<PAGE> 1
   US SECURITIES AND EXCHANGE COMMISSION
   WASHINGTON, DC 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    ___9-30-99___

   ( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE EXCHANGE ACT
        For the transition period from___________to____________

        Commission file number ______2-97210-NY_____________

   CVD EQUIPMENT CORPORATION
   (Exact name of small business issuer as specified in its charter)

   NEW YORK
   (State or other jurisdiction of incorporation or organization)

   11-2621692
   (IRS Employer Identification Number)

   1881 LAKELAND AVENUE, RONKONKOMA, NY 11779
   (Address of principal executive offices)

   516-981-7081
   (Issuers Telephone Number)


 (Former name, former address, and former fiscal year,
  if changed since last report)

       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 periods 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____


   APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
   DURING THE PRECEDING FIVE YEARS
        Check whether the registrant filed all documents and reports required
   to be filed by Section 12, 13 or 15 (d) of the Exchange Act after the
   distribution of securities under a plan confirmed by a court.  Yes____No____

   APPLICABLE ONLY TO CORPORATE ISSUERS
        State the number of shares outstanding of each of the issuer's classes
   of common equity, as of the latest practicable date:

       2,918,750 SHARES OF COMMON STOCK, $.01 PAR VALUE AS OF 11-15-99

<PAGE> 2
 CVD EQUIPMENT CORPORATION
 NOTE TO FINANCIAL STATEMENTS
 FOR THE QUARTER ENDING
 SEPTEMBER 30, 1999

BASIS OF FINANCIAL STATEMENTS


The financial data is subject to year end audit and does not claim to be a
complete presentation since note disclosure under generally accepted
accounting procedures is not included.  Note disclosures required under
generally accepted accounting procedures are included in the Company's
audited financial statements filed as part of Form 10-KSB for the year ended
December 31, 1998.  Form 10-QSB should be read in conjunction with these
financial statements.

The results of operations for the three months are not necessarily indicative
of those for the full year.  In the opinion of management, the accompanying
unaudited financial statements contain all adjustments necessary to fairly
present the financial position and the results of operation for the periods
indicated.


<PAGE> 3
MANAGEMENT'S DISCUSSION

INTRODUCTION
Statements contained in this Report on Form 10-QSB that are not historical
facts are forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, including without limitation,
statements regarding industry trends, strategic business development, pursuit
of new markets, competition, results from operations, and are subject to the
safe harbor provisions created by that statute.  A forward-looking statement
may contain words such as "intends",  "plans", "anticipates", "believes",
"expect to", or words of similar import.  Management cautions that
forward-looking statements are subject to risks and uncertainties that could
cause the Company's actual results to differ materially from those projected.
These risks and uncertainties include, but are not limited to, marketing
success, product development, production, technological difficulties,
manufacturing costs, and changes in economic conditions in the markets the
Company serves.  The Company undertakes no obligation to release revisions
to forward-looking statements to reflect subsequent events, changed
circumstances, or the occurrence of unanticipated events.


FORWARD LOOKING STATEMENTS
Certain statements in this Management's Discussion and Analysis of Financial
Condition and Results of Operations constitute "forward looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward looking 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.

<PAGE> 4
YEAR 2000
The "Year 2000" issue is a result of computer systems that were programmed in
prior years using a two digit representation for the year.  Consequently, in
the Year 2000, date sensitive computer programs may interpret the date "00"
as 1900 rather than 2000.  The Company has completed an assessment of its
systems and those of our new Stainless Design Concepts division affected by
the Year 2000 issue and made the following determinations;

1. Readiness;
* Internal custom software - all internal software has been upgraded and is
  now Year 2000 compliant.
* Computers (hardware) - all hardware is now Year 2000 compliant.
* External standard software - all external software used is now Year 2000
  compliant.
* We have no manufacturing equipment with embedded technology (Non-IT), to
  cause a Year 2000 problem.
* Manual back-up systems are easily implemented in all areas in the event of
  a Year 2000 problem.
* The Company relies on third party service providers for services such as
  telecommunications, Internet service and utilities.  Interruption of these
  services due to Year 2000 issues could affect the Company's operations.
* A review of our significant component suppliers to determine the extent to
  which the Company is Year 2000 vulnerable has determined that sufficient
  alternate suppliers are available.
* A review of our customer base does not indicate that a Year 2000 issue
  should significantly adversely affect new order levels.

