CVD Equipment Corp (CVV) 2021 Q4 法說會逐字稿

Greetings, and welcome to the CVD Equipment 2021 Fourth Quarter and Year-End Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. We will begin with some prepared remarks followed by a question-and-answer session.

各位好，歡迎參加 CVD Equipment 2021 年第四季及全年業績電話會議。（接線員指示）提醒各位，本次會議將被錄音。我們將先進行事先準備的發言，隨後進入問答環節。

Presenting on the call today will be Emmanuel Lakios, President and CEO and member of the CVD Board of Directors; and Thomas McNeill, 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.

今天出席電話會議並發言的有：CVD 董事會成員、總裁兼執行長 Emmanuel Lakios；以及執行副總裁兼財務長 Thomas McNeill。我們已將盈餘新聞稿與電話會議重播資訊發布於本公司網站 www.cvdequipment.com 的投資人關係專區。

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. These forward-looking statements are based on certain assumptions, expectations and projections and are subject to a number of risks and uncertainties described in our press release and our filings with the SEC including, but not limited to, the Risk Factors section of our 10-K for the year ended December 31, 2021. Actual results may differ materially from those described during the 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 new circumstances or revised expectations.

在我開始之前，我想提醒各位，今天電話會議中的許多評論包含前瞻性陳述，包括與未來財務表現、市場成長、可服務總市場（TAM）、對我們產品的需求，以及一般營運狀況與展望相關的陳述。這些前瞻性陳述係基於若干假設、預期與推估，並受我們新聞稿及向美國證券交易委員會（SEC）提交之文件中所述的多項風險與不確定性影響，包括但不限於截至 2021 年 12 月 31 日止年度 10-K 年報中的「風險因素」章節。實際結果可能與本次電話會議中所描述者存在重大差異。此外，所有前瞻性陳述均以今日為準，我們不承擔因新情況或修訂預期而更新任何前瞻性陳述之義務。

Now I'd like to turn the call over to Manny.

現在我想把電話會議交給 Manny。

Thank you, Kyle. Welcome to our CVD Equipment Corporation quarterly conference call. My name is Manny Lakios, CEO and President. I am pleased to be presenting to you today regarding our 2021 performance and important company developments and pertinent information related to our business. As we will be providing substantive information, your thoughts are important to us. We look forward to your questions at the end of our conference call in the questions and answer session.

謝謝你，Kyle。歡迎參加我們 CVD Equipment Corporation 的季度電話會議。我是 Manny Lakios，執行長兼總裁。很高興今天向各位報告我們 2021 年的表現、公司重要進展，以及與我們業務相關的重點資訊。由於我們將提供實質內容，各位的想法對我們很重要。我們期待在電話會議結束前的問答環節聽到各位的提問。

2021 was year of transition, reorganization and focus on providing a path to profitability and growth. We are pleased with the improvements in performance of the company and increased demand of our products during this difficult period. We spent the first half of 2021 shoring up our balance sheet and optimizing our market focus and product offerings, all in the interest of maximizing the future profitability and viability of the company.

2021 年是轉型、重整並聚焦於打造通往獲利與成長之路的一年。在這段艱難期間，我們對公司績效的改善以及產品需求的提升感到欣慰。2021 年上半年，我們致力於強化資產負債表，並優化市場聚焦與產品組合，以最大化公司未來的獲利能力與可持續性。

In 2021, orders for the company as a whole were $21 million, up 75% from prior year 2020. The equipment group had an increase of 100% over 2020. 23 systems were booked in 2021 compared to 9 systems in 2020. We obtained multiple strategic orders in our focus growth markets serving the electric vehicles. The first being battery anode material and the second silicon carbide growth systems for high-power electronics. According to market research, both of these market segments are expected to grow in the coming quarters and years. The systems I mentioned are planned for delivery mid-2022.

2021 年，公司整體訂單為 2,100 萬美元，較 2020 年成長 75%。設備事業群較 2020 年成長 100%。2021 年共取得 23 套系統訂單，而 2020 年為 9 套。我們在聚焦的成長市場（服務電動車）取得多筆策略性訂單：第一是電池負極材料，第二是用於高功率電子的碳化矽（SiC）晶體生長系統。根據市場研究，這兩個市場區隔預期在未來幾季與未來數年持續成長。我剛提到的系統預計於 2022 年年中交付。

Recently, we announced 2 additional strategic orders in Q1 of 2022, one for battery nanomaterial research and development and the other for carbon-based discrete devices for 5G cellular phone technology. Both systems will be completed the second half of 2022.

近期我們宣布在 2022 年第一季新增兩筆策略性訂單，一筆用於電池奈米材料研發，另一筆用於 5G 行動電話技術的碳基離散元件。兩套系統皆將於 2022 年下半年完成。

During the first quarter of 2022, we also received orders for consumables that serve our installed base of -- in the aerospace market. This is a sign of continued recovery of the aerospace market, which we do not expect to recover fully until 2023. The recent orders over the last 3 quarters further validate our strategy of focus on growth end-use markets, such as battery nanomaterials, silicon carbide growth systems and advanced composite materials for aerospace and other markets.

