Overview

• US process equipment maker's Q1 revenue from continuing ops fell 71% yr/yr on lower system bookings

• Net loss from continuing ops widened to $1.7 mln from $0.2 mln yr/yr

• Company completed sale of SDC division after quarter-end, boosting cash and eliminating long-term debt

Outlook

• Company expects annual operating costs to decrease by $1.8 mln in fiscal 2026 due to outsourcing

• Company says bookings remain pressured by geopolitical uncertainty and reduced U.S. government funding for universities

• CVD Equipment plans to focus on aerospace, defense, industrial SiC, and emerging nuclear energy applications

Result Drivers

• LOWER SYSTEM BOOKINGS - Co said Q1 revenue and gross margin declined due to reduced CVD system bookings, citing geopolitical uncertainty, reduced U.S. government funding for universities, and slower adoption in some end markets

• FIXED COST ABSORPTION - Gross margin decline attributed to lower absorption of fixed manufacturing costs due to reduced system revenue

• CONTRACT MODIFICATION - $0.3 mln benefit from a contract modification partially offset revenue and margin declines

Company press release: ID:nBw8MRWKMa

Key Details

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