CVD EQUIPMENT CORP — Call Transcript 2026

Good afternoon, welcome to the CVD Equipment Corporation first quarter 2026 earnings conference call. As a reminder, today's call is being recorded. We'll begin with prepared remarks, followed by a question-and-answer session. Presenting on today's call are Emmanuel Lakios, President and Chief Executive Officer, and Richard Catalano, Executive Vice President and Chief Financial Officer. Our earnings press release and information about today's call replay are available in the investor relations section of our website at cvdequipment.com. Before we begin, please note that the comments made during this call may include forward-looking statements, including statements regarding our future financial performance, market growth, product demand, business outlook, and strategic initiatives. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks, please refer to our filings with the Securities and Exchange Commission, including the Risk Factors section of our annual report on Form 10-K for the year ended December 31st, 2025. We undertake no obligation to update any forward-looking statements except as required by law. With that, I will now turn the call over to Emmanuel Lakios, President and Chief Executive Officer. Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to review our first quarter 2026 financial results and to provide an update on our business and strategic initiatives. Following our prepared remarks, we'll be happy to take your questions. As previously disclosed, in response to continued volatility in our order rates and a recent decline in bookings within our CVD Equipment division, we initiated a transformation strategy late last year designed to specifically reduce fixed operating costs, create a more agile organization, and better position the company to maximize shareholder value. Key elements of this plan included transitioning the CVD Equipment business from a vertically integrated fabrication model to an outsourced fabrication for certain components, which we will expect to reduce fixed costs and improve scalability. Leading a workforce reduction in CVD Equipment division during the fourth quarter, which is expected to reduce annual operating costs by approximately $1.8 million in 2026. Revising our sales approach by leveraging distributors and external representatives to complement our internal sales organization and broaden market reach. Finally, exploring strategic alternatives for certain business product lines, including potential sale of assets or divestitures. As part of our strategic review, on March 23, 2026, we announced that we had entered into a definitive agreement under which our SDC business was to be sold to Atlas Copco. The purchase price was approximately $16.9 million in cash and is subject to certain purchase price adjustments. The transaction closed on April 1st, 2026. The sale of SDC enables us to concentrate our attention on our core CVD Equipment business. The divesture has strengthened our balance sheet and provided additional financial flexibility as we continue to evaluate strategic opportunities for the CVD Equipment business, its product lines and our facilities. We continue to drive operational efficiencies, allowing for reduced operating costs and increased flexibility. Our objective remains to maximize shareholder value. Net cash proceeds from the sale of the SDC division received by the company in April 2026 after payment of transaction costs and employee-related liabilities were $14.8 million. Immediately following the sale of SDC, CVD Equipment had approximately $23 million in cash and no long-term debt as we repaid the remaining balance of an equipment loan during the quarter. Under the agreement, an additional $900,000 was placed in escrow for post-closing adjustments and indemnification obligations under the agreement. We have retained ownership of our Saugerties, New York facility that is being leased to the buyer for an initial term of two years. Turning to our financial results for our continuing CVD Equipment operations, first quarter 2026 revenue was $1.8 million, down 70.9% from the prior year quarter revenue of $6.3 million and down 30.9% sequentially from the fourth quarter of 2026 revenue of $2.7 million. Orders in the first quarter totaled $1.8 million, driven primarily for the demand of spare parts. At March 31, 2026, backlog was $4.7 million, similar to the CVD Equipment backlog at December 31, 2025. Our bookings for our business continued to be affected by several factors, including geopolitical uncertainty, reduced U.S. government funding for universities, and a slower pace of adoption of our solutions in certain end markets. We are actively monitoring customer demand, the broader geopolitical uncertainties and potential future tariff impacts, and are adjusting our plans accordingly. Even against this backdrop, we remain focused on delivering solutions across our key markets, including aerospace and defense, industrial applications such as silicon carbide on graphite, silicon carbide for high-power electronics, as well as emerging applications, including nuclear energy. With that, I will turn the call over to our CFO, Richard Catalano, to review the financial results in more detail. Thank you, Manny, and good afternoon, everyone. The financial results of SDC are now reflected in our financial statements as discontinued operations for all periods presented, and the SDC assets and liabilities are considered held for sale as of March 31st, 2026. With the sale of the SDC business in 2026, we now have one reportable segment consisting of our CVD Equipment division that manufactures chemical vapor deposition, physical vapor transport, thermal process, and related equipment. I will review first of the results from continuing operations. As Manny said, our first quarter of 2026 revenue was $1.8 million. This compares to $6.3 million in the first quarter of 2026 and $2.7 million in the fourth quarter of 2025. The year-over-year decline as well as the decline from the fourth quarter was primarily driven by lower CVD systems revenue. Our revenue was concentrated among three key customers, which together represented 66% of total first quarter revenue. Gross profit for the quarter was $147,000, resulting in a gross margin of 8%. This compares with gross profit of $1.7 million and a gross margin of 27.4% in the prior year quarter. The decrease in gross profit was primarily the result of lower revenues, which led to higher unabsorbed overhead costs. Gross profit during the quarter ended March 31, 2026, did benefit by about $3.3 million or $317,000 from a contract modification with one of our customers. Our operating loss from continuing operation for the first quarter of 2026 was $1.8 million, compared to $0.3 million in the first quarter of 2025. Included in the first quarter of 2026 was a gain of $46,000 from the sale of equipment. After interest income, net loss from continuing operations for the quarter was $1.7 million or $0.25 per basic and diluted share, compared with a net loss of $229,000 or $0.03 per basic and diluted share in the prior year quarter. Income from discontinued operations before transaction cost of our SDC business division declined from $0.6 million in the prior year quarter to $0.5 million in the current year quarter. This was due to lower gross margins on higher revenues. Transaction costs associated with the sale of SDC consisted of legal and investment banking fees of $0.4 million for the quarter ended March 31st, 2026. Thus, the total income from discontinued operations was $63,000 for the quarter as compared to $0.6 million for the prior year quarter. Again, this is principally due to the transaction costs incurred in connection with the sale of SDC that was consummated on April 1st, 2026. At March 31st, 2026, we have cash and cash equivalents of $8.2 million, and immediately following the sale of SDC, our cash balance was approximately $23 million. The net proceeds from the sale of SDC, totaling $14.8 million, has been invested in short-term Treasury securities. Cash flows for the quarter. Net cash, used in operating activities during the first quarter of 2026 was $0.9 million, principally as a result of a loss from continuing operation. This amount is net of approximately $0.4 million of cash that was contributed by SDC during the first quarter. During the quarter, we did receive $556,000 from the sale of equipment, and we used a portion of those proceeds to pay off an equipment loan in the amount of $181,000. Our working capital improved to $12.8 million at March 31st, 2026, and of course, it increased after we closed the sale of SDC in April. Looking ahead, our return to consistent profitability will depend on improved equipment order flow, disciplined cost management, successful execution of our transformation plan, as well as continued control of capital expenditures. With that, I will now turn it back to Manny. Thank you, Rich. Our priorities are clear: serving our customers, supporting our employees, creating value for our shareholders, and returning our core CVD equipment business to sustained profitability. Operator, we are now ready to open the line for questions. Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question is from Neil Cataldi with Blueprint Capital Management. Hi, guys. Thanks for taking a couple questions for me. Appreciate it, the time. The first question: With the SDC sale complete, and as you said, $23 million in cash on the balance sheet, can you help us think a little bit about the book value of the Central Islip property? The PP&E on that's like $10.4 million. Is that reflective of what you believe the property is worth in today's market? I think we can speak to the fact that we a while back had looked at a sale leaseback that the valuation was north of that. You know, we can't talk about the, you know, the write-up or anything of that sort, but, you know, what we can speak about is that we think that that is a conservative number for the valuation. You know, we can't speak to having multiple valuations on the property at this point. Okay. That number, that was previously in a transaction, would be a fair number for investors to sort of think about? It was just a number of years ago, correct? Yeah. Yeah. you know, real estate prices have been. Yeah. flat around. Okay. There's dynamics associated during that period of time. That was post-COVID. A lot of demand for high volumetric real estate. You know, the building is still a valued asset of the corporation. Okay. You know, just trying to establish the substantial amount of value that's here with the company between the $23 million in cash and what that property was previously, you know, transacted for, you know, establishes sort of a floor here of like $7 per share in cash. Very helpful. Thank you. Second question pertains to the language that you're using in the press release. You're citing geopolitical uncertainty, reduced government funding, but yet you're sort of simultaneously adding themes like data center and nuclear to your investor deck and filings as target markets, seeing your R&D not really change. Most of your, you know, presumably end market customers across the semiconductor wafer space, you know, whether it's 200 millimeter silicon carbide in active production or the 300 millimeter, you know, coming, as well as all the activity in the nuclear space. These are themes that are, you know, have very elevated activity right now. I'm just sort of wondering, like, is any of that translating into active pipeline conversations for either your PVT or your CVI systems? You know, a couple of things. One is silicon carbide. We've spoken about silicon carbide and the impact on our value proposition in silicon carbide, which is the actual process equipment that makes the boule. You know, clearly, there was a deflation of that market from 2022, 2023 highs. The reasoning for that is really the Chinese vendors really flooding the market with wafers, making it economically unviable for U.S. wafer providers to ramp up and buy additional equipment. That's what deflated the PVT market. We are not primarily a two-dimensional wafer level process equipment company. We are a three-dimensional for the most part. Most of our orders come from from pre-form CVI, where we are infiltrating a three-dimensional product or by growing a boule, which is a three-dimensional product. We typically are not two-dimensional. You know, a small portion of our business is wafer level, semiconductor wafer level. We are in more the industrial and aerospace element of the food chain. We are seeing RFQs coming in at a higher rate than what we had previously seen last year in 2025. We are seeing that, and it's You know, in general, I think we've seen that money now has freed up after the opening up after the shutdown. It takes, you know, several months to a few quarters for those, and sometimes several quarters, for those RFQs to turn into orders. We are in the waiting period at this point, and we continue to prosecute RFQs as they come in to process those. As far as, you know, you mentioned whether it's, I think you mentioned AI and nuclear, et cetera. In the area of nuclear, we do see RFQs for CVI, CVD equipment in that space. Again, you know, we're very early in that process. As far as AI, you know, You know, AI is a buzzword. We provide some wafer-level processing, we don't advocate to be an AI, you know, enabling company at this point. Again, we are I just want to go back and underscore, we are a more three-dimensional product or substrate company than planar wafers. Okay, thanks. Yeah, that's very helpful. I used the word data center, which was the language that I think had been added to your filings. Sure. You know. So- The sort of reason behind adding that language. Really just because there's so much activity in this space right now. It seems like, you guys could be, you know, sitting in a good position. Look, there are a few of our products that would address that, in a ramp-up, whether it's a silicon carbide PVT system. Again, that's gonna require some competitive position against the Chinese wafer suppliers. We also have other products in the past that we've sold to that would assist AI centers, but not on the chip level, more so on sometimes the power transport, whether it's superconducting tape or something of that sort. Okay. Is the, you previously used to talk about the PVT200 system that was placed, you know, to an unknown customer other than, I guess, presumably Stony Brook. Is that still under evaluation? Well, Stony Brook, we have a relationship with Stony Brook, where we sold them two tools. We continue to collaborate with Stony Brook and that'll be in the future. The customer on the 200 that we had sold also was impacted by the downturn in the U.S. supply of silicon carbide wafers. They're still in a waiting pattern. If there was news to share, we would have. Okay. Last question. The strategic alternatives language has been pretty consistent for a few quarters. Is there any additional color on whether you're evaluating the business as a whole, specific product lines or, you know, what's left of the facilities and, any sort of timeline on when investors may hear if there's a conclusion to the review? Well, the SDC was a strategic initiative. The SDC sale, great group. You know, we, I think benefited the shareholders by putting the cash on the balance sheet. Also the employees have a new home. We're pleased with that. As far as additional actions, we continue to look at options. We don't have anything to speak to today. When we do, we'll of course, you know, our shareholders will be aware of that. Okay. Thanks, guys. Look forward to connecting offline as well. Yeah. Yeah, we look forward to it, Neil. Thank you. Yeah. Yeah. Our next question is from Paul Tcheka with MS&E Resource. Hello, am I on now? Yes, you are, Paul. How are you? All right. Fine, thanks. Thanks very much. The previous caller, nice to have him call in because you guys answered a lot of my questions based on his questions. I just wanted to say I'm very bullish on CVV near term and long term. You've got a lot of great potential for success in multiple applications from my perspective as a materials engineer who's worked in aerospace and the electronics area. I was intrigued by the silicon carbide boule project with Stony Brook. You've covered that already. The chip manufacturers, I think that's looking good. I wanna just voice my support for not using any of this cash that you have in hand for any kind of investor dividend or anything. You've been very good over the years being very responsible and very methodical in using the cash you have. I'm really happy to hear that you've got this added cash for, you know, for your basis, for acquisitions or further developing your opportunities. I just wanted to throw that in there. Is there any other further work? I guess it's two-dimensional related, but gallium arsenide, gallium nitride, is that still a product line at all? It's still a product line, of course. Let me just jump into that. Product line, there's not a lot of, you know, we don't see a lot of demand in that area. We are seeing some exploratory, I would say exploratory because it's early stage, bubbling up of some new applications for some of the, you know, products that we had in the past. It's really too early to really discuss that. You know, we play in the advanced materials area, not specifically in, let's say LEDs or something of that sort on GaN. That's not our strength. Yeah, sure. I just hadn't seen anything, you know, in press releases, and I guess it's for a good reason because it's not happening, much. All right. thank you very much. Your team's doing a great job, I think. Appreciate it, Paul. Thank you. There are no further questions at this time. I'd like to hand the floor back over to management for any closing remarks. Thank you, operator, and thanks to everyone for joining us today. We appreciate your continued interest and in support of CVD Equipment Corporation. If you have any questions, please feel free, some of you do as well, to reach out to Rich or myself. This concludes today's call. Thank you. Thank you again for your participation. You may now disconnect your lines.

