Market Overview

CVD Reports First Quarter 2019 Results

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CVD Equipment Corporation (NASDAQ: CVV),
a leading provider of chemical vapor deposition systems and materials,
today announced its first quarter 2019 financial results.

CVD first quarter 2019 revenue was $3.5 million as compared to $9.2
million in the first quarter of 2018, a decrease of $5.7 million or
62.0%. Net loss for the first quarter was $2.2 million, or $0.33 per
diluted share, as compared to a net profit of $.6 million or $.09 per
diluted share in the first quarter of 2018.

The Company has received new orders of approximately $6.5 million in the
first quarter of 2019 and order backlog at March 31, 2019 was
approximately $6.0 million. The Company's return to profitability is
dependent upon, among other things, the receipt of new equipment orders,
the ramp up of the materials business and managing planned expenditures
and operating expenses. Thomas McNeill, Chief Financial Officer, said
"We anticipate the cost containment measures we have been implementing
should align our expenses to our order rates, thereby reducing future
operating losses and should return the Company to profitability by the
first quarter of 2020."

"While 2018 was a difficult year for CVD, the Company has accelerated
its focus on the materials business. During 2018, the Company invested
$2.5 million in building improvements and machinery related to CVD
Materials, $.4 million in the first quarter of 2019 and other materials
facility related expenses. With the operations at our new materials
facility coming online during the third quarter of 2019, and our
continued investment in building improvements and machinery we will
enhance our marketing efforts by showcasing our operations to new and
existing customers. In addition, we will complete the move of our
Mesoscribe operations from California by the end of May 2019, with
integration to be completed by July 2019. The consolidating of
Mesoscribe operations into our materials facility should enhance our
ability to execute on operational improvements, as well as reduce
operational costs. The expanded materials operations will enhance our
capabilities in providing i) corrosion resistant coatings through our
Tantaline® subsidiary for medical, pharma, oil and gas applications, ii)
sensors through our MesoScribe™ subsidiary for defense, aerospace and
turbine applications, and iii) through our CVD Materials subsidiary for
carbon composite materials, medical coatings, electronic substrate
materials and further expansion into other coatings for defense,
aerospace, medical, and industrial applications," said Leonard
Rosenbaum, President and Chief Executive Officer.

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) 407-2991 or International (201) 389-0925. A
telephone replay will be available for 7 days following the call. To
access the replay, dial (877) 660-6853 or international (201) 612-7415.
The replay passcode is 13690756. A live and archived webcast of the call
is also available on the company's website at www.cvdequipment.com/events.

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 tomorrow's technologies™. It's
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 "safe
harbor" 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 "forward-looking statements, "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 Corporation's growth and sales strategies, the possibility of
customer changes in delivery schedules, cancellation of, or failure to
receive 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
For the Three Months Ended March 31, 2019 and 2018
(In thousands)
         

Three Months Ended

2019

2018

Revenue $ 3,469 $ 9,154
Gross profit (388 ) 3,761
Operating expenses   2,177         2,850
Operating (loss) income (2,565 ) 911
Net (loss) income   (2,177 )       558
Diluted (loss) earnings per share   ($0.33 )     $ 0.09
 
Condensed Consolidated Balance Sheets
As of March 31, 2019 and December 31, 2018
(In thousands)
         

2019

2018

Assets
Current Assets
Cash and cash equivalents $ 11,253 $ 11,439
Accounts receivable, net 2,104 4,065
Contract assets 1,089 1,358
Inventories, net 1,745 1,862
Other current assets   771   723
Total Current Assets $ 16,962 $ 19,447
Property, plant and equipment, net 30,596 30,403
Other assets   3,070   2,665
Total Assets $ 50,628 $ 52,515
 
Liabilities and Stockholders' Equity
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