C V D Equipment Corp (NASDAQ:CVV) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 04:30 pm ET

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C V D Equipment Corp (NASDAQ:CVV) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the CVD Equipment Corporation Third Quarter 2019 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Len Rosenbaum. Please go ahead, sir.

Executive
Leonard A. Rosenbaum

Good afternoon, everyone, and thank you for joining our earnings call. The Company's focus during the third quarter was on getting our materials facility up and running, starting on MesoScribe facility backup after moving from California to New York, and three pursuing additional equipment sales. The Company has invested $2.5 million during 2018 in building improvements, machinery and other expenses related to CVD Materials and $2.1 million in the first nine months of 2019.

I'm glad to say MesoScribe is now operating and Tantaline's equipping continues to be installed and tested and we have continued to increase our marketing efforts for equipment and materials sales. We are now showcasing our material facility operations and offering material coating services to new and existing customers. The expanded material operations will enhance our capabilities in providing corrosion-resistant coatings through Tantaline for medical, pharma, oil and gas applications, sensors through MesoScribe for defense, aerospace and turbine applications, and through our CVD Materials subsidiary for carbon composite materials, medical coatings, electronic substrate materials and further expansion into other coatings for defense, aerospace and industrial applications.

We have continued working on our fluid reactor technology and additional testing will be done this quarter with the Center of Biotechnology at Stony Brook University to further our novel patent pending technology on an improved Extracorporeal Membrane Oxygenation device. We anticipate further collaboration for this promising technology and application. During the fourth quarter, Tantaline US manufacturing should start being operational and we will continue working on further improvement in both equipment and material sales.

We anticipate the high-margin growth markets in materials for corrosion resistance, medical, aerospace and defense coatings will help flatten the uneven levels of our equipment sales. We will continue to monitor orders and expenditures and we remain committed to returning to profitable quarterly results.

With that, I would like to turn the call over to our CFO, Tom McNeill.

Executive
Thomas McNeill

Thank you, Len. In the third quarter, our revenue was $5.7 million as compared to $4 million in third quarter 2018, an increase of $1.7 million or 41.6%, and our net loss was $138,000 or $0.02 per diluted share as compared to a net loss of $2.5 million or $0.39 per diluted share in the third quarter 2018.

Our nine-month revenues were $14.1 million as compared to $19.6 million in 2018, a decrease of $5.5 million or 28.1%, and our net loss was $3.7 million or $0.57 diluted share as compared to a net loss of $3.3 million or $0.51 per diluted share in the first nine months of 2018. Our revenue increase of $1.7 million in this third quarter as compared to the year-ago period was primarily the result of increases in spare parts and equipment sales.

For the nine months of 2019 the revenue decrease of $5.5 million