Good afternoon, and welcome to the CVD Equipment Corporation Fourth Quarter and Full Year 2025 Earnings Conference Call. As a reminder, today's call is being recorded. We will begin with prepared remarks, followed by a question-and-answer session. Presenting on today's call are Emmanuel Lakios, President and Chief Executive Officer; and Richard Catalano, Executive Vice President and Chief Financial Officer. Our earnings press release and information about today's call replay are available in the Investor Relations section of our website at cvdequipment.com. Before we begin, please note that comments made during this call may include forward-looking statements, including statements regarding our future financial performance, market growth, product demand, business outlook and strategic initiatives. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks, please refer to our filings with the Securities and Exchange Commission including the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2025. We undertake no obligation to update any forward-looking statements except as required by law. With that, I will now turn the call over to Emmanuel Lakios, President and Chief Executive Officer.

Thank you, Diego, and good afternoon, everyone. We appreciate you joining us today to review our fourth quarter and full year 2025 financial results and to provide you an update on our business and strategic initiatives. Following our prepared remarks, we will be happy to take your questions. As previously disclosed, in response to continued volatility in order rates and recent decline in bookings within our CVD Equipment division, we have initiated a transformation strategy during the fourth quarter designed to significantly reduce fixed operating costs, create a more agile organization and better position the company to maximize shareholder value. Key elements of this plan included: transitioning the CVD Equipment business from a vertically integrated fabrication model to outsource fabrication for certain components, which we expect will reduce fixed costs and improve scalability; completing a workforce reduction in the CVD Equipment division during the fourth quarter, which was to rightsize the organization, and is expected to reduce annual operating costs by approximately $1.8 million in 2026; revising our sales approach by leveraging distributors and external representatives to complement our internal sales organization; and exploring strategic alternatives for certain businesses and product lines, including potential asset sales or divestitures. As part of our strategic review on March 23, 2026, we announced that we had entered into a definitive agreement under which our SDC business will be sold to Atlas Copco Group. The purchase price is approximately $16.9 million in cash, subject to certain purchase price adjustments. The transaction is expected to close during the second quarter of 2026, subject to customary closing conditions. This transaction will allow us to sharpen our focus on our core CVD Equipment business in Central Islip, New York. It is also expected to strengthen our balance sheet and provide additional financial flexibility as we continue to…

Thank you, Manny, and good afternoon, everyone. Fourth quarter 2025 revenues were $5 million. This compares to $7.4 million in the fourth quarter of 2024. This year-over-year decline was primarily driven by lower CVD systems revenue. Revenue in our CVD Equipment segment was concentrated among two key customers, which together represented approximately 53% of total fourth quarter revenue. Our SDC segment reported revenue of $2.2 million in the quarter compared to $1.9 million in the fourth quarter of fiscal '24 and $1.7 million in the third quarter of 2025. Consolidated gross profit for the quarter was $1.1 million, resulting in a gross margin of 22.2%. This compares with a gross profit of $2 million and a gross margin of 26.4% in the prior year quarter. The decrease was primarily due to lower CVD revenue, which resulted in higher unabsorbed overhead as well as a less favorable contract mix. Our operating loss for the fourth quarter of 2025 was $1.3 million compared to operating income of $34,000 in the fourth quarter of 2024. Included in the fourth quarter 2025 results was a noncash impairment charge of $163,000. This was related to certain equipment and capitalized software associated with our transition to outsourced fabrication of certain components in our CVD business. After interest income, the net loss for the quarter was $1.3 million or $0.18 per diluted share compared with net income of $132,000 or $0.02 per diluted share in the prior year quarter. For the full fiscal year, revenue was $25.8 million. This compares to $26.9 million in fiscal 2024. The year-over-year decline was primarily due to lower SDC revenue and lower MesoScribe revenue as we ceased that business. MesoScribe ceased operations in 2024. Revenue in our CVD Equipment segment was again concentrated among two key customers, which together represent 41%…

Thank you, Rich. Our priorities are clear: serving our customers, supporting our employees and creating value for our shareholders and returning the business to sustained profitability. Operator, we are now ready to open the line for questions.

[Operator Instructions] And our first question comes from Brett Reiss with Janney Montgomery Scott.

Can you hear me?

We can hear you, Brett. Good to hear you again.

Great. Great. Great. You're sitting on $23 million, $24 million in cash. Could you describe to us the skill sets of your existing engineers? And what I'm trying to get at is what are -- their skill sets would be complementary and enhance what type of acquisition you might be contemplating with the $23 million?

