UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                ________________
                                   Form 10-QSB
  (Mark One)
    [x]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934.
                  For the quarterly period ended September 30, 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
      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)

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

  Check whether the issuer: (1) filed all reports required to be filed by
  Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
  such shorter 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 shell company (as defined in Rule
  12b-2 of the Exchange Act).
  Yes [ ]     No [x]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS
  Check whether the registrant filed all documents and reports required to be
  filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
  of securities under a plan confirmed by a court.          Yes [ ]     No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS
  State the number of shares outstanding of each of the issuer's classes of
  common equity, as of the latest practicable date: 4,718,500 shares of Common
  Stock, $0.01 par value at November 9, 2007.
  ______________________________________________________________________________
  Transitional Small Business Disclosure Format (Check One):  Yes [ ]    No [x]

  <PAGE>

                    CVD EQUIPMENT CORPORATION AND SUBSIDIARY

                                      Index

  Part I - Financial Information

      Item 1 - Financial Statements
      Consolidated Balance Sheets at September 30, 2007 (Unaudited) and
           December 31, 2006                                                  2
      Consolidated Statements of Operations (Unaudited) for the three and
           nine months ended September 30, 2007 and 2006                      3
      Consolidated Statements of Cash Flows (Unaudited) for the nine months
           ended September 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                                     11
      Item 3 - Controls and Procedures                                       15

  Part II - Other Information                                                16

      Item 1 - Legal Proceedings                                             16
      Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds   16
      Item 3 - Defaults Upon Senior Securities                               16
      Item 4 - Submission of Matters to a Vote of Security Holders           16
      Item 5 - Other Information                                             16
      Item 6 - Exhibits                                                      16

  Signatures                                                                 18

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

                         PART 1 - FINANCIAL INFORMATION
                          Item 1 - Financial Statements

                    CVD EQUIPMENT CORPORATION  AND SUBSIDIARY
                           Consolidated Balance Sheets
  <TABLE>
  <CAPTION>
                                                                       September 30, 2007
                                                                           (Unaudited)           December 31, 2006
                                                                       ------------------        -----------------
  <S>                                                                     <C>                       <C>
  ASSETS
  Current Assets:
       Cash and cash equivalents                                           $ 4,294,343              $   257,341
       Accounts receivable, net                                              2,621,356                2,377,069
       Investments                                                             251,130                  251,130
       Costs and estimated earnings in excess of billings on uncomplete      1,631,485                  716,663
       Inventories                                                           2,833,614                2,704,506
       Other current assets                                                    562,456                  118,300
                                                                       ------------------        -----------------
       Total current assets                                                 12,194,383                6,425,009

  Property, plant and equipment, net                                         4,975,779                4,778,807
  Deferred income taxes                                                        949,605                  899,904
  Other assets                                                                 737,074                  708,114
  Intangible assets, net                                                        88,817                  105,775
                                                                       ------------------        -----------------
  Total Assets                                                             $18,945,659              $12,917,609
                                                                       ==================        =================


  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities:
       Current maturities of long-term debt                                $   219,182              $   223,653
       Bank line of credit                                                         -                    210,000
       Short-term debt                                                             -                      2,109
       Accounts payable                                                        576,370                  640,771
       Accrued expenses                                                      1,098,239                  686,771
       Accrued professional fees - related party                                35,000                   35,000
       Deferred revenue                                                        371,055                  212,250
       Deferred tax liability                                                  246,635                  263,396
                                                                       ------------------        -----------------

       Total current liabilities                                             2,546,481                2,273,950
  Long-term debt, net of current portion                                     2,734,975                2,776,801
  Deferred tax liability                                                       587,378                  666,948
                                                                       ------------------        -----------------
       Total liabilities                                                     5,868,834                5,717,699
                                                                       ------------------        -----------------

  Commitments and contingencies                                                  ---                     ---