2. The costs to address the company's Year 2000 issues;
* Based upon the company's current evaluation, there should be no significant
  additional cost  incurred with achieving Year 2000 compliance.
* Costs for software and hardware to achieve Year 2000 compliance at
  Stainless Design Concepts division has not been significant. By using the
  same internal and external software as the parent company we have been able
  to achieve Year 2000 compliance rapidly and at minimum cost.

3. The risks of the company's Year 2000 issues;
* At this point in time, the company believes that it has minimum or no
  exposure to Year 2000 problems.

4. The company's contingency plans;
* All systems can be manually backed up and the company can change suppliers
  if required for purchases.

The conclusions herein are forward-looking statements and are based on
management's best estimates of future events.  Risks of having a Year 2000
problem include the ability to discover and correct potential Year 2000
sensitive problems and the ability of third party service providers to bring
their systems into Year 2000 compliance.


<PAGE> 5
                           CVD EQUIPMENT CORPORATION
                                BALANCE SHEETS
                              SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
                                                                 SEPTEMBER       31-Dec
                                                                  1999            1998
                                                                 (UNAUDITED)     (AUDITED)
                                                                 ------------    ------------
<S>                                                              <C>             <C>
ASSETS
CURRENT ASSETS
     CASH AND CASH EQUIVALENTS                                   $   143,565     $   127,489
     ACCOUNTS RECEIVABLE                                           1,011,427         347,126
     COST IN EXCESS OF BILLINGS ON UNCOMPLETED CONTRACTS             450,594       1,180,253
     SECURITIES AVAILABLE-FOR-SALE                                   317,250       1,018,340
     INVENTORY                                                       467,916         422,280
     PREPAID INCOME TAXES                                             16,932          60,540
     OTHER CURRENT ASSETS                                             53,253          33,212
                                                                 ------------    ------------
           TOTAL CURRENT ASSETS                                    2,460,937       3,189,240
PROPERTY, PLANT AND EQUIPMENT                                      2,264,234         832,171
DEFERRED TAX ASSET                                                   140,082         140,082
OTHER ASSETS                                                         168,854         151,713
                                                                 ------------    ------------
           TOTAL ASSETS                                          $ 5,034,107     $ 4,313,206
                                                                 ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
     SHORT-TERM BORROWINGS                                       $    86,500     $   300,000
     ACCOUNTS PAYABLE                                                148,378          67,156
     ACCRUED EXPENSES                                                228,159         144,972
     BILLINGS IN EXCESS OF COSTS ON UNCOMPLETED CONTRACTS               -             46,993
     DEFERRED TAX LIABILITY                                             -              5,905
     CURRENT MATURITIES OF LONG-TERM DEBT                             16,316           4,004
                                                                 ------------    ------------
           TOTAL CURRENT LIABILITIES                                 479,353         569,030
LONG-TERM DEBT                                                       984,173          17,137
                                                                 ------------    ------------
                                                                   1,463,526         586,167
                                                                 ------------    ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
     COMMON STOCK - $0.01 PAR - SHARES AUTHORIZED 10,000,000;
      ISSUED & OUTSTANDING 2,918,750                                  29,188          29,188
     ADDITIONAL PAID-IN CAPITAL                                    2,784,060       2,784,060
     RETAINED EARNINGS                                               779,538         901,356
     ACCUMULATED OTHER COMPREHENSIVE INCOME                          (22,205)         12,435
                                                                 ------------    ------------
           TOTAL STOCKHOLDERS' EQUITY                              3,570,581       3,727,039
                                                                 ------------    ------------
           TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY            $ 5,034,107     $ 4,313,206
                                                                 ============    ============

