UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                               ________________
                                 Form 10-QSB
  (Mark One)
  [x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES
       EXCHANGE ACT OF 1934.

              For the quarterly period ended September 30, 2006

  [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934.

                 For the transition period from ____ to _____
                       Commission file number:  1-16525

                          CVD EQUIPMENT CORPORATION
               (Name of Small Business Issuer  in Its Charter)

                          New York        11-2621692
    (State or Other Jurisdiction of
     Incorporation or Organization)       (I.R.S. Employer Identification No.)

                            1860 Smithtown Avenue
                         Ronkonkoma, New York  11779
   (Address including zip code of registrant's Principal Executive Offices)

                                (631) 981-7081
               (Issuer's Telephone Number, Including Area Code)

            Securities registered under Section 12(b) of the Act:
                                     None

            Securities registered under Section 12(g) of the Act:
                        Common Stock, Par value $0.01
                               (Title of class)

    Check whether the issuer: (1) filed all reports required to be filed by
  Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
  such shorter period that the registrant was required to file such
  reports), and (2) has been subject to such filing requirements for the
  past 90 days.  Yes [x]   No [ ]

    Indicate by check mark whether issuer is a large accelerated filer, an
  accelerated filer or a non-accelerated filer  See definition of
  "accelerated filer and large accelerated filer" in Rule 12b-2 of the
  Exchange Act). (check one)
  Large accelerated filer[ ]  Accelerated filer[ ] Non-accelerated filer[x]

    State the number of shares outstanding of each of the issuer's classes
  of common equity, as of the latest practicable date: 3,231,000 shares of
  Common Stock, $0.01 par value at November 10, 2006.
  __________________________________________________________________________

  <PAGE>

                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY

                                    Index


  Part I - Financial Information

     Item 1 - Financial Statements (Unaudited)

     Consolidated Balance Sheets as of September 30, 2006 (Unaudited)
       and December 31, 2005                                              2

     Comparative Consolidated Statements of Operations (Unaudited)
       for the three and nine months ended September 30, 2006 and 2005    3

     Comparative Consolidated Statements of Cash Flows (Unaudited) for
       the nine months ended September 30, 2006 and 2005                  4

     Notes to Unaudited Consolidated Financial Statements                 5

     Item 2 - Management's Discussion and Analysis of Financial
       Condition and Results of Operations                                12

     Item 3 - Controls and Procedures                                     15

  Part II - Other Information                                             16

     Item 1 - Legal Proceedings                                           16
     Item 2 - Changes in Securities and Use of Proceeds                   16
     Item 3 - Defaults Upon Senior Securities                             16
     Item 4 - Submission of Matters to a Vote of Security Holders         16
     Item 5 - Other Information                                           17
     Item 6 - Exhibits and Reports Filed on Form 8-K                      17

  Signatures                                                              18
  Exhibit Index                                                           19
  Certification of Chief Executive Officer                                20
  Certification of Chief Financial Officer                                21
  Certification of Chief Executive Officer pursuant to U.S.C.
       Section 1350                                                       22
  Certification of Chief Financial Officer pursuant to U.S.C.
       Section 1350                                                       23

  <PAGE>
  <TABLE>
  <CAPTION>
                                               PART 1 - FINANCIAL INFORMATION
                                               Item 1 - Financial Statements

                                         CVD EQUIPMENT CORPORATION  AND SUBSIDIARY
                                                Consolidated Balance Sheets



                                                                      September 30, 2006
                                                                         (Unaudited)                            December 31, 2005
                                                                      ------------------                        ------------------
  <S>                                                                 <C>                                       <C>
  Current Assets:
       Cash and cash equivalents                                         $   354,480                               $   265,454
       Accounts receivable, net                                            2,187,040                                 1,893,665
       Cost  in excess of billings on uncompleted contracts                  591,088                                   595,067
       Inventories                                                         2,660,015                                 2,067,255
       Other current assets                                                  138,957                                    49,597
                                                                      ------------------                        ------------------
      Total current assets                                                 5,931,580                                 4,871,038

  Property, plant and equipment, net                                       4,875,082                                 5,090,536
  Deferred income taxes                                                      241,774                                   241,988
  Other assets                                                               728,395                                   610,304
  Intangible assets, net                                                      86,079                                    96,141
                                                                      ------------------                        ------------------
                                                                         $11,862,910                               $10,910,007
                                                                      ==================                        ==================


  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities:
       Current maturities of long-term debt                              $   240,913                               $   217,204
       Short-term notes payable                                              125,000                                   100,000
       Accounts payable                                                      669,683                                   639,619
       Accrued expenses                                                      934,535                                   642,115
       Accrued professional fees - related party                              20,000                                    35,260
       Deferred revenue                                                      186,560                                   114,140
                                                                      ------------------                        ------------------
       Total current liabilities                                           2,176,691                                 1,748,338

  Long-term debt, net of current portion                                   2,824,349                                 2,923,424
                                                                      ------------------                        ------------------
       Total liabilities                                                   5,001,040                                 4,671,762
                                                                      ------------------                        ------------------

  Commitments and contingencies                                               ---                                        ---

