CVD Equipment Corporation issued a news release yesterday, announcing a profitable first 9 months of this year. Profitability was sustained despite investment of management manpower into the doubling of the company’s production facility size.
Profits in Q1 of 2012, as well as the combined profits in Q1-Q3 of the year, were significantly smaller than the equivalent periods of 2011. The company has blamed the drop on management focusing on other tasks, in particular relocation to a new building. At this time last year, the company was occupying two smaller facilities, one of which was sold in April 2012. The other facility is expected to be sold around the end of the year. The business is expected to start moving to the new facility, also located on Long Island, shortly.
As part of the news release, CVD Equipment has announced that, compared to last year, the backlog has halved this year. This means that either the company was able to deliver more goods in the same time period to reduce backlog, or that orders have simply slowed down. Seeing how the reduction in backlog is placed in a negative context in the report, we suspect it means a general slowing of business. Still, the backlog is more than USD $8M, which the company hopes to meet once relocation is complete.
The restructuring and investment in production facilities are generally good news from CVD Equipment Corporation, hinting at a good 2013 for CVD Equipment share holders. The company trades on NASDAQ under the symbol CVV. CVD Equipment makes CVD machines, with its daughter company firstnano focusing on machines for growth of graphene, and CVD Application Lab marketing a range of materials, including graphene.
Complete report with numbers: CVD Equipment Website.