CVD Equipment Corp (CVV) 2025 Q3 法說會逐字稿

Good afternoon, and welcome to the CVD Equipment Corporation third quarter 2025 earnings conference call. As a reminder, today's call is being recorded. We will begin with prepared remarks followed by a question-and-answer session. Presenting on today's call are Emmanuel Lakios, President and Chief Executive Officer; and Richard Catalano, Executive Vice President and Chief Financial Officer. Our earnings press release and call replay information are available in the Investor Relations section of our website at www.cvdequipment.com.

下午好，歡迎參加 CVD Equipment Corporation 2025 年第三季財報電話會議。再次提醒，今天的通話將會被錄音。我們將首先進行事先準備好的發言，然後是問答環節。今天出席電話會議的有總裁兼執行長 Emmanuel Lakios 和執行副總裁兼財務長 Richard Catalano。我們的獲利新聞稿和電話會議回放資訊可在我們網站 www.cvdequipment.com 的投資者關係部分查閱。

Before we begin, please note that comments made during this call may include forward-looking statements, including those related to our future financial performance, market growth, demand for our products and overall business outlook. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. For a detailed discussion of these risks, please refer to our filings with the SEC, including the Risk Factors section of our Form 10-K for the year ended December 31, 2024. We assume no obligation to update any forward-looking statements, except as required by law.

在開始之前，請注意，本次電話會議期間發表的評論可能包含前瞻性陳述，包括與我們未來的財務表現、市場成長、產品需求和整體業務前景相關的陳述。這些陳述是基於目前的預期，但存在風險和不確定性，可能導致實際結果與預期有重大差異。有關這些風險的詳細討論，請參閱我們向美國證券交易委員會提交的文件，包括截至 2024 年 12 月 31 日止年度的 10-K 表格中的「風險因素」部分。除法律要求外，我們不承擔更新任何前瞻性聲明的義務。

With that, I'll now turn the call over to Emmanuel Lakios, President and CEO.

接下來，我將把電話交給總裁兼執行長伊曼紐爾·拉基奧斯。

Thank you, Paul, and good afternoon, everyone. We appreciate you joining us today to review our third quarter 2025 financial results and to provide an update on our business and strategic initiatives. After our prepared remarks, we look forward to taking your questions. For the third quarter 2025, revenue was $7.4 million, a 9.6% decrease from prior year quarter and a 44.9% increase compared to the second quarter of this year. Revenue to date was $20.8 million and was 7.1% higher than the same period 2024.

謝謝你，保羅，大家下午好。感謝您今天蒞臨本次會議，共同回顧我們 2025 年第三季的財務業績，並了解我們的業務和策略舉措的最新進展。在我們發言完畢後，期待回答各位的問題。2025 年第三季度，營收為 740 萬美元，比上年同期下降 9.6%，比今年第二季度成長 44.9%。截至目前，營收為 2,080 萬美元，比 2024 年同期成長 7.1%。

Orders for the third quarter totaled $2.2 million, primarily driven by continued demand in our SDC segment for gas delivery systems. For the 9 months of 2025, total orders were $9.5 million compared to $21 million in the same period last year. At September 30, 2025, backlog stood at $8 million compared to $13.2 million at June 30, 2025, as we converted backlog to revenue in the quarter.

第三季訂單總額為 220 萬美元，主要得益於 SDC 部門對天然氣輸送系統的持續需求。2025 年前 9 個月的總訂單金額為 950 萬美元，而去年同期為 2,100 萬美元。截至 2025 年 9 月 30 日，積壓訂單為 800 萬美元，而截至 2025 年 6 月 30 日為 1320 萬美元，因為我們在本季度將積壓訂單轉化為收入。

Our third quarter and year-to-date bookings were influenced by several external factors, including uncertainties related to proposed tariffs, reduced US government funding for university and US government shutdown and timing in the product adoption within our growth markets.