在 2022 年第一季，我們也收到用於航太市場、服務我們已安裝基礎的耗材訂單。這顯示航太市場持續復甦，但我們預期要到 2023 年才會完全復原。過去三個季度的新訂單進一步驗證了我們聚焦成長終端市場的策略，例如電池奈米材料、碳化矽生長系統，以及用於航太與其他市場的先進複合材料。

Our consolidation of the Tantaline product line operations into Denmark have yielded improved performance in 2021 over 2020. The division had its first profitable year and was cash flow positive. The micro -- MesoScribe product line, which was moved and consolidated from our 555 building into our 355 building, was also operational in Q3 and was cash flow positive as was SDC division.

我們將 Tantaline 產品線的營運整併至丹麥，使 2021 年相較 2020 年的表現有所提升。該事業部迎來首個獲利年度，且現金流為正。Micro -- MesoScribe 產品線已自我們的 555 大樓搬遷並整併至 355 大樓，並於第三季開始運作且現金流為正；SDC 事業部亦同樣為正。

In 2021, we rightsized our employee head count, and there was a reduction in certain operating expenses associated with the consolidation of the 555 building into our 355 building, all located in Central Islip is New York and into the Tantaline facility in Denmark. The sale of the 555 building was completed in July with the outcome of providing approximately $14 million of additional cash on hand. The sale of the building provides both working capital as well as for future growth opportunities. Our revenue in 2021 was down from 2020 due to the lower equipment orders in 2020 attributed to the COVID pandemic.

2021 年，我們調整員工人數規模，並因將位於紐約州 Central Islip 的 555 大樓整併至 355 大樓，以及整併至丹麥的 Tantaline 廠區，而降低了部分營運費用。555 大樓的出售已於 7 月完成，帶來約 1,400 萬美元的額外現金。該大樓出售同時提供營運資金以及未來成長機會所需資金。由於 2020 年受 COVID 疫情影響設備訂單較低，我們 2021 年營收較 2020 年下降。

The impact of the reduction in revenue was partially mitigated by our rightsizing of our employee head count and the consolidation of our facilities. We have experienced 4 quarters of sequential revenue increase in 2021 and we expect the trend to continue through 2022, yielding a breakeven and profitability run rate by the end of 2022. Hence, achieving our profitability initiative.

營收下降的影響，部分由我們調整員工規模與整併設施所抵銷。2021 年我們已連續 4 個季度營收逐季成長，並預期此趨勢將延續至 2022 年，使我們在 2022 年底達到損益兩平並形成獲利的營運節奏。因此，將可達成我們的獲利推動計畫。

The COVID pandemic and now more recently the geopolitical instability in Russia and the Ukraine have caused global issues in supply chains. The negative effect has been felt by all companies with increases in commodity and product material costs as well as in product delivery uncertainty. In our production group, we have seen and further have been addressing these global supply chain issues. This is -- this will be a challenge for most companies, including CVD. We have implemented rigorous supplier engagement as well as expanded our network of suppliers. We also, in 2022, have initiated a program to expand our internal manufacturing capability with the objective to be self-reliant. We have ample capacity on our 355 Central Islip facility to accommodate a shift in our manufacturing strategy to assist in addressing any longer-term supply chain issues.

COVID 疫情以及近期俄羅斯與烏克蘭的地緣政治不穩定，已造成全球供應鏈問題。其負面影響已波及所有公司，包括大宗商品與產品材料成本上升，以及交付不確定性增加。在我們的生產團隊中，我們已看到並持續處理這些全球供應鏈問題。這將是大多數公司（包括 CVD）面臨的挑戰。我們已實施嚴格的供應商互動機制，並擴大供應商網絡。此外，我們在 2022 年啟動一項計畫以擴充內部製造能力，目標是提升自給自足能力。我們位於 Central Islip 的 355 廠區具備充足產能，可配合製造策略的調整，以協助因應任何較長期的供應鏈問題。

With that, I would like to now introduce our CFO, Mr. Thomas McNeill, who will provide you our fourth quarter and year-end 2021 financial summary.

接下來，我想介紹我們的財務長 Thomas McNeill 先生，他將為各位提供 2021 年第四季及全年財務摘要。

Thank you, Manny, and good afternoon, all. CVD fourth quarter 2021 revenue was $4.7 million as compared to $3.2 million in the fourth quarter of 2020, an increase of $1.5 million or 48.8%. CVD's operating loss for the quarter ended December 31, 2020 and -- I'm sorry, December 31, 2021 and 2020 was $1.2 million and $5.4 million, respectively. Included in the operating loss for the quarter ended December 31, 2020 is an impairment charge of $3.6 million related to the company's Tantaline product line. .

謝謝你，Manny，各位下午好。CVD 2021 年第四季營收為 470 萬美元，相較 2020 年第四季的 320 萬美元，增加 150 萬美元，增幅 48.8%。CVD 截至 2021 年 12 月 31 日與 2020 年 12 月 31 日止季度的營業損失分別為 120 萬美元與 540 萬美元。計入截至 2020 年 12 月 31 日止季度的營業損失中，包含一筆 360 萬美元的減損費用，與公司 Tantaline 產品線相關。.

Net loss for the fourth quarter of 2021 was $1.2 million or $0.18 per diluted share as compared to a net loss of $5.3 million or $0.80 per diluted share in the fourth quarter of 2020.

