CVD Equipment Corporation (CVV) has reported a 96.93 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $0.77 million, or $0.12 a share in the quarter, compared with $0.39 million, or $0.06 a share for the same period last year.
Revenue during the quarter dropped 10.59 percent to $7.32 million from $8.19 million in the previous year period. Gross margin for the quarter expanded 835 basis points over the previous year period to 46.23 percent. Total expenses were 83.84 percent of quarterly revenues, down from 87.83 percent for the same period last year. This has led to an improvement of 399 basis points in operating margin to 16.16 percent.
Operating income for the quarter was $1.18 million, compared with $1 million in the previous year period.
"2016 set the stage for future growth and expansion of CVD. Although revenues declined in 2016, solid execution of our growth strategy resulted in a strong finish to the year," said Leonard Rosenbaum, president and chief executive officer. "During the second half of the year, we began to deliver on our backlog and rebuild the pipeline for our core business. With the addition of our new Tantaline corrosion resistance product line, we have taken the first step into the materials arena by using our equipment and process capability to scale a difficult process to meet market demand. We plan to expand the applications of this technology while we pursue additional material coating opportunities that build on our equipment and process solution capabilities. Entering 2017, we are poised for growth with a strong backlog and a growing customer base."
Working capital increases marginally
CVD Equipment Corporation has recorded an increase in the working capital over the last year. It stood at $20.51 million as at Dec. 31, 2016, up 2.99 percent or $0.60 million from $19.91 million on Dec. 31, 2015. Current ratio was at 3.46 as on Dec. 31, 2016, down from 5.29 on Dec. 31, 2015.
Debt comes down
CVD Equipment Corporation has recorded a decline in total debt over the last one year. It stood at $3.26 million as on Dec. 31, 2016, down 15.08 percent or $0.58 million from $3.84 million on Dec. 31, 2015. Total debt was 7.16 percent of total assets as on Dec. 31, 2016, compared with 9.35 percent on Dec. 31, 2015. Debt to equity ratio was at 0.10 as on Dec. 31, 2016, down from 0.12 as on Dec. 31, 2015.
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