</TABLE>

<PAGE> 6
                          CVD EQUIPMENT CORPORATION
                STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                              SEPTEMBER 30, 1999
<TABLE>
<CAPTION>

                                                                        THREE MONTHS ENDED
                                                                           SEPTEMBER 30

                                                                    1999            1998
                                                                 (UNAUDITED)     (UNAUDITED)
                                                                 ------------    ------------
<S>                                                              <C>             <C>
REVENUES
     REVENUE ON COMPLETED CONTRACTS                              $ 1,419,793     $   502,268
     REVENUE ON UNCOMPLETED CONTRACTS                                294,176         196,731
                                                                 ------------    ------------
                                                 TOTAL REVENUES    1,713,969         698,999
                                                                 ------------    ------------
COSTS OF REVENUES
     COST ON COMPLETED CONTRACTS                                     873,071         238,696
     COST ON UNCOMPLETED CONTRACTS                                   210,499         214,527
                                                                 ------------    ------------
                                        TOTAL COSTS OF REVENUES    1,083,570         453,223
                                                                 ------------    ------------

                                                   GROSS PROFIT      630,399         245,776
                                                                 ------------    ------------
OPERATING EXPENSES
     SELLING AND SHIPPING                                            150,679          33,154
     GENERAL AND ADMINISTRATIVE                                      333,517         196,185
                                                                 ------------    ------------
                                       TOTAL OPERATING EXPENSES      484,196         229,339
                                                                 ------------    ------------
                                               OPERATING INCOME      146,203          16,437
                                                                 ------------    ------------
OTHER INCOME (EXPENSE)
     INTEREST INCOME                                                   8,444          19,975
     INTEREST EXPENSE                                                (19,008)           (346)
     GAIN ON SALE OF LAND                                               -               -
     OTHER INCOME                                                     (7,418)           (415)
                                                                 ------------    ------------
                                       TOTAL OTHER INCOME(LOSS)      (17,982)         19,214
                                                                 ------------    ------------

                                            INCOME BEFORE TAXES      128,221          35,651
INCOME TAX BENEFIT (PROVISION)                                          -             (7,907)
                                                                 ------------    ------------
                                                     NET INCOME      128,221          27,744

OTHER COMPREHENSIVE INCOME, NET OF TAX
     UNREALIZED LOSS ON SECURITIES AVAILABLE FOR SALE                (15,845)           -
                                                                 ------------    ------------
                                           COMPREHENSIVE INCOME  $   112,376     $    27,744
                                                                 ============    ============


EARNINGS PER SHARE
     BASIC                                                       $     0.04      $     0.01
     DILUTED                                                     $     0.04      $     0.01

WEIGHTED AVERAGE SHARES
     BASIC                                                         2,918,750       2,918,750
     DILUTED                                                       2,989,114       2,993,776
</TABLE>


<PAGE> 7
                          CVD EQUIPMENT CORPORATION
                 STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                              SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
                                                                      NINE MONTHS ENDED
                                                                         SEPTEMBER 30

                                                                    1999            1998
                                                                 (UNAUDITED)     (UNAUDITED)
                                                                 ------------    ------------
<S>                                                              <C>             <C>
REVENUES
     REVENUE ON COMPLETED CONTRACTS                              $ 3,001,719     $   855,157
     REVENUE ON UNCOMPLETED CONTRACTS                                941,452       1,715,049
                                                                 ------------    ------------
                                                 TOTAL REVENUES    3,943,171       2,570,206
                                                                 ------------    ------------
COSTS OF REVENUES
     COST ON COMPLETED CONTRACTS                                   2,165,780         625,024
     COST ON UNCOMPLETED CONTRACTS                                   533,178       1,139,450
                                                                 ------------    ------------
                                        TOTAL COSTS OF REVENUES    2,698,958       1,764,474
                                                                 ------------    ------------