2021 年第四季淨損為 120 萬美元，或每股稀釋後虧損 0.18 美元；相較之下，2020 年第四季淨損為 530 萬美元，或每股稀釋後虧損 0.80 美元。

With respect to our year-end results. As a result of the COVID-19 pandemic, CVD's new orders substantially decreased commencing in the first quarter of 2020, which reduced revenues in subsequent quarters resulting in revenue of $16.5 million for the year ended December 31, 2021 as compared to $16.9 million in the year ended December 31, 2020, a decrease of $400,000 or 2.8%. CVD's operating loss for the year ended December 31, 2021 and 2020 was $4.8 million and $7.8 million, respectively. Included in other income for the year ended December 31, 2021 was a gain on the sale of the 555 building in the amount of $6.9 million and a gain on debt extinguishment in the amount of $2.4 million, which was related to the PPP loan received due to the effects of the COVID-19 pandemic. Included in the operating loss for the year ended December 31, 2020 is an impairment charge of $3.6 million related to the company's Tantaline product line.

關於全年業績。由於 COVID-19 疫情影響，CVD 的新訂單自 2020 年第一季起大幅下降，進而使後續季度營收降低，導致截至 2021 年 12 月 31 日止年度營收為 1,650 萬美元，相較截至 2020 年 12 月 31 日止年度的 1,690 萬美元，減少 40 萬美元或 2.8%。CVD 截至 2021 年 12 月 31 日與 2020 年 12 月 31 日止年度的營業損失分別為 480 萬美元與 780 萬美元。計入截至 2021 年 12 月 31 日止年度的其他收益中，包含出售 555 大樓的收益 690 萬美元，以及債務豁免收益 240 萬美元；後者與因 COVID-19 疫情影響而取得的 PPP 貸款相關。計入截至 2020 年 12 月 31 日止年度的營業損失中，包含一筆 360 萬美元的減損費用，與公司 Tantaline 產品線相關。

Net income for the year ended December 31, 2021 was $4.7 million or $0.71 per diluted share as compared to a net loss of $6.1 million or $0.91 per diluted share for the year ended December 31, 2020. In the first quarter of 2020, CVD's net income was favorably impacted by the CARES Act, which allowed for the carryback of net operating losses and resulted in CVD recognizing an income tax benefit of $1.5 million in the year ended December 31, 2020. Sequentially, CVD's revenue in the fourth quarter of 2021 was $4.7 million as compared to $4.3 million in the third quarter of 2021, an increase of $400,000. And the operating loss increased to $1.2 million in the fourth quarter of 2021 as compared to operating loss of $900,000 in the third quarter of 2021.

截至2021年12月31日止年度的淨利為470萬美元，或每股稀釋後0.71美元；相較之下，截至2020年12月31日止年度為淨損610萬美元，或每股稀釋後0.91美元。於2020年第一季，CVD 的淨利受到《CARES 法案》的正面影響；該法案允許淨營運虧損結轉回溯，並使 CVD 於截至2020年12月31日止年度認列150萬美元的所得稅利益。就季比而言，CVD 於2021年第四季的營收為470萬美元，相較2021年第三季的430萬美元增加40萬美元。而營業損失於2021年第四季增加至120萬美元，相較2021年第三季的營業損失90萬美元。

During Q3 2021 and continuing to date, CVD has been impacted by increased costs on certain manufacturing material components as well as delays in supply chain deliveries. This may also impact CVD's ability to recognize revenue and reduce gross profit margins in future quarters as well as extend its manufacturing lead times and reduced manufacturing efficiencies. CVD has commenced placing orders with increased lead times to try and help mitigate the manufacturing delays as well as assessing other material suppliers to mitigate the potential cost impacts. In addition, CVD is utilizing its in-house flexible manufacturing to mitigate both potential delivery -- schedule delivery delays and material increases.

在2021年第三季期間並持續至今，CVD 受到特定製造材料零組件成本上升以及供應鏈交付延遲的影響。這也可能影響 CVD 在未來季度認列營收的能力並降低毛利率，同時延長其製造前置時間並降低製造效率。CVD 已開始以更長的前置時間下單，以協助緩解製造延遲，並評估其他材料供應商以降低潛在的成本影響。此外，CVD 正運用其內部具彈性的製造能力，以降低潛在的交付—排程交付延遲以及材料成本上升的影響。

The company's backlog at December 31, 2021 improved by $4.7 million or 82% to $10.4 million, and this compares to $5.7 million at December 31, 2020. While the negative effect of the COVID-19 crisis continues to impact the aerospace industry due to reduced travel and reduction of industry gas turbine engine sales, we have achieved new orders during the quarters ended June, September and December 2021 in the amounts of $6 million, $6.1 million and $5.2 million. This compares favorably to $3.8 million in the quarter ended March 31, 2021.

公司於2021年12月31日的在手訂單（backlog）增加470萬美元或82%，至1,040萬美元；相較之下，2020年12月31日為570萬美元。儘管 COVID-19 危機的負面影響因旅行減少及產業燃氣渦輪發動機銷售下滑而持續衝擊航太產業，我們在截至2021年6月、9月及12月止季度分別取得600萬美元、610萬美元及520萬美元的新訂單。相較之下，截至2021年3月31日止季度的新訂單為380萬美元。

With respect to the 555 building sale debt and our cash position, as previously announced, we are pleased to have closed on the sale of our facility located at 555 North Research Place, and we did this in July of 2021. With the sales price of $24.4 million, we satisfied our then mortgage debt of approximately $9.1 million and paid various transaction-related costs. The net proceeds of approximately $14 million improved our cash position, which at December 31, 2021, is $16.7 million and provides us with the balance sheet to bolster sustainable growth strategies.