  Stockholders' Equity
       Common stock, par value  $.01 per share, authorized 10,000,000
       shares; issued and outstanding, 3,221,000 shares at
       September 30, 2006 and 3,127,800 shares at December 31, 2005           32,210                                    31,278
       Additional paid-in capital                                          3,307,194                                 3,049,362
       Retained earnings                                                   3,522,466                                 3,157,605
                                                                      ------------------                        ------------------
                                                                           6,861,870                                 6,238,245
                                                                      ------------------                        ------------------
                                                                         $11,862,910                               $10,910,007
                                                                      ==================                        ==================


  <FN>
  See notes to the consolidated financial statements

                                                             2
  </TABLE>
  <PAGE>
  <TABLE>
  <CAPTION>

                                          CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                                           Consolidated Statements of Operations
                                                        (Unaudited)



                                                             Three Months Ended                         Nine Months Ended
                                                                September 30                               September 30
                                                          2006                 2005                 2006                 2005
                                                  -----------------    -----------------    -----------------    -----------------
  <S>                                             <C>                  <C>                  <C>                  <C>
  Revenue                                           $ 3,635,531          $ 2,851,327          $ 9,958,136          $ 8,257,961

  Costs of Revenue                                    2,218,537            1,914,357            6,404,719            5,335,413
                                                  -----------------    -----------------    -----------------    -----------------
  Gross profit                                        1,416,994              936,970            3,553,417            2,922,548
                                                  -----------------    -----------------    -----------------    -----------------
  Operating expenses
       Selling and shipping                             222,391              181,752              619,622              518,716
       General and administrative                       730,532              684,955            2,180,182            1,823,125
       Related party - professional fees                 10,000               15,000               20,000               50,000
                                                  -----------------    -----------------    -----------------    -----------------
  Total operating expenses                              962,923              881,707            2,819,804            2,391,841

  Operating income                                      454,071               55,263              733,613              530,707
                                                  -----------------    -----------------    -----------------    -----------------
  Other income (expense)
       Interest income                                      340                   53                  748                  761
       Interest expense                                 (57,882)             (50,591)            (173,409)            (169,629)
       Other income                                       9,845               19,726               96,599               34,060
                                                  -----------------    -----------------    -----------------    -----------------
  Total other (expense)                                 (47,697)             (30,812)             (76,062)            (134,808)

  Income before income taxes                            406,374               24,451              657,551              395,899

  Income tax (provision) benefit                       (177,523)              10,338             (292,690)             (66,830)
                                                  -----------------    -----------------    -----------------    -----------------
  Net income                                        $   228,851          $    34,789              364,861          $   329,069
                                                  =================    =================    =================    =================
  Basic income per common share                     $      0.07          $      0.01          $      0.12          $      0.11
                                                  =================    =================    =================    =================
  Diluted income per common share                   $      0.07          $      0.01          $      0.11          $      0.10
                                                  =================    =================    =================    =================
  Weighted average common shares outstanding
      basic income per share                          3,198,247            3,122,463            3,155,710            3,087,553

  Effect of potential common share issuance:
      Stock options                                      69,534              152,340              102,816              107,012
                                                  -----------------    -----------------    -----------------    -----------------

  Weighted average common shares outstanding
      diluted income per share                        3,267,781            3,274,803            3,258,526            3,194,565
                                                  =================    =================    =================    =================


  <FN>
  See notes to the consolidated financial statements
  </TABLE>
                                                                  3
  <PAGE>
  <TABLE>
  <CAPTION>

                                               CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                                                Consolidated Statements of Cash Flows
                                                             (Unaudited)



                                                                                            Nine Months Ended
                                                                                              September 30
                                                                               2006                                      2005
                                                                       ----------------                          ----------------
  <S>                                                                  <C>                                       <C>
  Cash flows from operating activities
       Net income                                                        $   364,861                               $   294,271
       Adjustments to reconcile net income to net cash provided
           by operating activities:
       Depreciation and amortization                                         244,792                                   177,684
       Deferred tax benefit                                                      214                                  (208,341)
       Stock option expense                                                  128,889                                       -
       Bad debt provision                                                        -                                        (393)
      Changes in operating assets and liabilities:
       Accounts receivable                                                  (293,375)                                 (134,767)
       Cost in excess of billings on uncompleted contracts                     3,979                                 1,073,275
       Inventory                                                            (507,863)                                 (213,042)
       Other current assets                                                  (89,361)                                    9,401
       Other assets                                                              -                                    (133,790)
        Accounts payable                                                      30,064                                  (175,399)
        Accrued expenses                                                     277,162                                   216,963
        Customer deposits                                                        -                                    (298,152)
        Deferred revenue                                                      72,420                                    54,489
                                                                       ----------------                          ----------------
  Net cash provided by operating activities                                  231,782                                   662,199
                                                                       ----------------                          ----------------
  Cash flows from investing activities:
       Capital expenditures                                                 (222,264)                                  (29,216)
                                                                       ----------------                          ----------------
  Net cash used in investing activities                                     (222,264)                                  (29,216)
                                                                       ----------------                          ----------------
  Cash flows from financing activities:
       Proceeds from short-term borrowings                                 1,310,000                                   400,000
       Payments of short-term borrowings                                  (1,285,000)                               (1,100,000)
       Proceeds from long-term debt                                          115,309                                         0
       Payments of long-term debt                                           (190,676)                                 (105,118)
       Net proceeds from stock options exercised                             129,875                                   134,100
                                                                       ----------------                          ----------------
  Net cash provided by (used in) financing activities                         79,508                                  (671,018)
                                                                       ----------------                          ----------------
  Net increase (decrease) in cash and cash equivalents                        89,026                                   (38,035)

