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CPS Technologies Corporation Announces Second Quarter 2023 Financial Results
Source: Nasdaq GlobeNewswire / 02 Aug 2023 16:01:01 America/New_York
NORTON, Mass., Aug. 02, 2023 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal second quarter ended July 1, 2023.
Second Quarter Highlights
- Revenue of $7.4 million for the second quarter of 2023 versus $7.1 million in the prior-year period
- Gross margin of 29.6 percent, up 370 basis points from the second quarter of 2022
- Operating profit of $0.7 million for the quarter ended July 1, 2023, slightly higher than the prior-year period
“Fiscal 2023 continues to play out as expected, with solid top line growth and improved bottom line results,” said Chuck Griffith, CFO and acting President. “Revenue rose 5% year-over-year, to a record $7.4 million, and our gross margin increased 370 basis points versus the second quarter of 2022. In addition, our trailing twelve month book-to-bill ratio remains strong at 108%, as we execute a strategy of penetrating new customers and markets to accelerate growth going forward.
“At the same time, and as recently announced, the Company selected seasoned industry veteran – and retired officer of the US Army Corps of Engineers – Brian Mackey as the Company’s new president and chief executive officer. His leadership and business acumen are anticipated to bolster our expansion plans in the quarters and years to come, unlocking the value of our innovative technology and unique applications. With Brian at the helm, and a strong book of business in hand, we look forward to driving the Company to higher growth and improved financial returns.”
Results of Operations
CPS reported revenue of $7.4 million for the second quarter of fiscal 2023 versus $7.1 million in the prior-year period, reflecting higher product shipments. Gross profit rose to $2.2 million, or 29.6 percent of revenue, from $1.8 million, or 25.9 percent of revenue, in the fiscal 2022 second quarter. The higher gross margin year-over-year reflects increased operating leverage and improved product mix.Operating profit was $0.7 million in the fiscal 2023 second quarter, slightly higher than the prior-year period. Reported net income was $0.6 million, or $0.04 per diluted share, versus $0.5 million, or $0.03 per diluted share, in the quarter ended July 2, 2022.
Conference Call
The Company will be hosting its second quarter 2023 earnings call at 9:00 am on Thursday, August 3. Those interested in participating in the conference call should dial the following:Call in Number: 1-844-943-2942
Participant Passcode: 281331
The Company encourages those who wish to participate to call in 10 minutes before the scheduled start time to ensure the operator can connect all participants.About CPS
CPS is a technology and manufacturing leader in producing high-performance energy management components that facilitate the electrification of the economy. Our products and intellectual property include critical pieces of the technology puzzle for electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, the smart electric grid, 5G infrastructure, and others. CPS' armor products provide exceptional ballistic protection and environmental durability at a very lightweight. CPS is committed to innovation and to supporting our customers in building solutions to this planet's problems.Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2023 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release.CPS Technologies Corporation
111 South Worcester Street
Norton, MA 02766
www.cpstechnologysolutions.comInvestor Relations:
Chris Witty
646-438-9385
cwitty@darrowir.comCPS TECHNOLOGIES CORPORATION Statements of Operations (Unaudited) Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, 2023 2022 2023 2022 Revenues: Product sales $ 7,418,138 $ 7,070,743 $ 14,518,405 $ 13,723,457 Total revenues $ 7,418,138 $ 7,070,743 $ 14,518,405 $ 13,723,457 Cost of product sales 5,221,880 5,242,106 10,077,444 9,931,330 Gross Margin 2,196,259 1,828,637 4,440,961 3,792,127 Selling, general, and administrative expense 1,465,349 1,159,157 3,015,871 2,575,550 Income from operations 730,910 669,480 1,425,090 1,216,577 Interest/Other income (expense) 79,652 1,594 95,242 (319) Net income before income tax 810,562 671,074 1,520,332 1,216,258 Income tax provision (benefit) 210,058 215,966 460,628 341,714 Net income $ 600,503 $ 455,108 $ 1,059,704 $ 874,544 Wtd. Avg. basic common shares outstanding - diluted 14,621,929 14,708,646 14,630,765 14,682,516 Net income per basic common share $ 0.04 $ 0.03 $ 0.07 $ 0.06 CPS TECHNOLOGIES CORPORATION BALANCE SHEET (UNAUDITED) July 1, December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 8,681,225 $ 8,266,753 Accounts receivable-trade, net 5,074,559 3,777,975 Accounts Receivable - other 74,639 685,668 Inventories, net 4,813,753 4,875,901 Prepaid expenses and other current assets 288,315 211,242 Total current assets 18,932,491 17,817,539 Net property and equipment 1,507,578 1,326,968 Right-of-use lease asset 400,000 466,000 Deferred taxes, net 1,664,032 2,069,436 Total Assets $ 22,504,101 $ 21,679,943 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Note payable, current portion 56,681 43,711 Accounts payable 2,359,532 1,836,865 Accrued expenses 861,514 820,856 Deferred revenue 1,828,068 2,521,128 Lease liability, current portion 158,000 157,000 Total current liabilities 5,263,795 5,379,560 Note payable less current portion 20,437 54,847 Deferred revenue – long term 31,277 231,020 Long term lease liability 242,000 309,000 Total liabilities 5,557,509 5,974,427 Total stockholders’ equity 16,946,592 15,705,516 Total liabilities and stockholders’ equity $ 22,504,101 $ 21,679,943