關於555大樓出售相關負債與我們的現金部位，如先前公告，我們很高興已完成位於555 North Research Place之設施的出售，並於2021年7月完成交割。以2,440萬美元的售價，我們清償當時約910萬美元的抵押貸款債務，並支付各項與交易相關的成本。約1,400萬美元的淨收益改善了我們的現金部位；截至2021年12月31日，我們的現金為1,670萬美元，並為我們提供可強化永續成長策略的資產負債表基礎。

As a result of the gain on the sale of the 555 building, we improved CVD's overall shareholder equity and retained earnings by approximately $5.1 million, and our retained earnings is now a positive $1.8 million at December 31, 2021.

由於出售555大樓的處分利益，我們使 CVD 的整體股東權益與保留盈餘增加約510萬美元；截至2021年12月31日，我們的保留盈餘目前為正的180萬美元。

Finally, on March 1, 2022, we paid off our remaining mortgage debt on the 355 building in the amount of $1.7 million and as such, we have no debt outstanding. With respect to our liquidity, primarily the result of the sale of the 555 building, cash, as I mentioned, increased to $16.7 million at December 31, 2021 as compared to $7.7 million in the prior year period. Our working capital was $16.7 million at December 31, 2021 as compared to $8.1 million in the prior year period. This is an increase of $8.6 million or 106%.

最後，於2022年3月1日，我們清償了355大樓剩餘的抵押貸款債務170萬美元，因此我們目前沒有任何未償債務。就流動性而言，主要受益於555大樓的出售，如我所提，現金截至2021年12月31日增加至1,670萬美元，相較前一年度同期為770萬美元。我們的營運資金截至2021年12月31日為1,670萬美元，相較前一年度同期為810萬美元，增加860萬美元或106%。

In addition, during the year ended December 31, 2021, we have substantially reduced our CapEx from $1.6 million in the year ended December 31, 2020 to $236,000 during the year ended December 31, 2021. This related to ceasing further USA spend on the Tantaline product line.

此外，在截至2021年12月31日止年度，我們已大幅降低資本支出（CapEx），由截至2020年12月31日止年度的160萬美元降至截至2021年12月31日止年度的23.6萬美元。此係因停止對 Tantaline 產品線進一步的美國支出所致。

The longer-term impacts from the COVID-19 outbreak are highly uncertain and cannot be predicted, especially now with the impacts on our supply chain as we previously discussed. And while we have initiated actions to mitigate the potential negative impacts to our revenue and profitability, there can be no assurance of the ultimate impact and the length of time that the supply chain factors may impact our revenues and profitability.

COVID-19 疫情爆發的長期影響高度不確定且無法預測，尤其是目前如我們先前所討論對供應鏈的影響。儘管我們已採取行動以緩解對營收與獲利能力的潛在負面影響，但對最終影響以及供應鏈因素可能影響我們營收與獲利能力的期間長短，仍無法提供任何保證。

Our return to profitability is dependent, among other things, the continued receipt of new orders, the lessening of ongoing effects of COVID-19 on our business and the aerospace market, managing through the supply chain issues discussed and improvement in our operational efficiencies as well as managing planned CapEx and operating expenses. Based upon all these factors, we believe that our cash and cash equivalent positions and projected cash flow from operations will be sufficient to meet our working capital and capital expenditure requirements for the next 12 to 18 months of the filing of our Form 10-K that was filed today. So the current environment continue longer or worsen, we will continue to assess our operations and take actions anticipated to maintain our operating cash to support the working capital needs.

我們重返獲利狀態取決於多項因素，包括持續取得新訂單、COVID-19 對我們業務及航太市場的持續影響減弱、妥善因應前述供應鏈問題、提升營運效率，以及管理既定的資本支出與營業費用。基於上述所有因素，我們相信截至今日提交之 Form 10-K 申報日起未來12至18個月內，我們的現金及約當現金部位與預估營運現金流將足以滿足我們的營運資金與資本支出需求。因此，若目前環境持續更久或惡化，我們將持續評估營運並採取預期可維持營運現金的行動，以支援營運資金需求。

At this point, I'd like to turn the call back over to Manny, our CEO.

此時，我想把電話交回給我們的執行長 Manny。

Tom, thank you for the presentation. In summary, 2021 was as we expected, a year of transition, reorganization and focus on everything we do and those who we serve. Our focus remains consistent on our customers, employees, shareholders and the pursuit of growth and return to profitability. We are looking forward to 2022 and are cautiously optimistic. Your comments and questions are important to us.

Tom，謝謝你的簡報。總結而言，2021年如我們所預期，是轉型、重整並聚焦於我們所做的一切以及我們所服務對象的一年。我們的重點仍一貫放在客戶、員工、股東，以及追求成長並重返獲利。我們期待2022年，並抱持審慎樂觀。各位的意見與提問對我們很重要。

With the close of our presentation, we'd like to open up the floor to your questions.

我們的簡報到此結束，接下來我們想開放時間回答各位的問題。

(Operator Instructions) Our first question is from [Martin Howard], a private investor.

