An intensive effort to turn its backlog into completed orders resulted in sharp increases in sales and profits, CVD Equipment Corp., a Ronkonkoma maker of nanotechnology tools, said Tuesday.
The company nearly doubled its sales in 2011 compared to the previous year, and saw an even larger increase in profits, CVD said in its annual report. Reacting to the earnings report, investors sent the company's shares up 75 cents to $13.67 within the first half-hour of trading Tuesday.
CVD specializes in making the chemical vapor deposition tools used to create atomic-level layers of conductive materials on such products as computer chips, solar cells and light-emitting diodes.
Looking ahead, CVD said it hopes a move to a newly purchased Central Islip building, twice the size of its current pair of Ronkonkoma buildings, will enable it to increase hiring and production by midyear.
The company said it earned $3.7 million on revenue of $30.9 million in the year ended Dec. 31, up from the previous year's profit of $531,772 on sales of $16.5 million.
Measured in terms of earnings per share, the company's profit increased to 67 cents a share, up from 11 cents a share in 2010.
In addition to disclosing its annual financial results, CVD on Tuesday also reported its fourth quarter numbers, with income for 2011 of about $1 million on sales of $8.4 million, compared to $375,000 profit on sales of $5.1 million in the fourth quarter of 2010.
The company said it put its cash into improving its financial profile and paring its debt expenses.
"During 2011, with our strengthened balance sheet, we were able to acquire a larger bank line of credit at a reduced interest rate; pay off various equipment loans and replace certain existing mortgages with term loans at a significantly lower interest rate," the company said in a news release.
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