CVD Equipment Corp (CVV) 2024 Q2 法說會逐字稿

Greetings, and thank you for standing by, and welcome to CVD Equipment Corporation's second-quarter 2024 earnings call. As a reminder, this conference is being recorded.

您好，感謝您的支持，歡迎參加 CVD 設備公司 2024 年第二季財報電話會議。提醒一下，本次會議正在錄製中。

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 Richard Catalano, Executive Vice President and Chief Financial Officer. We have posted our earnings press release and call replay information to the Investor Relations section of our website at www.cvdequipment.com.

我們將從一些準備好的演講開始，然後進行問答環節。CVD 董事會成員兼總裁兼執行長 Emmanuel Lakios 出席今天的電話會議；理查德·卡塔拉諾（Richard Catalano），執行副總裁兼財務長。我們已將獲利新聞稿和電話會議重播資訊發佈到我們網站 www.cvdequipment.com 的投資者關係部分。

Before I begin, I would 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, demands for our products and general business conditions and outlook. These forward-looking statements are based on certain assumptions, expectations and projections that are subject to a number of risks and uncertainties described in our press release and in our filings with the SEC, including but not limited to the risk factors section of the company’s 10-K for the year ended December 31, 2023.

在開始之前，我想提醒您，今天電話會議上發表的許多評論都包含前瞻性陳述，包括與未來財務業績、市場成長、可用市場總量、對我們產品的需求和一般業務相關的陳述條件和前景。這些前瞻性陳述是基於某些假設、預期和預測，這些假設、預期和預測受到我們的新聞稿和向SEC 提交的文件中描述的許多風險和不確定性的影響，包括但不限於公司的風險因素部分。

Actual results may differ materially from those described during this call. In addition, all forward-looking statements are made as of today, and we undertake no obligation to update any forward-looking statements based on the new circumstances or revised expectations.

實際結果可能與本次電話會議中所述的結果有重大差異。此外，所有前瞻性陳述均截至今日作出，我們不承擔根據新情況或修改後的預期更新任何前瞻性陳述的義務。

Now I’d like to turn the call over to Emmanuel Lakios. Please go ahead.

現在我想將電話轉給 Emmanuel Lakios。請繼續。

Joe, thank you and good evening, everyone. Thank you for joining us today to discuss our second-quarter 2024 financial results and other important company developments and pertinent information related to our business. Your thoughts are important to us, and we look forward to your questions in our Q&A session.

喬，謝謝大家，大家晚上好。感謝您今天加入我們，討論我們 2024 年第二季的財務表現以及其他重要的公司發展以及與我們業務相關的相關資訊。您的想法對我們很重要，我們期待您在問答環節提出問題。

Our second-quarter 2024 revenue was $6.3 million, representing a 25.2% increase from the prior-year period and was up 28.9% as compared to our first quarter of 2024, while our year-to-date revenue was $11.3 million, which is 18.1% lower than the prior-year period. We are pleased to have recently shipped our newly launched PVT200 system, which was part of the first quarter strategic order for silicon carbide 200-millimeter crystal boule growth. The performance of the system will be evaluated for production by our now second account.

我們 2024 年第二季的營收為 630 萬美元，比去年同期成長 25.2%，比 2024 年第一季成長 28.9%，而我們年初至今的營收為 1,130 萬美元，比上年同期成長 18.1%。 % 低於上年同期。我們很高興最近發貨了新推出的 PVT200 系統，該系統是碳化矽 200 毫米晶錠生長第一季戰略訂單的一部分。系統的性能將由我們現在的第二個帳戶進行生產評估。

We are encouraged that our backlog of $24 million at the end of June 30, 2024, is meaningfully higher than our year-end backlog of $18.4 million. Our orders for the second quarter were $3.2 million, primarily driven by demand in our SDC segment for our gas delivery equipment.

令我們感到鼓舞的是，截至 2024 年 6 月 30 日，我們的積壓訂單為 2,400 萬美元，明顯高於年底的積壓訂單 1,840 萬美元。我們第二季的訂單為 320 萬美元，主要是由我們的 SDC 部門對天然氣輸送設備的需求所推動的。

Orders for the first six months of 2024 were $16.9 million as compared to $15.8 million for the first six months of 2023. During the first quarter, we received a $10 million multi-system order in our industrial market from a company coating components with silicon carbide.

