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 June 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: 3,194,800 shares of
  Common Stock, $0.01 par value at August 11, 2006.
  ________________________________________________________________

  <PAGE>
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY

                                    Index


  Part I - Financial Information

     Item 1 - Financial Statements (Unaudited)

     Consolidated Balance Sheets at June 30, 2006 (Unaudited)
       and December 31, 2005                                              2

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

     Comparative Consolidated Statements of Cash Flows (Unaudited)
       for the six months ended June 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                               11

     Item 3 - Controls and Procedures                                    14

  Part II - Other Information                                            15

     Item 1 - Legal Proceedings                                          15
     Item 2 - Changes in Securities and Use of Proceeds                  15
     Item 3 - Defaults Upon Senior Securities                            15
     Item 4 - Submission of Matters to a Vote of Security Holders        15
     Item 5 - Other Information                                          15
     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

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

                                         CVD EQUIPMENT CORPORATION  AND SUBSIDIARY
                                                Consolidated Balance Sheets



                                                                    June 30, 2006
                                                                     (Unaudited)                       December 31, 2005
                                                                    --------------                     -----------------
  <S>                                                               <C>                                   <C>
  ASSETS
  Current Assets:
       Cash and cash equivalents                                    $     574,932                         $     265,454
       Accounts receivable, net                                         2,317,003                             1,893,665
       Cost  in excess of billings on uncompleted contracts               388,067                               595,067
       Inventories                                                      2,611,369                             2,067,255
       Other current assets                                                98,777                                49,597

                                                                    --------------                        --------------
      Total current assets                                              5,990,148                             4,871,038

  Property, plant and equipment, net                                    5,004,465                             5,090,536
  Deferred income taxes                                                   341,031                               241,988
  Other assets                                                            724,828                               610,304
  Intangible assets, net                                                   89,433                                96,141

                                                                    --------------                        --------------
                                                                    $  12,149,905                         $  10,910,007
                                                                    ==============                        ==============


  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities:
       Current maturities of long-term debt                         $     248,355                         $     217,204
       Short-term notes payable                                           540,000                               100,000
       Accounts payable                                                   670,270                               639,619
       Accrued expenses                                                   942,949                               642,115
       Accrued professional fees - related party                           10,000                                35,260
       Deferred revenue                                                   353,626                               114,140
                                                                    --------------                        --------------
       Total current liabilities                                        2,765,200                             1,748,338

  Long-term debt, net of current portion                                2,880,774                             2,923,424
                                                                    --------------                        --------------
       Total liabilities                                                5,645,974                             4,671,762
                                                                    --------------                        --------------

  Commitments and contingencies                                             ---                                   ---

  Stockholders' Equity
       Common stock, par value  $.01 per share, authorized 10,000,000 shares;
       issued and outstanding, 3,154,800 shares at June 30, 2006 and
       3,127,800 shares at December 31, 2005                               31,548                                31,278
       Additional paid-in capital                                       3,178,768                             3,049,362
       Retained earnings                                                3,293,615                             3,157,605
                                                                    --------------                        --------------
                                                                        6,503,931                             6,238,245
                                                                    --------------                        --------------
                                                                    $  12,149,905                         $  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                    Six Months Ended
                                                              June 30                               June 30
                                                      2006               2005               2006               2005
                                                 --------------     --------------     --------------     --------------
  <S>                                            <C>                <C>                <C>                <C>

  Revenue                                        $   3,111,132      $   3,008,563      $   6,322,605      $   5,406,633

  Costs of Revenue                                   2,044,806          1,794,337          4,186,182          3,421,064
                                                 --------------     --------------     --------------     --------------
  Gross profit                                       1,066,326          1,214,226          2,136,423          1,985,569
                                                 --------------     --------------     --------------     --------------
  Operating expenses
       Selling and shipping                            200,362            166,848            397,231            336,964
       General and administrative                      731,441            606,906          1,449,650          1,138,170
       Related party - professional fees                10,000             25,000             10,000             35,000
                                                 --------------     --------------     --------------     --------------
  Total operating expenses                             941,803            798,754          1,856,881          1,510,134

  Operating income                                     124,523            415,472            279,542            475,435
                                                 --------------     --------------     --------------     --------------
  Other income (expense)
       Interest income                                     387                 82                408                708
       Interest expense                                (58,880)           (56,495)          (115,527)          (119,038)
       Other income                                     11,285             10,154             86,754             14,334
                                                 --------------     --------------     --------------     --------------
  Total other (expense)                                (47,208)           (46,259)           (28,365)          (103,996)

