David Kane's questions to CVD EQUIPMENT (CVV) leadership • Q4 2024
Question
Inquired about the status of spare parts orders for a major aerospace customer, the potential for new customers in the battery materials sector beyond 1D, feedback on the PVT200 system currently under evaluation, and whether the recent improvement in operating margins is a sustainable trend.
Answer
Spare parts orders for the aerospace customer, which had stalled during COVID, are beginning to increase again. While 1D has strong IP, the company is exploring opportunities with other battery material companies using different CVD processes. The PVT200 system is meeting or exceeding performance specifications, but further orders depend on both technical validation and market demand, which is currently weak. The improved operating margins are due to efficiencies gained after the first article build and are expected to be sustainable if volume is maintained.