  Cash and cash equivalents at beginning of period                           265,454                                   171,463
                                                                       ----------------                          ----------------
  Cash and cash equivalents at end of period                             $   354,480                               $   133,428
                                                                       ================                          ================
  Supplemental discolsure of cash flow information:

  Income taxes                                                           $     8,354                               $     3,718
                                                                       ================                          ================
  Interest paid                                                          $   172,109                               $   169,629
                                                                       ================                          ================
  Equipment reclassified to inventory                                    $    84,897                               $       -
                                                                       ================                          ================

  <FN>
  See notes to consolidated financial statements
  </TABLE>
                                                                  4

  <PAGE>
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  (UNAUDITED)

  NOTE 1: BASIS OF PRESENTATION

  The accompanying unaudited financial statements have been prepared in
  accordance with accounting principles generally accepted in the United
  States of America for interim financial information and with the
  instructions to Form 10-QSB and Item 310(b) of Regulation S-B.
  Accordingly, they do not include all of the information and footnotes
  required by accounting principles generally accepted in the United States
  of America for complete financial statements. In the opinion of
  management, all adjustments (consisting of normal recurring accruals)
  considered necessary in order to make the interim financials not
  misleading have been included and all such adjustments are of a normal
  recurring nature. The operating results for the three and nine months
  ended September 30, 2006 are not necessarily indicative of the results
  that can be expected for the year ending December 31, 2006.

  The balance sheet as of December 31, 2005 has been derived from the
  audited financial statements at such date, but does not include all of the
  information and footnotes required by accounting principles generally
  accepted in the United States of America for complete financial
  statements.

  The accounting policies followed by the Company are set forth in Note 2 to
  the Company's consolidated financial statements in the December 31, 2005
  Form 10-KSB.

  For further information, please refer to the consolidated financial
  statements and footnotes thereto included in the Company's Annual Report
  of Form 10-KSB for the year ended December 31, 2005.

  Intercompany transactions have been eliminated in consolidation.

  Certain reclassifications have been made to prior period financial
  statements to conform to the current year presentation.


                                      5
  <PAGE>
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  Revenue and Income Recognition

  The Company recognizes revenues and income using the percentage-of-
  completion method for custom production-type contracts while revenues from
  other products are recorded when such products are accepted and shipped.
  Profits on custom production-type contracts are recorded on the basis of
  the Company's estimates of the percentage-of-completion of individual
  contracts, commencing when progress reaches a point where experience is
  sufficient to estimate final results with reasonable accuracy. Under this
  method, revenues are recognized based on costs incurred to date compared
  with total estimated costs.


  The asset, "Costs and estimated earnings in excess of billings on
  uncompleted contracts," represents revenues recognized in excess of
  amounts billed.

  The liability, "Billings in excess of costs on uncompleted contracts"
  represents amounts billed in excess of revenues earned.

  Cash and Cash Equivalents

  The Company considers all highly liquid financial instruments purchased
  with an original maturity of three months or less at the date of purchase
  to be cash equivalents.

  Recent Accounting Pronouncements

  In July 2006, the Financial Accounting Standards Board ("FASB") issued
  FASB Interpretation No. ("FIN") 48, Accounting for Uncertainty in Income
  Taxes-an interpretation of FASB Statement No. 109 Accounting for Income
  Taxes, which clarifies the accounting for uncertainty in income taxes. FIN
  48 prescribes a recognition threshold and measurement attribute for the
  financial statement recognition and measurement of a tax position taken or
  expected to be taken in a tax return. The Interpretation requires that the
  Company recognize in the financial statements, the impact of a tax
  position, if that position is more likely than not of being sustained on
  audit, based on the technical merits of the position. FIN 48 also provides
  guidance on derecognition, classification, interest and penalties,
  accounting in interim periods and disclosure. The provisions of FIN 48 are
  effective for fiscal years beginning after December 15, 2006 with the
  cumulative effect of the change in accounting principle recorded as an
  adjustment to opening retained earnings. The Company is currently
  evaluating the impact of adopting FIN 48 on its financial statements.




                                      6
  <PAGE>
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  In September 2006, FASB issued Statement No. 157, Fair Value Measurements.
  This Statement defines fair value, establishes a framework for measuring
  fair value in generally accepted accounting principles and expands
  disclosures about fair value measurements. This Statement applies under
  other accounting pronouncements that require or permit fair value
  measurements. The other accounting pronouncements affected include
  Statements No. 107, Disclosures about Fair Value of Financial Instruments;
  No. 115, Accounting for Certain Investments; No. 124, Accounting for
  Certain Investments Held by Non-for-Profit Organizations; No. 133,
  Accounting for Derivative Instruments and Hedging Activities. Statement
  No. 157 is effective for financial statements issued for fiscal years
  after November 15, 2007 and interim periods within those fiscal years.
  Statement No. 157 is not expected to have a material impact on the
  Company's consolidated financial statements.