  Stockholders' Equity
       Common stock, par value  $.01 per share, authorized
       10,000,000 shares; issued and outstanding, 4,535,000
       shares at September 30, 2007 and
       3,250,500 shares at December 31, 2006                                    45,350                   32,505
       Additional paid-in capital                                            8,732,229                3,405,474
       Retained earnings                                                     4,299,246                3,761,931
                                                                       ------------------        -----------------
  Total stockholders' equity                                                13,076,825                7,199,910
                                                                       ------------------        -----------------
  Total liabilities and stockholders' equity                               $18,945,659              $12,917,609
                                                                       ==================        =================

  <FN>
  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                     Nine Months Ended
                                                              September 30                          September 30
                                                        2007               2006                2007               2006
                                                   ---------------    --------------      ---------------    ---------------
  <S>                                              <C>                <C>                 <C>                <C>
  Revenue                                             $ 3,302,830       $ 3,635,531          $10,185,351        $ 9,958,136

  Costs of revenue                                      2,238,191         2,218,537            6,693,213          6,404,719
                                                   ---------------    --------------      ---------------    ---------------

  Gross profit                                          1,064,639         1,416,994            3,492,138          3,553,417
                                                   ---------------    --------------      ---------------    ---------------

  Operating expenses
       Selling and shipping                               137,150           222,391              563,720            619,622
       General and administrative                         754,701           730,532            2,297,947          2,180,182
       Related party - professional fees                      -              10,000               35,000             20,000
                                                   ---------------    --------------      ---------------    ---------------
  Total operating expenses                                891,851           962,923            2,896,667          2,819,804

  Operating income                                        172,788           454,071              595,471            733,613
                                                   ---------------    --------------      ---------------    ---------------

  Other income (expense)
       Interest income                                      2,749               340                2,810                748
       Interest expense                                   (64,564)          (57,882)            (170,337)          (173,409)
       Other income                                       517,657             9,845              557,060             96,599
                                                   ---------------    --------------      ---------------    ---------------
  Total other (expense)                                   455,842           (47,697)             389,533            (76,062)

  Income before income taxes                              628,630           406,374              985,004            657,551

  Income tax provision                                   (352,652)         (177,523)            (447,689)          (292,690)
                                                   ---------------    --------------      ---------------    ---------------

  Net income                                          $   275,978       $   228,851              537,315        $   364,861
                                                   ===============    ==============      ===============    ===============

  Basic income per common share                       $      0.08       $      0.07          $      0.16        $      0.12
                                                   ===============    ==============      ===============    ===============

  Diluted income per common share                     $      0.08       $      0.07          $      0.16        $      0.11
                                                   ===============    ==============      ===============    ===============

  Weighted average common shares outstanding
      basic income per share                            3,395,321         3,198,247            3,327,256          3,155,710

  Effect of potential common share issuances:
      Stock options                                       122,419            69,534              134,155            102,816
                                                   ---------------    --------------      ---------------    ---------------

  Weighted average common shares outstanding
      diluted income per share                          3,517,740         3,267,781            3,461,411          3,258,526
                                                   ===============    ==============      ===============    ===============


  <FN>
  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>
                                                                                   September 30
                                                                             2007               2006
                                                                        ---------------    ---------------
  <S>                                                                   <C>                <C>
  Cash flows from operating activities
       Net income                                                         $   537,315        $   364,861
       Adjustments to reconcile net income to net cash (used in)
            provided by operating activities:
       Depreciation and amortization                                          318,367            244,792
       Deferred tax benefit                                                  (146,032)               214
       Stock based compensation expense                                       128,468            128,889
       Bad debt provision                                                      11,360                -
      Changes in operating assets and liabilities:
       Accounts receivable                                                   (255,647)          (293,375)
       Costs and estimated earnings in excess of billings on uncomplete      (914,822)             3,979
       Inventories                                                           (129,108)          (507,863)
       Other current assets                                                  (444,156)           (89,361)
       Other assets                                                          (133,300)               -
       Accounts payable                                                       (64,401)            30,064
       Accrued expenses                                                       411,469            277,162
       Deferred revenue                                                       158,805             72,420
                                                                        ---------------    ---------------
  Net cash (used in) provided by operating activities                        (521,682)           231,782
                                                                        ---------------    ---------------

