CVD Equipment Corporation Announces Third Quarter Results

RONKONKOMA, N.Y., (PR Newswire)—November 14, 2005—CVD Equipment Corporation (Amex: CVVNews), a global designer, manufacturer and supplier of equipment primarily used in the semiconductor, nanotechnology and printed circuit board industries, today announced its financial results for the three and nine months ended September 30, 2005.

Revenue for the three and nine months ending September 30, 2005 was $2,851,000 and $8,258,000 respectively compared to $1,629,000 and $5,548,000 for the three and nine months ending September 30, 2004 representing an increase of 75.2% and 48.8% for the respective periods. This increase in revenue can be attributed to an increase in order levels the Company received since the latter part of 2004. Overall, our gross margin increased during the three and nine months ending September 30, 2005 to 32.9% and 35.4%, from 29.0% and 29.2% respectively for the three and nine months ending September 30, 2004. This increase in gross revenue and gross margin has resulted in the Company generating net income of $35,000 or $.01 per share basic and diluted for the current three months and $329,000 or $.11 per share basic and $.10 per share diluted for the nine months ended September 30, 2005 compared to a net loss of $331,000 or ($.11) per share basic and diluted for the three months ended September 30, 2004 and a net loss of $666,000 or ($.22) per share basic and diluted for the nine months ended September 30, 2004

At September 30, 2005 our order backlog, comprised of customer orders that are expected to ship within the next six months, increased by 1.8% to approximately $2,473,000 from $2,430,000 at December 31, 2004. Our backlog at any specific point in time may not be indicative of actual revenues or potential earnings for any succeeding period due to possible customer changes in delivery schedules or cancellation of orders.

Leonard Rosenbaum, President and Chief Executive Officer stated;

"In June, 2005 we announced our acquisition of certain assets of First Nano, Inc. of Carpenteria, CA. Since the acquisition we have devoted considerable time and effort to relocating the assets to our facility in Ronkonkoma, NY, redesigning the product to improve performance and process capabilities, getting acquainted with the customer base and starting up an applications laboratory to fabricate carbon nanotube and nanowires. To quickly bring you up to date, CVD will start shipping the redesigned First Nano systems in the fourth quarter, 2005, and our applications laboratory will be in full operation during 1st quarter, 2006. In the last four weeks, we have displayed the new First Nano system at CS Week in Anaheim, Ca., NanoWorld – Loyola College, Ca., Nano Conference in Chicago, Il. and NASA Nano in Boston, Ma.. The features being offered are being well accepted by research scientists throughout the world as evidenced by discussions with potential customers and orders. The new platform further provides the ability to easily add the features required by each research institution in a cost effective and expeditious manner and allows field upgrades in both features and process tube size."

With regard to our overall business outlook, quotation levels are high, order levels have been increasing, we have been increasing our workforce and additional CNC machinery is being added to aid the manufacturing needs of all divisions.

 

 

 

CVD Equipment Corporation

Summary Consolidated Statements of Operations


                                     Three Months Ended                                            Nine Months Ended

                                     9/30/05         9/30/04                                           9/30/05         9/30/04

Revenue                        $2,851,327    $1,629,315                                    $8,257,961     $5,547,848

Net Income (loss)            34,789          (330,805)                                       329,069         (665,524)

Net Income (loss)
   Per share basic          $0.01            $ (0.11)                                          $0.11             $(0.22)
   Per share diluted          0.01               (0.11)                                            0.10              (0.22)

Weighted Average Shares of
Common Stock Outstanding

Basic                             3,122,463       3,039,100                                     3,087,553       3,039,100

Diluted                           3,274,803       3,039,100                                     3,194,565       3,039,100

CVD Equipment Corporation (AMEX: CVV), is a leading manufacturer of critical LPCVD, UHVCVD, HVPE, MOCVD, PECVD, LPE, VPE, ALD, Reel-to-Reel, Fluidized Bed and RTP products and services for the Semiconductor, Compound Semiconductor, Optoelectronic, Wireless Telecommunications, MEMS, Nanotechnology, Solar Power, Super Conductivity and industrial markets.

Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in CVD Equipment Corporation’s filings with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on CVD Equipment Corporation’s website does not constitute a part of this release.

This public announcement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results. Investors and potential investors should review carefully the description of the risks and uncertainties which, together with other detailed information about CVD Equipment Corporation (CVD), is contained in the periodic reports that CVD files from time to time with Securities and Exchange Commission.

The risks and uncertainties include, but are not limited to: the ability to successfully integrate acquired assets into CVD Equipment Corporation; CVD’s dependence upon the ability to attract and retain qualified personnel; competition and technological changes; the company’s dependence upon proprietary technology and the potential need for additional financing.

For further information Contact: CVD Equipment Corporation, Karen Hamberg,

Phone: 631-981-7081, Fax: 631-981-7095 or email: info@cvdequipment.com

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