CVD Equipment Corporation (CVV) stock was rising in the pre-market trading session on August 16, 2021, after the receival of the first production system order. CVV stock price saw a push of 3.91% to reach $5.31 a share as of this writing. The stock went high in the previous trading session by 24.63% at closing. Let’s take a closer look at current events.
What’s happening?
CVD Equipment Corporation is the leading developer, manufacturer, and provider of the chemical vapor deposition system in the United States and the globe. According to today’s news, U.S based manufacturer of electric battery material has ordered a production system to CVV stock. It’s the first production system order for CVD Equipment Corporation having a worth of $1.7 million. The stock will ship the desired system to the customer in the first quarter of 2022.
CVV stock is striving hard to take full advantage of the increased demand for nanotechnology material in the future for the production of lithium-ion battery material. The nanotechnology materials not only increase the charge speed and energy density but also improve decreases the per kWh cost. A positive sign for CVV stock in this regard is its extensive 20 years of history in the designing and manufacturing of CVD tools via utilizing nanotechnology materials.
Sale of 555 North Research Place Facility:
CVD Equipment Corporation on July 30, 2021, announced the closing of a sale of its facility located at 555 North Research Place Central Islip, New York. The sale closed at the purchasing price of $24,360,000. CVV stock did announce the sale contract in March 2021. The stock satisfied its outstanding mortgage debt of $9,352,719, which also includes interest and fees on the 555 building along with transaction-related costs. After cutting all the expenses, CVV stock recorded net proceeds of $14.0 million approximately.
CVV stock also signed another agreement with the Town of Islip that concerned with the remaining of the stock at 355 South Technology Drive in Central Islip. The facility includes real estate and sales tax abatements incentives along with other things.
Financial View of CVV stock:
CVD Equipment stock reported $3.4 million revenue in the first quarter of 2021 , lower than $6.0 million in Q1,2020. Covid-19 greatly affected the business of the stock as new order bookings substantially decreased after the breakout of a deadly pandemic that resulted in a decrease in the revenue of subsequent quarters. However, the revenue for the first quarter of 2021 was higher than the revenue for the fourth quarter of 2020.
Conclusion:
CVV stock has captivated the investors after announcing the receival of its first production order. CVV will announce second-quarter 2021 financial results today on August 16, 2021, after the market close that will further clarify the position of the stock.