  NOTE 3: UNCOMPLETED CONTRACTS
  <TABLE>
  <CAPTION>
  Costs, estimated earnings and billings on uncompleted contracts are
  summarized as follows:

                                                             (Unaudited)
                                                          September 30, 2006     December 31, 2005
                                                          ------------------     ------------------
  <S>                                                     <C>                    <C>
  Costs incurred on uncompleted contracts                 $       388,463        $      961,735
  Estimated earnings                                              720,176               901,390
                                                          ------------------     ------------------
                                                               1,108 ,639             1,863,125
  Billings to date                                               (517,551)           (1,268,058)
                                                          ------------------     ------------------
                                                          $       591,088        $      595,067
                                                          ------------------     ------------------
  Included in accompanying balance sheets
    Under the following captions:

      Costs and estimated earnings in excess
          of billings on uncompleted contracts            $       591,088        $      595,067
      Billings in excess of costs and estimate
          earnings on uncompleted contracts                             0                     0
                                                          ------------------     ------------------
                                                          $       591,088        $      595,067
                                                          ------------------     ------------------
  </TABLE>

                                      7
  <PAGE>
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  NOTE 4:         INVENTORY
  <TABLE>
  <CAPTION>
  Inventories consist of the following:
                                                             (Unaudited)
                                                          September 30, 2006     December 31, 2005
                                                          ------------------     -----------------
  <S>                                                     <C>                    <C>
  Raw materials                                           $      938,014         $      849,355
  Work-in-process                                              1,393,040                854,115
  Finished goods                                                 328,961                363,785
                                                          ------------------     -----------------
                                                          $    2,660,015         $    2,067,255
                                                          ------------------     -----------------
  </TABLE>
  NOTE 5: BAD DEBTS

  Accounts receivables are presented net of an allowance for doubtful
  accounts of $8,597 as of September 30, 2006 and December 31, 2005,
  respectively. The allowance is based on prior experience and management's
  evaluation of the collectibility of accounts receivable. Management
  believes the allowance is adequate. However, future estimates may change
  based on changes in economic conditions.

  NOTE 6: SHORT TERM BORROWINGS
  <TABLE>
  <CAPTION>
                                                             (Unaudited)
                                                          September 30, 2006     December 31, 2005
                                                          ------------------     ------------------
  <S>                                                     <C>                    <C>
                                                          $      125,000         $     100,000
  </TABLE>
  The Company has a line of credit with a bank permitting it to borrow on a
  revolving basis amounts up to $1,250,000 until June 1, 2007. Interest is
  payable on any unpaid principal balance at the bank's prime rate plus 3/4
  of 1%. The prime rate was 8.25% and 7.25% and the amount outstanding on
  the facility was $125,000 and $100,000 on September 30, 2006 and December
  31, 2005 respectively. Borrowings are collateralized by the Company's
  assets.

  The Company has a line of credit for equipment purchases from the same
  bank permitting it to borrow up to 100% of the purchase price of the
  equipment. The amount borrowed is immediately converted into a five year
  term loan at the bank's prime rate plus 1 1/4%. As of September 30, 2006,
  there was approximately $81,000 outstanding on this facility. Borrowings
  are collateralized by the equipment purchased.

                                      8
  <PAGE>
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  NOTE 7: STOCK COMPENSATION EXPENSE

  On January 1, 2006, the Company adopted the provisions of SFAS No. 123-R
  "Share-Based Payment" using the modified prospective method. SFAS No. 123-
  R requires companies to recognize the cost of employee services received
  in exchange for awards of equity instruments based upon the grant date
  fair value of those awards. Under the modified prospective method of
  adopting SFAS No. 123-R, the Company recognized compensation cost for all
  share-based payments granted after January 1, 2006, plus any awards
  granted to employees prior to January 1, 2006 that remain unvested at that
  time. Under this method of adoption, no restatement of prior periods is
  made.

  Prior to January 1, 2006 the Company recognized the cost of employee
  services received in exchange for equity instruments in accordance with
  Accounting Principles Board Opinion No. 25 "Accounting for Stock Issued
  Employees" (APB 25). APB 25 required the use of the intrinsic value
  method, which measures compensation cost as the excess, if any, of the
  quoted market price of the stock over the amount the employee must pay for
  the stock. Compensation expense was measured under APB 25 on the date the
  shares were granted. Under APB 25, no compensation expense was recognized
  for stock options.

  During the three and nine months ended September 30, 2006 the Company
  recorded into selling and general administrative expense  approximately
  $33,000 and $129,000 respectively, for the cost of employee services
  received in exchange for equity instruments based on the grant-date fair
  value of those instruments in accordance with the provisions of SFAS No.
  123-R.

  During the three and nine months ended September 30, 2005 had the cost of
  employee services received in exchange for equity instruments been
  recognized based on the grant-date fair value of those instruments in
  accordance with the provisions of SFAS No. 123, the Company's net income
  and earnings per share would have been impacted as shown in the following
  table.


