CVD Equipment halts new orders, cuts workforce in restructuring

CVD Equipment Corporation (NASDAQ: CVV) announced a restructuring plan that includes stopping pursuit of new system orders for its CVD equipment business and reducing its workforce by approximately half.

The Central Islip, N.Y.-based company said the workforce reduction will retain only the employees needed to fulfill its remaining equipment backlog, satisfy warranty obligations, and support its spare parts, quartz, and services operations. The company expects to record a restructuring charge of approximately $0.8 million to $1.0 million in the current quarter, consisting primarily of employee severance and related costs.

Alongside the operational changes, Emmanuel Lakios will conclude his role as President and Chief Executive Officer and will no longer serve on the Board of Directors, effective September 3, 2026. Warren Cheesman, previously Vice President of Manufacturing Operations, has been appointed Acting Chief Executive Officer, effective immediately.

Lawrence J. Waldman, Chairman of the Board, cited "continued weakness in prospective equipment order activity, declining backlog, the CVD equipment division's ongoing operating losses, and the lack of viable strategic alternatives" as reasons for the decision. He noted the company held $23.5 million in cash and no debt at the end of the second quarter of 2026.

The Board said it will continue to evaluate opportunities to reduce costs and monetize assets, including its primary facility in Central Islip, as well as other business opportunities consistent with its available resources.

Cheesman has served as Vice President of Manufacturing Operations since October 2022 and has more than 30 years of experience across the semiconductor, medical device, and defense equipment industries. He previously held positions at Veeco Instruments, Air Techniques, and Kongsberg Defense & Aerospace.

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