（接線員指示）我們的第一個問題來自私人投資人 [Martin Howard]。

My question is this. I'm glad you have enough money and better conditions to stay alive, but I would love to have a reason to be excited. Is there anything happening on the health thing, that thing with Stony Brook, or is there's some great interest in some new product where you can see, maybe in a few years, $5 million or $10 million, $20 million worth of sales? Something to give us a reason to love the stock instead of tolerate it.

我的問題是這樣。我很高興你們有足夠的資金、也有更好的條件得以存續，但我希望能有一個讓人興奮的理由。健康醫療那塊有任何進展嗎？就是和 Stony Brook 的那件事；或者是否有某個新產品引起很大興趣，讓你們看到也許幾年後能有500萬、1,000萬、2,000萬美元的銷售額？給我們一個理由去喜歡這檔股票，而不是只是勉強接受它。

Okay. So Martin, thank you very much, and thank you for at least up to now tolerating the stock, and it is our job to work at having you love the stock.

好的。Martin，非常感謝你，也謝謝你至少到目前為止還願意「容忍」這檔股票；而讓你喜歡這檔股票是我們的工作。

Stockholder of various amounts for over 15 years.

持有不同數量的股東已超過15年。

Yes. And let me speak to some of the things that we've actually had public releases on. Last year, we received 6 orders for silicon carbide growth systems that are used, as you may know, in high-power electronics. Those high-power electronics are used in the charging and transmission -- for devices in charging and transmission of electric power for electric vehicles is one great application for us. And we received 6 from 1 customer. And as you -- as I stated earlier in my presentation, that is one of our growth focus areas and markets.

是的。讓我談談一些我們其實已發布過公開新聞稿的事項。去年，我們收到6筆碳化矽（silicon carbide）晶體生長系統的訂單；如你所知，這些系統用於高功率電子。這些高功率電子用於充電與輸電——例如電動車電力充電與傳輸設備，對我們而言是一個很重要的應用。我們從同一位客戶那裡收到6筆訂單。正如我先前在簡報中提到的，這是我們聚焦成長的領域與市場之一。

The other is in the anode battery material itself. We announced last year that we had received an order from a customer that -- and we actually announced that it was OneD in one of our releases, where they are they are a evolutionary improving the carbon nanomaterial used in electric vehicle batteries. So those are 2 areas that are large growth opportunities for us. And that's substantiated by, obviously, we read the news, we can see that, and also by market research.

另一個是在負極電池材料本身。我們去年宣布已收到一位客戶的訂單——而且我們其實在其中一則新聞稿中也宣布那是 OneD——他們正在逐步演進並改良用於電動車電池的碳奈米材料。所以這兩個領域對我們而言都是重大的成長機會。而這也得到佐證：顯然，我們會看新聞、能看到相關趨勢，同時也有市場研究的支持。

In addition to that, [Martin], we still have a large foothold. I mean the company did a great job over the last several years in fiber telco for the aerospace industry. As we know that, that industry was impacted by the COVID pandemic and long haul or travel to Europe, travel to Asia. And the Airbus, the Boeings were impacted, therefore, then the manufacturers were as well. So again, our market research and the news indicate that, that marketplace will come back at some point in time.

除此之外，[Martin]，我們仍然有很大的立足點。我的意思是，公司在過去幾年在航太產業的光纖電信（fiber telco）方面做得非常出色。我們也知道，該產業受到 COVID 疫情以及長程航班／前往歐洲、前往亞洲旅行的影響。Airbus、Boeing 受到衝擊，因此製造商也同樣受到影響。所以再一次，我們的市場研究與新聞都顯示，那個市場在某個時間點會回來。

So with that said, we're excited. We received those orders last year for products that will be used in electric vehicle battery and energy transmission and charging. So we're pleased with those.

因此，基於上述，我們感到很振奮。我們去年收到那些訂單，產品將用於電動車電池、能源傳輸與充電。所以我們對此感到滿意。

As far as we are not a medical device company, I think we've mentioned that earlier that, that's not our big play. We look at those type of products as applications for our carbon and our carbon CVI, both our carbon nanotubes and our carbon CVI processes, and primarily for the sale of tools. So with that said, I think I gave you a couple of examples of areas that we do focus on.

至於我們並不是一家醫療器材公司，我想我們先前也提過，那不是我們的主要布局。我們把那類產品視為我們碳材料與碳 CVI 的應用——包括我們的碳奈米管以及碳 CVI 製程——而且主要是為了銷售設備（tools）。因此，我想我已經給了你幾個我們確實聚焦的領域例子。

One last question, and I don't mean to take too much time. Graphene was sort of a touted material, like it was going to be the material over the next 50 years. Well, is there some truth to that? Or what is your opinion on graphene for the company?

最後一個問題，我不想占用太多時間。石墨烯曾被大力吹捧，彷彿它會是未來 50 年的材料。那有幾分真實性嗎？或者你對公司而言，對石墨烯的看法是什麼？

We see larger demands on CNT than we do for graphene. And without spending a lot of time on that, there are a lot of different ways that you can harvest graphene. It's a good technology. We sell systems in that. I really can't speak more than that. It's -- I think it's still a technology looking for a solution.

我們看到對 CNT（碳奈米管）的需求比對石墨烯更大。不花太多時間細談，石墨烯有很多不同的取得方式。這是一項不錯的技術，我們也有銷售相關系統。除此之外我很難再多說。它——我認為它仍是一項在尋找解決方案的技術。

(Operator Instructions) Our next question is from Brett Reiss with Janney Montgomery Scott.