Speaker 3: Good afternoon, welcome to the CVD Equipment Corporation first quarter 2026 earnings conference call. As a reminder, today's call is being recorded. We'll begin with prepared remarks, followed by a question-and-answer session. Presenting on today's call are Emmanuel Lakios, President and Chief Executive Officer, and Richard Catalano, Executive Vice President and Chief Financial Officer. Our earnings press release and information about today's call replay are available in the investor relations section of our website at cvdequipment.com. Before we begin, please note that the comments made during this call may include forward-looking statements, including statements regarding our future financial performance, market growth, product demand, business outlook, and strategic initiatives. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Good afternoon, welcome to the CVD Equipment Corporation first quarter 2026 earnings conference call. good afternoon welcome to the cvd equipment corporation first quarter 2026 earnings conference call As a reminder, today's call is being recorded. as a reminder today's call is being recorded We'll begin with prepared remarks, followed by a question-and-answer session. we'll begin with prepared remarks followed by a question-and-answer session Presenting on today's call are Emmanuel Lakios, President and Chief Executive Officer, and Richard Catalano, Executive Vice President and Chief Financial Officer. presenting on today's call are emmanuel lakios president and chief executive officer and richard catalano executive vice president and chief financial officer Our earnings press release and information about today's call replay are available in the investor relations section of our website at cvdequipment.com. our earnings press release and information about today's call replay are available in the investor relations section of our website at cvdequipment.com Before we begin, please note that the comments made during this call may include forward-looking statements, including statements regarding our future financial performance, market growth, product demand, business outlook, and strategic initiatives. before we begin please note that the comments made during this call may include forward-looking statements including statements regarding our future financial performance market growth product demand business outlook and strategic initiatives These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. these statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially For a discussion of these risks, please refer to our filings with the Securities and Exchange Commission, including the Risk Factors section of our annual report on Form 10-K for the year ended December 31st, 2025. We undertake no obligation to update any forward-looking statements except as required by law. With that, I will now turn the call over to Emmanuel Lakios, President and Chief Executive Officer. For a discussion of these risks, please refer to our filings with the Securities and Exchange Commission, including the Risk Factors section of our annual report on Form 10-K for the year ended December 31st, 2025. for a discussion of these risks please refer to our filings with the securities and exchange commission including the risk factors section of our annual report on form 10-k for the year ended december 31st 2025 We undertake no obligation to update any forward-looking statements except as required by law. we undertake no obligation to update any forward-looking statements except as required by law With that, I will now turn the call over to Emmanuel Lakios, President and Chief Executive Officer. with that i will now turn the call over to emmanuel lakios president and chief executive officer

