UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                ----------------

                                  Form 10-QSB/A
                                 Amendment No. 1

(Mark One)
     [X]  QUARTERLY  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
          EXCHANGE ACT OF 1934.
                  For the quarterly period ended June 30, 2007
     [_]  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       (I.R.S. Employer Identification No.)
     Incorporation or Organization)

                              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:  3,335,000 shares of Common
Stock, $0.01 par value at August 3, 2007.

<PAGE>

                    CVD EQUIPMENT CORPORATION AND SUBSIDIARY

                                      Index

<TABLE>
<CAPTION>

Part I - Financial Information

<S>                                             <C> <C>                           <C> <C>                               <C>
          Item 1 - Financial Statements (Unaudited)

          Consolidated  Balance Sheets at June 30, 2007 (Unaudited) and December
          31, 2006                                                                                                      2

          Comparative  Consolidated Statements of Operations (Unaudited) for the
          three and six months ended June 30, 2007 and 2006                                                             3

          Comparative  Consolidated Statements of Cash Flows (Unaudited) for the
          six months ended June 30, 2007 and 2006                                                                       4

          Notes to Unaudited Consolidated Financial Statements                                                          5

          Item 2 - Management's  Discussion and Analysis of Financial  Condition
          and Results of Operations                                                                                     10

          Item 3 - Controls and Procedures                                                                              13

Part II - Other Information                                                                                             14

          Item 1 - Legal Proceedings                                                                                    14
          Item 2 - Changes in Securities and Use of Proceeds                                                            14
          Item 3 - Defaults Upon Senior Securities                                                                      14
          Item 4 - Submission of Matters to a Vote of Security Holders                                                  14
          Item 5 - Other Information                                                                                    14
          Item 6 - Exhibits and Reports Filed on Form 8-K                                                               15

Signatures                                                                                                              16

Exhibit Index                                                                                                           17
Certification of Chief Executive Officer                                                                                18
Certification of Chief Financial Officer                                                                                19
Certification of Chief Executive Officer pursuant to U.S.C. Section 1350                                                20
Certification of Chief Financial Officer pursuant to U.S.C. Section 1350                                                21
</TABLE>


<PAGE>

                                EXPLANATORY NOTE

     This Amendment No. 1 to the  Registrant's  Quarterly  Report on Form 10-QSB
for the fiscal quarter ended June 30, 2007, originally filed August 6, 2007 (the
"Original  Quarterly  Report"),  is being filed  solely to amend Part I, Item 1.
This  Amendment  No. 1 speaks as of the  original  filing  date of the  Original
Quarterly  Report and does not reflect events occurring after the filing date of
the Original  Quarterly Report,  or modify or update the disclosures  therein in
any way,  other than as required to amend Part I, Item 1. This  Amendment  No. 1
corrects  the entries  under the "Income  Taxes Paid" and  "Interest  Paid" line
items in Registrant's  Consolidated  Statements of Cash Flows for the Six Months
ended June 30, 2006 and 2007 the headings of which had been transposed. No other
corrections to Registrant's financial statements have been made.


                         PART 1 - FINANCIAL INFORMATION
                          Item 1 - Financial Statements

                    CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                           Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                    June 30, 2007
                                                                      (Unaudited)                    December 31, 2006
                                                                -----------------------             ---------------------
ASSETS
Current Assets:
<S>                                                                        <C>                              <C>
     Cash and cash equivalents                                             $   199,621                      $    257,341
     Accounts receivable, net                                                1,486,502                         2,377,069
     Investments                                                               251,130                           251,130
     Costs and estimated earnings in excess of billings on
        uncompleted contracts                                                1,787,089                           716,663
     Inventories                                                             2,903,676                         2,704,506
     Other current assets                                                      178,251                           118,300
                                                                         -------------                   ---------------
    Total current assets                                                     6,806,269                         6,425,009

Property, plant and equipment, net                                           5,029,155                         4,778,807
Deferred income taxes                                                          943,218                           899,904
Other assets                                                                   632,115                           708,114
Intangible assets, net                                                          94,457                           105,775
                                                                         -------------                   ---------------
                                                                         $  13,505,214                   $    12,917,609
                                                                         =============                   ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
     Current maturities of long-term debt                                  $   225,550                      $    223,653
     Bank line of credit                                                             -                           210,000
     Short-term debt                                                                 -                             2,109
     Accounts payable                                                          556,093                           640,771
     Accrued expenses                                                          785,211                           686,771
     Accrued professional fees - related party                                  35,000                            35,000
     Deferred revenue                                                           12,881                           212,250
     Deferred tax liability                                                    256,096                           263,396
                                                                         -------------                   ---------------