2024 年前 6 個月的訂單為 1,690 萬美元，而 2023 年前 6 個月的訂單為 1,580 萬美元。第一季度，我們在工業市場上從一家使用碳化矽塗層組件的公司收到了價值 1000 萬美元的多系統訂單。

Overall, we are disappointed with CVD’s operating performance in the first half of the year as order and revenue levels continue to fluctuate, given the nature of the emerging growth end markets we serve and the adverse financial impact of a specific first article system that shipped in the second quarter. We’ll stay the course of strategic focus to build critical customer relationships, achieve profitability, carefully managing our cost and cash flow while simultaneously focusing on growth and return on investment.

總體而言，考慮到我們服務的新興成長終端市場的性質以及特定首件系統的不利財務影響，我們對 CVD 今年上半年的經營業績感到失望，因為訂單和收入水平持續波動。 。我們將堅持策略重點，建立關鍵的客戶關係，實現獲利，仔細管理我們的成本和現金流，同時專注於成長和投資回報。

I would like to turn the call over to our CFO, Rich Catalano, who will provide an overview of our second-quarter results.

我想將電話轉給我們的財務長 Rich Catalano，他將概述我們第二季的業績。

Thank you, Manny, and good afternoon. As Manny mentioned, our revenue for the second quarter of 2024 was $6.3 million as compared to $5.1 million for the second quarter of 2023. This represents an increase of $1.3 million or 25.2%. The increase in revenue versus the prior-year quarter was primarily attributable to higher revenue of $1 million from our CVD Equipment segment, a $0.5 million increase in revenue from our SDC segment, offset by a 0.3% decrease from our CVD Materials segment due to the disposition of Tantaline in May of 2023 and the exit of our MesoScribe business.

謝謝你，曼尼，下午好。正如 Manny 所提到的，我們 2024 年第二季的營收為 630 萬美元，而 2023 年第二季的營收為 510 萬美元。這意味著增加了 130 萬美元，即 25.2%。收入與去年同期相比的成長主要歸因於我們的 CVD 設備部門的收入增加了 100 萬美元，我們的 SDC 部門的收入增加了 50 萬美元，但被我們的 CVD 材料部門由於於2023 年5 月處置Tantaline 並退出MesoScribe 業務。

The increase in CVD Equipment was principally due to increases in revenue from aerospace contracts, offset in part by lower revenues for PVT150 systems and spare parts. Our SDC segment revenues were 29% higher than the second quarter of 2023 and were $0.4 million or 20% higher than the first quarter of 2024 as demand for SDC’s gas delivery system remains strong.

CVD 設備的成長主要是由於航空航太合約收入的增加，部分被 PVT150​​ 系統和備件收入的下降所抵消。由於對 SDC 天然氣輸送系統的需求仍然強勁，我們的 SDC 部門營收比 2023 年第二季高出 29%，比 2024 年第一季高出 40 萬美元，即 20%。

Gross profit for the three months ended June 30, 2024, was $1.6 million with a gross profit margin of 25.4% as compared to a gross profit of $1.4 million or gross profit margin of 27.4% for the three months ended June 30, 2023. This increase in gross profit of $0.2 million was primarily due to higher revenues that was offset by a contract mix with lower gross margins as compared to the prior-year quarter.

截至2024年6月30日止三個月的毛利為160萬美元，毛利率為25.4%，而截至2023年6月30日止三個月的毛利為140萬美元，毛利率為27.4% 。毛利增加 20 萬美元主要是由於收入增加，但與去年同期相比毛利率較低的合約組合抵消了收入增加。

Our operating loss for the second quarter of 2024 was $0.9 million as compared to an operating loss of $1.2 million in the second quarter of 2023. The operating loss in the prior-year second quarter both included a non-recurring charge of $0.3 million related to the sale of the Tantaline subsidiary and also an impairment charge resulting from our decision to exit our MesoScribe business. So that’s total one-time charges last year of $0.3 million.

我們 2024 年第二季的營運虧損為 90 萬美元，而 2023 年第二季的營運虧損為 120 萬美元。去年第二季的營運虧損包括與出售 Tantaline 子公司相關的 30 萬美元非經常性費用，以及因我們決定退出 MesoScribe 業務而產生的減損費用。這樣一來，去年的一次性費用總額為 30 萬美元。

After other income, consisting principally of interest income, our net loss for the second quarter was $761,000 or $0.11 per share for both basic and diluted. This compares to a net loss for the second quarter of 2023 of $1.1 million or $0.16 per share for both basic and diluted.

