summary Question: Can you disclose the type of clients you have? - The company has NDAs with customers that prevent disclosing specific details about them, but it can confirm that one client is a leading gas turbine engine manufacturer and another is involved in electric vehicles [26][28] Question: Can you mention the type of company besides the name? - The company confirmed that the aerospace client manufactures gas turbine engines and the EV client produces silicon carbide wafers [29]