     Total current liabilities                                               1,870,831                         2,273,950
Long-term debt, net of current portion                                       2,790,933                         2,776,801
Bank line of credit                                                            585,000                                 -
Deferred tax liability                                                        620,934                            666,948
                                                                         -------------                   ---------------
     Total liabilities                                                      5,867,698                          5,717,699
                                                                         -------------                   ---------------
Commitments and contingencies
                                                                                   ---                               ---
Stockholders' Equity
Common stock, par value $.01 per share, authorized 10,000,000
  shares; issued and outstanding, 3,303,500 shares at
  June 30, 2007 and 3,250,500 shares at December 31, 2006                       33,035                            32,505
     Additional paid-in capital                                              3,581,213                         3,405,474
     Retained earnings                                                      4,023,268                          3,761,931
                                                                         -------------                   ---------------
Total stockholders' equity                                                  7,637,516                          7,199,910
                                                                         -------------                   ---------------
                                                                        $  13,505,214                    $    12,917,609
                                                                        ==============                   ===============





                  The accompanying notes are an integral part of the consolidated financial statements
</TABLE>


                                       2
<PAGE>



                                       CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                                         Consolidated Statements of Operations
                                                      (Unaudited)
<TABLE>
<CAPTION>

                                                  Three Months Ended                        Six Months Ended
                                                       June 30                                  June 30
                                               2007                 2006               2007                2006
                                       ---------------------- ------------------ ------------------ --------------------

<S>                                              <C>                <C>                 <C>                  <C>
Revenue                                          $ 3,071,244        $ 3,111,132         $6,882,521           $6,322,605

Cost of revenue                                    1,899,693          2,044,806          4,455,022            4,186,182
                                                 -----------        -----------         ----------            ---------

Gross profit                                       1,171,551          1,066,326          2,427,499            2,136,423
                                                 -----------        -----------         ----------            ---------

Operating expenses
  Selling and shipping                               148,260            200,362            426,570              397,231
  General and administrative                         780,020            731,441          1,543,246            1,449,650
  Related party - professional fees                   25,000             10,000             35,000               10,000
                                                 -----------        -----------         ----------            ---------
Total operating expenses                             953,280            941,803          2,004,816            1,856,881

Operating income                                     218,271            124,523            422,683              279,542
                                                 -----------        -----------         ----------            ---------

Other income (expense)
  Interest income                                         34                387                 61                  408
  Interest expense                                  (52,300)           (58,880)          (105,773)            (115,527)
  Other income                                        34,309             11,285             39,403               86,754
                                                 -----------        -----------         ----------            ---------
Total other (expense)                               (17,957)           (47,208)           (66,309)             (28,365)

Income before income taxes                           200,314             77,315            356,374              251,177

Income tax provision                                (35,387)           (54,252)           (95,037)            (115,167)
                                                 -----------        -----------         ----------            ---------

Net income                                       $   164,927        $    23,063            261,337           $  136,010
                                                 ===========        ===========         ==========           ==========

Basic income per share                           $      0.05        $      0.01         $     0.08           $     0.04
                                                 ===========        ===========         ==========           ==========

Diluted income per common share                  $      0.05        $      0.01         $     0.08           $     0.04
                                                 ===========        ===========         ==========           ==========

Weighted average common shares
outstanding basic income per share                 3,286,732          3,146,273          3,292,660            3,135,314

Effect of potential common share
issuances Stock options                              151,480            155,102            139,432              158,769
                                                 -----------        -----------         ----------            ---------

Weighted average common shares
outstanding diluted income per share              3,438,212          3,301,375          3,432,092            3,294,083
                                                 ===========        ===========         ==========           ==========





                 The accompanying notes are an integral part of the consolidated financial statements

</TABLE>



                                       3
<PAGE>

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

<TABLE>
<CAPTION>

                                                                                          Six Months Ended
                                                                                              June 30
                                                                                    2007                     2006
                                                                          ------------------------- -----------------------
Cash flows from operating activities
<S>                                                                                    <C>                    <C>
  Net income                                                                           $   261,337            $    136,010
  Adjustments to reconcile net income to net cash (used in)
    provided by operating activities:

  Stock based compensation expense                                                          85,268                  85,926
  Depreciation and amortization                                                            211,638                 169,319
  Deferred tax benefit                                                                    (96,628)                (99,043)

  Bad debt provision                                                                       (2,000)                       -
  Changes in operating assets and liabilities:
  Accounts receivable                                                                      892,566               (423,338)
  Cost in excess of billings on uncompleted contracts                                  (1,070,426)                 207,000
  Inventory                                                                              (199,170)               (544,114)
  Other current assets                                                                    (59,951)                (49,180)

  Accounts payable                                                                        (84,678)                  30,650
  Accrued expenses                                                                          98,443                 275,575

  Deferred revenue                                                                       (199,369)                 239,486
                                                                                      ------------             -----------
Net cash (used in) provided by operating activities                                      (162,970)                 28,291
                                                                                      ------------             -----------
Cash flows from investing activities:
  Capital expenditures                                                                   (388,435)               (191,064)
   Deposits                                                                                 13,766                     -
                                                                                      ------------             -----------
Net cash used in investing activities                                                    (374,669)               (191,064)
                                                                                      ------------             -----------
Cash flows from financing activities:
  Proceeds from short-term borrowings                                                    1,125,000                 840,000
  Payments of short-term borrowings                                                    (1,335,000)               (400,000)
  Proceeds from bank line of credit - long-term                                            585,000                       -
  Proceeds from long-term debt                                                             139,510                 115,309
  Payments of long-term debt                                                             (125,591)               (126,808)
  Net proceeds from stock options exercised                                                 91,000                  43,750
                                                                                      ------------             -----------
Net cash provided by financing activities                                                  479,919                 472,251
                                                                                      ------------             -----------

Net (decrease) increase in cash and cash equivalents                                      (57,720)                 309,478


Cash and cash equivalents at beginning of period                                           257,341                 265,454
                                                                                      ------------             -----------

Cash and cash equivalents at end of period                                            $    199,621            $    574,932
                                                                                      ============            ============

Supplemental disclosure of cash flow information


Interest Paid                                                                         $    104,250            $    119,198

Income Taxes Paid                                                                     $    101,447            $        100






                   The accompanying notes are an integral part of the consolidated financial statements

</TABLE>



                                       4
<PAGE>


                    CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                   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 six  months  ended  June 30,  2007 are not
necessarily  indicative  of the results that can be expected for the year ending
December 31, 2007.

The balance  sheet as of December  31,  2006 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,  2006 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, 2006.

Intercompany transactions have been eliminated in consolidation.

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

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation
---------------------------

The  consolidated  financial  statements  include the accounts of CVD  Equipment
Corporation  and its wholly owned  subsidiary.  In December 1998 , a subsidiary,
Stainless Design Concepts, Ltd., was formed as a New York Corporation.  In April
1999, this subsidiary was merged into CVD Equipment Corporation. The Company has
one inactive subsidiary,  CVD Materials  Corporation as of December 31, 2006 and
2005.  All  significant   intercompany   accounts  and  transactions  have  been
eliminated in consolidation.




                                       5
<PAGE>

               CVD EQUIPMENT CORPORATION AND SUBSIDIARY NOTES TO
                 CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Use of Estimates
----------------

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting  period.  Actual results could differ from those estimates.
Estimates  are used when  accounting  for  certain  items  such as  revenues  on
long-term   contracts   recognized  on  the   percentage-of-completion   method,
allowances for doubtful accounts,  depreciation and amortization, tax provisions
and product warranties.

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.

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.

Investments
-----------

Investments  in  unconsolidated  companies in which the Company owns less than a
20% interest or does not exercise a significant influence are carried at cost.





                                       6
<PAGE>

                    CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

NOTE 3: UNCOMPLETED CONTRACTS

Costs,  estimated earnings and billings on uncompleted  contracts are summarized
as follows:

                                            June 30, 2007     December 31, 2006
                                            -------------     -----------------
                                                                 (Audited)

Costs incurred on uncompleted contracts      $ 1,959,177          $1,509,672
Estimated earnings                             2,954,762           2,015,836
                                             ------------         ----------
                                               5,039,946           3,525,508
Billings to date                              (3,252,857)        (2,808,845)
                                             ------------        ------------
                                             $ 1,787,089          $  716,663
                                             ------------        ------------

Included in accompanying balance sheets
  Under the following caption:

    Costs and estimated earnings in excess
      of billings on uncompleted contracts   $  1,787,089         $  716,663

NOTE 4: INVENTORIES

Inventories consist of the following:

                                             June 30, 2007    December 31, 2006
                                             -------------    -----------------
                                                                  (Audited)

Raw materials                                $   876,432        $    860,085
Work-in-process                                1,698,283           1,515,460
Finished goods                                   328,961             328,961
                                             -------------      -------------

                                              $2,903,676         $ 2,704,506
                                             -------------      -------------

NOTE 5: BAD DEBTS

Accounts  receivables are presented net of an allowance for doubtful accounts of
$5,217 and $7,217 as of June 30, 2007 and  December 31, 2006  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.




                                       7
<PAGE>

                    CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 6: BANK LINE OF CREDIT

                                             June 30, 2007    December 31, 2006
                                             -------------    -----------------
                                                                  (Audited)

Short Term Borrowings                        $    ---             $210,000
Long term Borrowings                         $585,000                  ---

On June 1, 2007,  the Company  entered into a new  three-year  Revolving  Credit
Agreement with a bank permitting it to borrow on a revolving basis amounts up to
$2,000,000  until June 1,  2010.  Interest  is  payable on any unpaid  principal
balance at a rate per annum to be elected by the Company which shall be equal to
either (1) the LIBOR  Rate plus  2.50% or the bank's  prime rate plus 1/4 of 1%.
The amount  outstanding  on the  facility  was $585,000 and $210,000 on June 30,
2007 and December 31, 2006  respectively.  Borrowings are  collateralized by the
Company's  assets.  Amounts  outstanding  as of December 31, 2006 were  borrowed
under the Company's prior facility which is now terminated.

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.

During  the three and six  months  ended June 30,  2007 and June 30,  2006,  the
Company recorded into selling and general  administrative  expense approximately
$44,000  and  $85,000  and  $33,000  and  $86,000  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.



                                       8
<PAGE>

                    CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 8: INCOME TAXES

The provision (benefit) for income taxes includes the following:
<TABLE>
<CAPTION>

                                                 Six Months Ended                  Six Months Ended
                                                 June 30, 2007                     June 30, 2006
                                                 -------------                     -------------

         Current:
<S>                                              <C>                               <C>
            Federal                              $      166,981                    $    214,087
            State                                        24,684                             123
                                                 --------------                    ------------
                  Total Current Provision               191,665                         214,210
         Deferred:
            Federal                                     (88,423)                       (78,504)
            State                                      (  8,205)                       (20,539)
                                                 ---------------                   ------------
                  Total Deferred (Benefit)              (96,628)                       (99,043)
                                                 ---------------                   ------------
                                                 $        95,037                   $    115,167
                                                 ---------------                   ------------
</TABLE>

All of the  Company's  federal net  operating  loss  (NOL'S)  carry  forwards of
approximately  $40,000 have been utilized and $276,000 of the Company's $277,000
state net operating loss (NOL'S) carry forwards have been utilized  through June
30, 2007.

NOTE 9:  SUBSEQUENT EVENTS

The Company sold  equipment  to a Customer  for a purchase  price of one hundred
four  thousand,  four hundred eighty two (104,482)  shares of common stock,  par
value $.001 per share.  Between July 19, 2007 and July 31, 2007, the Company has
the option to demand  that the  Customer  make cash  payment  i.e.:  two hundred
fifty-one  thousand,  one hundred thirty 00/100 U.S. dollars  ($251,130) for the
equipment,  the amount that would have been  required had the Customer made cash
payment for the  equipment  on July 19, 2006 in exchange  for the return of said
stock.The  Customer's  obligation to make such payment  pursuant to the terms of
the option is secured by a  perfected  lien upon the subject  equipment  and the
Company's  right to execute upon the aforesaid  common  stock.  In the event the
Customer does not make full payment,  the Company has also reserved the right to
maintain plenary  proceedings against the Customer for the purpose of recovering
such sums as may be due as well as the right to obtain a deficiency  judgment in
the event that the  collateral  in the equipment  and stock is  insufficient  to
discharge said obligation.

The  parties  agreed to extend the option to demand  cash  payment to the period
between December 1, 2007 and March 12, 2008.


