CVD Equipment (CVV) investor relations material

Executive summary

• Completed the sale of the SDC business/division on April 1, 2026, for $17.4 million, generating $15.7 million in net cash proceeds and a $13.5 million gain, enabling focus on core advanced material process equipment and shifting to a single reportable segment.

• Ended the quarter with $23.5 million in cash and no long-term debt, providing a strong financial foundation and enhanced financial flexibility.

• Reported net income of $12.6 million for the quarter, driven by the SDC divestiture gain.

• Substantially completed operational restructuring to align costs with current business activity and improve efficiency.

Financial highlights

• Revenue from continuing operations was $2.0 million, down 43% year-over-year from $3.4 million.

• Gross margin improved to 16.8% from 14.1% in the prior year quarter.

• Operating loss from continuing operations was $1.6 million; net loss from continuing operations was $1.4 million or $0.20 per share.

• Net income from discontinued operations was $13.9 million, reflecting the gain on the SDC divestiture.

• Stockholders' equity increased to $36 million from $24.7 million at year-end.

Outlook and guidance

• Actions taken are expected to materially reduce fixed operating costs going forward.

• Customer orders remain affected by economic and geopolitical uncertainty, but the company is actively pursuing new opportunities.

• No specific revenue or break-even guidance provided due to the nature and size of the business.

• Management expects existing cash, receivables, and backlog to cover working capital and capital needs for the next 12 months.

• Strategic alternatives for remaining business lines are being explored, including potential acquisitions.