CVD Equipment Corp (CVV) News & EventsCVVCVD Equipment Corp

CVD Equipment Announces Restructuring Plan and Leadership Transition

CVD Equipment announced a restructuring plan and leadership transition, following an evaluation of strategic alternatives for its CVD equipment business by its board. The company will no longer pursue new system orders for its CVD equipment business. The company is further reducing its workforce by approximately half, to a level necessary to manufacture its remaining equipment backlog, satisfy warranty obligations, and support its ongoing spare parts, quartz, and services business. As a result, CVD expects to record a restructuring charge of approximately $0.8M to $1M this quarter, consisting primarily of employee severance and related costs. Effective September 3, and in conjunction with these actions, the board and Emmanuel Lakios have mutually agreed that he would conclude his employment as president and CEO and will no longer serve as a member of the board. The board has appointed Warren Cheesman, the company's VP of manufacturing operations, as acting CEO, effective immediately. The company said, "The Board continues to evaluate additional opportunities to reduce costs, monetize assets, and enhance shareholder value, including potential alternatives involving its real estate assets, including its primary facility in Central Islip. It will also evaluate business opportunities that are consistent with its available resources and strategic objectives to enhance shareholder value."

CVD Equipment Reports Q1 Revenue of $1.8M

Reports Q1 revenue $1.8M vs $6.33M last year. Manny Lakios, President and Chief Executive Officer of CVD Equipment Corporation, stated, "The sale of SDC has significantly strengthened our balance sheet, providing additional financial flexibility as we continue to evaluate strategic opportunities for the CVD Equipment business, its product lines, and our facilities. In addition, we are continuing to drive operational efficiencies and reduce our operational costs, with an ongoing commitment to maximizing shareholder value. This included, as previously announced, a workforce reduction within the CVD Equipment division during the fourth quarter as we transitioned from a vertically integrated fabrication model to outsource fabrication for certain components. This action is expected to reduce our annual operating costs by approximately $1.8 million in fiscal 2026."

CVD Equipment Completes Sale of SDC Business for Approximately $16.9 Million

CVD Equipment announced that it has completed the sale of the Company's Stainless Design Concepts, SDC, business division. The previously announced transaction was completed for a purchase price of approximately $16.9 million in cash, subject to certain purchase price adjustments. CVD expects to use the proceeds from the transaction to enhance its financial flexibility and support strategic initiatives aimed at creating shareholder value. The net cash proceeds, after payment of transaction expenses and taxes are approximately $15.0 million. Of this amount, $900,000 will be held in escrow to satisfy potential post-closing adjustments and indemnification obligations in accordance with the terms of the asset purchase agreement. The Company will retain ownership of its Saugerties, New York facility, which will be leased to the buyer for an initial term of two years.