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CVD Equipment no longer pursuing new system orders

3 d ago

**CVD Equipment Restructures, Halts New System Orders, and Replaces CEO Amid Semiconductor Equipment Market Weakness** CVD Equipment Corp (CVDE), a designer and manufacturer of chemical vapor deposition (CVD), thermal processing, and gas delivery systems for the semiconductor and materials industries, has announced a major restructuring plan and leadership transition, effective September 2026, as it discontinues pursuit of new system orders for its CVD equipment business. The Central Islip, NY-based company will reduce its workforce by approximately half to a level sufficient to complete its remaining equipment backlog, satisfy warranty obligations, and support its ongoing spare parts, quartz, and services business. CVD expects to record a restructuring charge of $0.8–1.0 million in the current quarter, primarily for employee severance and related costs. Effective September 3, the board and president & CEO Emmanuel Lakios mutually agreed to end his employment and board membership. The board appointed Warren Cheesman, VP of manufacturing operations, as acting CEO. Cheesman brings over 30 years of engineering and operations experience from Veeco Instruments, Air Techniques, and Kongsberg Defense & Aerospace. Chairman Lawrence J. Waldman stated that continued weakness in prospective equipment orders, declining backlog, ongoing operating losses, and a lack of viable strategic alternatives drove the decision to transition CVD to a spare parts, quartz, and services business. The board continues evaluating cost reductions, asset monetization, and shareholder value enhancement, including potential alternatives for its real-estate assets, particularly its primary facility in Central Islip. As of the end of Q2 2026, CVD held $23.5 million in cash with no debt. Acting CEO Cheesman emphasized disciplined execution, prudent asset management, and fulfilling existing customer commitments during this transition.