（接線員指示）下一個問題來自 Janney Montgomery Scott 的 Brett Reiss。

Manny, Tom, can you hear me?

Manny、Tom，你們聽得到我嗎？

Yes, we can.

是的，聽得到。

Great, great. Good show on the increase in the backlog and the trends in orders and line of sight of profitability by year-end. So I appreciate that. Can I ask you, like, last quarter, you sold a nanomaterial system to One (sic) [OneD] Battery sciences, which you mentioned. And then you did it -- you sold another system to a research and pilot production customer. And then you had the March 29 news release that you're selling an atomic layer deposition system to -- for the Georgia Institute. Could you, to this non-engineer, just explain to me the differences between these systems, and you can talk to me like I'm 6 years old.

很好、很好。積壓訂單（backlog）的增加、訂單趨勢，以及到年底可望達到獲利的能見度（line of sight），表現很棒。我很感謝。我可以問一下嗎：像上季你們賣了一套奈米材料系統給 One（原文如此）[OneD] Battery sciences，你們也提到了。然後你們又——你們又賣了另一套系統給一位研發與試量產（pilot production）的客戶。接著 3 月 29 日的新聞稿提到你們要賣一套原子層沉積（atomic layer deposition）系統給——給喬治亞理工（Georgia Institute）。你能不能對我這個非工程背景的人，解釋一下這些系統之間的差異？你可以把我當 6 歲小孩來講。

As if you're 60 or 6?

你是要我把你當 60 歲還是 6 歲？

6 years old.

6 歲。

Okay. The one tool was for a production application, and it's a higher volume system, much higher volume system. The tool that we spoke about in the fourth quarter and then the Georgia Tech announcement are for real R&D applications. Georgia Tech, the ALD tool is just another deposition technology that is very similar to a CVD process. And it's really just -- as a 6-year-old, you really don't need to know difference. The equipment looks very much the same. But it's to one of the best universities doing research in this field, and we're very pleased to have been selected.

好。第一套設備是用於量產應用，是一套更高產能的系統，產能高很多。我們在第四季提到的那套設備，以及喬治亞理工的公告，則是用於真正的研發（R&D）應用。喬治亞理工的 ALD 設備只是另一種沉積技術，與 CVD 製程非常相似。其實——以 6 歲小孩來說，你真的不需要知道差別。設備外觀看起來非常相像。但它是提供給在這個領域做研究的頂尖大學之一，我們很高興能被選中。

What I'm probing is the add-on and total addressable market in these areas. I mean because -- I mean everybody knows electronic vehicles are just going to increase market share. So take, for example, the 1-day (sic) [OneD] battery customer. Has there been greater acceptance of that SiNANODe process that they're pushing , so that we could look forward to perhaps repeat additional orders from that customer? Can you give us any color there?

我想探問的是這些領域的加值（add-on）與可服務市場總量（total addressable market）。因為——大家都知道電動車只會持續提高市占。以 1-day（原文如此）[OneD] 的電池客戶為例：他們正在推動的 SiNANODe 製程是否獲得更高的接受度，讓我們可以期待該客戶未來可能會有重複、追加的訂單？你能否提供一些看法？

I can tell you that we're on schedule as we had committed to deliver it mid this year. I can't speak to my customers' adoption of their technology in the marketplace. And that's probably all I can really say on that. We would -- we're doing our best to provide them the best technology. And with that technology, it's really up to them to be able to get adoption and traction in the marketplace.

我可以告訴你，我們正按計畫進行，會如我們承諾在今年年中交付。我無法評論客戶的技術在市場上的採用情況。這大概也是我能說的全部。我們會——我們正盡最大努力提供他們最好的技術。至於有了那項技術之後，能否在市場上獲得採用與動能，主要還是取決於他們。

Okay. Now another area that's just seems to be a growth prospect is this migration of the world to 5G, this plasma-enhanced chemical vapor deposition system. Is that a one-off? Or are there other -- since the world's going to 5G, what is the potential for repeat orders and business in that area?

好的。那另一個看起來也很有成長前景的領域，是全球向 5G 遷移，這種電漿增強化學氣相沉積（plasma-enhanced chemical vapor deposition）系統。這是一筆一次性的訂單嗎？還是還有其他——既然全球都在走向 5G，這個領域重複訂單與業務的潛力如何？

Well, again, that's emerging technology on using carbon-based products, which I can't really speak to beyond that. In discrete devices, that would be used in a 5G application. The platform that we're developing, though, is different than our standard platform that we've shifted to a cluster tool platform. And that platform would be available to us to sell into other applications. So it has both capability within this specific use case of these discrete devices potentially for multiple orders. But we plan on marketing that technology to other applications as well.

嗯，再次強調，那是使用碳基產品的新興技術，除此之外我不便多談。它會用在 5G 應用中的離散元件（discrete devices）。不過，我們正在開發的平台不同於我們的標準平台；我們已轉向叢集式設備（cluster tool）平台。而該平台也可供我們銷售到其他應用。因此，它一方面在這個特定使用情境下，對這些離散元件可能帶來多筆訂單；另一方面，我們也計畫把這項技術行銷到其他應用。

Right. Is anything -- first, is plasma-enhanced chemical vapor deposition kind of -- I mean you guys were the go-to firm for chemical vapor deposition. Is this different? Is this almost like a new business that you're embarking on? Or is it just very similar?

