CVD Equipment Corporation Reports Fiscal Year 2008 Results

Business Wire, April 01, 2009

RONKONKOMA, N.Y. -- CVD Equipment Corporation (NASDAQ: CVV) announced today that it has achieved profitable results for the fifth consecutive year with record breaking revenues.

Revenue - for fiscal year ending December 31, 2008 is $18,147,000 compared to $13,578,000 for fiscal year 2007, an increase of 33.7%.

Gross Profit Margin - for fiscal year ending December 31, 2008 is 29.6% compared to 34.4% for fiscal year 2007. The decrease is attributable to an increase in engineering and production personnel necessary to support increased order levels, the expansion of our Application Laboratory and new product development costs in the Nanomaterials, Smart Glass, Solar and Semiconductor fields.

Net Earnings - for fiscal year ending December 31, 2008 is approximately $632,000 or $0.13 per basic and diluted share compared to $777,000 or $0.21 per basic and $0.20 per diluted share for fiscal year 2007.

Our decision to focus on the CVD/First Nano product lines for our long-term revenue growth and profitability is proving to be successful. Annual revenue posted by the CVD/First Nano division for our custom Chemical Vapor Deposition and EasyTube products increased over fiscal 2007 by approximately 33.5% and we ended 2008 with our highest backlog ever due to the CVD/First Nano products.

At December 31, 2008, our order backlog, which is comprised of customer orders that are expected to ship within the next two years, increased by 200% to $15,271,000 compared to $5,087,000 at December 31, 2007 which was a 42.7% increase over our December 31, 2006 backlog of $3,565,000. This is a result of record breaking sales orders for the current year of $28,944,000 compared to last year’s orders of $14,418,000, an increase of 101%. We have continued to experience in 2008, a strong demand for both, our custom Chemical Vapor Deposition and EasyTube products. We have also introduced and received our initial order for a high volume manufacturing system incorporating our patent pending proprietary solutions. Our backlog at any specific point in time however, is not necessarily indicative of actual revenues or earnings for any succeeding period due to possible customer changes in delivery schedules, cancellation of orders, and because backlog does not provide any assurance of a profit from those orders.

Leonard Rosenbaum, President and Chief Executive Officer stated, “In 2007 we started to expand our research, engineering, process development and manufacturing capability. With the additional funds raised by a completed public stock offering in the 4th quarter of 2007, we were able to continue implementing our plan for a significant company expansion. In January 2008, we purchased an additional building where we relocated our Application Laboratory in the 2nd quarter of 2008. In addition to the Application Laboratory expansion, we are introducing additional EasyTube equipment platforms to capture a larger portion of the multi-billion dollar Research and Development money that is spent each year. Our EasyTube product line has been widely accepted and is serving University and Research Laboratories, startup companies and quality control departments throughout the world in fields such as Nanotubes (Carbon and Boron Nitride), Graphene, Nanowires (Zinc Oxide, Gallium Nitride, Silicon,) Solar Cells, MEM’s, Energy, Semiconductors and Light Emitting Diodes. The new Application Laboratory allows expansion of our in-house research and the further implementation of our business plan to offer Nano and Solar companies assistance in accelerating the commercialization of their next generation of products on CVD production equipment platforms. We have developed and filed patent protection for some of our own proprietary system and process solutions which have the potential to be sold to multiple customers for the volume manufacturing requirements in the energy generation (photovoltaic) and energy savings (smart windows) fields.”

“We anticipate 2009 will continue to be a year of increasing revenues in our traditional CVD/First Nano business field even in the current economic climate and that our proprietary, patent pending solutions will provide additional growth after demonstration in our Application Laboratory.”

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 orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and failure to satisfy customer acceptance requirements.