Cvd Equipment Corp has a market cap of $16.24 million; its shares were traded at around $3.41 with a P/E ratio of 34.1 and P/S ratio of 1.54.
Highlight of Business Operations:As a result of the foregoing factors, we incurred an operating loss of approximately $53,000 for the three months ended March 31, 2010 compared with an operating loss of $110,000 for the three month period ended March 31, 2009. Although revenues for the current three month period were lower than the respective period one year ago, management s efforts to reduce costs enabled us to minimize our operating loss.
Interest income for the three months ended March 31, 2010 was approximately $2,000 compared to approximately $12,000 for the three months ended March 31, 2009. This decrease is a result of a reduction in available cash as well as investing cash in more conservative investments such as short-term Treasury Bonds and Certificates of Deposit, with lower returns than it previously received on Money Market Funds. Interest expense for the three months ended March 31, 2010 was approximately $59,000 compared to approximately $65,000 for the three months ended March 31, 2009. The primary sources of this interest expense are the mortgages on the three buildings that we own.
For the three months ended March 31, 2010 we recorded current income tax expense of approximately $10,000 that was offset by the realization of deferred tax benefits of $23,000. For the three months ended March 31, 2009, we recorded no current income tax expense and realized deferred tax benefits of approximately $78,000.
As of March 31, 2010, we had aggregate working capital of approximately $10,426,000 and cash and cash equivalents of $1,925,000, compared to $10,563,000 and $3,120,000 at December 31, 2009, a decrease of $137,000 and $1,195,000, respectively. The decrease in cash and cash equivalents was primarily the result of funding the increase in accounts receivable and inventory.
Accounts receivable, net, as of March 31, 2010 was $3,126,000 compared to $2,130,000 as of December 31, 2009. This increase is attributable to the timing of shipments and customer payments.
As of March 31, 2010, our backlog was approximately $2,101,000, a decrease of $448,000, or 17.6%, compared to $2,549,000 at December 31, 2009. However, during the current period (January 1, 2010 thru March 31, 2010) we received 17.5% more orders than we received during the same period one year ago. Timing for completion of the backlog varies depending on the product mix and can be as long as two years. Included in the backlog are all accepted purchase orders with the exception of those that are included in percentage-of-completion. Order backlog is usually a reasonable management tool to indicate expected revenues and projected profits, however it does not provide an assurance of future achievement or profits as order cancellations or delays are possible.
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