了解。那我想問：首先，電漿增強化學氣相沉積（PECVD）算是——我的意思是，你們一直是化學氣相沉積（CVD）的首選廠商。這有什麼不同嗎？這幾乎像是你們正在開展一個新業務嗎？還是其實非常相似？

No, we have -- the company has a history of providing plasma-enhanced CVD systems. This tool is a specific tool designed for low temperature PECVD processing. But it's on a cluster -- it is a true production system -- wafer-level production system.

不，我們——公司過去就有提供 PECVD 系統的歷史。這套設備是一款為低溫 PECVD 製程所設計的特定機型。但它是基於叢集式——它是一套真正的量產系統——晶圓級（wafer-level）的量產系統。

The new cluster tool production platform which you described, is there anything proprietary to the company with respect to that new product?

你所描述的新叢集式量產平台，就這個新產品而言，公司是否有任何專有技術（proprietary）？

Yes, there is, and therefore, I can't tell you about it.

是的，有，所以我不能告訴你。

Okay. Well, that's good because if it works, we've got a protective moat. yes?

好的。那很好，因為如果它有效，我們就有一道保護性的護城河，對吧？

Yes.

是的。

Okay. Great. Great. Manny, you mentioned you've gotten some orders for consumer materials in aerospace, which is a kind of green shoot. Could you just go into that a little bit more, give us some more color on that?

好的。很好、很好。Manny，你提到你們在航太領域拿到一些耗材（consumables）訂單，算是一個復甦的跡象。你能不能再多談一點，提供更多細節？

There is a lot of capacity that because of the pandemic and then the impact of the long-haul travel, therefore, the gas turbine engine reduction, order reduction and then, therefore, obviously, then they don't need -- there's excess capacity. As you start now getting consumables and spare parts orders, you start -- that is a projection that they're using the tools. So that is a good thing. There will be some period of time that we would anticipate and hope that they get those fully. They use up all their free capacity. Beyond that, they would have to add some additional capacity. When that happens, we're not quite sure. But we've offset the aviation portion of our business at this point with some of these other emerging technology and business segments, which are electric vehicle applications, both the silicon carbide and also the battery material.

由於疫情以及長程旅行的影響，產能出現大量閒置，因此燃氣渦輪發動機的減產、訂單減少，進而——很明顯——就不需要那麼多產能，於是出現過剩產能。當你開始看到耗材與備品（spare parts）訂單時，你就會——那代表他們正在使用那些設備。這是好事。我們預期並希望在一段時間後，他們能把所有閒置產能用滿。再往後，他們就必須新增一些產能。那會在何時發生，我們還不確定。但就目前而言，我們已用其他一些新興技術與業務板塊來抵消我們航空業務的部分影響，這些包括電動車應用，涵蓋碳化矽以及電池材料。

Okay. And this is probably for Tom. What was your cash burn just from operations this quarter?

好的。這個問題可能是問 Tom 的。本季僅就營運而言，你們的現金消耗是多少？

This quarter on the cash burn, let me get back to you on that one, Brett. I can take that offline.

關於本季的現金消耗，Brett，這題我稍後再回覆你。我們可以私下再談。

Okay. Okay. And just the building you're in now, which you now own debt-free, free and clear, I'm not saying you're going to do it, but if you had to sell it tomorrow morning, what could you get for it? What's it worth? What's the fair market value right now?

好的。好的。再來，你們現在所在的這棟大樓，你們現在已經無負債、完全持有，清清楚楚。我不是說你們會這麼做，但如果你們明天早上必須把它賣掉，你們大概能賣多少？它值多少？目前的公允市價是多少？

We would have to get an independent assessment of that. We think it's worth a lot. But to give you a number, I think we'd be hard-pressed to do that.

我們需要做一份獨立估值。我們認為它很值錢。但要我給你一個數字，我想我們很難做到。

Well, you just sold the other one right down the block for $24 million. And I think the one you're in is arguably maybe not worth as much, but pretty close in a pretty hot market, yes?

嗯，你們剛把同一條街上的另一棟以 2,400 萬美元賣掉。而我覺得你們現在這棟或許沒那麼值錢，但在相當火熱的市場裡，應該也差不多，對吧？

Yes, I heard you. And yes, that sounds like a fair assessment. But again, I can't give you a number on what the value is.

是的，我聽到了。是的，這聽起來是合理的評估。但同樣地，我無法給你它的價值數字。

Okay. But that's margin of safety for people in terms of monetizing that if you needed working capital for your business or if an acquisition comes along that intrigues you.

好的。但對投資人而言，這在需要把它變現時就是一個安全邊際——如果你們需要營運資金，或是出現一個讓你們感興趣的併購案。

That goes through our minds as well, and everything is up for consideration.

我們也有想到這點，而且所有事情都可以納入考量。

Yes. Just one last one. The morale of your sales force, what -- can you describe it?

是的。最後一個問題。你們銷售團隊的士氣如何——你能描述一下嗎？

Yes. They were 100% year-on-year. I think that, that -- having been in and run sales organizations, I think that's a morale booster for the entire organization, not just the sales force.

可以。他們年對年達到 100%。我認為——我自己也待過並管理過銷售組織——這對整個組織都是士氣上的提振，不只是銷售團隊。

Right, right. It's possible aerospace could eventually come back and then you seem to be right in the thick of things with the EV batteries and 5G. Things seem to be humming along very nicely. So thank you, and keep it up.

