CVD Equipment Corporation reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. For the third quarter of 2024, the company achieved revenue of $8.2 million, a significant increase of $2.0 million or 31.4% from $6.2 million in Q3 2023. This growth was primarily driven by aerospace contracts, contributions from the Stainless Design Concepts (SDC) segment, and sales from its MesoScribe subsidiary, although it was partially offset by a decline in spare parts revenue.

Gross profit for the third quarter rose to $1.8 million, up from $1.6 million in the same period last year, reflecting a gross profit margin of 22.4%. The increase in gross profit was attributed to higher revenues and improved margins on contracts, despite a $1.0 million non-cash charge related to inventory reduction. Operating expenses for Q3 2024 decreased to $1.8 million from $2.6 million in Q3 2023, leading to an operating income of $77,000, a turnaround from an operating loss of $990,000 in the prior year.

Net income for the third quarter was $203,000, compared to a net loss of $753,000 in Q3 2023. This improvement in profitability was notable, although the company reported a net loss of $2.0 million for the nine months ended September 30, 2024, compared to a loss of $1.9 million for the same period in 2023.

For the nine months ended September 30, 2024, total revenue decreased slightly to $19.5 million from $20.0 million in the previous year. The CVD Equipment segment generated $12.7 million, down from $13.8 million, primarily due to lower sales of PVT150 systems and spare parts. Conversely, the SDC segment saw an increase in revenue to $6.3 million from $5.7 million, driven by higher demand for gas delivery systems.

The company’s total operating expenses for the nine months decreased to $6.8 million from $7.8 million, while gross profit fell to $4.3 million, down from $5.4 million, resulting in a gross profit margin of 22.1%. The decline in gross profit was attributed to lower revenue and margins on CVD Equipment contracts, alongside the aforementioned inventory charge.

CVD Equipment Corporation's cash and cash equivalents stood at $10.0 million as of September 30, 2024, down from $14.0 million at the end of 2023. The company anticipates that its existing cash, along with projected cash flow from operations, will be sufficient to meet its working capital and capital expenditure needs over the next twelve months. The company continues to focus on strategic initiatives, including a shift towards electrification and the development of silicon carbide technologies, despite facing challenges such as lower-than-expected electric vehicle adoption rates and market overcapacity.