                                                   GROSS PROFIT    1,244,213         805,732
                                                                 ------------    ------------
OPERATING EXPENSES
     SELLING AND SHIPPING                                            432,038         118,870
     GENERAL AND ADMINISTRATIVE                                      934,988         602,340
                                                                 ------------    ------------
                                       TOTAL OPERATING EXPENSES    1,367,026         721,210
                                                                 ------------    ------------
                                         OPERATING INCOME(LOSS)     (122,813)         84,522
                                                                 ------------    ------------
OTHER INCOME (EXPENSE)
     INTEREST INCOME                                                  38,279          54,025
     INTEREST EXPENSE                                                (35,529)           (959)
     GAIN ON SALE OF LAND                                               -            164,442
     OTHER INCOME                                                     (2,312)          1,871
                                                                 ------------    ------------
                                             TOTAL OTHER INCOME          438         219,379
                                                                 ------------    ------------

                                      INCOME(LOSS) BEFORE TAXES     (122,375)        303,901
INCOME TAX BENEFIT (PROVISION)                                           556         (76,013)
                                                                 ------------    ------------
                                              NET INCOME (LOSS)     (121,819)        227,888

OTHER COMPREHENSIVE INCOME, NET OF TAX
     UNREALIZED LOSS ON SECURITIES AVAILABLE FOR SALE                (34,640)           -
                                                                 ------------    ------------
                                    COMPREHENSIVE INCOME (LOSS)  $  (156,459)    $   227,888
                                                                 ============    ============


EARNINGS PER SHARE
     BASIC                                                       $     (0.04)    $     0.08
     DILUTED                                                     $     (0.04)    $     0.08

WEIGHTED AVERAGE SHARES
     BASIC                                                          2,918,750      2,918,750
     DILUTED                                                        2,991,337      2,995,458
</TABLE>

<PAGE> 8
                          CVD EQUIPMENT CORPORATION
                           STATEMENT OF CASH FLOWS
                              SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
                                                                      THREE MONTHS ENDED
                                                                         SEPTEMBER 30

                                                                    1999            1998
                                                                 (UNAUDITED)     (UNAUDITED)
                                                                 ------------    ------------
<S>                                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     NET  INCOME                                                 $   128,221     $    27,744
     ADJUSTMENTS TO RECONCILE NET INCOME TO NET
         CASH USED IN OPERATING ACTIVITIES:
     DEFERRED TAX PROVISION (BENEFIT)                                   -               -
     DEPRECIATION AND AMORTIZATION                                    58,208          52,409
    (INCREASE) DECREASE IN:
     ACCOUNTS RECEIVABLES                                           (620,429)       (187,478)
     COST IN EXCESS OF BILLINGS ON UNCOMPLETED CONTRACTS              56,506         231,951
     INVENTORY                                                       (19,714)         (4,257)
     PREPAID INCOME TAXES                                             50,794          64,552
     OTHER CURRENT ASSETS                                            (25,365)        (44,424)
     OTHER ASSETS                                                        465         (70,299)
     INCREASE (DECREASE) IN:
        ACCOUNTS PAYABLE                                             (83,099)       (124,917)
        ACCRUED EXPENSES                                              83,584         (36,921)
                                                                 ------------    ------------
        NET CASH USED IN OPERATING ACTIVITIES                       (370,829)        (91,640)
                                                                 ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES
     PROCEEDS FROM DISPOSITION OF LAND                                  -               -
     CAPITAL EXPENSE.EQUIPMENT                                       (42,143)        (32,138)
     CAPITAL EXPENSE... BUILDING                                    (108,000)           -
     SALE OF SECURITIES                                              150,000            -
                                                                 ------------    ------------
        NET CASH USED IN INVESTING ACTIVITIES                           (143)        (32,138)
                                                                 ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES
     PROCEEDS - CURRENT                                               89,498              69
     PROCEEDS (PAYMENT) - LONGTERM                                    79,468          (1,210)
                                                                 ------------    ------------
        NET CASH  PROVIDED BY (USED IN) FINANCING ACTIVITIES         168,966          (1,141)
                                                                 ------------    ------------
        NET DECREASE IN CASH AND CASH EQUIVALENTS                   (202,006)       (124,919)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE QUARTER            345,571         962,123
                                                                 ------------    ------------