第三季和年初至今的預訂量受到多種外部因素的影響，包括與擬議關稅相關的不確定性、美國政府對大學的撥款減少、美國政府停擺以及我們成長市場中產品採用的時間表。

In response to the ongoing fluctuations in our order rate and the recent decline in bookings within the CVD Equipment division, our Board of Directors has approved a comprehensive transformation strategy aimed at significantly reducing fixed operating costs and creating a more agile organization.

鑑於訂單率持續波動以及 CVD 設備部門近期預訂量的下降，我們的董事會已批准一項全面的轉型策略，旨在大幅降低固定營運成本並創建一個更靈活的組織。

Key elements of this plan include: transitioning CVD equipment business from vertically integrated fabrication to outsourced fabrication of certain components, enabling us to reduce our fixed costs and improve scalability. A workforce reduction in the CVD Equipment division to be completed by year-end 2025, expected to reduce the annual operating cost by approximately $2 million beginning in 2026. To note, the SDC division will not be impacted by these actions.

該計劃的關鍵要素包括：將 CVD 設備業務從垂直整合製造過渡到某些組件的外包製造，從而降低我們的固定成本並提高可擴展性。CVD 設備部門的裁員計畫將於 2025 年底完成，預計從 2026 年開始，每年可減少約 200 萬美元的營運成本。需要注意的是，SDC部門不會受到這些行動的影響。

Revising our sales approach by leveraging distributors and external representatives to complement our internal sales force and broadening our market reach, exploring strategic alternatives for certain businesses and product lines, which could include asset sales and divestments. Together, these initiatives will allow us to focus on our core strengths, which are engineering design, assembly, test, installation and customer service, all while driving greater efficiency and long-term profitability.

修改我們的銷售方式，利用經銷商和外部代表來補充我們的內部銷售隊伍，擴大我們的市場覆蓋範圍，探索某些業務和產品線的戰略選擇，其中可能包括資產出售和剝離。這些措施將使我們能夠專注於我們的核心優勢，即工程設計、組裝、測試、安裝和客戶服務，同時提高效率並實現長期獲利能力。

We remain encouraged by the opportunities ahead in our target markets, aerospace and defense, industrial applications, which include silicon carbide on graphite, silicon carbide high-power electronics and electric vehicle battery materials. As an update on opportunities in the silicon carbide market, in October 2025, we announced a new order from Stony Brook University for 2 PVT150 physical vapor transport systems to support their center established by onsemi Silicon Carbide Crystal Growth Center.

我們對目標市場（包括航空航太和國防、工業應用，例如石墨上的碳化矽、碳化矽高功率電子產品和電動車電池材料）的未來機會仍然充滿信心。關於碳化矽市場機會的最新進展，2025 年 10 月，我們宣布收到石溪大學的新訂單，訂購 2 套 PVT150​​ 物理氣相傳輸系統，以支持其由安森美碳化矽晶體生長中心建立的中心。

We're proud to play a role in advancing semiconductor materials research and support critical technologies in artificial intelligence and electrification. We are continuing the development of our 200-millimeter silicon carbide crystal growth process using our PVT200 system targeted at the high-power electronics market. This same platform is being evaluated for other wide band gap materials such as aluminum nitride.

我們很榮幸能夠參與推動半導體材料研究，並支援人工智慧和電氣化等關鍵技術的發展。我們正在利用我們的 PVT200 系統繼續開發高功率電子市場的 200 毫米碳化矽晶體生長製程。該平台也正在被評估用於其他寬帶隙材料，例如氮化鋁。

Our reactor design and control architecture delivered the precision and repeatability needed for next-generation material production. CVD remains well positioned across multiple growth markets. We believe that our transformation initiatives will strengthen our foundation and will better support our goal of achieving profitability and positive cash flow.

我們的反應器設計和控制架構提供了下一代材料生產所需的精度和重複性。CVD 在多個成長型市場中仍保持良好的市場地位。我們相信，我們的轉型措施將鞏固我們的基礎，並更好地支持我們實現盈利和正現金流的目標。

With that, I'll now turn over the call to our CFO, Rich Catalano, to review our financial results in more detail.