                                       9
<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
Three and Six Months Ended June 30, 2007 vs.
Three and Six Months Ended June 30,2006
-----------------------------------------------

Revenue  for  the  three  and  six  month   periods  ended  June  30,  2007  was
approximately $3,071,000 and $6,883,000 respectively,  compared to approximately
$3,111,000 and $6,323,000 respectively for the three month and six month periods
ended June 30, 2006. This represents a decrease of 1.3% for the comparable three
month period and an 8.9% increase for the  comparable  six month  period.  While
demand for our customized  CVD systems and equipment  provided by the First Nano
product line remains strong, revenues for the current three and six month period
were  increasingly  impacted  throughout  the three and six month periods by the
Company's decision to utilize some of its resources towards broadening the First
Nano product line,  which it  anticipates  will add to the  Company's  long-term
growth and profitability.

The Company  generated gross profits of approximately  $1,171,000 and $2,427,000
resulting  in gross  profit  margins  of 38.0%  and  35.3% for the three and six
months ended June 30, 2007 compared to gross profits of approximately $1,066,000
and  $2,136,000  resulting  in gross  profit  margins of 34.3% and 33.8% for the
three  and  six  months  ended  June  30,   2006.   The  increase  is  primarily
atttributable  to the gross profit margins related to the product mix comprising
the Company's sales.



                                       10
<PAGE>

Selling and shipping  expenses for the three months ended June 30, 2007 and 2006
were $148,260 and $200,362  respectively,  representing a 26.0%  decrease.  This
decrease  is  attributed  directly  to a decrease  in sales  commissions.  Sales
concluded in the current period were primarily by our direct sales personnel and
therefore were not subject to outside sales commissions.

Selling  and  shipping  expenses  for the six months  ended  June 30,  2007 were
approximately  $427,000  compared to $397,000  for the six months ended June 30,
2006. This increase of 7.4% is primarily  attributable to a $47,000  increase in
trade show expenses  which  corresponds to the  implementation  of the Company's
sales marketing program.

The  Company  incurred  approximately  $805,000  and  $1,578,000  of general and
administrative  expenses  during the three and six months  ended June 30,  2007,
compared  to  the   approximately   $741,000  and   $1,460,000  of  general  and
administrative expenses incurred in the three and six months ended June 30, 2006
representing  increases of 8.7% and 8.1% or approximately  $64,000 and $118,000.
This increase is primarily  attributable to increases in employee benefit costs,
professional fees, insurance and energy costs.

As a result of the foregoing factors, operating income was $218,000 and $423,000
for the three and six months ended June 30, 2007  respectively.  This represents
an increase  of 75.2% and 51.2%  compared to  operating  income of $125,000  and
$280,000 for the three and six month periods ended June 30, 2006.

Interest  expense  for  the  three  and six  months  ended  June  30,  2007  was
approximately  $52,000  and  $106,000  respectively  compared  to  approximately
$59,000  and  $116,000  for the three and six months  ended June 30,  2006.  The
decreases of 11.2% and 8.4% in interest expense are due to reduced  borrowing by
the Company.

Other  income  during the three  months  ended June 30,  2007 was  approximately
$34,000  compared to $11,000 for the three months ended June 30, 2006.  This was
primarily the result of the receipt of $28,000 which was previously  written off
as uncollectible in 2004.

Other income during the six months ended June 30, 2007 was approximately $39,000
compared to  approximately  $87,000 for the  corresponding  period one year ago.
This was the result of the receipt of $70,000 during the quarter ended March 31,
2006 which was previously written off as uncollectible in 2004.

For the three and six months ended June 30, 2007, the Company recorded a current
income tax expense of approximately $74,000 and $192,000 respectively,  that was
reduced by the deferred tax benefit of approximately $39,000 and $97,000.

The Company reported net income of approximately  $165,000 for the current three
month  period  compared  to net  income of  approximately  $23,000  for the same
period,  one year ago. This  increase was  primarily due to the increased  gross
profit margins experienced during the current three month period.




                                       11
<PAGE>


For the six month period ended June 30, 2007, the Company reported net income of
approximately  $261,000  an  increase  of 92.1% as  compared  to net  income  of
$136,000 for the six months  ended June 30, 2006.  This is a result of increased
revenues and increased gross profit margins for the current six month period.