Speaker 1: Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to review our first quarter 2026 financial results and to provide an update on our business and strategic initiatives. Following our prepared remarks, we'll be happy to take your questions. As previously disclosed, in response to continued volatility in our order rates and a recent decline in bookings within our CVD Equipment division, we initiated a transformation strategy late last year designed to specifically reduce fixed operating costs, create a more agile organization, and better position the company to maximize shareholder value. Key elements of this plan included transitioning the CVD Equipment business from a vertically integrated fabrication model to an outsourced fabrication for certain components, which we will expect to reduce fixed costs and improve scalability. Thank you, operator, and good afternoon, everyone. thank you operator and good afternoon everyone We appreciate you joining us today to review our first quarter 2026 financial results and to provide an update on our business and strategic initiatives. we appreciate you joining us today to review our first quarter 2026 financial results and to provide an update on our business and strategic initiatives Following our prepared remarks, we'll be happy to take your questions. following our prepared remarks we'll be happy to take your questions As previously disclosed, in response to continued volatility in our order rates and a recent decline in bookings within our CVD Equipment division, we initiated a transformation strategy late last year designed to specifically reduce fixed operating costs, create a more agile organization, and better position the company to maximize shareholder value. as previously disclosed in response to continued volatility in our order rates and a recent decline in bookings within our cvd equipment division we initiated a transformation strategy late last year designed to specifically reduce fixed operating costs create a more agile organization and better position the company to maximize shareholder value Key elements of this plan included transitioning the CVD Equipment business from a vertically integrated fabrication model to an outsourced fabrication for certain components, which we will expect to reduce fixed costs and improve scalability. key elements of this plan included transitioning the cvd equipment business from a vertically integrated fabrication model to an outsourced fabrication for certain components which we will expect to reduce fixed costs and improve scalability Leading a workforce reduction in CVD Equipment division during the fourth quarter, which is expected to reduce annual operating costs by approximately $1.8 million in 2026. Revising our sales approach by leveraging distributors and external representatives to complement our internal sales organization and broaden market reach. Finally, exploring strategic alternatives for certain business product lines, including potential sale of assets or divestitures. As part of our strategic review, on March 23, 2026, we announced that we had entered into a definitive agreement under which our SDC business was to be sold to Atlas Copco. The purchase price was approximately $16.9 million in cash and is subject to certain purchase price adjustments. The transaction closed on April 1st, 2026. The sale of SDC enables us to concentrate our attention on our core CVD Equipment business. Leading a workforce reduction in CVD Equipment division during the fourth quarter, which is expected to reduce annual operating costs by approximately $1.8 million in 2026. leading a workforce reduction in cvd equipment division during the fourth quarter which is expected to reduce annual operating costs by approximately $1.8 million in 2026 Revising our sales approach by leveraging distributors and external representatives to complement our internal sales organization and broaden market reach. revising our sales approach by leveraging distributors and external representatives to complement our internal sales organization and broaden market reach Finally, exploring strategic alternatives for certain business product lines, including potential sale of assets or divestitures. finally exploring strategic alternatives for certain business product lines including potential sale of assets or divestitures As part of our strategic review, on March 23, 2026, we announced that we had entered into a definitive agreement under which our SDC business was to be sold to Atlas Copco. as part of our strategic review on march 23 2026 we announced that we had entered into a definitive agreement under which our sdc business was to be sold to atlas copco The purchase price was approximately $16.9 million in cash and is subject to certain purchase price adjustments. the purchase price was approximately $16.9 million in cash and is subject to certain purchase price adjustments The transaction closed on April 1st, 2026. the transaction closed on april 1st 2026 The sale of SDC enables us to concentrate our attention on our core CVD Equipment business. the sale of sdc enables us to concentrate our attention on our core cvd equipment business The divesture has strengthened our balance sheet and provided additional financial flexibility as we continue to evaluate strategic opportunities for the CVD Equipment business, its product lines and our facilities. We continue to drive operational efficiencies, allowing for reduced operating costs and increased flexibility. Our objective remains to maximize shareholder value. Net cash proceeds from the sale of the SDC division received by the company in April 2026 after payment of transaction costs and employee-related liabilities were $14.8 million. Immediately following the sale of SDC, CVD Equipment had approximately $23 million in cash and no long-term debt as we repaid the remaining balance of an equipment loan during the quarter. Under the agreement, an additional $900,000 was placed in escrow for post-closing adjustments and indemnification obligations under the agreement. The divesture has strengthened our balance sheet and provided additional financial flexibility as we continue to evaluate strategic opportunities for the CVD Equipment business, its product lines and our facilities. the divesture has strengthened our balance sheet and provided additional financial flexibility as we continue to evaluate strategic opportunities for the cvd equipment business its product lines and our facilities We continue to drive operational efficiencies, allowing for reduced operating costs and increased flexibility. we continue to drive operational efficiencies allowing for reduced operating costs and increased flexibility Our objective remains to maximize shareholder value. our objective remains to maximize shareholder value Net cash proceeds from the sale of the SDC division received by the company in April 2026 after payment of transaction costs and employee-related liabilities were $14.8 million. net cash proceeds from the sale of the sdc division received by the company in april 2026 after payment of transaction costs and employee-related liabilities were $14.8 million Immediately following the sale of SDC, CVD Equipment had approximately $23 million in cash and no long-term debt as we repaid the remaining balance of an equipment loan during the quarter. immediately following the sale of sdc cvd equipment had approximately $23 million in cash and no long-term debt as we repaid the remaining balance of an equipment loan during the quarter Under the agreement, an additional $900,000 was placed in escrow for post-closing adjustments and indemnification obligations under the agreement. under the agreement an additional $900,000 was placed in escrow for post-closing adjustments and indemnification obligations under the agreement We have retained ownership of our Saugerties, New York facility that is being leased to the buyer for an initial term of two years. Turning to our financial results for our continuing CVD Equipment operations, first quarter 2026 revenue was $1.8 million, down 70.9% from the prior year quarter revenue of $6.3 million and down 30.9% sequentially from the fourth quarter of 2026 revenue of $2.7 million. Orders in the first quarter totaled $1.8 million, driven primarily for the demand of spare parts. At March 31, 2026, backlog was $4.7 million, similar to the CVD Equipment backlog at December 31, 2025. We have retained ownership of our Saugerties, New York facility that is being leased to the buyer for an initial term of two years. we have retained ownership of our saugerties new york facility that is being leased to the buyer for an initial term of two years Turning to our financial results for our continuing CVD Equipment operations, first quarter 2026 revenue was $1.8 million, down 70.9% from the prior year quarter revenue of $6.3 million and down 30.9% sequentially from the fourth quarter of 2026 revenue of $2.7 million. turning to our financial results for our continuing cvd equipment operations first quarter 2026 revenue was $1.8 million down 70.9% from the prior year quarter revenue of $6.3 million and down 30.9% sequentially from the fourth quarter of 2026 revenue of $2.7 million Orders in the first quarter totaled $1.8 million, driven primarily for the demand of spare parts. orders in the first quarter totaled $1.8 million driven primarily for the demand of spare parts At March 31, 2026, backlog was $4.7 million, similar to the CVD Equipment backlog at December 31, 2025. at march 31 2026 backlog was $4.7 million similar to the cvd equipment backlog at december 31 2025 Our bookings for our business continued to be affected by several factors, including geopolitical uncertainty, reduced U.S. government funding for universities, and a slower pace of adoption of our solutions in certain end markets. We are actively monitoring customer demand, the broader geopolitical uncertainties and potential future tariff impacts, and are adjusting our plans accordingly. Even against this backdrop, we remain focused on delivering solutions across our key markets, including aerospace and defense, industrial applications such as silicon carbide on graphite, silicon carbide for high-power electronics, as well as emerging applications, including nuclear energy. With that, I will turn the call over to our CFO, Richard Catalano, to review the financial results in more detail. Our bookings for our business continued to be affected by several factors, including geopolitical uncertainty, reduced U.S. government funding for universities, and a slower pace of adoption of our solutions in certain end markets. our bookings for our business continued to be affected by several factors including geopolitical uncertainty reduced u.s government funding for universities and a slower pace of adoption of our solutions in certain end markets We are actively monitoring customer demand, the broader geopolitical uncertainties and potential future tariff impacts, and are adjusting our plans accordingly. we are actively monitoring customer demand the broader geopolitical uncertainties and potential future tariff impacts and are adjusting our plans accordingly Even against this backdrop, we remain focused on delivering solutions across our key markets, including aerospace and defense, industrial applications such as silicon carbide on graphite, silicon carbide for high-power electronics, as well as emerging applications, including nuclear energy. even against this backdrop we remain focused on delivering solutions across our key markets including aerospace and defense industrial applications such as silicon carbide on graphite silicon carbide for high-power electronics as well as emerging applications including nuclear energy With that, I will turn the call over to our CFO, Richard Catalano, to review the financial results in more detail. with that i will turn the call over to our cfo richard catalano to review the financial results in more detail

