CVD Equipment | 10-Q: FY2025 Q3 Revenue: USD 7.408 M

Revenue: As of FY2025 Q3, the actual value is USD 7.408 M.

EPS: As of FY2025 Q3, the actual value is USD 0.06.

EBIT: As of FY2025 Q3, the actual value is USD 232 K.

Segment Revenue

• CVD Equipment: Revenue for the three months ended September 30, 2025 was $5.7 million, consistent with the same period in 2024, representing 76.6% of overall revenue.
• SDC: Revenue for the three months ended September 30, 2025 was $1.7 million, a decrease from $1.9 million for the same period in 2024, representing 23.3% of overall revenue.
• MesoScribe: Revenue for the three months ended September 30, 2025 was $6,000, a significant decrease from $661,000 for the same period in 2024.

Operational Metrics

• Net Income: For the three months ended September 30, 2025, net income was $384,000, an increase from $203,000 for the same period in 2024.
• Gross Margin: Gross margin for the three months ended September 30, 2025 was 32.7%, up from 21.5% for the same period in 2024.
• Operating Income: Operating income for the three months ended September 30, 2025 was $308,000, up from $77,000 for the same period in 2024.

Cash Flow

• Operating Cash Flow: Net cash used in operating activities for the nine months ended September 30, 2025 was - $4.1 million, compared to - $3.7 million for the same period in 2024.

Unique Metrics

• Backlog: Backlog declined from $13.2 million at June 30, 2025 to $8.0 million at September 30, 2025.

Future Outlook and Strategy

• Core Business Focus: The company plans to transition the operating model for the CVD Equipment business from vertically integrated fabrication to outsourced fabrication of certain components, aiming to reduce fixed operating costs.
• Non-Core Business: The transformation strategy includes exploring strategic alternatives for businesses and product lines, including potential sale or divestiture of assets or business lines.
• Priority: The company expects to complete the workforce reduction plan during the fourth quarter of 2025, anticipating a reduction in annual operating costs by approximately $2.0 million.