                                      9
  <PAGE>
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  <TABLE>
  <CAPTION>
                                       Three months ended September 30,    Nine months ended September 30,
                                                        2005                      2005
                                                   --------------            --------------
  <S>                                              <C>                       <C>
  Net income, as reported                          $      34,789             $     329,069

  Add: Stock-based employee
  compensation expense included in
  reported net income, net of
  related tax effects                                       --                        --

  Deduct: Total stock-based employee
  compensation expense determined
  under fair value based method for
  all awards, net of related tax effects                 (30,467)                  (34,846)
                                                   --------------            --------------
  Pro forma net income                             $       4,322             $     294,223
                                                   --------------            --------------
  Earnings (loss) per share:
          Basic-as reported                             $   0.01                  $   0.11
                                                   --------------            --------------
          Basic-pro forma                               $   0.00                  $   0.10
                                                   --------------            --------------

          Diluted-as reported                           $   0.01                  $   0.10
                                                   --------------            --------------
          Diluted-pro forma                             $   0.00                  $   0.09
                                                   --------------            --------------
  </TABLE>
  The historical pro-forma impact of applying the fair value method
  prescribed by SFAS No. 123 is not representative of the impact that may be
  expected in the future due to changes resulting from additional grants in
  future years and changes in assumptions such as volatility, interest rates
  and expected life used to estimate fair value of the grants in future
  years.



                                      10
  <PAGE>
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  NOTE 8: INCOME TAXES
  <TABLE>
  <CAPTION>
  The provision (benefit) for income taxes includes the following:
                                                 (Unaudited)                    (Unaudited)
                                              Three Months Ended             Nine Months Ended
                                              September 30, 2006             September 30, 2006
                                              ------------------             ------------------
        <S>                                   <C>                            <C>
        Current:
             Federal                          $      67,548                  $    281,635
             State                                   10,718                        10,841
                                              ------------------             ------------------
                  Total Current Provision            78,266                       292,476
          Deferred:
             Federal                                 75,308                      (  3,196)
             State                                   23,949                         3,410
                                              ------------------             ------------------
        Total Deferred (Benefit)                     99,257                           214
                                              ------------------             ------------------
                                              $     177,523                  $    292,690
                                              ------------------             ------------------
  </TABLE>
  All of the Company's federal and state net operating loss carry forwards
  of approximately $203,000 and $420,000 respectively, have been utilized
  through September 30, 2006. For the nine months ended September 30, 2006,
  the Company recorded a current income tax expense of approximately
  $293,000, which related to various federal, state and local taxes. The
  current income tax provision was reduced by approximately $94,000 as a
  result of the use of available net operating losses.


                                      11
  <PAGE>
  Item 2.   Management's Discussion and Analysis of Financial Condition and
  Results of Operations

  The following discussion and analysis should be read in conjunction with
  the consolidated financial statements and accompanying notes filed as part
  of this report.

  Except for historical information contained herein, this "Management's
  Discussion and Analysis of Financial Condition and Results of Operations"
  contains forward-looking statements within the meaning of the U.S. Private
  Securities Litigation Reform Act of 1995, as amended. These statements
  involve known and unknown risks, uncertainties and other factors which may
  cause the actual results, performance, or achievements of the Company to
  be materially different from any future results, performance, or
  achievements expressed or implied by such forward-looking statements.
  These forward-looking statements were based on various factors and were
  derived utilizing numerous important assumptions and other important
  factors that could cause actual results to differ materially from those in
  the forward-looking statements. Important assumptions and other factors
  that could cause actual results to differ materially from those in the
  forward-looking statements, include but are not limited to: competition in
  the Company's existing and potential future product lines of business; the
  Company's ability to obtain financing on acceptable terms if and when
  needed; uncertainty as to the Company's future profitability, uncertainty
  as to the future profitability of acquired businesses or product lines,
  uncertainty as to any future expansion of the Company. Other factors and
  assumptions not identified above were also involved in the derivation of
  these forward-looking statements and the failure of such assumptions to be
  realized as well as other factors may also cause actual results to differ
  materially from those projected. The Company assumes no obligation to
  update these forward looking statements to reflect actual results, changes
  in assumptions or changes in other factors affecting such forward-looking
  statements.
  Results of Operations

  Revenue for the three month period ended September 30, 2006 was $3,635,531
  compared to $2,851,327 for the three month period ended September 30,
  2005, representing an increase of $784,204 or 27.5%. As a result of an
  increase in the number of inquiries the Company has received and proposals
  the Company has submitted, the Company has experienced an increased demand
  for customized CVD systems along with requests for equipment provided by
  the First Nano product line.

  Revenue for the nine months ended September 30, 2006 was approximately
  $9,958,000 representing an increase of approximately $1,700,000 or 20.6%
  over the $8,258,000 of revenue for the nine months ended September 30,
  2005. This increase is a result of increased demand for the Company's
  products as discussed in the previous paragraph.

  The Company generated a gross profit of approximately $1,417,000 and a
  gross profit margin of 39.0% for the three months ended September 30, 2006
  compared to a gross profit of approximately $937,000 and a gross profit
  margin of 32.9% for the three months ended September 30, 2005. This
  increase in both gross profit and gross profit margin is attributable to
  the Company's successful efforts to control the direct costs incurred in
  manufacturing the product lines despite rising labor, insurance and energy
  costs.
                                      12
  <PAGE>
  The Company's gross profit increased 21.6% to approximately $3,553,000
  during the current nine month period compared to $2,923,000 in gross
  profit for the nine month period during the prior year. The gross profit
  margin increased to 35.7% for the nine months ended September 30, 2006
  compared to 35.4% for the nine months ended September 30, 2005. The
  Company was able to increase its gross profit margin despite increased
  labor costs as a result of the increased personnel needed to develop and
  expand the sales of the First Nano equipment line in addition to rising
  employee benefit, insurance and energy costs.

