CVD Reports First Quarter 2018 Results

May 15, 2018

CENTRAL ISLIP, N.Y.–(BUSINESS WIRE)–CVD Equipment Corporation (NASDAQ:CVV),
a leading provider of chemical vapor deposition systems, today announced
its first quarter 2018 financial results.

ÔÇ£In the first quarter, we continued to execute on the core segment of
our growth strategy by increasing our investment in the development of
our new CVD Materials facility,ÔÇØ said Len Rosenbaum, President and Chief
Executive Officer. ÔÇ£The new facility will provide a cost-effective
infrastructure to utilize the latest technology to produce high quality
materials for aerospace, medical and electronic applications. We also
further strengthened our senior leadership team and increased our focus
on sales to expand and commercialize our exciting new technologies.ÔÇØ

Revenue for the first quarter was $9.2 million, compared to $9.8 million
in the prior quarter and $9.7 million from the same period last year.
Net income for the first quarter was $0.6 million compared to $1.6
million in the prior quarter and $1.0 million a year ago. The reduction
in net income is primarily a result of the ongoing investment in the
Materials business, the development of the new facility, and shifting
some engineering and production personnel to the planning, outfitting
and building of equipment for the new facility. Net earnings per diluted
share were $0.09 compared to $0.24 in the fourth quarter of 2017 and
$0.16 a year ago. Backlog as of March 31, 2018 was $9.8 million compared
to $15.5 million on December 31, 2017.

CVDÔÇÖs significant investment in the Materials facility will transform
the Company over the long term: 1) CVD holds the proprietary knowledge
and has the capability to build the production systems required to meet
demand; 2) CVD possesses the intimate knowledge necessary to operate the
systems in a cost-effective manner, providing a significant operational
and financial competitive advantage; and 3) CVD is well capitalized to
invest in the overhead and capital expenses required to take the Company
to the next level. Execution of this growth strategy should provide an
additional, diverse and stable revenue stream that should significantly
improve growth and profitability over the long-term.

The Company will hold a conference call to discuss its results today at
4:30 pm (Eastern Time). To participate in the live conference call,
please dial toll free (877) 407-0784 or International (201) 689-8560. A
telephone replay will be available for 7 days following the call. To
access the replay, dial (844) 512-2921 or (412) 317-6671. The replay
passcode is 13679606. A live and archived webcast of the call is also
available on the CompanyÔÇÖs website at: www.cvdequipment.com/event/first-quarter-2018-earnings-conference-call/.

About CVD Equipment Corporation

CVD
Equipment Corporation (NASDAQ:CVV)
designs, develops, and manufactures a broad range of chemical vapor
deposition, gas control, and other state-of-the-art equipment and
process solutions used to develop and manufacture materials and coatings
for research and industrial applications. This equipment is used by its
customers to research, design, and manufacture these materials or
coatings for aerospace engine components, medical implants,
semiconductors, solar cells, smart glass, carbon nanotubes, nanowires,
LEDs, MEMS, and other applications. Through its application laboratory,
the Company provides process development support and process startup
assistance with the focus on enabling tomorrowÔÇÖs technologiesÔäó.
ItÔÇÖs wholly owned subsidiary CVD Materials Corporation provides advanced
materials and metal surface treatments and coatings to serve demanding
applications in the electronic, biomedical, petroleum, pharmaceutical,
and many other industrial markets.

The Private Securities Litigation Reform Act of 1995 provides a ÔÇ£safe
harborÔÇØ for forward-looking statements. Certain information included in
this press release (as well as information included in oral statements
or other written statements made or to be made by CVD Equipment
Corporation) contains statements that are forward-looking. All
statements other than statements of historical fact are hereby
identified as ÔÇ£forward-looking statements, ÔÇ£as such term is defined in
Section 27A of the Securities Exchange Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward looking information involves a number of known and unknown risks
and uncertainties that could cause actual results to differ materially
from those discussed or anticipated by management. Potential risks and
uncertainties include, among other factors, conditions, success of CVD
Equipment CorporationÔÇÖs growth and sales strategies, the possibility of
customer changes in delivery schedules, cancellation of orders,
potential delays in product shipments, delays in obtaining inventory
parts from suppliers and failure to satisfy customer acceptance
requirements.

CVD Equipment Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands)
Three Months Ended March 31
2018	2017
Revenue	$	9,154	$	9,651
Gross profit	3,761	5,480
Operating expenses	2,850	2,454
Operating income	911	1,717
Net income	558	1,708
Diluted earnings per share	$	0.09	$	0.16

CVD Equipment Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
March 31, 2018	December 31, 2017
Assets
Current assets:
Cash and cash equivalents	$	13,135		$	14,211
Accounts Receivable, net	8,979	2,059
Contract assets	3,719	8,397
Inventories	2,730	2,966
Other current assets	221	167
Total current assets	28,784	27,800
Property, plant and equipment, net	29,504	28,839
Deferred taxes	1,611	1,690
Other assets	206	68
Intangible assets	536	662
Total assets	$	60,641	$	58,978
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	1,104	$	1,175
Accrued expenses and other current liabilities	2,563	2,739
Current portion of long-term debt	651	647
Current portion acquisition related contingent
payments	100	100
Contract liabilities	1,515	466
Deferred revenue	533	292
Total current liabilities	6,466	5,419
Long-term acquisition related contingent
payments	200	200
Long-term debt, net of current portion	12,540	12,705
Long-term debt	12,740	12,905
Total liabilities	19,206	18,324
Total stockholders' equity	41,435	40,654
Total liabilities and stockholders' equity	$	60,641	$	58,978