Liquidity and Capital Resources

As  of  June  30,  2007,  the  Company  had  an  aggregate  working  capital  of
approximately $4,935,000 compared to $4,151,000 at December 31, 2006 an increase
of  $784,000.  This  increase  was the  primarily  the result of $585,000  being
reclassified from short term borrowing to long term as a result of the new three
year  Revolving  Credit  Agreement  in  addition to the  increases  in costs and
estimated   earnings  in  excess  of  billings  on   uncompleted   contracts  of
approximately  $1,070,000  and  inventory  of  $199,000  partially  offset  by a
decrease in accounts receivable of $891,000.

Accounts  receivable at June 30, 2007 was  $1,486,502  compared to $2,377,069 at
December 31, 2006.  This  decrease is  primarily  attributable  to the timing of
shipments and customer payments.

As of June 30, 2007,  the  Company's  backlog was  approximately  $2,435,000,  a
decrease of  $1,130,000  or 31.7%  compared to  $3,565,000 at December 31, 2006.
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.  Backlog from quarter to quarter can vary based
on the timing of order placements and shipments.

Revolving Credit Facility and Borrowings

On June  1,  2007,  the  Company  entered  into a three  year  Revolving  Credit
Agreement with a bank permitting it to borrow on a revolving basis amounts up to
$2,000,000 until June 1, 2010, at which time it will be subject to renewal.  The
loan bears interest on any unpaid  principal  balance at a rate to be elected by
the Company, which shall be equal to either (1) the LIBOR Rate plus 2.50% or (2)
the bank's prime rate plus 1/4 of 1%. This agreement  contains certain financial
and other  covenants,  with which we were in  compliance at June 30, 2007. As of
June 30,  2007,  $585,000  was  outstanding  on this  facility.  Borrowings  are
collateralized by the Company's assets.

The Company  had an  equipment  line of credit of $250,000  with that same bank.
This line of credit was  discontinued  as of June 1, 2007 with the  inception of
the three year Revolving Credit Agreement previously discussed.

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.



                                       12
<PAGE>

However,  we have  determined  that in order to allow our  business to grow more
aggressively,  we will need to raise additional capital. For this reason, we are
considering  raising  capital  through  equity  financing.  The Company  filed a
Registration  Statement on Form S-1 with the Securities and Exchange  Commission
on July 3, 2007. As of the date hereof, the Registration  Statement has not been
declared  effective  by the  Securities  and Exchange  Commission;  nor is there
assurance that such Registration  Statement will ever be declared effective.  In
addition,  any final decision to raise additional  capital will depend on market
conditions,  order  levels,  opportunities  presented  to us and  other  factors
including our ability to have the Registration  Statement  declared effective by
the Securities and Exchange Commission.


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, 2007 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.



                                       13
<PAGE>

                            CVD EQUIPMENT CORPORATION

                                     PART II

                                OTHER INFORMATION


Item 1. Legal Proceedings.

In September  1999,  the Company was named in a lawsuit filed by Precision  Flow
Technologies, Inc. ("PFT"), in the United States District Court for the Northern
District  of New York,  relating  to comments  allegedly  made by the  Company's
President and Chief  Executive  Officer,  Leonard A.  Rosenbaum,  concerning the
intellectual  property  obtained in the purchase of assets of  Stainless  Design
Corporation.  The Company  promptly filed a counterclaim for unauthorized use of
its  intellectual  property and filed a complaint  against the  President of PFT
(these two actions have been  consolidated)  alleging the same acts as set forth
in the  counterclaim.  The plaintiff is seeking  monetary damages and injunctive
relief. In the Company's counterclaim,  it are also seeking monetary damages and
injunctive  relief.  All pre-trial  disclosure has been  completed.  The Company
withdrew certain of its counterclaims  following the completion of discovery and
the court has dismissed certain of the claims which had been asserted by PFT. No
trial  date has been set.  In May 2002,  the  Company  instituted  a new  action
against PFT and certain of its employees,  in the United States District for the
Northern  District of New York seeking  injunctive  relief and monetary  damages
based upon  copyright  violations.  A motion by PFT to dismiss this action which
had been  pending  since June 2002,  was denied in March  2007.  On May 25, 2007
PFT's motion for  reconsideration  was likewise  denied.  On June 11, 2007,  PFT
filed  its  answer in which no  counterclaims  have been  asserted  against  the
Company. Pre-trial disclosure has not yet been completed.


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.

            None

Item 5.   Other Information.

            None.




                                       14
<PAGE>

Item 6.   Exhibits

(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





                                       15
<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 6th day of August 2007.

                                      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)




                                       16
<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