CVD Equipment Earnings Call Transcripts
Fiscal Year 2026
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Second quarter results reflect a transformational period with the SDC divestiture, resulting in a strong cash position and no debt. Revenue declined 43% year-over-year, but gross margin improved. Market headwinds persist, especially in university and silicon carbide segments.
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Revenue fell sharply year-over-year due to lower CVD systems demand, but the SDC sale strengthened the balance sheet, leaving $23 million in cash and no long-term debt. The company is focused on cost reduction, operational efficiency, and targeting industrial, aerospace, and nuclear markets.
Fiscal Year 2025
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Revenue declined 33% in Q4 and 4.1% for the year, with a net loss of $1.6 million in 2025. Transformation efforts include cost reductions, workforce cuts, and the $16.9M SDC business sale, with proceeds to strengthen the balance sheet and fund future opportunities.
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Q3 2025 revenue declined year-over-year but rose sharply from Q2, with improved gross margin and net income. A transformation plan aims to cut costs and boost agility, while new orders and ongoing silicon carbide initiatives support growth in target markets.
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Q2 2025 revenue fell 19.4% year-over-year to $5.1M, with a net loss of $1.1M and gross margin at 21%. Orders and backlog declined, but strong demand persists in key markets, and management expects sufficient liquidity for the next 12 months.
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Revenue surged 69% year-over-year to $8.3 million, with gross margin doubling to 32.4% and net income reaching $360,000. Backlog declined, but cost controls and a new post-quarter order support a positive outlook amid tariff and market uncertainties.
Fiscal Year 2024
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Revenue grew 11.5% year-over-year to $26.9 million, with Q4 marking a second consecutive profitable quarter. Orders and backlog increased, but silicon carbide market headwinds and tariff risks persist. Management remains focused on core segments and long-term profitability.
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Q3 2024 revenue rose 31.4% year-over-year to $8.2 million, with net income of $209,000 and a 22.4% gross margin. Backlog increased 7.6% from year-end, while a $1 million inventory charge reflected silicon carbide market shifts.
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Q2 2024 revenue rose 25.2% year-over-year to $6.3 million, with improved gross profit and reduced net loss. Backlog increased to $24 million, and strong SDC segment demand contributed to order growth, though year-to-date revenue remains below last year.