  Selling and shipping expenses for the three months ended September 30,
  2006 and 2005 were $222,391 and $181,752 respectively, representing a
  22.4% increase. The increase is primarily due to greater commissions
  earned as a result of projects being completed and shipped during the
  current three month period.

  Selling and shipping expenses for the nine months ended September 30, 2006
  were approximately $620,000 compared to $519,000 for the corresponding
  period one year ago, representing an increase of 19.5%. This increase is
  due to an increase in commissions earned and increased costs of trade
  shows attended by the Company.

  The Company incurred approximately $741,000 of general and administrative
  expenses during the period ended September 30, 2006, representing an
  increase of 5.8% or approximately $41,000 compared to the approximately
  $700,000 of general and administrative expenses incurred in the period
  ended September 30, 2005. As a result of the Company adopting the
  provisions of SFAS No. 123-R "Share-Based Payment" approximately $43,000
  of stock compensation costs were recognized in the current three month
  period which were not recognized last year. Other than the stock
  compensation costs, despite increasing labor, employee benefit, insurance
  and energy costs, the Company managed to avoid an increase in general and
  administrative costs

  General and administrative expenses for the nine months ended September
  30, 2006 were approximately $2,200,000 compared to $1,873,000 for the nine
  months ended September 30, 2005 representing a 17.5% increase as a result
  of a combination of increased personnel as well as various increases in
  employee benefit costs, insurance, professional fees and energy costs.
  Additionally, as a result of the Company adopting the provisions of SFAS
  No. 123-R "Share-Based Payment" approximately $129,000 of stock
  compensation costs were recognized in the current nine month period which
  were not recognized last year.

  Interest expense for the three months ended September 30, 2006 increased
  by 14.4% to $57,882 compared to $50,591 during the three months ended
  September 30, 2005. This is a result of increased borrowing and higher
  interest rates on the Company's revolving line of credit from its bank
  during the current three month period.

  Interest expense for the nine months ended September 30, 2006 increased by
  2.2% or $3,000 to approximately $173,000 compared to approximately
  $170,000 during the nine months ended September 30, 2005. This is a result
  of higher interest rates on the Company's revolving line of credit from
  its bank during the current nine month period.

                                      13
  <PAGE>
  Other income during the nine months ended September 30, 2006 was
  approximately $97,000 compared to approximately $34,000 for the
  corresponding period one year ago. This increase is the result of the
  Company receiving $70,000 for equipment sold to a former customer that
  filed a voluntary petition for relief under Chapter 11, in the United
  States Bankruptcy Court in February 2004. The Company had previously
  written off all accounts receivables from this customer.

  For the three and nine months ended September 30, 2006, the Company had
  earnings before taxes of approximately $406,000 and $658,000 compared to
  approximately $24,000 and $396,000 for the three and nine months ended
  September 30, 2005. For the nine months ended September 30, 2006 the
  Company recorded income tax expense of approximately $293,000 which
  related to various federal, state and local taxes. The current income tax
  provision was reduced by approximately $94,000 as a result of the use of
  available net operating losses.

  As a result of the foregoing factors, for the three and nine months ended
  September 30, 2006, the Company earned approximately $229,000 and $365,000
  respectively, compared to net income of approximately $35,000 and $329,000
  respectively, for the same periods, one year ago. The increase in earnings
  is a result of increased revenues during the current periods and the
  successful efforts of the Company to maintain costs despite the
  recognition of approximately $43,000 and $129,000 in stock compensation
  costs, respectively and an increase in personnel costs and insurance and
  energy costs.

  Liquidity and Capital Resources

  As of September 30, 2006, the Company had an aggregate working capital of
  approximately $3,755,000 compared to $3,123,000 at December 31, 2005 an
  increase of $632,000 or 20.2%

  Accounts receivable, net of allowances, as of September 30, 2006 was
  $2,187,040 compared to $1,893,665 as of December 31, 2005. This increase
  is attributable to timing of shipments and customer payments.

  As of September 30, 2006 the Company's backlog was approximately
  $3,143,000, an increase of $495,000 or 18.7% compared to $2,648,000 at
  December 31, 2005. The timing for completion of the backlog varies
  depending on the product mix, however, there is generally a one to six
  month lag in the completion and shipping of backlogged product.

  The Company has a revolving line of credit with a bank permitting it to
  borrow on a revolving basis amounts up to $1,250,000 until June 1, 2007.
  Interest is payable on any unpaid principal balance at the bank's prime
  rate plus 3/4 of 1%. As of September 30, 2006, $125,000 was outstanding on
  this facility. Borrowings are collateralized by the Company's assets.

  The Company also has an equipment line of credit of $250,000 with that
  same bank. The Company is permitted to borrow up to 100% of the purchase
  price of the equipment. The amount borrowed is immediately converted into
  a five year term loan at the bank's prime rate plus 11/4%. As of September
  30, 2006, there was approximately $81,000 outstanding on this facility.
  Borrowings are collateralized by the equipment purchased.

                                      14
  <PAGE>
  The Company believes that its cash, cash equivalents and available credit
  facilities will be sufficient to meet its working capital and investment
  requirements for the next twelve months. However, future growth, including
  potential acquisitions, may require additional funding, and from time to
  time the Company may need to raise capital through additional equity or
  debt financing.


  Item 3.         Controls and Procedures.

