CENTRAL ISLIP, N.Y.–(BUSINESS WIRE)–CVD Equipment Corporation (NASDAQ: CVV), a leading provider of chemical vapor deposition and thermal process equipment, today announced the sale of its subsidiary, Tantaline CVD ApS (Tantaline) located in Denmark.
The sales price consists principally of an earn-out provision based on any net income that Tantaline may earn during the five-year period ending December 31, 2027. The Company expects to record a loss on the sale of approximately $250,000 during the quarter ending June 30, 2023.
The revenues and net income of Tantaline for the most recent fiscal year ended December 31, 2022 were $1.7 million and $0.4 million, respectively. The revenues and net income of Tantaline for the three months ended March 31, 2023 were $0.4 million and $0.1 million, respectively.
In 2021, CVD Equipment initiated a strategic assessment of its business, specifically evaluating the growth and profitability of each of the Company’s product lines, that included Tantaline which provides corrosion resistant surface treatments. Tantaline had recently experienced a decline in revenues and would have required further capital investment. The disposition of this non-core product line allows the Company to continue to focus on its core growth markets of high-power electronics, EV battery materials/energy storage and aerospace & defense.
“We remain committed to our strategic plan to achieve consistent long-term profitability, growth and return on investment. Aligned with our Company’s core competencies, we will continue evaluating market opportunities with high growth potential and continue focusing on “enabling tomorrow’s technologies™ within strategic growth markets.” said Emmanuel Lakios, President and CEO of CVD Equipment Corporation.
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and manufactures a broad range of chemical vapor deposition, thermal processing, physical vapor transport, gas and chemical delivery control systems, and other equipment and process solutions used to develop and manufacture materials and coatings for industrial applications and research. Our products are used in production environments as well as research and development centers, both academic and corporate. Major target markets include high power electronics (silicon carbide), EV battery materials / energy storage (carbon nanotubes, graphene and silicon nanowires) and aerospace & defense (ceramic matrix composites). Through its application laboratory, the Company allows customers the option to bring their process tools to our laboratory and to work collaboratively with our scientists and engineers to optimize process performance.
