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CVD Equipment to Cut Workforce by Half, Halt New System Orders in Major Restructuring
CVD Equipment Corporation (NASDAQ:CVV) shares fell 4% after the company announced a major restructuring plan and a leadership transition. The company will stop pursuing new system orders for its core CVD equipment business and pivot to focus on its spare parts, quartz, and services operations.
Details of the Restructuring
As part of the strategic shift, CVD Equipment is reducing its workforce by approximately half. The remaining staff will be responsible for manufacturing the company's existing equipment backlog, fulfilling warranty obligations, and supporting the ongoing service-oriented business segments.
CVD anticipates recording a restructuring charge of $0.8 million to $1.0 million in the current quarter, primarily for employee severance and related costs. Chairman Lawrence J. Waldman stated the decision was driven by "continued weakness in prospective equipment order activity, declining backlog, the CVD equipment division’s ongoing operating losses, and the lack of viable strategic alternatives for the business."
Leadership Transition
AdEffective September 3, 2026, Emmanuel Lakios has ended his employment as President and Chief Executive Officer and is no longer a member of the Board of Directors. The board has appointed Warren Cheesman, the company’s Vice President of Manufacturing Operations, as Acting Chief Executive Officer.
Mr. Cheesman has served as VP of Manufacturing Operations since October 2022 and brings over 30 years of experience in engineering, operations, and strategic sourcing across the semiconductor, medical device, and defense industries.
Financial Position and Outlook
The company reported a strong balance sheet at the end of the second quarter of 2026, with $23.5 million in cash and no debt. The Board of Directors is continuing to evaluate further opportunities to reduce costs, monetize assets, and enhance shareholder value, which includes exploring potential alternatives for its real estate holdings.
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