        CASH AND CASH EQUIVALENTS AT THE END OF THE QUARTER      $   143,565     $   837,204
                                                                 ============    ============
</TABLE>
<PAGE> 9

                          CVD EQUIPMENT CORPORATION
                           STATEMENT OF CASH FLOWS
                              SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
                                                                      NINE MONTHS ENDED
                                                                         SEPTEMBER 30

                                                                    1999            1998
                                                                 (UNAUDITED)     (UNAUDITED)
                                                                 ------------    ------------
<S>                                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     NET  INCOME (LOSS)                                          $  (121,819)    $   227,888
     ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET
         CASH PROVIDED BY OPERATING ACTIVITIES:
     DEPRECIATION AND AMORTIZATION                                   172,628         109,820
    GAIN ON DISPOSITION OF LAND                                         -           (164,442)
    (INCREASE) DECREASE IN:
     ACCOUNTS RECEIVABLES                                           (664,301)        (69,630)
     COST IN EXCESS OF BILLINGS ON UNCOMPLETED CONTRACTS             729,659         167,299
     INVENTORY                                                       (45,636)         51,500
     PREPAID INCOME TAXES                                             43,606          64,552
     OTHER CURRENT ASSETS                                             (9,492)          6,791
     OTHER ASSETS                                                    (40,550)       (131,554)
     INCREASE (DECREASE) IN:
        ACCOUNTS PAYABLE                                              81,222         (30,189)
        ACCRUED EXPENSES                                              83,186          22,887
        BILLINGS IN EXCESS OF COSTS ON UNCOMPLETED CONTRACTS         (46,993)           -
                                                                 ------------    ------------

              NET CASH PROVIDED BY OPERATING ACTIVITIES              181,510         254,922
                                                                 ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES
     PROCEEDS FROM DISPOSITION OF LAND                                  -            715,381
     CAPITAL EXPENSE.EQUIPMENT                                       (73,283)       (153,151)
     CAPITAL EXPENSE.BUILDING                                     (1,508,000)           -
     SALE OF SECURITIES                                              650,000        (750,000)
                                                                 ------------    ------------

              NET CASH USED IN INVESTING ACTIVITIES                 (931,283)       (187,770)
                                                                 ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES
     PAYMENT (PROCEEDS) - CURRENT                                   (201,187)          4,734
     PROCEEDS - LONGTERM                                             967,036          17,954
     PROCEEDS FROM OFFICER LOAN RECEIVABLE                              -            507,888
                                                                 ------------    ------------

              NET CASH PROVIDED BY FINANCING ACTIVITIES              765,849         530,576
                                                                 ------------    ------------

              NET INCREASE IN CASH AND CASH EQUIVALENTS               16,076         597,728

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                 127,489         239,476
                                                                 ------------    ------------

             CASH AND CASH EQUIVALENTS AT END OF THE PERIOD      $   143,565     $   837,204
                                                                 ============    ============
</TABLE>

<PAGE> 10


              ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  THREE MONTHS ENDED SEPTEMBER 30, 1999

REVENUE
An increase in volume resulted in revenue for the third quarter 1999 being
$1,713,969, which was a 145% increase from third quarter 1998 revenues of
$698,999.

