CVD Equipment Corporation (CVV) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.08 million, or $ 0.01 a share in the quarter, against a net profit of $0.81 million, or $0.13 a share in the last year period. Revenue during the quarter plunged 54.12 percent to $4.88 million from $10.65 million in the previous year period. Gross margin for the quarter contracted 413 basis points over the previous year period to 34.62 percent. Operating margin for the quarter stood at negative 8.09 percent as compared to a positive 8.19 percent for the previous year period.
Operating loss for the quarter was $0.40 million, compared with an operating income of $0.87 million in the previous year period.
"For the second quarter in a row backlog reached a record level, and we began to execute on the large order from a major aviation customer," said Leonard Rosenbaum, president and chief executive officer. "As we continue to diversify our customer base and invest in R&D, we are building our pipeline and looking at strategic opportunities to accelerate growth and to position CVD for a significantly stronger 2017."
Working capital increases marginally
CVD Equipment Corporation has recorded an increase in the working capital over the last year. It stood at $19.94 million as at Sep. 30, 2016, up 2.30 percent or $0.45 million from $19.49 million on Sep. 30, 2015. Current ratio was at 2.79 as on Sep. 30, 2016, down from 3.64 on Sep. 30, 2015. Days sales outstanding went up to 129 days for the quarter compared with 50 days for the same period last year.
Debt comes down
CVD Equipment Corporation has recorded a decline in total debt over the last one year. It stood at $3.34 million as on Sep. 30, 2016, down 17 percent or $0.68 million from $4.03 million on Sep. 30, 2015. Total debt was 7.03 percent of total assets as on Sep. 30, 2016, compared with 9.28 percent on Sep. 30, 2015. Debt to equity ratio was at 0.10 as on Sep. 30, 2016, down from 0.12 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