接下來，我將把電話交給我們的財務長里奇·卡塔拉諾，讓他更詳細地回顧我們的財務表現。

Thank you, Manny, and good afternoon, everyone. Third quarter 2025 revenue was $7.4 million compared to $8.2 million in Q3 of 2024. The quarter-over-quarter decrease was primarily due to the absence of revenue from our MesoScribe segment, which ceased operation in 2024. Revenue from our CVD Equipment segment was driven by three key customers, representing approximately 55% of total revenue for the quarter. Our contract modification during the third quarter allowed us to recognize revenue in Q3, contributing approximately $1 million. This was a change only in the timing of the revenue recognition.

謝謝你，曼尼，大家下午好。2025 年第三季營收為 740 萬美元，而 2024 年第三季營收為 820 萬美元。季度環比下降主要是由於 MesoScribe 業務部門停止運營，導致該部門沒有收入。我們 CVD 設備部門的收入主要來自三個主要客戶，約佔該季度總收入的 55%。第三季合約的修改使我們能夠在第三季確認收入，貢獻了約 100 萬美元。這只是收入確認時間上的改變。

Our SDC segment reported $1.7 million in revenue, down slightly from $1.9 million in Q3 2024 due to fewer contracts in progress, but they continue to have a strong backlog. The company gross profit for the quarter, was $2.4 million with a gross margin of 32.7%. This is compared to $1.8 million and 21.5% in the prior year quarter. This improvement was primarily due to a more profitable contract mix in our CVD Equipment segment, offset by the loss of the MesoScribe's contribution, and we also had a $100,000 charge for a onetime certification cost within the SDC segment.

我們的 SDC 部門報告收入為 170 萬美元，略低於 2024 年第三季的 190 萬美元，原因是正在進行的合約減少，但他們仍然有強勁的積壓訂單。該公司本季毛利為 240 萬美元，毛利率為 32.7%。相比之下，去年同期分別為 180 萬美元和 21.5%。這項改善主要歸功於 CVD 設備部門更有利可圖的合約組合，但被 MesoScribe 的貢獻損失所抵消，此外，我們在 SDC 部門還產生了 10 萬美元的一次性認證費用。

Operating income was $308,000 as compared to operating income of $77,000 in Q3 2024. After other income, primarily interest, net income was $384,000 or $0.06 per diluted share versus $203,000 or $0.03 per diluted share in the prior year quarter.

營業收入為 308,000 美元，而 2024 年第三季的營業收入為 77,000 美元。扣除其他收入（主要為利息）後，淨收入為 384,000 美元，即每股攤薄收益 0.06 美元，而去年同期為 203,000 美元，即每股攤薄收益 0.03 美元。

As to our balance sheet, at September 30, 2025, we held $8.4 million in cash and cash equivalents as compared to $12.6 million at December 31, 2024. Net cash used in operating activities for the first 9 months of 2025 was $4.1 million, largely due to changes in working capital as well as contract timing. Our working capital improved to $14.6 million as compared to $13.8 million at year-end 2024.

從資產負債表來看，截至 2025 年 9 月 30 日，我們持有現金及現金等價物 840 萬美元，而截至 2024 年 12 月 31 日，這一數字為 1,260 萬美元。2025 年前 9 個月經營活動使用的淨現金為 410 萬美元，主要原因是營運資金的變化以及合約時間表。我們的營運資金從 2024 年底的 1,380 萬美元增加到 1,460 萬美元。

As part of our transformation plan discussed earlier, we do expect to incur approximately $100,000 in severance and related charges in Q4 of 2025. In addition, we may recognize noncash impairment charges in future periods if certain long-lived assets are sold below their book value.