  Income before income taxes                            77,315            369,213            251,177            371,439

  Income tax provision                                 (54,252)           (76,035)          (115,167)           (77,168)
                                                 --------------     --------------     --------------     --------------
  Net income                                     $      23,063      $     293,178      $     136,010      $     294,271
                                                 ==============     ==============     ==============     ==============
  Basic income per common share                  $        0.01      $        0.09      $        0.04      $        0.10
                                                 ==============     ==============     ==============     ==============
  Diluted income per common share                $        0.01      $        0.09      $        0.04      $        0.10
                                                 ==============     ==============     ==============     ==============
  Weighted average common shares outstanding
      basic income per share                         3,146,273          3,100,180          3,135,314          3,069,809

  Effect of potential common share issuance:
      Stock options                                    155,102            145,176            158,769             46,828
                                                 --------------     --------------     --------------     --------------
  Weighted average common shares outstanding
      diluted income per share                       3,301,375          3,245,356          3,294,083          3,116,637
                                                 ==============     ==============     ==============     ==============



  <FN>
                                     See notes to the consolidated financial statements

                                                             3
  </TABLE>
  <PAGE>
  <TABLE>
  <CAPTION>

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



                                                                                      Six Months Ended
                                                                                          June 30
                                                                         2006                                  2005
                                                                    --------------                        ---------------
  <S>                                                               <C>                                   <C>
  Cash flows from operating activities
       Net income                                                   $     136,010                         $     294,271
       Adjustments to reconcile net income to net cash provided
          by operating activities:
       Depreciation and amortization                                      169,319                               177,684
       Deferred tax benefit                                               (99,043)                             (208,341)
       Stock option expense                                                85,926                                   -
       Bad debt provision                                                     -                                    (393)
      Changes in operating assets and liabilities:
       Accounts receivable                                               (423,338)                             (134,767)
       Cost in excess of billings on uncompleted contracts                207,000                             1,073,275
       Inventory                                                         (544,114)                             (213,042)
       Other current assets                                               (49,180)                                9,401
       Other assets                                                           -                                (133,790)
        Accounts payable                                                   30,650                              (175,399)
        Accrued expenses                                                  275,575                               216,963
        Customer deposits                                                     -                                (298,152)
        Deferred revenue                                                  239,486                                54,489

                                                                    --------------                        ---------------
  Net cash provided by operating activities                                28,291                               662,199
                                                                    --------------                        ---------------

  Cash flows from investing activities:
       Capital expenditures                                              (191,064)                              (29,216)

                                                                    --------------                        ---------------
  Net cash used in investing activities                                  (191,064)                              (29,216)
                                                                    --------------                        ---------------

  Cash flows from financing activities:
       Proceeds from short-term borrowings                                840,000                               400,000
       Payments of short-term borrowings                                 (400,000)                           (1,100,000)
       Proceeds from long-term debt                                       115,309                                     0
       Payments of long-term debt                                        (126,808)                             (105,118)
       Net proceeds from stock options exercised                           43,750                               134,100

                                                                    --------------                        ---------------
  Net cash provided by (used in) financing activities                     472,251                              (671,018)
                                                                    --------------                        ---------------

  Net increase (decrease) in cash and cash equivalents                    309,478                               (38,035)

  Cash and cash equivalents at beginning of period                        265,454                               171,463
                                                                    --------------                        ---------------

  Cash and cash equivalents at end of period                        $     574,932                         $     133,428
                                                                    ==============                        ==============


  <FN>
                                       See notes to consolidated financial statements

                                                             4
  </TABLE>
  <PAGE> 5
                   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 six months ended
  June 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> 6
                   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> 7
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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

                                                      June 30, 2006     December 31, 2005
                                                      --------------    -----------------
  <S>                                                 <C>                  <C>
  Costs incurred on uncompleted contracts             $    140,552         $     961,735
  Estimated earnings                                       433,462               901,390
                                                      --------------       --------------
                                                           574,014             1,863,125
  Billings to date                                        (185,947)           (1,268,058)
                                                      --------------       --------------
                                                      $    388,067         $     595,067
                                                      --------------       --------------
  Included in accompanying balance sheets
    Under the following captions:

      Costs and estimated earnings in excess
          of billings on uncompleted contracts        $    388,067         $     595,067
      Billings in excess of costs and estimate
          earnings on uncompleted contracts                      0                     0
                                                      --------------       --------------
                                                      $    388,067         $     595,067
                                                      --------------       --------------
  </TABLE>
  NOTE 4:         INVENTORY
  <TABLE>
  <CAPTION>
  Inventories consist of the following:

                                                      June 30, 2006     December 31, 2005
                                                      --------------    -----------------
  <S>                                                 <C>                  <C>
  Raw materials                                       $   1,310,714        $     849,355
  Work-in-process                                         1,017,871              854,115
  Finished goods                                            282,784              363,785
                                                      --------------       --------------

                                                      $   2,611,369        $   2,067,255
                                                      --------------       --------------
  </TABLE>
  NOTE 5: BAD DEBTS

  Accounts receivables are presented net of an allowance for doubtful
  accounts of $8,597 as of June 30, 2006 and December 31, 2005. 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> 8
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  NOTE 6: SHORT TERM BORROWINGS
  <TABLE>
  <CAPTION>
                                                      June 30, 2006     December 31, 2005
                                                      --------------    -----------------
  <S>                                                 <C>                  <C>

                                                      $     540,000        $     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 $540,000 and $100,000 on June 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 June 30, 2006, there
  was approximately $85,000 outstanding on this facility. Borrowings are
  collateralized by the equipment purchased.

  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 six months ended June 30, 2006 the Company recorded
  into selling and general administrative expense  approximately $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> 9
                   CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


  During the three and six months ended June 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-R, the Company's net income
  and earnings per share would have been impacted as shown in the following
  table.
  <TABLE>
  <CAPTION>

                                           Three Months Ended             Six Months Ended
                                             June 30, 2005                 June 30, 2005
                                             --------------                --------------
  <S>                                        <C>                           <C>
  Net income, as reported                    $     293,178                 $     294,271

  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            (1,673)                       (4,328)
                                             --------------                --------------
  Pro forma net income                       $     291,505                 $     289,943
                                             --------------                --------------

  Earnings (loss) per share:
          Basic-as reported                      $   0.09                      $   0.10
                                             --------------                --------------
          Basic-pro forma                        $   0.09                      $   0.09
                                             --------------                --------------

          Diluted-as reported                    $   0.09                      $   0.09
                                             --------------                --------------
          Diluted-pro forma                      $   0.09                      $   0.09
                                             --------------                --------------
  </TABLE>
  The historical pro-forma impact of applying the fair value method
  prescribed by SFAS No. 123-R 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.


                                      9
  <PAGE> 10
                   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:
                                           Three Months Ended             Six Months Ended
                                             June 30, 2006                 June 30, 2006
                                             --------------                --------------
       <S>                                   <C>                           <C>
          Current:
             Federal                         $     212,437                 $     214,087
             State                                    (144)                          123
                                             --------------                --------------
                  Total Current Provision          212,293                       214,210
          Deferred:
             Federal                              (130,425)                      (78,504)
             State                                 (27,616)                      (20,539)
                                             --------------                --------------
        Total Deferred (Benefit)                  (158,041)                      (99,043)
                                             --------------                --------------
                                             $      54,252                 $     115,167
                                             --------------                --------------
  </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 June 30, 2006. For the six months ended June 30, 2006, the Company
  recorded a current income tax expense of approximately $214,000, which
  related to various federal, state and local taxes. The current income tax
  provision was reduced by approximately $99,000 as a result of the use of
  available net operating losses.




                                      10
  <PAGE> 11

  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 June 30, 2006 was $3,111,132
  compared to $3,008,563 for the three month period ended June 30, 2005,
  representing a marginal increase of 3.4%.

  Revenue for the six months ended June 30, 2006 was approximately
  $6,323,000 representing an increase of approximately $916,000 or 16.9%
  over the $5,407,000 of revenue for the six months ended June 30, 2005. The
  primary reasons for this increase were the increased demand for customized
  CVD systems along with the demand for equipment provided by the First Nano
  product line.

  The Company generated a gross profit of approximately $1,066,000 and a
  gross profit margin of 34.3% for the three months ended June 30, 2006
  compared to a gross profit of approximately $1,214,000 and a gross profit
  margin of 40.4% for the three months ended June 30, 2005. The reduction in
  both gross profit and gross profit margin is attributable to the increased
  labor costs during the current three month period. These higher costs are
  a result of the increased personnel needed to develop and expand the sales
  of the First Nano equipment line as well as rising employee benefit,
  insurance and energy costs.

