CVV - Earnings call transcript Q4 2023 | CVD Equipment Corporation

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Operator

Greetings, and thank you for standing by. Welcome to the CVD Equipment Corporation's Fourth Quarter and Fiscal Year 2023 Earnings Call.

As a reminder, this conference is being recorded.

We will begin with some prepared remarks followed by a question-and-answer session. Presenting on the call today will be Emmanuel Lakios, President and CEO, and member of the CVD Board of Directors; and Rich Catalano, Executive Vice President and Chief Financial Officer. We've posted our earnings press release and call replay information on the Investor Relations section of our website.

Before I begin, I'd like to remind you that many of the comments made on today's call contain forward-looking statements, including those related to future financial performance, market growth, total available market, demand for our products and general business conditions and outlook. and based to assumptions, and during materially limited call. a in December press results are and and uncertainties XXXX. Actual to, statements the XX, for our subject with those the section from this are number release company's the forward-looking Risk on but differ of expectations certain described projections described SEC, Factors These including, filings the not XX-K our may of ended risks year

are as new forward-looking of statements revised we forward-looking no obligation any and all update undertake statements addition, In made expectations. circumstances today, to on based or

I'll sir. over Now to ahead, Please go call the Emmanuel turn Lakios.

Emmanuel Lakios

you, and us results to XXXX thank all financial good discuss pertinent you our other business. and Thank for today company important information fiscal Kevin, and joining related developments afternoon, our and everyone. to fourth quarter

and year to revenue quarter forward are prior the million, us, your thoughts $X.X session. Fourth was we Your Q&A in XXXX questions period. look versus our significant important to down

continues our emerging As our markets of the and to given revenue, business serve. we growth nature in fluctuations experience

profitability strategy were return we investments. will stay we are our disappointed course the We with a performance. We'll growth -- fourth on and quarter return of year were both with consistent and -- to focus full the and to on

off applications. To order started Our primary we I of industrial expand wins. this pleased battery and announce to our penetration that end, equipment goal several electronics, am is with aerospace solutions into key materials, high-power to XXXX very new

used effectively an orders potential for XXX-millimeter carbide customers' production of with should customer PVTXXX for PVT newly with the grow equipment we follow-on our an silicon a system unit penetrated represents our CVD important needs. equipment second This First evaluation meet launched crystals. milestone all, successfully to

used carbide components. coating we from coating silicon deposit reactors industrial a tools million silicon our CVD $XX protective on multi-system an received OEM customer. will to for The a be order Second, carbide

investments our quarter focused make call CFO, with you development fourth Rich? sales continue of turn by all as our will and Rich direct encouraged markets. I orders these in We fiscal marketing, who on both which key we overview our XXXX our to an Catalano, customers, results. and will provide are engagement potential to over includes research, multiple

Richard Catalano

and Thank Manny, good afternoon. you,

Our was million, million or by system X%. revenues decrease offset revenue. $X.X revenue lower of in primarily higher a our aerospace for lower decrease to fiscal of million CVD attributable segment XXXX $XX.X was was Equipment $X.X revenue about The related to approximately that PVTXXX

is the segment SDC business $X.X our due Materials May Tantaline down increase of These XXXX CVD due MesoScribe of offset higher in operations. to Our by was an decreases to by million. This million in demand. were of the $X subsidiary sale and lower announced wind our our

XX% in XXXX. profit is significant overrun prior decrease revenues in The profit to gross XX% was PVTXXX year. on This of XXXX. contract compared as gross large margin in CVD Materials lower XXXX due and and $X.X to cost in also one million compared Our to was the primarily

the and to selling bonus support and fees. prior in planned lower costs in for due were to additional due our from business, operating year employee-related costs lower expenses Our increase by higher Materials is costs growth the offset of expenditures expenses CVD our higher These Tantaline. to professional disposition

income, the other by related that employee related XXXX. fiscal being $X.X a million share, income, income to interest of compares of or $XXX,XXX $X.X was as to the million basic This nonoperating recognition in share a to in consisting for of $X.XX compared principally our Our net for loss year XXXX. was year At or an diluted. loss loss $X.X the net in 'XX loss operating $X.XX XXXX. retention net to of of and per operating million $X.X loss was the fiscal million The of credits offset

Now turning quarter to fourth XXXX. of the

revenue Our related year. attributable this in This primarily compared to lower $X.X of the decrease was system PVT our approximately revenue prior XX%. decrease to quarter lower as $X.X was and a $X.X to was million, million, revenues million, CVD for the segment of

also revenues the system for Our an launch aforementioned on we fourth the had quarter that contract. impacted was by that overrun

were Our CVD down. Material on about the based revenues the lower $X by and wind million sale

the that was margin Our gross the of I million to year profit gross gross in as The profit quarter negative decrease as quarter. in quarter as well to compared X.X% primarily the mentioned $X.X the was lower for the -- the a of was due cost contract expenses prior on negative to and margin this employee-related XX% year costs. in due say. The PVT costs bonus I CVD CVD revenues and expenses was Materials. lower revenue, again, should $X.X by the higher million quarter during the prior lower to operating Materials And our CVD compared and offset decrease for overruns some of in partially as

was of credits. share. million or or But per in to compared an mind that After in share. 'XX $X.X $XXX,XXX fourth million for $X.X This related special keep operating item ahead million quarter income prior $X.XX of the quarter. employee quarter per of loss Our net net fourth the quarter $X.XX compares to to income, that interest retention million our of quarter the operating the $X.X was as loss loss for the $X.X

Moving to our backlog.