作為我們先前討論過的轉型計畫的一部分，我們預計將在 2025 年第四季產生約 10 萬美元的遣散費及相關費用。此外，如果某些長期資產以低於帳面價值的價格出售，我們可能會在未來期間確認非現金減損費用。

Looking ahead, our return to consistent profitability depends on new equipment orders, cost management, successful implementation of our transformation plan and continued control over our capital expenditures.

展望未來，我們能否恢復持續獲利取決於新設備訂單、成本管理、轉型計畫的成功實施以及對資本支出的持續控制。

Although order timing can cause quarterly fluctuations, we believe our current cash position and projected operating cash flows will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months.

儘管訂單時間可能會造成季度波動，但我們相信，我們目前的現金狀況和預期的營運現金流足以滿足至少未來 12 個月的營運資金和資本支出需求。

With that, I'll turn the call back to Manny.

這樣，我就把電話轉回給曼尼了。

Thank you, Rich. Our focus remains clear: serving our customers, supporting our employees, creating value for our shareholders and achieving a return to sustained profitability. Our goal continues to be enabling tomorrow's technology today.

謝謝你，里奇。我們的目標依然明確：服務客戶，支持員工，為股東創造價值，並實現持續獲利。我們的目標始終是讓未來的技術在今天實現。

Operator, we're now ready to open the line for questions.

接線員，我們現在可以開始接受提問了。

Thank you. We'll now be conducting a question-and-answer session. (Operator Instructions)

謝謝。接下來我們將進行問答環節。（操作說明）

[Paul Cheka] with MSE Resources.

[Paul Cheka] 與 MSE 資源公司。

Good afternoon everybody. I'm a long-time buy-and-hold fan of CVV. Also, materials engineer that's worked done a lot of work mainly in CVD coatings for engine -- high-temperature engines and semiconductor applications. So I've got a lot of hope for the company in those markets, especially. My question is about markets for composite applications for combustion turbines for power generations, meaning stationary turbine engines. For example, GE Vernova is showing growing backlog for stationary combustion engines. I was wondering if you can speak to orders or applications of the CVV systems for stationary combustion engines. Also a second question about just a little bit of insight on general locations of the materials outsourcing you'll be doing? Is it quite regional? Is that across the country or abroad?

各位下午好。我一直以來都是CVV的長期持有者。此外，材料工程師主要從事引擎用 CVD 塗層（高溫引擎和半導體應用）的研究工作。所以我對公司在這些市場的發展抱持著很大的希望，尤其是在這些市場。我的問題是關於用於發電的燃氣渦輪複合材料應用市場，也就是固定式渦輪發動機。例如，GE Vernova 的固定式內燃機訂單積壓情況日益嚴重。我想請問您是否可以談談固定式內燃機的CVV系統的訂單或應用情況？另外，我還想問一下，能否稍微透露一下你們外包材料的大致地點？它具有很強的地域性嗎？是指國內還是國外？

Paul, thank you for being a loyal shareholder. Let me two questions. First, the question on the ground-based gas turbine engines. As you're likely aware and many of the listeners are as well, the primary use of ceramic matrix composites are in the hot section of the engine. There are several engines out there that already are utilizing silicon carbide-based composite materials for shrouds and for nozzles.

保羅，感謝你一直以來作為忠實股東的支持。請容許我問兩個問題。首先，關於地面燃氣渦輪發動機的問題。正如您可能已經知道的，許多聽眾也都知道，陶瓷基複合材料的主要用途是在引擎的熱端部分。目前市面上已有多種引擎採用碳化矽基複合材料製造引擎罩和噴嘴。

Those, to my knowledge, have not yet been brought into the ground station gas turbine engines in that they don't burn -- they're not a hot section turbine, where we anticipate use in the future for silicon carbide-based composite materials, CMCs in the energy field would be more so in replacement of some specific materials for nuclear reactors and for pellet encapsulation. Those are future emerging opportunities.

