• CPS Technologies Corporation Announces Third Quarter 2022 Results

    Source: Nasdaq GlobeNewswire / 02 Nov 2022 15:01:00   America/Chicago

    NORTON, Mass., Nov. 02, 2022 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues of $6.7 million and an operating profit of $709 thousand for the quarter ended October 1, 2022. This compares with revenues of $5.5 million and an operating loss of $88 thousand for the quarter ended September 25, 2021.

    Michael McCormack, President and CEO, said: “We are pleased to report strong revenues in the third quarter of 2022 an increase of 22% over the third quarter of 2021. Further, our operating profit for the quarter represents a significant turnaround from the third quarter loss in 2021. On a year-to-date basis, operating profit of $1.9 million compares with $201 thousand for the first 9 months of 2021, an increase of 858%. I am incredibly proud of the team’s efforts to continue driving new business and operational efficiencies as we gain momentum in realizing the success of our strategic initiatives. We continue to perform and exceed against our operating plan and are on pace for a record year in 2022.”

    The larger concerns today involve the impacts of inflation, material availability, logistics delays, and a limited labor force. We are not immune to these challenges, but to date none of these issues has had a significant impact on our business. While inflation affects both wages and material costs, we have been able to mitigate these in the form of increased manufacturing efficiencies and incremental price increases. In an uncertain overall economic environment, we remain very pleased with our third quarter performance and are confident in our outlook.

    Beyond Fiscal Year 2022, we remain cautiously optimistic that our collective growth initiatives, specifically in longer-term new product development investments, will expand the current product lines both in terms of revenues and earnings. The recent HybridTech Armor® award supporting the U.S. Navy, (a record order for CPS), and recent wins qualifying new products to expand the Hermetic Package product line, will ensure we sustain this momentum into FY23. As previously reported, the growing CPS technical team is executing several early phase SBIR/STTR wins with promising results and potential for phase II awards next year. Collectively, the business and product development teams are growing our pipeline of high-value opportunities. As an organization, we continue to make measured investments to increase our capacity and ability to scale as we prepare for our next phase of growth.

    The Company will be hosting its third quarter conference call with investors at 4:30 PM on Wednesday, November 2. Those interested in participating in the conference call should dial:

    Call in Number: 1-844-943-2942

    Conference ID: 274639

    We encourage those who wish to participate, to call in 10 minutes before the scheduled start time to ensure the operator can connect you prior to the start of the call.

    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 hermetic packages can be found in many Aerospace and Satellite applications including the GPS III satellite and the Mars rover. CPS armor products provide exceptional ballistic protection and environmental durability at very light weight. 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 2022 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 CORP.
    Statements of Operations (Unaudited)

      Three Months Ended Six Months Ended
      October 1, September 25, October 1, September 25,
      2022 2021 2022 2021
             
    Revenues:       
     Product sales$ 6,748,117 $ 5,514,872 $ 20,471,574 $ 16,242,762
             
     Total revenues6,748,117 5,514,872 20,471,574 16,242,762
             
    Cost of product sales4,864,876 4,375,676 14,796,206 12,807,844
            
     Gross Margin1,883,241 1,139,196 5,675,368 3,434,918
             
    Selling, general, and       
     administrative expense1,174,581 1,227,258 3,750,131 3,234,344
             
     Income from operations708,660 (88,062) 1,925,237 200,574
            
    Interest/Other income (expense), net643,702 16,032 643,383 (2,048)
            
    Net income before       
     income tax1,352,362 (72,030) 2,568,620 198,526
    Income tax provision364,497 (2,799,997) 706,211 (2,799,541)
            
     Net income$987,865 $2,727,967 $1,862,409 $2,998,067
             
    Net income per       
     basic common share$0.07 $0.18 $0.13 $0.21


    CPS TECHNOLOGIES CORP.
    Balance Sheet (Unaudited)
       July 2, December 25,
       2022 2021
    ASSETS
       
        
    Current assets:   
     Cash and cash equivalents
    $ 5,598,503 $5,050,312
     Accounts receivable-trade, net
    5,835,738 4,870,021
     Inventories, net
    4,868,550 3,911,602
     Prepaid expenses and other current assets
    246,680 225,873
         
      Total current assets16,549,471 14,057,808
          
    Net property and equipment1,408,749 1,322,494
        
    Right-of-use lease asset497,000 586,000
    Deferred taxes, net2,118,223 2,823,978
        
    Total Assets$20,573,443 $ 18,800,719
          
    LIABILITIES AND STOCKHOLDERS’   
     EQUITY   
         
    Current liabilities:   
     Note payable, current portion$ 43,136 55,906
     Accounts payable2,044,857 2,100,251
     Accrued expenses865,538 1,086,429
     Deferred revenue1,707,138 1,707,138
     Lease liability, current portion157,000 155,000
         
    Total current liabilities4,817,669 5,104,724
        
    Note payable less current portion65,947 98,684
    Long term lease liability340,000 431,000
        
    Total liabilities5,223,616 5,634,408
        
    Total stockholders’ equity15,349,827 13,166,311
        
    Total liabilities and stockholders’ equity$ 20,573,443 $18,800,719
          

    CPS Technologies Corporation
    111 South Worcester Street
    Norton, MA 02766
    www.cpstechnologysolutions.com

    David Costello
    (617) 875-2492
    david@risingtidemhd.com


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