  Cash flows from investing activities:
       Capital expenditures                                                  (398,083)          (222,264)
       Deposits                                                                 4,043                -
                                                                        ---------------    ---------------
  Net cash used in investing activities                                      (394,040)          (222,264)
                                                                        ---------------    ---------------

  Cash flows from financing activities:
       Proceeds from short-term borrowings                                  1,125,000          1,310,000
       Payments of short-term borrowings                                   (1,335,000)        (1,285,000)
       Proceeds from bank line of credit - long-term                        1,505,000                -
       Payments to bank line of credit - long-term                         (1,505,000)               -
       Proceeds from long-term debt                                           139,510            115,309
       Payments of long-term debt                                            (187,917)          (190,676)
       Net proceeds from issuance of common stock                           5,058,032
       Net proceeds from stock options exercised                              153,100            129,875
                                                                        ---------------    ---------------
  Net cash provided by financing activities                                 4,952,725             79,508
                                                                        ---------------    ---------------

  Net increase in cash and cash equivalents                                 4,037,002             89,026

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

  Cash and cash equivalents at end of period                              $ 4,294,343        $   354,480
                                                                        ===============    ===============


  Supplemental disclosure of cash flow information:
  Income taxes paid                                                       $   108,076        $     8,354
  Interest paid                                                               166,261            172,109
  Equipment reclassified to inventory                                             -               84,897


  <FN>
  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 nine months ended September 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 CVD Equipment Corporation and Subsidiary,
  (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 notes 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. 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: INVESTMENTS

  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
  had 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 Company agreed to extend the option to demand cash payment to the period
  between December 1, 2007 and March 12, 2008 in exchange for fifty thousand
  (50,000) shares of the customer's common stock.

  NOTE 4: UNCOMPLETED CONTRACTS
  Costs, estimated earnings and billings on uncompleted contracts are
  summarized as follows:
  <TABLE>
  <CAPTION>
                                                    September 30, 2007   December 31, 2006
                                                                             (Audited)
                                                    ------------------   -----------------
  <S>                                               <C>                  <C>
  Costs incurred on uncompleted contracts           $ 1,655,904            $ 1,509,672
  Estimated earnings                                  2,595,712              2,015,836
                                                    ------------------   -----------------
                                                      4,251,616              3,525,508
  Billings to date                                   (2,620,131)            (2,808,845)
                                                    ------------------   -----------------
                                                    $ 1,631,485            $   716,663
                                                    ------------------   -----------------
  Included in accompanying balance sheets
    Under the following caption:

      Costs and estimated earnings in excess
          of billings on uncompleted contracts      $ 1,631,485      $    716,663

  </TABLE>




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

  NOTE 5:         INVENTORIES
  Inventories consist of the following:
  <TABLE>
  <CAPTION>
                                   September 30, 2007        December 31, 2006
                                                                    (Audited)
                                   ------------------        -----------------
  <S>                               <C>                       <C>
  Raw materials                       $  1,053,158             $     860,085
  Work-in-process                        1,547,670                 1,515,460
  Finished goods                           232,786                   328,961
                                   ------------------        -----------------

                                      $  2,833,614             $   2,704,506
                                   ------------------        -----------------
  </TABLE>
  NOTE 6: BAD DEBTS

  Accounts receivables are presented net of an allowance for doubtful accounts
  of $18,577 and $7,217 as of September 30, 2007 and December 31, 2006
  respectively. The allowance is based on prior experience and management's
  evaluation of the collectability of accounts receivable. Management believes
  the allowance is adequate. However, future estimates may change based on
  changes in economic conditions.