Speaker 5: Thank you, Manny, and good afternoon, everyone. The financial results of SDC are now reflected in our financial statements as discontinued operations for all periods presented, and the SDC assets and liabilities are considered held for sale as of March 31st, 2026. With the sale of the SDC business in 2026, we now have one reportable segment consisting of our CVD Equipment division that manufactures chemical vapor deposition, physical vapor transport, thermal process, and related equipment. I will review first of the results from continuing operations. As Manny said, our first quarter of 2026 revenue was $1.8 million. This compares to $6.3 million in the first quarter of 2026 and $2.7 million in the fourth quarter of 2025. Thank you, Manny, and good afternoon, everyone. thank you manny and good afternoon everyone The financial results of SDC are now reflected in our financial statements as discontinued operations for all periods presented, and the SDC assets and liabilities are considered held for sale as of March 31st, 2026. the financial results of sdc are now reflected in our financial statements as discontinued operations for all periods presented and the sdc assets and liabilities are considered held for sale as of march 31st 2026 With the sale of the SDC business in 2026, we now have one reportable segment consisting of our CVD Equipment division that manufactures chemical vapor deposition, physical vapor transport, thermal process, and related equipment. with the sale of the sdc business in 2026 we now have one reportable segment consisting of our cvd equipment division that manufactures chemical vapor deposition physical vapor transport thermal process and related equipment I will review first of the results from continuing operations. i will review first of the results from continuing operations As Manny said, our first quarter of 2026 revenue was $1.8 million. as manny said our first quarter of 2026 revenue was $1.8 million This compares to $6.3 million in the first quarter of 2026 and $2.7 million in the fourth quarter of 2025. this compares to $6.3 million in the first quarter of 2026 and $2.7 million in the fourth quarter of 2025 The year-over-year decline as well as the decline from the fourth quarter was primarily driven by lower CVD systems revenue. Our revenue was concentrated among three key customers, which together represented 66% of total first quarter revenue. Gross profit for the quarter was $147,000, resulting in a gross margin of 8%. This compares with gross profit of $1.7 million and a gross margin of 27.4% in the prior year quarter. The decrease in gross profit was primarily the result of lower revenues, which led to higher unabsorbed overhead costs. Gross profit during the quarter ended March 31, 2026, did benefit by about $3.3 million or $317,000 from a contract modification with one of our customers. The year-over-year decline as well as the decline from the fourth quarter was primarily driven by lower CVD systems revenue. the year-over-year decline as well as the decline from the fourth quarter was primarily driven by lower cvd systems revenue Our revenue was concentrated among three key customers, which together represented 66% of total first quarter revenue. our revenue was concentrated among three key customers which together represented 66% of total first quarter revenue Gross profit for the quarter was $147,000, resulting in a gross margin of 8%. gross profit for the quarter was $147,000 resulting in a gross margin of 8% This compares with gross profit of $1.7 million and a gross margin of 27.4% in the prior year quarter. this compares with gross profit of $1.7 million and a gross margin of 27.4% in the prior year quarter The decrease in gross profit was primarily the result of lower revenues, which led to higher unabsorbed overhead costs. the decrease in gross profit was primarily the result of lower revenues which led to higher unabsorbed overhead costs Gross profit during the quarter ended March 31, 2026, did benefit by about $3.3 million or $317,000 from a contract modification with one of our customers. gross profit during the quarter ended march 31 2026 did benefit by about $3.3 million or $317,000 from a contract modification with one of our customers Our operating loss from continuing operation for the first quarter of 2026 was $1.8 million, compared to $0.3 million in the first quarter of 2025. Included in the first quarter of 2026 was a gain of $46,000 from the sale of equipment. After interest income, net loss from continuing operations for the quarter was $1.7 million or $0.25 per basic and diluted share, compared with a net loss of $229,000 or $0.03 per basic and diluted share in the prior year quarter. Income from discontinued operations before transaction cost of our SDC business division declined from $0.6 million in the prior year quarter to $0.5 million in the current year quarter. This was due to lower gross margins on higher revenues. Our operating loss from continuing operation for the first quarter of 2026 was $1.8 million, compared to $0.3 million in the first quarter of 2025. our operating loss from continuing operation for the first quarter of 2026 was $1.8 million compared to $0.3 million in the first quarter of 2025 Included in the first quarter of 2026 was a gain of $46,000 from the sale of equipment. included in the first quarter of 2026 was a gain of $46,000 from the sale of equipment After interest income, net loss from continuing operations for the quarter was $1.7 million or $0.25 per basic and diluted share, compared with a net loss of $229,000 or $0.03 per basic and diluted share in the prior year quarter. after interest income net loss from continuing operations for the quarter was $1.7 million or $0.25 per basic and diluted share compared with a net loss of $229,000 or $0.03 per basic and diluted share in the prior year quarter Income from discontinued operations before transaction cost of our SDC business division declined from $0.6 million in the prior year quarter to $0.5 million in the current year quarter. income from discontinued operations before transaction cost of our sdc business division declined from $0.6 million in the prior year quarter to $0.5 million in the current year quarter This was due to lower gross margins on higher revenues. this was due to lower gross margins on higher revenues Transaction costs associated with the sale of SDC consisted of legal and investment banking fees of $0.4 million for the quarter ended March 31st, 2026. Thus, the total income from discontinued operations was $63,000 for the quarter as compared to $0.6 million for the prior year quarter. Again, this is principally due to the transaction costs incurred in connection with the sale of SDC that was consummated on April 1st, 2026. At March 31st, 2026, we have cash and cash equivalents of $8.2 million, and immediately following the sale of SDC, our cash balance was approximately $23 million. The net proceeds from the sale of SDC, totaling $14.8 million, has been invested in short-term Treasury securities. Cash flows for the quarter. Transaction costs associated with the sale of SDC consisted of legal and investment banking fees of $0.4 million for the quarter ended March 31st, 2026. transaction costs associated with the sale of sdc consisted of legal and investment banking fees of $0.4 million for the quarter ended march 31st 2026 Thus, the total income from discontinued operations was $63,000 for the quarter as compared to $0.6 million for the prior year quarter. thus the total income from discontinued operations was $63,000 for the quarter as compared to $0.6 million for the prior year quarter Again, this is principally due to the transaction costs incurred in connection with the sale of SDC that was consummated on April 1st, 2026. again this is principally due to the transaction costs incurred in connection with the sale of sdc that was consummated on april 1st 2026 At March 31st, 2026, we have cash and cash equivalents of $8.2 million, and immediately following the sale of SDC, our cash balance was approximately $23 million. at march 31st 2026 we have cash and cash equivalents of $8.2 million and immediately following the sale of sdc our cash balance was approximately $23 million The net proceeds from the sale of SDC, totaling $14.8 million, has been invested in short-term Treasury securities. the net proceeds from the sale of sdc totaling $14.8 million has been invested in short-term treasury securities Cash flows for the quarter. cash flows for the quarter Net cash, used in operating activities during the first quarter of 2026 was $0.9 million, principally as a result of a loss from continuing operation. This amount is net of approximately $0.4 million of cash that was contributed by SDC during the first quarter. During the quarter, we did receive $556,000 from the sale of equipment, and we used a portion of those proceeds to pay off an equipment loan in the amount of $181,000. Our working capital improved to $12.8 million at March 31st, 2026, and of course, it increased after we closed the sale of SDC in April. Looking ahead, our return to consistent profitability will depend on improved equipment order flow, disciplined cost management, successful execution of our transformation plan, as well as continued control of capital expenditures. With that, I will now turn it back to Manny. Net cash, used in operating activities during the first quarter of 2026 was $0.9 million, principally as a result of a loss from continuing operation. net cash used in operating activities during the first quarter of 2026 was $0.9 million principally as a result of a loss from continuing operation This amount is net of approximately $0.4 million of cash that was contributed by SDC during the first quarter. this amount is net of approximately $0.4 million of cash that was contributed by sdc during the first quarter During the quarter, we did receive $556,000 from the sale of equipment, and we used a portion of those proceeds to pay off an equipment loan in the amount of $181,000. during the quarter we did receive $556,000 from the sale of equipment and we used a portion of those proceeds to pay off an equipment loan in the amount of $181,000 Our working capital improved to $12.8 million at March 31st, 2026, and of course, it increased after we closed the sale of SDC in April. our working capital improved to $12.8 million at march 31st 2026 and of course it increased after we closed the sale of sdc in april Looking ahead, our return to consistent profitability will depend on improved equipment order flow, disciplined cost management, successful execution of our transformation plan, as well as continued control of capital expenditures. looking ahead our return to consistent profitability will depend on improved equipment order flow disciplined cost management successful execution of our transformation plan as well as continued control of capital expenditures With that, I will now turn it back to Manny. with that i will now turn it back to manny

Speaker 1: Thank you, Rich. Our priorities are clear: serving our customers, supporting our employees, creating value for our shareholders, and returning our core CVD equipment business to sustained profitability. Operator, we are now ready to open the line for questions. Thank you, Rich. thank you rich Our priorities are clear: serving our customers, supporting our employees, creating value for our shareholders, and returning our core CVD equipment business to sustained profitability. our priorities are clear serving our customers supporting our employees creating value for our shareholders and returning our core cvd equipment business to sustained profitability Operator, we are now ready to open the line for questions. operator we are now ready to open the line for questions