據我所知，這些材料還沒有被應用到地面站燃氣渦輪機發動機中，因為它們不會燃燒——它們不是熱端渦輪機，我們預計未來碳化矽基複合材料將在熱端渦輪機中使用，CMCs 在能源領域更多地是替代核反應器和燃料芯塊封裝中的某些特定材料。這些都是未來湧現的新機會。

On your second question, which is more on the supplier base. CVD has historically had a mix of both external and also internal make components. We've had a focus on our sheet metal shop and also on the smaller machine components, both turned and milled machined elements. The larger chambers have typically been outsourced. So we've always had a mix of suppliers. Over the last several years, we have combed through those suppliers. And we've evaluated our cost structure closely over the last 12 months to a little over a year.

關於你的第二個問題，這比較是關於供應商方面的。CVD製程歷來都包含外部製造組件和內部製造組件。我們一直專注於鈑金車間以及小型機械零件，包括車削和銑削加工的零件。較大的密室通常是外包的。所以我們一直以來都採用多種供應商組合。在過去幾年裡，我們對這些供應商進行了徹底的篩選。在過去的12個月到一年多時間裡，我們對成本結構進行了密切評估。

And we've determined that the vertical integration model -- integrated model has really become less efficient given both our order volumes and also from the sheer fact that when you're vertically integrated, it's very difficult to be best-of-breed in sheet metal cutting, bending, welding, painting. And those are things that our suppliers do our merchant suppliers do, I would say, as well and in some cases, better than we do and are more cost effective.

我們已經確定，鑑於我們的訂單量，以及垂直整合後很難在鈑金切割、彎曲、焊接、噴漆等方面做到最好，垂直整合模式的效率實際上已經降低了。而這些正是我們的供應商，我們的商業供應商所做的事情，我認為，他們做得也很好，而且在某些情況下，他們做得比我們更好，更具成本效益。

So this -- the outsourcing was inevitable, and this is the right time to implement that strategy. Now to answer your question, is it regional? It's in the US. We are -- our focus is to outsource our machining to the US. We will extend to North America, specifically Canada in some cases.

所以，外包是不可避免的，現在正是實施這項策略的適當時機。現在回答你的問題，這是區域性的嗎？它在美國。我們的重點是將機械加工外包給美國。我們將業務拓展至北美，在某些情況下具體包括加拿大。

Okay. That's really great detail. Aside on that, the vertical integration, I think, was hugely valuable to the company 15, 20 years ago. I think it allowed you to really refine the quality and the control that you had over your systems, but I totally understand the change in the dynamics of the economies and economies of scale. I assume that your quartz, will that remain interior?

好的。細節處理得真好。除此之外，我認為，垂直整合在 15、20 年前對公司來說是非常有價值的。我認為這讓你能夠真正提高系統的品質和控制力，但我完全理解經濟和規模經濟動態的變化。我猜你的石英石檯面會一直留在室內吧？

It will be a mix, but we will retain our IP and Black Art in the area of quartz fabrication. And we'll also retain certain elements of capability in our machine shop, but the lion's share of the components will be outsourced.

這將是一種混合模式，但我們將保留我們在石英製造領域的智慧財產權和黑科技。我們也會保留機械加工車間的部分能力，但絕大部分零件將外包。

There are no further questions at this time. I'd like to hand the floor back over to Emmanuel Lakios for any closing comments.

目前沒有其他問題了。我謹將發言權交還給伊曼紐·拉基奧斯，請他作總結發言。

Okay. Thank you, operator, and thanks to everyone for joining us today. We appreciate your continued support and confidence in CVD Equipment Corporation. If you have any additional questions, please feel free to reach out to me directly. This concludes today's call. Thank you.

好的。謝謝接線員，也謝謝今天所有參與的朋友。感謝您一直以來對 CVD 設備公司的支持與信任。如果您還有其他問題，請隨時直接與我聯絡。今天的電話會議到此結束。謝謝。

We thank you again for your participation. You may now disconnect your lines.

再次感謝您的參與。現在您可以斷開線路了。