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CPS Technologies Corporation Announces First Quarter 2023 Financial Results
Source: Nasdaq GlobeNewswire / 04 May 2023 15:01:00 America/Chicago
NORTON, Mass., May 04, 2023 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal first quarter ended April 1, 2023.
First Quarter Highlights
- Revenue of $7.1 million for the first quarter of 2023 versus $6.7 million in the prior-year period
- Gross margin of 31.6 percent, up 210 basis points from the first quarter of 2022
- Operating profit of $0.7 million for the quarter ended April 1, 2023 versus $0.5 million in the prior-year period
“I’m pleased to announce that this period marked a new level of top line performance for the Company, with revenue of $7.1 million surpassing the previous record set during the second quarter of 2022,” said Chuck Griffith, CFO and acting President. “While the 7% increase in sales year-over-year was significant, the fact that the first quarter of 2022 was a longer, 14 week quarter – which only happens every five or six years – makes this growth even more impressive. In addition, gross margins expanded year-over-year, and our operating profit rose by 27%, to $0.7 million. Fiscal 2023 is clearly off to a great start.
”Given a first quarter book-to-bill ratio of 112%, significant wins with a leading aerospace customer, a new Small Business Innovative Research (SBIR) contract, and a strong backlog, we expect to continue a pattern of robust and sustainable growth over the coming quarters. In addition, to meet the increasing demands of our operations, we have expanded our team by adding key roles in business development and quality, with more to come. Based on our current pipeline of opportunities and ongoing demand, I anticipate the Company will set additional records for revenue and profit as we move forward in 2023.”
Results of Operations
CPS reported revenue of $7.1 million for the first quarter of fiscal 2023 versus $6.7 million in the prior-year period, reflecting higher product shipments. Gross profit rose to $2.2 million, or 31.6 percent of revenue, from $2.0 million, or 29.5 percent of revenue, in the fiscal 2022 first quarter. The higher gross margin year-over-year reflects increased operating leverage and improved product mix.Operating profit rose to $0.7 million in the fiscal 2023 first quarter from $0.5 million in the prior-year period. Reported net income was $0.5 million, or $0.03 per diluted share, versus $0.4 million, or $0.03 per diluted share, in the quarter ended April 2, 2022.
Conference Call
The Company will be hosting its first quarter 2023 earnings call at 4:30 pm on Thursday, May 4. Those interested in participating in the conference call should dial:Call in Number: 1-844-943-2942
Conference ID: 503680The 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 CORP. Statements of Operations (Unaudited) Fiscal Quarters Ended April 1, April 2, 2023 2022 Revenues: Product sales $ 7,100,267 $ 6,652,714 Total revenues 7,100,267 6,652,714 Cost of product sales 4,855,564 4,689,224 Gross Profit 2,244,703 1,963,490 Selling, general, and administrative expense 1,550,522 1,416,393 Income from operations 694,181 547,097 Other income (expense), net 15,590 (1,913 ) Income before taxes 709,771 545,184 Income tax provision 250,570 125,748 Net income $ 459,201 $ 419,436 Net income per basic common share $ 0.03 $ 0.03 CPS TECHNOLOGIES CORPORATION BALANCE SHEET (UNAUDITED) December 31, December 31, ASSETS 2022 2022 Current assets: Cash and cash equivalents $ 7,369,863 $ 8,266,753 Accounts receivable-trade, net 4,714,138 3,777,975 Accounts Receivable - other 700,703 685,668 Inventories, net 4,692,655 4,875,901 Prepaid expenses and other current assets 299,601 211,242 Total current assets 17,776,960 17,817,539 Net property and equipment 1,378,679 1,326,968 Right-of-use lease asset 433,000 466,000 Deferred taxes, net 1,842,992 2,069,436 Total Assets $ 21,431,931 $ 21,679,943 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Note payable, current portion 44,424 43,711 Accounts payable 2,046,893 1,836,865 Accrued expenses 731,454 820,856 Deferred revenue 1,828,068 2,521,128 Lease liability, current portion 157,000 157,000 Total current liabilities 4,807,839 5,379,560 Note payable less current portion 43,439 54,847 Deferred revenue – long term -- 231,020 Long term lease liability 276,000 309,000 Total liabilities 5,127,278 5,974,427 Total stockholders’ equity 16,304,653 15,705,516 Total liabilities and stockholders’ equity $ 21,431,931 $ 21,679,943