Yes. Well -- so Brett, we -- the number, I'll let Rich speak to the actual number on the cash -- any cash on hand plus what will net from the transaction. But as far as the talent pool, you asked, there are a couple of questions in your one question. The first is talent pool is consistent with what the talent pool was essentially from a capabilities perspective a year ago. We have a full complement of resources in the engineering and technology group for CVD equipment or CVI equipment, basically the main product line from Central Islip. So we retain that skill set. As far as the subsequent question, which is what are we going to do with cash and the proceeds, the Board is looking at opportunities and strategic alternatives for increasing shareholder value, and we'll continue to do that. At this point in time, we do not have something that is material or a [ path ] yet. This was a fair transaction for all parties, the SDC transaction. So we took advantage of that. So time will tell, but we don't have something to highlight today.

Yes. Fair enough. Can you give us some sense, though, of what the pipeline of opportunities you're looking at? Are you looking at 3, 4, 5 different things? And how long have you been kicking the tires on some of these opportunities?

Well, we -- as a Board, we've been looking at strategic alternatives for quite several quarters, as you can imagine. You don't do a transaction in a quarter or two. And so -- but again, at this point in time, I'd be speaking out of turn -- I think in the next few quarters, we'll be able to identify and share with you certain -- some additional information. But right now, again, Brett, I don't have anything to speak of.

Okay. And are you guardedly optimistic, though, you'll be able to find something that will have a less lumpy or more recurring revenue stream, perhaps with service revenue, which has always been what the company would like to have had, but just the nature of the type of businesses we're in, it's always been a kind of lumpy revenue cadence.

Well, the equipment business, Brett, is lumpy in itself, especially when you're a couple of hundred million dollars of revenue as we are, of course. The -- I think you've outlined nicely the objective for any strategic activity, which we want to have is have a smooth non-lumpy revenue stream, good customer value in spares and service. Those are all the attributes of entities we would like to entertain. But again, I can't speak to that at this point.

Okay. I'll drop back. I don't know if there are any other people...

Thank you, again, Brett. Good hearing your voice.

[Operator Instructions] And your next question comes from Frank Giordano, Private Investor.

I just wanted to ask a question, of course, the money. It's something continuing on with Brett before. Regarding that, have you ever considered paying a special dividend in situations like this? Or it's something that the company doesn't pay?

I do not believe that in the history of the company, a special dividend was paid, at least in the period of time that I've been with the company, which is 9 years that has not been the case. But I could be corrected, but I think I'm accurate. Clearly, we believe shareholder value is based on growing the business, and utilization of our funds in a respectful manner, and we are conservative. So at this point in time, that is not actively on the table.

Okay. And something else regarding the business itself. Are you concentrating a little bit with the military right now, let's say, in the drone companies or anything dealing with the military due to the situation that we are in?

Yes. Frank, thank you. Yes, we do serve aerospace and defense. That's one of our key markets. About 78% of our revenue over the last several years of our orders has come from military and defense, whether it's gas turbine engines, the use of CMCs or other ceramics, which we create -- we build the equipment that creates the material, and that goes into both commercial and also military gas turbine engines. As well as last year, we received an order, we shipped it this year. Actually, we shipped it in 2025 was for a research system that will be used for especially the ceramic materials for hypersonics. So we are in the next generation, I would say, materials. So -- and it will continue -- I foresee that it will continue to be our revenue and previously that orders will be driven by aerospace, defense for the foreseeable future. That's where these advanced materials are primarily utilized.

Okay. I just wanted to tell you just my opinion here. You remind me of a company based out of Milan, it's called SAES Getters, was founded during Mussolini's time, the dictator Mussolini. And it survived through World War II. And then it became a company was taken over, I believe, a couple of years ago, at a much higher price than what it was in 2000. It was the only Italian company trading on the NASDAQ back in 2000, and it was around your price around $3 or $4 a share. And they used to pay a dividend every 3 months. I couldn't believe it, but it wasn't with the vapor, the decision, they do a lot of stuff, maybe different from your kind of company. But again, it was similar. It was similar. If you could research that and give you some ideas, interesting company out of Milan.

Yes. Drop us a line on the -- I didn't catch the name entirely, but drop us a line on that...

All right. I repeat it again. SAES Getters. And there was a takeover, but the name is still there. There's a website. Of course, you could research it. But again, I don't know if they do have a division here still in the United States, out of Denver or something like that. But I remember that 20 years ago, when I used to deal with them.

We'll do. Thank you, sir. Appreciate it.

And there appears to be no additional questions at this time. So I'll hand the floor back to Emmanuel Lakios for closing remarks. Thank you.

Thank you, Diego, and thanks to everyone for joining us today. We appreciate your continued interest and support of CVD Equipment Corporation. If you have any additional questions, as I said earlier, please reach out to myself or Rich directly. And this concludes our today's conference call.

Thank you. And all parties may now disconnect. Have a good day.