Page 1

CVD Equipment Corporation TM enabling tomorrow's technologies ™ 355 South Technology Drive , Central Islip , New York 11722 | T 631.981.7081 | F 631.981.7095 | info@cvdequipment.com CVD Reports Third Quarter 2021 Results CENTRAL ISLIP , N.Y. , ( Business Wire ) - November 15 , 2021 - CVD Equipment Corporation ( NASDAQ : CVV ) , a leading provider of chemical vapor deposition systems and materials , today announced its third quarter 2021 financial results . CVD third quarter 2021 revenue was $ 4.3 million as compared to $ 4.0 million in the third quarter of 2020 , an increase of $ .3 million or 8.4 % . CVD's operating loss for the three months ended September 30 , 2021 and 2020 was $ .9 million and $ 1.4 million , respectively . Included in other income for the three months ended September 30 , 2021 was a gain on the Sale of Building in the amount of $ 6.9 million . Net income for the third quarter was $ 6.0 million , or $ .89 per diluted share , as compared to a net loss of $ 1.3 million , or $ .19 per diluted share in the third quarter of 2020. As a result of the COVID - 19 pandemic , CVD's new order bookings substantially decreased commencing in the first quarter of 2020 , which reduced revenues in subsequent quarters , resulting in revenue of $ 11.7 million for the first nine months of 2021 as compared to $ 13.7 million in the first nine months of 2020 , a decrease of $ 2.0 million or 14.7 % . CVD's operating loss for the nine months ended September 30 , 2021 and 2020 was $ 3.6 million and $ 2.4 million , respectively . Included in other income for the nine months ended September 30 , 2021 was a gain on the Sale of Building in the amount of $ 6.9 million and gain on Debt Extinguishment , in the amount of $ 2.4 million , which was related to its PPP loan received due to the effects of the COVID - 19 pandemic . Net income for the first nine months of 2021 was $ 5.9 million , or $ .89 per diluted share , as compared to a net loss of $ .8 million , or $ .12 per diluted share for the first nine months of 2020. During the first quarter of 2020 , CVD was favorably impacted by the CARES Act which allowed for the carryback of net operating losses and resulted in CVD recognizing an income tax benefit of $ 1.5 million in the nine months ended September 30 , 2020 . Sequentially , CVD's revenue in the third quarter of 2021 was $ 4.3 million as compared to $ 4.0 million in the second quarter 2021 , an increase of $ .3 million , and the operating loss decreased to $ .9 million in the third quarter of 2021 , as compared to an operating loss of $ 1.1 million in the second quarter of 2021 , an improvement of $ .2 million . During Q3 2021 , CVD was impacted by increased costs on certain manufacturing material components as well as delays in supply chain deliveries . This may also impact CVD's ability to recognize revenue and reduce gross profit margins in future quarters , as well as extend its manufacturing lead times and reduce manufacturing efficiencies . CVD has commenced placing orders with increased lead times to try to help mitigate the manufacturing delays , as well as assessing other material suppliers to mitigate the potential cost impacts . In addition , CVD is utilizing its in - house flexible manufacturing to further mitigate both potential schedule delivery delays and material cost increases . Thomas McNeill , Executive Vice President and Chief Financial Officer , said " As previously announced , we are pleased to have closed on the sale of our facility located at 555 North Research Place , Central Islip , NY . With a sales price of $ 24.4 million , we satisfied the associated mortgage debt of approximately $ 9.1 million and paid various transaction - related costs . The net proceeds of approximately $ 14 million improves our current cash position at September 30 , 2021 to $ 17.4 million , and provides us with a balance sheet to bolster sustainable growth strategies . www.cvdequipment.com | www.cvd materialscorp.com | www.stainlessdesign.com Page 1 of 4