CVD Equipment Corporation Announces 2nd Quarter Results

RONKONKOMA, N.Y., (Business Wire) – August 14, 2009 - CVD Equipment Corporation (Nasdaq: CVV – News) today announced its financial results for the three and six months ended June 30, 2009.

As a result of cost containment efforts, we were able to achieve net income of $11,000 or $0.00 per share basic and diluted for the current three month period compared to net income of approximately $7,000 or $0.00 per share basic and diluted for the same period one year ago, despite a reduction in revenue.  We incurred a net loss of approximately $76,000 or ($0.02) per share basic and diluted for the six months ended June 30, 2009 compared to net income of approximately $26,000 or $0.01 per share basic and diluted for the six months ended June 30, 2008.

Revenue for the three and six months ending June 30, 2009 was approximately $3,442,000 and $7,427,000 compared to $4,269,000 and $8,312,000 respectively for the three and six months ending June 30, 2008, a decrease of 19.4% and 10.6% respectively. We continue to experience delays and reduced capital expenditures by potential customers due to current economic conditions. Gross profit margins for the three months ended June 30, 2009 increased by 10.7% to 29.9% from the 27.0% experienced during the three months ended June 30, 2008 as a result of reversing our efforts, during the 2nd quarter, from increasing engineering and production personnel to reducing personnel considered non-essential for future growth by approximately 17%.  We are still however continuing the expansion of our Application Laboratory for new product development in the Alternative Energy, Solar, Nanomaterial, and Semiconductor fields. Additionally, we reduced our selling, general and administrative costs during the three and six months ended June 30, 2009 by 7.6% and 6.9% respectively compared to the three and six month periods ended June 30, 2008.

As of June 30, 2009 the Company’s backlog was approximately $13,046,000, an increase of 224.8% over the backlog of $4,017,000 at June 30, 2008.  However, the backlog decreased by $2,225,000 or 14.6% compared to $15,271,000 at December 31, 2008.  Timing for completion of the backlog varies depending on the product mix and can be as long as two years.  Order backlog is usually a reasonable management tool to indicate expected revenues and projected profits, however, it does not provide assurance of future achievement or profits as order cancellations or delays are possible.  Backlog from quarter to quarter can vary based on the timing of order placements and shipments.

Leonard Rosenbaum, President and Chief Executive Officer stated, “The global economic downturn has negatively impacted current sales and profitability.  However, we have seen a significant increase in quotation activity in the last two months, in part due to our participation at the Intersolar 09 show where we announced new Transparent Conductive Oxide (TCO) process capabilities and our ET3000-SiQC Silicon precursor quality control system.  We feel we are in a strong position to weather the current economic conditions and respond positively as economic conditions improve.  We have therefore started to hire additional essential engineering personnel in areas we feel will be needed for future growth.”

“Our Application Laboratory expansion continues to enable us to further demonstrate our new and existing equipment platforms, processes and proprietary intellectual property. In particular, in the last three months the Laboratory has seen a significant increase in customer usage, specifically for solar related TCO technology.  TCO layers are used in the making of almost every thin film based Solar Cell and Low-E glass window.”

CVD Equipment Corporation is a global designer, manufacturer and supplier of equipment for use in manufacturing semiconductors, solar cells, carbon nanotubes, nanowires and equipment for gas handling and surface mounting of components onto printed circuit boards.

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.

For further information contact Investor Relations: Phone: 631-981-7081, Fax: 631-981-7095 or Email: investorrelations@cvdequipment.com