                                      11
  <PAGE> 12
  The Company's gross profit increased 7.6% to approximately $2,136,000
  during the current six month period compared to $1,986,000 in gross profit
  for the six month period during the prior year. The gross profit margin
  decreased to 33.8% for the six months ended June 30, 2006 compared to
  36.7% for the six months ended June 30, 2006. The reduction in gross
  profit margin is attributable to the increased labor costs during the
  current six month period. These higher costs are a result of the increased
  personnel needed to develop and expand the sales of the First Nano
  equipment line as well as rising employee benefit, insurance and energy
  costs.

  Selling and shipping expenses for the three months ended June 30, 2006 and
  2005 were $200,362 and $166,848 respectively, representing a 20.1%
  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 six months ended June 30, 2006 were
  approximately $397,000 compared to $337,000 for the corresponding period
  one year ago, representing an increase of 17.8%. 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 quarter ended June 30, 2006, representing an increase
  of 17.2% or approximately $109,000 compared to the approximately $632,000
  of general and administrative expenses incurred in the quarter ended June
  30, 2005. This increase is 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 $33,000 of stock compensation costs were recognized
  in the current quarter which were not recognized last year.

  General and administrative expenses for the six months ended June 30, 2006
  were approximately $1,460,000 compared to $1,173,000 for the six months
  ended June 30, 2005 representing a 24.5% 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 $86,000 of stock
  compensation costs were recognized in the current six month period which
  were not recognized last year.

  Interest expense for the three months ended June 30, 2006 increased by
  4.2% to $58,880 compared to $56,495 during the three months ended June 30,
  2005. This is a result of higher interest rates on the Company's revolving
  line of credit from its bank during the current three month period.

  Interest expense for the six months ended June 30, 2006 decreased by
  $3,511 compared to the  $119,038 expensed during the six months ended June
  30, 2005. This is a result of reduced levels of borrowing by the Company
  during the current six month period.


                                      12
  <PAGE> 13
  Other income during the six months ended June 30, 2006 was approximately
  $87,000 compared to approximately $14,000 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 six months ended June 30, 2006, the Company recorded income tax
  expense of approximately $115,000 which related to various federal, state
  and local taxes. The current income tax provision was reduced by
  approximately $99,000 as a result of the use of available net operating
  losses.

  As a result of the foregoing factors, for the three and six months ended
  June 30, 2006, the Company earned approximately $23,000 and $136,000
  respectively, compared to net income of approximately $293,000 and
  $294,000 respectively, for the same periods, one year ago. The decrease in
  earnings is 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 $86,000
  of stock compensation costs were recognized in the current six month
  period which were not recognized last year.

  Liquidity and Capital Resources

  As of June 30, 2006, the Company had an aggregate working capital of
  approximately $3,225,000 compared to $3,123,000 at December 31, 2005 an
  increase of $102,000.

  Accounts receivable, net of allowances, as of June 30, 2006 was $2,317,003
  compared to $1,893,665 as of December 31, 2005. This increase is
  attributable to timing of shipments and customer payments.

  As of  June 30, 2006 the Company's backlog was approximately $2,785,000,
  an increase of $137,000 or 5.2% 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 June 30, 2006, $540,000 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 June 30,
  2006, there was approximately $85,000 outstanding on this facility.
  Borrowings are collateralized by the equipment purchased.


                                      13
  <PAGE> 14
  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.


                                      14
  <PAGE> 15
                          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.

                          None.

  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




                                      15
  <PAGE> 16
                                  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 August 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)


                                      16
                                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



                                      17
  <PAGE> 18
                                                               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 registrants' 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: August 14, 2006

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



                                      18
  <PAGE> 19
                                                               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 registrants' 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: August 14, 2006

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



                                      19
  <PAGE> 20
                                                               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 June 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: August 14, 2006         /s/   Leonard A. Rosenbaum
                                       Leonard A. Rosenbaum
                                       Chief Executive Officer
                                       (Principal Executive Officer)


                                      20
  <PAGE> 21
                                                               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 June 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: August 14, 2006         /s/   Glen R. Charles
                                       Glen R. Charles
                                       Chief Financial Officer
                                       (Principal Financial Officer)



                                      21