  NOTE 7: BANK LINE OF CREDIT
  <TABLE>
  <CAPTION>
                                    September 30, 2007      December 31, 2006
                                                                 (Audited)
                                    ------------------      -----------------
  <S>                               <C>                     <C>
  Short Term Borrowings                $  ---                     $210,000
  Long term Borrowings                 $  ---                         ---
  </TABLE>

  On June 1, 2007, the Company entered into a new $2 million three-year
  revolving credit facility with a bank permitting it to borrow on a revolving
  basis until June 1, 2010.  Interest on the unpaid principal balance on this
  facility accrues at either (i) the LIBOR Rate plus 2.50% or (ii) the bank's
  Prime Rate plus .25%. Borrowings under the facility are secured by
  substantially all of the Company's personal property. The amount outstanding
  on the facility was $0 and $210,000 on September 30, 2007 and December 31,
  2006 respectively. On September 28, 2007, the Company signed a commitment
  letter from the same bank to increase this revolving credit facility to $5
  million, the closing of which is pending.


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

  NOTE 8: 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 nine months ended September 30, 2007 and September 30,
  2006, the Company recorded into selling and general administrative expense
  approximately $43,200 and $128,468 and $42,963 and $128,889 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.

  NOTE 9  LEGAL PROCEEDINGS

  On September 18, 2007 a settlement was reached between the Company and
  PrecisionFlow Technologies, Inc. of pending litigation. Under the terms of
  the settlement, all claims and counterclaims asserted by the parties in
  previously filed lawsuits were discontinued in consideration of which the
  Company will receive payments totaling $541,600 to be paid over a specific
  timetable as defined.

  NOTE 10:        INCOME TAXES
  <TABLE>
  <CAPTION>
  The provision (benefit) for income taxes includes the following:

                                      Nine Months Ended         Nine Months Ended
                                      September 30, 2007        September 30, 2006
                                      ------------------        ------------------
     <S>                              <C>                       <C>
     Current:
        Federal                           $     463,686              $    281,635
        State                                   130,035                    10,841
                                      ------------------        ------------------
          Total Current Provision               593,721                   292,476
     Deferred:
        Federal                                (134,932)                   (3,196)
        State                                  ( 11,100)                    3,410
                                      ------------------        ------------------
          Total Deferred (Benefit)             (146,032)                      214
                                      ------------------        ------------------
                                          $     447,689              $    292,690
                                      ------------------        ------------------
  </TABLE>

                                        9
  <PAGE>
                    CVD EQUIPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

  All of the Company's federal net operating loss ("NOL'S") carry forwards of
  approximately $40,000 have been utilized and all of the Company's $214,000
  state NOL'S carry forwards have been utilized through September 30, 2007.

  NOTE 11:        ISSUANCE OF COMMON STOCK

  In September 2007, the Company filed registration statements on Form S-1 with
  the Securities and Exchange Commission for the sale of 1,200,000 shares of
  its common stock in an underwritten public offering at a price to the public
  of $4.75 per share. Net proceeds to the Company were approximately $5 million
  net of $300,000 of offering expenses and after deducting $370,500 of
  underwriting commissions. The Company also granted the underwriter a 30-day
  option to purchase up to 180,000 additional shares of common stock to cover
  over-allotments.

  NOTE 12:        SUBSEQUENT EVENT

  In October 2007, the underwriter exercised its option to purchase 180,000
  additional shares of common stock. The Company received net proceeds of
  approximately $800,000.



                                       10
  <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 Operation"
  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 Nine Months Ended September 30, 2007 vs. Three and Nine Months
  Ended September 30, 2006

  Revenues:
  Revenue for the three and nine month periods ended September 30, 2007 was
  approximately $3,303,000 and $10,185,000 compared to approximately $3,636,000
  and $9,958,000 for the three month and nine month periods ended September 30,
  2006. This represents a decrease of 9.2% for the comparable three month
  period and a 2.3% increase for the comparable nine month period. Revenues for
  the current nine month period were impacted by the Company's decision to
  raise additional capital and focus on the CVD and First Nano product lines
  which we anticipate will add to the Company's long-term growth and
  profitability.