It year. million This at XXXX. compared million Our $XX.X XXXX. prior compares to million last to of December the capital increased as slightly was as XX, December XX, million $XX.X $XX.X was from year. at $XX.X backlog Working

cash XX, at $XX was prior Our the cash slightly it down million. was 'XX December at where from and million, equivalents $XX.X year,

flows. our economic unable or uncertainties current in future of our will the cash on are predict results financial to for our operations future and have geopolitical position and results, impact what As we

the consistent Our capital profitability as requirements disruptions orders, and sufficient for planned of of projected our managing operations pressures flows and and cash capital receipt return supply be things, the as considering and our expenses. After XX to among impact believe our dependent, inflationary is mitigate equipment months. from working factors, other ability expenditure to operating expenditures new next cash equivalents will all we capital chain our the meet these and cash to well

we to cash. our will assess and necessary sufficient as to maintain operations continue of actions will We operating levels take

At this it to I'll turn point, Manny. back

Emmanuel Lakios

for summary, In forward thank pursuit shareholders and on growth return continuing presentation. to customers, our our on to We your recent employees, the optimistic. remains to focus of Rich, look cautiously and our our our remain you profitability. do build wins and consistent

are us. Your important comments to and questions

open With the would questions. up the to close like the presentation, to of floor your I

Operator

question Instructions] from Reiss is Brett Janney Scott. coming Our [Operator first from today Montgomery

Brett Reiss

of protocols in have caused doesn't it had place? sure again, been you cost do one-off was whatever whatever to happen and it put a The you overrun, to think kind do make

Emmanuel Lakios

different Correct. that's those we that occurred. can't where we the first do do the cost end the If now, of question, that, had there Yes, are overrun And understand which I what go to contributed the were. flavors but on call Brett. understand right

some corrective to We going forward. in put have actions that mitigate

Brett Reiss

Right, right.

would plus backlog $XX new the the is. be the multisystem whatever $XX.X cost million I the of Now million? reported the the SiC And from can then add PVTXXX

So the plus? backlog is $XX million

Emmanuel Lakios

we in first whatever that and the may ship up whatever we come Minus adjustments correct? quarter, ship minor any

Brett Reiss

no that now right. All new It's That's you been is? like Right. think orders, PVTXXX year do with a about why good.

Emmanuel Lakios

from -- over have with -- clearly start-ups we slowdown our integrated our devices Well, up on the I to quite of pushed has the in for dealt marketplace the the continue -- carbide point name. silicon a that and we installed adjusted bit. think been the utilize equipment. But the affected out all out been first next these in inflection and has been harbor years customers the The couple of base, again, foremost, to the the has vertically in demand to very and and has ships household pushed

So that's marketplace one. a It's slowdown.

has of to on garnished birth successful. it our our level time takes that, time to us to on and takes we contract. which is that a execute to it plan is We PVTXXX period ] XXX the can and a that basis, qualified customers, give say order, system that, et to from get and be of certain certain addition tools In our a [ plan cetera. wafers customer, and performance of a period XXX-millimeter perform And second technical

again, But do of takes the it evaluation, to certain period time a et cetera.

I important order the our successful the first with of that but account having think this thing and is launch the system. also -- XXX-millimeter second is -- So

Brett Reiss

Right. Right.

have your business kind in down other with can allocate take Now more that resources of since slowed enthusiasm things people's the areas there Are slack with corporate attention up to? vehicles. going maybe to electric and you're and

Emmanuel Lakios

we which, other the the influence the matrix or and a that the also million. industrial of type was that this power think biggest repurposing a Yes, do marketplaces. to serve on high-temperature, as more a X in X electronics, and orders for do composite end-use demand $XX approximately the short growth the is well users. aerospace, do recent taken. I release then PVTXXX backlog of case to serve order, deposition and buying addition the system, is have That can that analyst serve -- a our news ceramic all the and side to and And end announced silicon of hypersonics The not from its and market, we to which I again, markets order carbides, the We reports we've on vehicles. There's crystal we now we component multisystem applications which received it speak of that good for we of with market, from waiting the that going target. fact that coating also benefit carbide the everything technology read perspective, further applications. point much electric understand defense your adoption But EVs. seen to reactor we is is We the in clearly, market in market, applications press applications XXX equated

news us also we're battery through. on it as is, earlier, way multiple -- again, and until carbide, So water said application a have silicon and as substantive is And application, markets, multiple technology actually tread comes the I've those the in and more such that help we which good adoption.

marketplace markets So of -- we're perspective, from have I in X we're that degrees various think a health.

Brett Reiss

and I both question. holiday, a me. taking for it That's Great. for you my you thank wish

Emmanuel Lakios

you. Thank

Richard Catalano

Thank you, Brett.

Operator

closing We the Instructions] reached the for I'd turn floor of or Manny to like [Operator further session. comments. to question-and-answer any over end back our

Emmanuel Lakios

holidays. this are today. our And If We directly. of you. concludes happy all please you Rich Kevin, questions, the dialing all pleasant of today. and thank to our of call weekend, our shareholders, a I And support want myself attendance or to for I out the Thank to want further employees call, appreciate thank reach are wish on you and loyalty call. who in your there your all you on this you.

Operator

teleconference today's conclude does webcast. That you. and Thank

You time, for today. day. We thank may wonderful and disconnect have a your this participation lines you at your

CVD Equipment (CVV) 28 Mar 242023 Q4 Earnings call transcript