扣除其他收入（主要包括利息收入）後，我們第二季的淨虧損為 761,000 美元，基本虧損和稀釋虧損均為每股 0.11 美元。相比之下，2023 年第二季的淨虧損為 110 萬美元，基本虧損和稀釋每股虧損為 0.16 美元。

Our cash and cash equivalents at June 30, 2024, was $10 million as compared to $14 million at the end of December. This decrease was principally due to the net loss of $2.2 million, an increase in our accounts receivable of $3 million, offset by an increase in accounts payable, and we also have non-cash expense items of $0.8 million. Our working capital at June 30, 2024, was $12.7 million, and this compares to $14.3 million at December 31, 2023.

截至 2024 年 6 月 30 日，我們的現金和現金等價物為 1,000 萬美元，而 12 月底為 1,400 萬美元。這項減少主要是由於淨虧損 220 萬美元、應收帳款增加 300 萬美元（被應付帳款增加所抵銷）以及我們還有 80 萬美元的非現金支出項目所致。截至 2024 年 6 月 30 日，我們的營運資金為 1,270 萬美元，而截至 2023 年 12 月 31 日，我們的營運資金為 1,430 萬美元。

Our return to profitability is dependent upon, among other things, the receipt of new equipment orders, our ability to mitigate the impact of inflationary pressures as well as managing planned capital expenditures and operating expenses. In addition, our revenues and orders have historically fluctuated based on changes of order rate as well as other factors in our manufacturing process that impacts the timing of our revenue recognition. Accordingly, orders received from customers and revenue recognized may fluctuate from quarter to quarter.

我們的獲利能力恢復取決於新設備訂單的接收、減輕通膨壓力影響的能力以及管理計畫資本支出和營運支出的能力。此外，我們的收入和訂單歷來根據訂單率的變化以及我們製造過程中影響我們收入確認時間的其他因素而波動。因此，從客戶收到的訂單和確認的收入可能會因季度而異。

After considering all these factors, we believe our cash and cash equivalents and our projected cash flow from operations will be sufficient to meet our working capital and capital expenditure requirements for the next 12 months. We will continue to evaluate the demand for our products, assess our operations, and take actions anticipated to maintain our operating cash to support our working capital needs.

考慮到所有這些因素後，我們相信我們的現金和現金等價物以及預計的營運現金流將足以滿足我們未來 12 個月的營運資本和資本支出需求。我們將繼續評估對我們產品的需求，評估我們的運營，並採取預期行動來維持我們的營運現金，以支持我們的營運資金需求。

I’ll now turn it back to Manny.

現在我將把它轉回給曼尼。

Rich, thank you for your presentation. Our focus remains on our customer markets, our employees, our shareholders and the pursuit of growth and return to consistent profitability. We look forward to continuing to build on our success in the year ahead. Your comments and questions are important to us.

里奇，謝謝你的介紹。我們的重點仍然是我們的客戶市場、我們的員工、我們的股東以及對成長和回報持續獲利的追求。我們期待在新的一年繼續取得成功。您的意見和問題對我們很重要。

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

隨著我們的演講結束，我想請大家提問。

(Operator Instructions)

（操作員說明）

Ladies and gentlemen, there are no further questions at this time. I'd like to turn the call back to Emmanuel Lakios for closing remarks.

女士們、先生們，目前沒有其他問題了。我想將電話轉回給伊曼紐爾·拉基奧斯（Emmanuel Lakios），讓其致閉幕詞。

Thank you, operator, and thank you, everyone, for dialing in today. We appreciate the attendance on the call and the support and of course, the loyalty from our shareholders and employees alike. If you have any further questions, please reach out to me directly. This concludes our second-quarter call. Thank you.

謝謝接線員，也謝謝大家今天撥電話。我們感謝各位出席電話會議、給予支持，當然還有股東和員工的忠誠。如果您還有任何疑問，請直接與我聯絡。我們的第二季電話會議到此結束。謝謝。

Thank you. This concludes today's conference. You may now disconnect your lines. Thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開線路。感謝您的參與。