  Gross Profit
  The Company generated gross profits of approximately $1,065,000 and
  $3,492,000 resulting in gross profit margins of 32.2% and 34.3% for the three
  and nine months ended September 30, 2007 compared to gross profits of
  approximately $1,417,000 and $3,553,000 resulting in gross profit margins of
  39.0% and 35.7% for the three and nine months ended September 30, 2006. The
  decrease in gross profit is due to additional new hires, as a result of the
  Company's expansion plans for the First Nano product line.

                                       11
  <PAGE>
  Selling, General and Administrative Expenses:
  Selling and shipping expenses for the three months ended September 30, 2007
  and 2006 were $137,150 and $222,391 respectively, representing a 38.3%
  decrease. This decrease is attributed directly to a decrease in sales
  commissions. Sales concluded in the current period were primarily
  attributable to our direct sales personnel and therefore  not subject to
  outside sales commissions.

  Selling and shipping expenses for the nine months ended September 30, 2007
  and 2006 were approximately $564,000 and $620,000 respectively, representing
  a 9.0% decrease. This decrease is primarily attributed to a decrease in sales
  commissions. Sales concluded in this period  were primarily by our direct
  sales personnel and therefore not subject to outside sales commissions.
  However, this decrease is partially offset by an increase in trade show
  expenses corresponding to implementation of the Company's sales and marketing
  program.

  The Company incurred approximately $755,000 and $2,333,000 of general and
  administrative expenses during the three and nine months ended September 30,
  2007, compared to the approximately $741,000 and $2,200,000 in the three and
  nine months ended September 30, 2006 representing increases of 1.9% and 6.1%
  or approximately $14,000 and $133,000. The nine month increase is primarily
  attributed to increases in employee benefit costs, professional fees,
  insurance and energy costs.

  Operating Income:
  As a result of the foregoing factors, operating income was $173,000 and
  $595,000 for the three and nine months ended September 30, 2007 respectively.
  This represents a decrease of 61.9% and 18.8% compared to operating income of
  $454,000 and $734,000 for the three and nine month periods ended September
  30, 2006.

  Other Expense/ Income:
  Interest expense for the three and nine months ended September 30, 2007 was
  approximately $65,000 and $170,000 respectively compared to approximately
  $58,000 and $173,000 for the three and nine months ended September 30, 2006.
  The increase was due to increased borrowing by the Company.

  On September 25, 2007, the Company sold 1.2 million shares of common stock
  under a registration statement filed with the Securities and Exchange
  Commission. As a result, during the three months ended September 30, 2007,
  the Company earned interest of $2,749 from these proceeds.

  Other income during the three and nine months ended September 30, 2007 was
  approximately $518,000 and $557,000 compared to approximately $10,000 and
  $97,000 for the corresponding period one year ago. This increase was the
  result of a settlement of litigation between the Company and PrecisionFlow
  Technologies, Inc. Under the terms of the settlement, all claims and
  counterclaims asserted by the parties were discontinued in consideration of
  which the Company will receive payments totaling $541,600 to be paid over a
  specific timetable.


                                       12
  <PAGE>
  For the three and nine months ended September 30, 2007, the Company had
  earnings before taxes of approximately $620,000 and $985,000 compared to
  approximately $406,000 and $658,000 for the three and nine months ended
  September 30, 2006. For the three and nine months ended September 30, 2007,
  the Company recorded a current income tax expense of approximately $402,000
  and $594,000 respectively, which related to various federal, state and
  local taxes. This current income tax provision was reduced by a deferred tax
  benefit of $49,000 and $146,000 respectively. For the three months ended
  September 30, 2006, the Company recorded a current tax expense of
  approximately $78,000 increased by deferred taxes of $100,000. For the nine
  months ended September 30, 2006, the Company recorded a current income tax
  expense of $293,000.

  Net Income:
  The Company reported net income of approximately $276,000 for the current
  three month period compared to net income of approximately $229,000 for the
  same period, one year ago.  This increase was primarily due to the settlement
  reached on PrecisionFlow litigation offset by an increase in income taxes.