  Evaluation of Disclosure Controls and Procedures

  Our management, with the participation of our Chief Executive Officer and
  Chief Financial Officer, conducted an evaluation of the effectiveness of
  the design and operation of our disclosure controls and procedures, as
  required by Exchange Act Rule 13a-15, as of the end of the period covered
  by this report. Based upon that evaluation, the Chief Executive Officer
  and Chief Financial Officer have concluded that our disclosure controls
  and procedures were effective to insure that information required to be
  disclosed by us in reports that we file or submit under the Exchange Act
  is recorded, processed, summarized and reported within the time periods
  specified by the SEC's rules and forms.

  Changes in Internal Controls

  There were no significant changes in the Company's internal controls over
  financial reporting that occurred during the six months ended June 30,
  2006 that have materially affected, or are reasonably likely to materially
  affect, the internal controls over financial reporting.

  Limitations on the Effectiveness of Controls

  We believe that a control system, no matter how well designed and
  operated, cannot provide absolute assurance that the objectives of the
  control systems are met, and no evaluation of controls can provide
  absolute assurance that all control issues and instances of fraud, if any,
  within a company have been detected.


                                      15
  <PAGE>
                          CVD EQUIPMENT CORPORATION

  PART II

  OTHER INFORMATION


  Item 1.    Legal Proceedings.

                          None.

  Item 2.    Changes in Securities and Use of Proceeds.

                          None.

  Item 3.    Defaults Upon Senior Securities

                          None.

  Item 4.    Submission of Matters to a Vote of Security Holders.

            At our annual meeting of stockholders, which was held on
            September 13, 2006, our stockholders:

            (1)   Elected five nominees for directors to serve for a term
            ending in 2007;
            (2)   Approved the selection of Moore Stephens, P.C. as the
            Company's independent registered public accounting firm for the
            year ending December 31, 2006.

  The following tables show the common stock votes cast with respect to the
  proposals identified above:
  <TABLE>
  <CAPTION>
  Election of Directors:
                                                                  Withheld
                                          For                     Authority
                                        ------------            -----------
  <S>                                   <C>                     <C>
  Leonard A. Rosenbaum                   2,913,530                  4,138
  Martin J. Teitelbaum                   2,904,930                 12,738
  Alan H. Temple Jr.                     2,913,680                  3,988
  Conrad J. Gunther                      2,913,380                  4,288
  Bruce T. Swan                          2,913,380                  4,288
  </TABLE>
  <TABLE>
  <CAPTION>
  Proposal 2:
                           For            Against      Abstentions
                       ------------    ------------    ------------
                       <C>             <C>             <C>
                        2,916,780             888               0
  </TABLE>

                                      16
  <PAGE>
  Item 5.         Other Information.

                          None.

  Item 6.         Exhibits and Reports Filed on Form 8-K

                  (a)     Exhibits filed with this report:

  31.1      Certification of Chief Executive Officer

  31.2      Certification of Chief Financial Officer

  32.1      Certification of Chief Executive Officer pursuant to U.S.C.
            Section 1350

  32.2      Certification of Chief Financial Officer pursuant to U.S.C.
            Section 1350


                  (b)     Reports on Form 8-K

                                  None




                                      17
  <PAGE>
                                  SIGNATURES


  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  registrant has duly caused this report to be signed on its behalf by the
  undersigned, thereunto duly authorized, this 14th day of November 2006.

                                          CVD EQUIPMENT CORPORATION

                                          By: /s/ Leonard A. Rosenbaum
                                               Leonard A. Rosenbaum
                                              Chief Executive Officer
                                            (Principal Executive Officer)

                                          By: /s/ Glen R. Charles
                                                Glen R. Charles
                                                Chief Financial Officer
                                               (Principal Financial and
                                                     Accounting Officer)




                                      18
  <PAGE>
  EXHIBIT INDEX


  EXHIBIT
  NUMBER                          DESCRIPTION

  31.1      Certification of Chief Executive Officer *

  31.2      Certification of Chief Financial Officer *

  32.1      Certification of Chief Executive Officer pursuant to U.S.C.
            Section 1350 *

  32.2      Certification of Chief Financial Officer pursuant to U.S.C.
            Section 1350 *

  * Filed herewith


                                      19
  <PAGE>
                                                               Exhibit 31.1
                Certifications of Principal Executive Officer
          Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

  I, Leonard A. Rosenbaum, the principal executive officer of CVD Equipment
  Corporation, certify that:

    1. I have reviewed this quarterly report on Form 10-QSB  of  CVD
       Equipment Corporation;

    2. Based on my knowledge, this report does not contain any untrue
       statement of a material fact or omit to state a material fact
       necessary to make the statements made, in light of the circumstances
       under which such statements were made, not misleading with respect to
       the period covered by this report;

    3. Based on my knowledge, the financial statements, and other financial
       information included in this report, fairly present in all material
       respects the financial condition, results of operations and cash
       flows of the registrant as of, and for, the periods presented in this
       report.