對，對。航太未來可能會回來，而你們在電動車電池與 5G 方面似乎正處於核心位置。看起來進展非常順利。所以謝謝你們，請繼續保持。

Thank you, Brett. Appreciate that.

謝謝你，Brett。很感謝。

And Brett, just to your question. Cash burn Q3 to Q4, cash decreased about $800,000.

另外，Brett，回到你的問題。從第三季到第四季的現金消耗，現金大約減少了 80 萬美元。

Okay. So your assertion that you've got enough cash to last you through the next year to 18 months, I mean, you got a lot more runway than that, yes?

好的。所以你們說手上現金足以支撐未來 12 到 18 個月——我的意思是，你們的跑道其實比那更長，對吧？

Yes. And that's a good point, Brett. The 12 to 18 months is more of an SEC requirement that we are compelled to say that you have enough for that period of time. We don't run out in 12 to 18 months based on our anticipated forecast. We're well positioned with the order flow and what our focus on the operating efficiencies and expenses.

是的。這點說得很好，Brett。12 到 18 個月比較像是 SEC 的要求，我們必須表述我們有足夠資金支應那段期間。依照我們預期的預測，我們不會在 12 到 18 個月內用完。我們在訂單流入，以及對營運效率與費用的聚焦上，都處於很好的位置。

And Brett, we appreciate you bringing that up. I think that's a good clarification. Thank you, Tom.

Brett，我們也很感謝你提出這點。我覺得這是很好的釐清。謝謝你，Tom。

Our next question is from [Dan Jones], a private investor.

下一個問題來自 [Dan Jones]，一位私人投資人。

This is [Dan], not [Dan Jones]. Anyway, be interested if you could provide a little bit more color on the silicon carbide materials opportunity, where your equipment plays in terms of the supply chain there and what you're seeing in terms of capacity buildout, whether that -- where that -- how that looks in the United States and also abroad.

我是 [Dan]，不是 [Dan Jones]。不管怎樣，我想請你們多談一點碳化矽材料的機會，你們的設備在供應鏈中扮演什麼角色，以及你們看到的產能擴張情況——在美國以及海外分別是什麼樣子。

Okay. Well, I mean, clearly, I think we all read the news. Thank you, [Dan]. We all read the news, and there's a big shift to bring the ITs back to the United States, China initiatives, et cetera. Part of that is high-power electronics, battery material, semiconductor integrated circuits. But let's focus, as you said, for a moment on the silicon carbide.

好的。嗯，很明顯地，我想我們都看了新聞。謝謝你，[Dan]。我們都看了新聞，現在有很大的轉變要把 IT 產業帶回美國、以及中國的相關倡議等等。其中一部分涉及高功率電子、電池材料、半導體積體電路。不過就像你說的，我們先把焦點放在碳化矽上。

We build physical vapor transport systems essentially used to grow the boules, the silicon carbide material itself. So that is really our product offering today on the -- on this particular silicon carbide application. This is not a coating. This is the actual growth of those boules that are then cut and polished and made into actual silicon carbide wafers. And as you may know, silicon carbide wafers are higher current -- have a higher current capacity and temperature capacity than silicon.

我們製造物理氣相傳輸（PVT）系統，基本上用來長晶，生長出晶錠（boule），也就是碳化矽材料本身。因此，這就是我們目前在這個碳化矽應用上的產品供應。這不是鍍膜；這是實際生長那些晶錠，之後再切割、拋光，製成真正的碳化矽晶圓。你可能也知道，碳化矽晶圓相較於矽，具有更高的電流承載能力與耐溫能力。

Okay. Great. Are there many other merchant equipment suppliers for the silicon carbide crystal, the boule?

好的。很棒。碳化矽晶體、晶錠（boule）方面，還有很多其他的獨立設備供應商嗎？

There are other merchant suppliers. There aren't a lot of merchant suppliers of silicon carbide wafers. A lot of them have been gobbled up by the device manufacturers.

還有其他獨立供應商。碳化矽晶圓的獨立供應商則不多，很多都被元件製造商併購整合了。

And in terms of the interest in your product, is it those vertically integrated device manufacturers or is it...

那就你們產品的需求而言，主要是那些垂直整合的元件製造商，還是……

You can imagine that they are the ones that are going to -- no, you can imagine that the up-and-coming merchants have some open space to run in, and those have been our primary focus.

你可以想像他們會是——不，你可以想像新興的獨立業者還有一些可以發揮的空間，而那些一直是我們主要的聚焦對象。

We have reached the end of the question-and-answer session. And I will now turn the call over to Manny Lakios for closing remarks.

問答環節到此結束。接下來我將把電話交給 Manny Lakios 做結語。

Okay. Well, thank you all for being on the call today. CVD Equipment, I speak for all the employees and the Board of Directors. And we appreciate the shareholder loyalty. We look forward to 2022, as we said earlier. And I wish you all the best. Stay safe, and thank you.

好的。感謝各位今天參與電話會議。CVD Equipment，我代表全體員工與董事會發言。我們感謝股東的長期支持。我們期待 2022 年，就像先前所說的。祝各位一切順利。請注意安全，謝謝。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，您現在可以掛斷電話線。感謝您的參與。