CVD Equipment Corporation today announced that it has achieved record 3 and 6 month revenues and its fifteenth consecutive profitable quarter. Revenue for the three and six months ending June 30, 2008 was approximately $4,269,000 and $8,312,000 compared to $3,071,000 and $6,883,000 for the three and six months ending June 30, 2007, an increase of 39.0% and 20.8% as we continue to experience an increasing demand for our products. We attribute the increase in revenue from the increased marketing and selling effort for all of our products that was started in 2007. Our overall gross profit percentage decreased to 27.0% and 28.5% for the current three and six month period compared to 38.1% and 35.3% for the same periods one year ago. The decrease is a result of implementing our previously stated expansion plans of adding engineering and production personnel necessitated by the increase in quotation activity, orders, expansion of our First Nano Laboratory and new product development in the Nanomaterials, Solar, Energy and Semiconductor fields. Selling, general and administrative expenses for the three and six months ending June 30, 2008 increased by approximately $134,000 and $296,000 or 14.1% to support our continued sales growth and expanded product development.
As a result of the aforementioned increases in costs our net income for the current three and six months was approximately $7,000 and $26,000 respectively, or $0.00 and $0.01 per share basic and diluted compared to $165,000 and $261,000 or $0.05 and $0.08 per share basic and diluted for the three and six months ending June 30, 2007.
As of June 30, 2008 the Company’s backlog was approximately $4,017,000, a decrease of $1,070,000 or 21.0% compared to $5,087,000 at December 31, 2007 and a 19% increase from March 31, 2008. Timing for completion of the backlog varies depending on the product mix, however, there is generally a one to six month lag in the completion and shipping of backlog product. Backlog from quarter to quarter can vary based on the timing of order placements and shipments.
Leonard Rosenbaum, President and Chief Executive Officer stated, “Our record first half revenues, order levels and significant quotation activity show a strong acceptance of our equipment platforms. The additional sales, engineering and manufacturing expenditures we are currently incurring will further broaden the First Nano and CVD product lines. Our First Nano Laboratory expansion will enable us to further demonstrate our new and existing equipment platforms, processes and proprietary intellectual property. The additional personnel we hired earlier this year have enabled our key personnel to focus their efforts on selling into our traditional targeted market segments and to begin opening up new ones. In addition, the programs we are developing with universities and industry for next generation products in the Nano Technology, Solar, Energy and Semiconductor fields will provide for our long term continuous growth. These factors will keep us on track with continued revenue growth in 2008 and provide a steady increase in revenue and profitability for future years.
I am pleased to add that based on new orders to date for third quarter 2008, and our strong quotation activity, we anticipate that in the second half of 2008, we will easily exceed the record order levels for the first half of 2008. In anticipation of this we expect to continue adding engineering and management personnel in the future.”