Speaker 3: Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question is from Neil Cataldi with Blueprint Capital Management. Thank you. thank you We'll now be conducting a question and answer session. we'll now be conducting a question and answer session If you would like to ask a question, please press star one on your telephone keypad. if you would like to ask a question please press star one on your telephone keypad A confirmation tone will indicate your line is in the question queue. a confirmation tone will indicate your line is in the question queue You may press star two if you'd like to remove your question from the queue. you may press star two if you'd like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. for participants using speaker equipment it may be necessary to pick up your handset before pressing the star keys One moment please while we poll for questions. one moment please while we poll for questions Thank you. thank you Our first question is from Neil Cataldi with Blueprint Capital Management. our first question is from neil cataldi with blueprint capital management

Speaker 2: Hi, guys. Thanks for taking a couple questions for me. Appreciate it, the time. The first question: With the SDC sale complete, and as you said, $23 million in cash on the balance sheet, can you help us think a little bit about the book value of the Central Islip property? The PP&E on that's like $10.4 million. Is that reflective of what you believe the property is worth in today's market? Hi, guys. hi guys Thanks for taking a couple questions for me. thanks for taking a couple questions for me Appreciate it, the time. appreciate it the time The first question: With the SDC sale complete, and as you said, $23 million in cash on the balance sheet, can you help us think a little bit about the book value of the Central Islip property? the first question with the sdc sale complete and as you said $23 million in cash on the balance sheet can you help us think a little bit about the book value of the central islip property The PP&E on that's like $10.4 million. the pp&e on that's like $10.4 million Is that reflective of what you believe the property is worth in today's market? is that reflective of what you believe the property is worth in today's market

Speaker 1: I think we can speak to the fact that we a while back had looked at a sale leaseback that the valuation was north of that. You know, we can't talk about the, you know, the write-up or anything of that sort, but, you know, what we can speak about is that we think that that is a conservative number for the valuation. You know, we can't speak to having multiple valuations on the property at this point. I think we can speak to the fact that we a while back had looked at a sale leaseback that the valuation was north of that. i think we can speak to the fact that we a while back had looked at a sale leaseback that the valuation was north of that You know, we can't talk about the, you know, the write-up or anything of that sort, but, you know, what we can speak about is that we think that that is a conservative number for the valuation. you know we can't talk about the you know the write-up or anything of that sort but you know what we can speak about is that we think that that is a conservative number for the valuation You know, we can't speak to having multiple valuations on the property at this point. you know we can't speak to having multiple valuations on the property at this point

Speaker 2: Okay. That number, that was previously in a transaction, would be a fair number for investors to sort of think about? Okay. okay That number, that was previously in a transaction, would be a fair number for investors to sort of think about? that number that was previously in a transaction would be a fair number for investors to sort of think about

Speaker 5: It was just a number of years ago, correct? It was just a number of years ago, correct? it was just a number of years ago correct

Speaker 1: Yeah. Yeah. yeah

Speaker 2: Yeah. Yeah. yeah

Speaker 5: you know, real estate prices have been. you know, real estate prices have been. you know real estate prices have been

Speaker 1: Yeah. Yeah. yeah

Speaker 5: flat around. flat around. flat around

Speaker 1: Okay. There's dynamics associated during that period of time. That was post-COVID. A lot of demand for high volumetric real estate. You know, the building is still a valued asset of the corporation. Okay. okay There's dynamics associated during that period of time. there's dynamics associated during that period of time That was post-COVID. that was post-covid A lot of demand for high volumetric real estate. a lot of demand for high volumetric real estate You know, the building is still a valued asset of the corporation. you know the building is still a valued asset of the corporation

Speaker 2: Okay. You know, just trying to establish the substantial amount of value that's here with the company between the $23 million in cash and what that property was previously, you know, transacted for, you know, establishes sort of a floor here of like $7 per share in cash. Very helpful. Thank you. Second question pertains to the language that you're using in the press release. You're citing geopolitical uncertainty, reduced government funding, but yet you're sort of simultaneously adding themes like data center and nuclear to your investor deck and filings as target markets, seeing your R&D not really change. Okay. okay You know, just trying to establish the substantial amount of value that's here with the company between the $23 million in cash and what that property was previously, you know, transacted for, you know, establishes sort of a floor here of like $7 per share in cash. you know just trying to establish the substantial amount of value that's here with the company between the $23 million in cash and what that property was previously you know transacted for you know establishes sort of a floor here of like $7 per share in cash Very helpful. very helpful Thank you. thank you Second question pertains to the language that you're using in the press release. second question pertains to the language that you're using in the press release You're citing geopolitical uncertainty, reduced government funding, but yet you're sort of simultaneously adding themes like data center and nuclear to your investor deck and filings as target markets, seeing your R&D not really change. you're citing geopolitical uncertainty reduced government funding but yet you're sort of simultaneously adding themes like data center and nuclear to your investor deck and filings as target markets seeing your r&d not really change Most of your, you know, presumably end market customers across the semiconductor wafer space, you know, whether it's 200 millimeter silicon carbide in active production or the 300 millimeter, you know, coming, as well as all the activity in the nuclear space. These are themes that are, you know, have very elevated activity right now. I'm just sort of wondering, like, is any of that translating into active pipeline conversations for either your PVT or your CVI systems? Most of your, you know, presumably end market customers across the semiconductor wafer space, you know, whether it's 200 millimeter silicon carbide in active production or the 300 millimeter, you know, coming, as well as all the activity in the nuclear space. most of your you know presumably end market customers across the semiconductor wafer space you know whether it's 200 millimeter silicon carbide in active production or the 300 millimeter you know coming as well as all the activity in the nuclear space These are themes that are, you know, have very elevated activity right now. these are themes that are you know have very elevated activity right now I'm just sort of wondering, like, is any of that translating into active pipeline conversations for either your PVT or your CVI systems? i'm just sort of wondering like is any of that translating into active pipeline conversations for either your pvt or your cvi systems