COSTS AND EXPENSES
The actual cost of revenue increased to $1,083,570 in the third quarter of
1999 when compared to $453,223 in the third quarter of 1998. Of this
$630,347 increase, $14,000 is attributed to depreciation expenses, $31,000
to utility expenses, $50,000 to salaries, $470,000 to material and $57,000
to capitalized labor.

Selling and shipping expenses increased to $150,679 in the third quarter of
1999 when compared to $33,154 in the third quarter of 1998. Of this $117,525
increase, $84,000 is attributed to salaries and $22,000 to travel expense.

General and Administrative expenses increased to $333,517 in the third
quarter of 1999 when compared to $196,185 in the third quarter of 1998. Of
this $137,332 increase, $22,000 is attributed to bad debt, $7,500 to building
maintenance, $6,500 to equipment maintenance, $ 3,000 to accounting fees,
$74,000 to salaries, and $6,400, to depreciation expenses.

Interest expense increased by $18,662 from 1998 to 1999, since the company's
average outstanding debt increased in 1999.

The significant increase in Costs and Expenses in the third quarter of 1999
over prior periods is associated with the startup of our new Stainless Design
Concepts division located at 1117 Old Kings Highway, Saugerties, NY 12477.
The new division was fully operational during the second quarter of 1999 and
continues to contribute to increase corporate revenues.

LIQUIDITY AND CAPITAL RESOURCES
The Company's cash position decreased by $202,006 for the third quarter
ending 1999. This decrease in cash is largely attributed to the 158%
increase in accounts receivables.

Third quarter ending 1999 accounts receivable increased to $1,011,427 from
$390,998 from the second quarter ending 1999.  The increase in receivables
is associated with the timing of accounts receivable payments and shipments.



<PAGE> 11




          ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                   NINE MONTHS ENDED SEPTEMBER 30, 1999


REVENUE
An increase in volume resulted in revenue for nine months ending 1999 being
$3,943,171 which was a 53% increase from nine months ending 1998 revenues of
$2,570,206.

COSTS AND EXPENSES

The actual cost of revenue increased to $2,698,958 in the nine months ending
of 1999 when compared to $1,764,474 in the nine months ending of 1998. Of
this $934,484 increase, $43,000 is attributed to depreciation expenses,
$72,000 to utility expenses, $136,000 to salaries, $492,000 to material and
$175,000 to capitalized labor.

Selling and shipping expenses increased to $432,038 in the nine months ending
of 1999 when compared to $118,870 in the nine months ending of 1998. Of this
$313,168 increase, $280,000 is attributed to salaries and $22,000 to travel
expense.

General and Administrative expenses increased to $934,988 in the nine months
ending of 1999 when compared to $602,340 in the nine months ending of 1998.
Of this $332,648 increase, $22,000 is attributed to bad debt, $17,000 to
consulting fees, $19,000 to depreciation expenses, $16,000 to building
maintenance, $11,000 to equipment maintenance, $ 16,000 to accounting fees,
$16,000 to legal fees, and $191,000 to salaries.

Interest expense increased by $34,570 from 1998 to 1999, since the company's
average outstanding debt increased in 1999.

The significant increase in Costs and Expenses for nine months ending of 1999
over prior periods is associated with the startup of our new Stainless Design
Concepts division located at 1117 Old Kings Highway, Saugerties, NY 12477.
The new division was fully operational during the second quarter of 1999 and
continues to contribute to increase corporate revenues.

<PAGE> 12








SIGNATURES


Pursuant to the requirements of Section 13 or 15 (d) 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
15th day of November 1999.

                              CVD EQUIPMENT CORPORATION

                              By: /s/ Leonard A. Rosenbaum
                                  Leonard A. Rosenbaum
                                  President and Chief Executive Officer


Pursuant to the requirements of the Securities and Exchange Act of 1934, this
report signed below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated.


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




/s/ Mitchell Drucker         Chief Financial Officer
Mitchell Drucker