  For the nine month period ended September 30, 2007, the Company reported net
  income of approximately $537,000 as compared to net income of $365,000 for
  the nine months ended September 30, 2006. This increase was primarily due to
  the settlement reached on PrecisionFlow litigation offset by an increase in
  income taxes.


  Liquidity and Capital Resources

  In September 2007 the Company completed the sale of 1,200,000 shares of
  common stock in a public offering at $4.75 per share. The net proceeds of the
  sale after offering expenses and underwriting fees was approximately $5
  million. The Company intends to use the net proceeds from the offering for
  working capital and other general corporate purposes, including possible
  product or business acquisitions in connection with the planned expansion of
  our business.

  As of September 30, 2007, the Company had aggregate working capital of
  approximately $9,648,000 compared to $4,151,000 at December 31, 2006 an
  increase of $5,497,000. This increase was primarily the result of
  approximately $5,330,000 received from the issuance of common stock in our
  public offering and the settlement of the PrecisionFlow litigation which
  yielded an additional $408,000 of working capital. In addition, working
  capital increased by the estimated earnings in excess of billings on
  uncompleted contracts of approximately $915,000. This was partially offset
  by an increase in accrued expenses of $412,000 and the repayment of $210,000
  under the Company's revolving credit facility.

  Accounts receivable at September 30, 2007 was $2,621,356 compared to
  $2,377,069 at December 31, 2006. This increase is primarily attributable to
  the timing of shipments and customer payments.


                                       13
  <PAGE>
  As of September 30, 2007, the Company's backlog was approximately $4,982,000,
  an increase of $1,417,000 or 39.7% compared to $3,565,000 at December 31,
  2006. Timing for completion of backlog varies depending on the product mix,
  however, there is generally a one to six month lag in the completion and
  shipping of backlog. Backlog from quarter to quarter can vary based on the
  timing of order placements and shipments. Demand for CVD and First Nano
  systems continues to remain strong.

  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 will bear 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 the
  Company was in compliance at September 30, 2007. Borrowings are
  collateralized by the Company's assets. On September 28, 2007, the Company
  signed a commitment letter from the same bank to increase this revolving
  credit facility to $5 million, the closing of which is pending.

  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 and cash equivalents resulting from the
  September 2007 public offering and the available credit facilities discussed
  above, is sufficient to support operations and will enable the Company to
  pursue our growth strategies for the next twelve months.

                                       14
  <PAGE>
  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 nine months ended September 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

                                       15
  <PAGE>
                          CVD EQUIPMENT CORPORATION

                                    PART II

                              OTHER INFORMATION


  Item 1.         Legal Proceedings.
  In September 1999, the Company was named in a lawsuit filed by PrecisionFlow
  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 is 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.
  On September 18, 2007 a settlement was reached between the Company and PFT of
  the pending litigation. Under the terms of the settlement, all claims and
  counterclaims asserted by the parties in previously filed lawsuits were
  discontinued in consideration of which the Company will receive payments
  totaling $541,600.


  Item 2.         Unregistered Sales of Equity 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


                                       16
  <PAGE>
  Item 5.         Other Information.

                          None.

  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



                                       17
  <PAGE>
  SIGNATURES

  In accordance with the requirements of the Securities Exchange Act, the
  registrant caused this report to be signed on its behalf by the undersigned,
  thereunto duly authorized.

                                          CVD EQUIPMENT CORPORATION

  November 14, 2007                       By: /s/ Leonard A. Rosenbaum
                                              Leonard A. Rosenbaum
                                              Chief Executive Officer
                                              (Principal Executive Officer)

  November 14, 2007                       By: /s/ Glen R. Charles
                                              Glen R. Charles
                                              Chief Financial Officer
                                              (Principal Financial and
                                              Accounting Officer)


                                       18
  <PAGE>
  EXHIBIT INDEX


  EXHIBIT
  NUMBER                          DESCRIPTION

  31.1      Certification of Chief Executive Officer

  31.2      Certification of Chief Financial Officer

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

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



                                       19
  <PAGE>