    4. The registrant's other certifying officer and I are responsible for
       establishing and maintaining disclosure controls and procedures (as
       defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
       registrant and have:

         a. Designed such disclosure controls and procedures, or caused such
            disclosure controls and procedures to be designed under our
            supervision, to ensure that material information relating to the
            registrant, including its consolidated subsidiaries, is made
            known to us by others within those entities, particularly during
            the period in which this report is being prepared;
         b. Evaluated the effectiveness of the registrant's disclosure
            controls and procedures and presented in this report our
            conclusions about the effectiveness of the disclosure controls
            and procedures, as of the end of the period covered by this
            report based on such evaluation; and
         c. Disclosed in this report any change in the registrant's internal
            control over financial reporting that occurred during the
            registrant's most recent fiscal quarter (the registrant's fourth
            fiscal quarter in the case of an annual report) that has
            materially affected, or is reasonably likely to materially
            affect, the registrant's internal control over financial
            reporting; and

    5. The registrant's other certifying officer and I have disclosed, based
       on our most recent evaluation of internal control over financial
       reporting, to the registrant's auditors and the audit committee of
       the registrant's board of directors (or persons performing the
       equivalent functions):
         a. All significant deficiencies and material weaknesses in the
            design or operation of internal control over financial reporting
            which are reasonably likely to adversely affect the registrant's
            ability to record, process, summarize and report financial
            information; and
         b. Any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal control over financial reporting.


   Dated: November 14, 2006

     /s/ Leonard A. Rosenbaum
  ----------------------------------------
  President, Chief Executive Officer and Director



                                      20
  <PAGE>
                                                               Exhibit 31.2
                Certifications of Principal Financial Officer
          Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

  I, Glen R. Charles, the principal financial officer of CVD Equipment
  Corporation, certify that:

    1. I have reviewed this quarterly report on Form 10-QSB  of  CVD
       Equipment Corporation;

    2. Based on my knowledge, this report does not contain any untrue
       statement of a material fact or omit to state a material fact
       necessary to make the statements made, in light of the circumstances
       under which such statements were made, not misleading with respect to
       the period covered by this report;

    3. Based on my knowledge, the financial statements, and other financial
       information included in this report, fairly present in all material
       respects the financial condition, results of operations and cash
       flows of the registrant as of, and for, the periods presented in this
       report.

    4. The registrant's other certifying officer and I are responsible for
       establishing and maintaining disclosure controls and procedures (as
       defined in Exchange Act Rules 13a-15(e) and 15d-15(e) for the
       registrant and have:

         a. Designed such disclosure controls and procedures, or caused such
            disclosure controls and procedures to be designed under our
            supervision, to ensure that material information relating to the
            registrant, including its consolidated subsidiaries, is made
            known to us by others within those entities, particularly during
            the period in which this report is being prepared;
         b. Evaluated the effectiveness of the registrant's disclosure
            controls and procedures and presented in this report our
            conclusions about the effectiveness of the disclosure controls
            and procedures, as of the end of the period covered by this
            report based on such evaluation; and
         c. Disclosed in this report any change in the registrant's internal
            control over financial reporting that occurred during the
            registrant's most recent fiscal quarter (the registrant's fourth
            fiscal quarter in the case of an annual report) that has
            materially affected, or is reasonably likely to materially
            affect, the registrant's internal control over financial
            reporting; and

    5. The registrant's other certifying officer and I have disclosed, based
       on our most recent evaluation of internal control over financial
       reporting, to the registrant's auditors and the audit committee of
       the registrant's board of directors (or persons performing the
       equivalent functions):

         a. All significant deficiencies and material weaknesses in the
            design or operation of internal control over financial reporting
            which are reasonably likely to adversely affect the registrant's
            ability to record, process, summarize and report financial
            information; and
         b. Any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal controls over financial reporting.


    Dated: November 14, 2006

     /s/ Glen R. Charles
  ----------------------------------------
  Chief Financial Officer



                                      21
  <PAGE>
                                                               Exhibit 32.1

                 Certification of Principal Executive Officer
             Pursuant to Section 906 of the Sarbanes-Oxley Act of
                                     2002



  I, Leonard A. Rosenbaum, President and Chief Executive Officer of CVD
  Equipment Corporation, hereby certify, pursuant to Section 906 of the
  Sarbanes-Oxley Act of 2002, that to my knowledge, the quarterly report on
  Form 10-QSB for the period ending September 30, 2006 of CVD Equipment
  Corporation (the "Form 10-QSB") fully complies with the requirements of
  Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 and the
  information contained in the Form 10-QSB fairly presents, in all material
  respects, the financial condition and results of operations of CVD
  Equipment Corporation.


  Dated: November 14, 2006         /s/   Leonard A. Rosenbaum
                                        Leonard A. Rosenbaum
                                        Chief Executive Officer
                                        (Principal Executive Officer)




                                      22
  <PAGE>
                                                               Exhibit 32.2

                 Certification of Principal Financial Officer
             Pursuant to Section 906 of the Sarbanes-Oxley Act of
                                     2002



  I, Glen R. Charles, Chief Financial Officer of CVD Equipment Corporation,
  hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
  that to my knowledge, the quarterly report on Form 10-QSB for the period
  ending September 30, 2006 of CVD Equipment Corporation (the "Form 10-QSB")
  fully complies with the requirements of Section 13 (a) or 15 (d) of the
  Securities Exchange Act of 1934 and the information contained in the Form
  10-QSB fairly presents, in all material respects, the financial condition
  and results of operations of CVD Equipment Corporation.


  Dated: November 14, 2006      /s/   Glen R. Charles
                                      Glen R. Charles
                                      Chief Financial Officer
                                      (Principal Financial Officer)


                                      23