Speaker 1: You know, a couple of things. One is silicon carbide. We've spoken about silicon carbide and the impact on our value proposition in silicon carbide, which is the actual process equipment that makes the boule. You know, clearly, there was a deflation of that market from 2022, 2023 highs. The reasoning for that is really the Chinese vendors really flooding the market with wafers, making it economically unviable for U.S. wafer providers to ramp up and buy additional equipment. That's what deflated the PVT market. We are not primarily a two-dimensional wafer level process equipment company. We are a three-dimensional for the most part. You know, a couple of things. you know a couple of things One is silicon carbide. one is silicon carbide We've spoken about silicon carbide and the impact on our value proposition in silicon carbide, which is the actual process equipment that makes the boule. we've spoken about silicon carbide and the impact on our value proposition in silicon carbide which is the actual process equipment that makes the boule You know, clearly, there was a deflation of that market from 2022, 2023 highs. you know clearly there was a deflation of that market from 2022 2023 highs The reasoning for that is really the Chinese vendors really flooding the market with wafers, making it economically unviable for U.S. wafer providers to ramp up and buy additional equipment. the reasoning for that is really the chinese vendors really flooding the market with wafers making it economically unviable for u.s wafer providers to ramp up and buy additional equipment That's what deflated the PVT market. that's what deflated the pvt market We are not primarily a two-dimensional wafer level process equipment company. we are not primarily a two-dimensional wafer level process equipment company We are a three-dimensional for the most part. we are a three-dimensional for the most part Most of our orders come from from pre-form CVI, where we are infiltrating a three-dimensional product or by growing a boule, which is a three-dimensional product. We typically are not two-dimensional. You know, a small portion of our business is wafer level, semiconductor wafer level. We are in more the industrial and aerospace element of the food chain. We are seeing RFQs coming in at a higher rate than what we had previously seen last year in 2025. We are seeing that, and it's You know, in general, I think we've seen that money now has freed up after the opening up after the shutdown. Most of our orders come from from pre-form CVI, where we are infiltrating a three-dimensional product or by growing a boule, which is a three-dimensional product. most of our orders come from from pre-form cvi where we are infiltrating a three-dimensional product or by growing a boule which is a three-dimensional product We typically are not two-dimensional. we typically are not two-dimensional You know, a small portion of our business is wafer level, semiconductor wafer level. you know a small portion of our business is wafer level semiconductor wafer level We are in more the industrial and aerospace element of the food chain. we are in more the industrial and aerospace element of the food chain We are seeing RFQs coming in at a higher rate than what we had previously seen last year in 2025. we are seeing rfqs coming in at a higher rate than what we had previously seen last year in 2025 We are seeing that, and it's You know, in general, I think we've seen that money now has freed up after the opening up after the shutdown. we are seeing that and it's you know in general i think we've seen that money now has freed up after the opening up after the shutdown It takes, you know, several months to a few quarters for those, and sometimes several quarters, for those RFQs to turn into orders. We are in the waiting period at this point, and we continue to prosecute RFQs as they come in to process those. As far as, you know, you mentioned whether it's, I think you mentioned AI and nuclear, et cetera. In the area of nuclear, we do see RFQs for CVI, CVD equipment in that space. Again, you know, we're very early in that process. As far as AI, you know, You know, AI is a buzzword. We provide some wafer-level processing, we don't advocate to be an AI, you know, enabling company at this point. It takes, you know, several months to a few quarters for those, and sometimes several quarters, for those RFQs to turn into orders. it takes you know several months to a few quarters for those and sometimes several quarters for those rfqs to turn into orders We are in the waiting period at this point, and we continue to prosecute RFQs as they come in to process those. we are in the waiting period at this point and we continue to prosecute rfqs as they come in to process those As far as, you know, you mentioned whether it's, I think you mentioned AI and nuclear, et cetera. as far as you know you mentioned whether it's i think you mentioned ai and nuclear et cetera In the area of nuclear, we do see RFQs for CVI, CVD equipment in that space. in the area of nuclear we do see rfqs for cvi cvd equipment in that space Again, you know, we're very early in that process. again you know we're very early in that process As far as AI, you know, You know, AI is a buzzword. as far as ai you know you know ai is a buzzword We provide some wafer-level processing, we don't advocate to be an AI, you know, enabling company at this point. we provide some wafer-level processing we don't advocate to be an ai you know enabling company at this point Again, we are I just want to go back and underscore, we are a more three-dimensional product or substrate company than planar wafers. Again, we are I just want to go back and underscore, we are a more three-dimensional product or substrate company than planar wafers. again we are i just want to go back and underscore we are a more three-dimensional product or substrate company than planar wafers

Speaker 2: Okay, thanks. Yeah, that's very helpful. I used the word data center, which was the language that I think had been added to your filings. Okay, thanks. okay thanks Yeah, that's very helpful. yeah that's very helpful I used the word data center, which was the language that I think had been added to your filings. i used the word data center which was the language that i think had been added to your filings

Speaker 1: Sure. Sure. sure

Speaker 2: You know. You know. you know

Speaker 1: So- So- so-

Speaker 2: The sort of reason behind adding that language. Really just because there's so much activity in this space right now. It seems like, you guys could be, you know, sitting in a good position. The sort of reason behind adding that language. the sort of reason behind adding that language Really just because there's so much activity in this space right now. really just because there's so much activity in this space right now It seems like, you guys could be, you know, sitting in a good position. it seems like you guys could be you know sitting in a good position

Speaker 1: Look, there are a few of our products that would address that, in a ramp-up, whether it's a silicon carbide PVT system. Again, that's gonna require some competitive position against the Chinese wafer suppliers. We also have other products in the past that we've sold to that would assist AI centers, but not on the chip level, more so on sometimes the power transport, whether it's superconducting tape or something of that sort. Look, there are a few of our products that would address that, in a ramp-up, whether it's a silicon carbide PVT system. look there are a few of our products that would address that in a ramp-up whether it's a silicon carbide pvt system Again, that's gonna require some competitive position against the Chinese wafer suppliers. again that's gonna require some competitive position against the chinese wafer suppliers We also have other products in the past that we've sold to that would assist AI centers, but not on the chip level, more so on sometimes the power transport, whether it's superconducting tape or something of that sort. we also have other products in the past that we've sold to that would assist ai centers but not on the chip level more so on sometimes the power transport whether it's superconducting tape or something of that sort

Speaker 2: Okay. Is the, you previously used to talk about the PVT200 system that was placed, you know, to an unknown customer other than, I guess, presumably Stony Brook. Is that still under evaluation? Okay. okay Is the, you previously used to talk about the PVT200 system that was placed, you know, to an unknown customer other than, I guess, presumably Stony Brook. is the you previously used to talk about the pvt200 system that was placed you know to an unknown customer other than i guess presumably stony brook Is that still under evaluation? is that still under evaluation

Speaker 1: Well, Stony Brook, we have a relationship with Stony Brook, where we sold them two tools. We continue to collaborate with Stony Brook and that'll be in the future. The customer on the 200 that we had sold also was impacted by the downturn in the U.S. supply of silicon carbide wafers. They're still in a waiting pattern. If there was news to share, we would have. Well, Stony Brook, we have a relationship with Stony Brook, where we sold them two tools. well stony brook we have a relationship with stony brook where we sold them two tools We continue to collaborate with Stony Brook and that'll be in the future. we continue to collaborate with stony brook and that'll be in the future The customer on the 200 that we had sold also was impacted by the downturn in the U.S. supply of silicon carbide wafers. the customer on the 200 that we had sold also was impacted by the downturn in the u.s supply of silicon carbide wafers They're still in a waiting pattern. they're still in a waiting pattern If there was news to share, we would have. if there was news to share we would have

Speaker 2: Okay. Last question. The strategic alternatives language has been pretty consistent for a few quarters. Is there any additional color on whether you're evaluating the business as a whole, specific product lines or, you know, what's left of the facilities and, any sort of timeline on when investors may hear if there's a conclusion to the review? Okay. okay Last question. last question The strategic alternatives language has been pretty consistent for a few quarters. the strategic alternatives language has been pretty consistent for a few quarters Is there any additional color on whether you're evaluating the business as a whole, specific product lines or, you know, what's left of the facilities and, any sort of timeline on when investors may hear if there's a conclusion to the review? is there any additional color on whether you're evaluating the business as a whole specific product lines or you know what's left of the facilities and any sort of timeline on when investors may hear if there's a conclusion to the review

