CVV

CVD is a sub-scale (6.94M shares, $53.7M cap) advanced-materials equipment maker that has now lost money every year since 2021 (FY2025 net -$1.58M, operating margin -7.4%, ROE -6.4%). FY2025 revenue slipped 4.1% to $25.8M and, more importantly, the forward picture is deteriorating fast: the 10-K discloses total 2025 bookings of just $13.0M versus $28.1M in 2024, and backlog cratered 66% from $19.4M to $6.6M. Management pins the collapse on tariffs, cut university funding and the 2025 government shutdown — all demand-side headwinds outside its control. A $6.6M backlog against a ~$25M revenue base foreshadows a sharp revenue step-down in 2026, and the company is already burning cash (operating cash flow -$3.68M, cash down from $12.6M to $8.7M).

The balance sheet is the redeeming feature: liabilities/equity of just 0.11x, essentially no debt, and $24.7M of equity. On top of that, the March 2026 agreement to sell the SDC division to Atlas Copco for ~$16.9M (net ~$15.0M) roughly triples pro-forma cash to ~$22-23M and de-risks solvency for years. That cash, plus the November 2025 pivot to outsourced fabrication to cut fixed costs, buys management time and optionality in SiC/wide-bandgap semiconductors (the Stony Brook/onsemi PVT150 order) and aerospace CMC.