Speaker 1: Well, the SDC was a strategic initiative. The SDC sale, great group. You know, we, I think benefited the shareholders by putting the cash on the balance sheet. Also the employees have a new home. We're pleased with that. As far as additional actions, we continue to look at options. We don't have anything to speak to today. When we do, we'll of course, you know, our shareholders will be aware of that. Well, the SDC was a strategic initiative. well the sdc was a strategic initiative The SDC sale, great group. the sdc sale great group You know, we, I think benefited the shareholders by putting the cash on the balance sheet. you know we i think benefited the shareholders by putting the cash on the balance sheet Also the employees have a new home. also the employees have a new home We're pleased with that. we're pleased with that As far as additional actions, we continue to look at options. as far as additional actions we continue to look at options We don't have anything to speak to today. we don't have anything to speak to today When we do, we'll of course, you know, our shareholders will be aware of that. when we do we'll of course you know our shareholders will be aware of that

Speaker 2: Okay. Thanks, guys. Look forward to connecting offline as well. Okay. okay Thanks, guys. thanks guys Look forward to connecting offline as well. look forward to connecting offline as well

Speaker 1: Yeah. Yeah, we look forward to it, Neil. Thank you. Yeah. yeah Yeah, we look forward to it, Neil. yeah we look forward to it neil Thank you. thank you

Speaker 2: Yeah. Yeah. Yeah. yeah Yeah. yeah

Speaker 3: Our next question is from Paul Tcheka with MS&E Resource. Our next question is from Paul Tcheka with MS&E Resource. our next question is from paul tcheka with ms&e resource

Speaker 4: Hello, am I on now? Hello, am I on now? hello am i on now

Speaker 1: Yes, you are, Paul. How are you? Yes, you are, Paul. yes you are paul How are you? how are you

Speaker 4: All right. Fine, thanks. Thanks very much. The previous caller, nice to have him call in because you guys answered a lot of my questions based on his questions. I just wanted to say I'm very bullish on CVV near term and long term. You've got a lot of great potential for success in multiple applications from my perspective as a materials engineer who's worked in aerospace and the electronics area. I was intrigued by the silicon carbide boule project with Stony Brook. You've covered that already. The chip manufacturers, I think that's looking good. I wanna just voice my support for not using any of this cash that you have in hand for any kind of investor dividend or anything. All right. all right Fine, thanks. fine thanks Thanks very much. thanks very much The previous caller, nice to have him call in because you guys answered a lot of my questions based on his questions. the previous caller nice to have him call in because you guys answered a lot of my questions based on his questions I just wanted to say I'm very bullish on CVV near term and long term. i just wanted to say i'm very bullish on cvv near term and long term You've got a lot of great potential for success in multiple applications from my perspective as a materials engineer who's worked in aerospace and the electronics area. you've got a lot of great potential for success in multiple applications from my perspective as a materials engineer who's worked in aerospace and the electronics area I was intrigued by the silicon carbide boule project with Stony Brook. i was intrigued by the silicon carbide boule project with stony brook You've covered that already. you've covered that already The chip manufacturers, I think that's looking good. the chip manufacturers i think that's looking good I wanna just voice my support for not using any of this cash that you have in hand for any kind of investor dividend or anything. i wanna just voice my support for not using any of this cash that you have in hand for any kind of investor dividend or anything You've been very good over the years being very responsible and very methodical in using the cash you have. I'm really happy to hear that you've got this added cash for, you know, for your basis, for acquisitions or further developing your opportunities. I just wanted to throw that in there. Is there any other further work? I guess it's two-dimensional related, but gallium arsenide, gallium nitride, is that still a product line at all? You've been very good over the years being very responsible and very methodical in using the cash you have. you've been very good over the years being very responsible and very methodical in using the cash you have I'm really happy to hear that you've got this added cash for, you know, for your basis, for acquisitions or further developing your opportunities. i'm really happy to hear that you've got this added cash for you know for your basis for acquisitions or further developing your opportunities I just wanted to throw that in there. i just wanted to throw that in there Is there any other further work? is there any other further work I guess it's two-dimensional related, but gallium arsenide, gallium nitride, is that still a product line at all? i guess it's two-dimensional related but gallium arsenide gallium nitride is that still a product line at all

Speaker 1: It's still a product line, of course. Let me just jump into that. Product line, there's not a lot of, you know, we don't see a lot of demand in that area. We are seeing some exploratory, I would say exploratory because it's early stage, bubbling up of some new applications for some of the, you know, products that we had in the past. It's really too early to really discuss that. You know, we play in the advanced materials area, not specifically in, let's say LEDs or something of that sort on GaN. That's not our strength. It's still a product line, of course. it's still a product line of course Let me just jump into that. let me just jump into that Product line, there's not a lot of, you know, we don't see a lot of demand in that area. product line there's not a lot of you know we don't see a lot of demand in that area We are seeing some exploratory, I would say exploratory because it's early stage, bubbling up of some new applications for some of the, you know, products that we had in the past. we are seeing some exploratory i would say exploratory because it's early stage bubbling up of some new applications for some of the you know products that we had in the past It's really too early to really discuss that. it's really too early to really discuss that You know, we play in the advanced materials area, not specifically in, let's say LEDs or something of that sort on GaN. you know we play in the advanced materials area not specifically in let's say leds or something of that sort on gan That's not our strength. that's not our strength

Speaker 4: Yeah, sure. I just hadn't seen anything, you know, in press releases, and I guess it's for a good reason because it's not happening, much. All right. thank you very much. Your team's doing a great job, I think. Yeah, sure. yeah sure I just hadn't seen anything, you know, in press releases, and I guess it's for a good reason because it's not happening, much. i just hadn't seen anything you know in press releases and i guess it's for a good reason because it's not happening much All right. thank you very much. all right thank you very much Your team's doing a great job, I think. your team's doing a great job i think

Speaker 1: Appreciate it, Paul. Appreciate it, Paul. appreciate it paul

Speaker 3: Thank you. There are no further questions at this time. I'd like to hand the floor back over to management for any closing remarks. Thank you. thank you There are no further questions at this time. there are no further questions at this time I'd like to hand the floor back over to management for any closing remarks. i'd like to hand the floor back over to management for any closing remarks

Speaker 1: Thank you, operator, and thanks to everyone for joining us today. We appreciate your continued interest and in support of CVD Equipment Corporation. If you have any questions, please feel free, some of you do as well, to reach out to Rich or myself. This concludes today's call. Thank you. Thank you, operator, and thanks to everyone for joining us today. thank you operator and thanks to everyone for joining us today We appreciate your continued interest and in support of CVD Equipment Corporation. we appreciate your continued interest and in support of cvd equipment corporation If you have any questions, please feel free, some of you do as well, to reach out to Rich or myself. if you have any questions please feel free some of you do as well to reach out to rich or myself This concludes today's call. this concludes today's call Thank you. thank you

Speaker 3: Thank you again for your participation. You may now disconnect your lines. Thank you again for your participation. thank you again for your participation You may now disconnect your lines. you may now disconnect your lines