CPS Technologies Corporation Announces Fourth Quarter 2023 Financial Results

Published

Finished Year with Record Top Line Results; Large Pipeline of Opportunities for 2024 & Beyond

NORTON, Mass., March 06, 2024 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal fourth quarter ended December 30, 2023.

Fourth Quarter Highlights

  • Revenue of $6.7 million for the fourth quarter of 2023 versus $6.1 million in the prior-year period, primarily due to growth in shipments
  • Gross margin of 17.0 percent versus 26.6 percent in the fourth quarter of 2022, reflecting certain quality issues with a major customer
  • Operating profit of $0.1 million for the quarter ended December 30, 2023 compared to $0.3 million in the prior-year period

“We finished the year with the highest annual revenue in the Company’s history – $27.6 million – driven by 10 percent growth in the fourth quarter versus the prior-year period,” said Brian Mackey, President and CEO. “We are cautiously optimistic that the quality issues previously disclosed have been largely mitigated and should not have a material impact on 2024 results. While the Continuing Resolution in Washington has hampered certain decision making, impacting some of our new business development initiatives, we believe our strong position across the Company’s diverse end markets provides plenty of opportunity for further top line expansion. That said, the U.S. Navy contract for HybridTech Armor® panels is, as previously discussed, expected to be completed during the second quarter of this year. We remain steadfast in our mission to pursue other fast-growing industrial and technological applications that can accelerate demand and drive CPS to new levels of performance. We continue to invest for the future, and I am confident that order flow will improve as the year plays out. Even as short-term headwinds exist, the future is bright for CPS.”

Results of Operations CPS reported revenue of $6.7 million in the fourth quarter of fiscal 2023 versus $6.1 million in the prior-year period, reflecting overall growth in product shipments. Gross profit was $1.1 million, or 17.0 percent of revenue, versus $1.6 million, or 26.6 percent of revenue, in the fiscal 2022 fourth quarter, with the lower gross margin year-over-year largely due to quality issues with one of the Company’s major customers.

Operating profit was $0.1 million in the fiscal 2023 fourth quarter compared with $0.3 million in the prior-year period. Reported net income was also $0.2 million, or $0.01 per diluted share, versus $0.3 million, or $0.02 per diluted share, in the quarter ended December 31, 2022.

Conference Call The Company will be hosting its fourth quarter 2023 earnings call at 9:00 am on March 7, 2024. Those interested in participating in the conference call should dial the following: 

Call in Number: 1-844-943-2942 Participant Passcode: 531915

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 materials solutions for its customers. The company’s products and intellectual property address critical needs in a variety of applications, including electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, Navy ships, the smart electric grid, 5G infrastructure and others. CPS hermetic packages can be found in many Aerospace and Satellite applications.  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 for the transition to clean energy.

Safe Harbor Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2024 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.com

Investor Relations: Chris Witty 646-438-9385 cwitty@darrowir.com

CPS TECHNOLOGIES CORPORATION
Statements of Operations (Unaudited)
 
  Three Months Ended Year Ended
  December 30, December 31, December 30, December 31,
  2023 2022 2023 2022
         
Revenues:       
 Product sales$6,747,199 $6,115,352 $27,550,646 $26,586,926
 Total revenues$6,747,199 $6,115,352 $27,550,646 $26,586,926
         
Cost of product sales 5,598,616  4,489,640  20,725,237  19,285,846
 Gross Margin 1,148,583  1,625,712  6,825,409  7,301,080
         
Selling, general, and       
 administrative expense 1,004,948  1,316,530  5,126,046  5,066,660
 Income from operations 143,635  309,182  1,699,363  2,234,420
        
Interest/Other income (expense) 80,823  9,866  253,018  635,248
Net income before       
 income tax 224,458  319,048  1,952,381  2,887,668
Income tax provision (benefit) 84,948  50,057  582,085  756,268
 Net income$139,510 $268,991 $1,370,296 $2,131,400
        
Wtd. Avg. basic common shares outstanding - diluted 14,617,473  14,649,719  14,628,811  14,675,646
        
Net income per       
 basic common share$0.01 $0.02 $0.09 $0.15
         

CPS TECHNOLOGIES CORP.
Balance Sheets (Unaudited)
       
  December 31,  December 31, 
  2022  2022 
ASSETS      
       
Current assets:      
Cash and cash equivalents$8,813,626 $8,266,753 
Accounts receivable-trade, net 4,389,155  3,777,975 
Accounts Receivable - other 83,191  685,668 
Inventories, net 4,581,930  4,875,901 
Prepaid expenses and other current assets 276,349  211,242 
       
Total current assets 18,144,251  17,817,539 
       
Net property and equipment 1,556,139  1,326,968 
  
Right-of-use lease asset 332,000  466,000  
Deferred taxes, net 1,269,726  2,069,436  
     
Total Assets$21,602,116 $21,679,943  
       
LIABILITIES AND STOCKHOLDERS’      
EQUITY       
        
Current liabilities:       
Note payable, current portion 46,797  43,711  
Accounts payable 2,535,086  1,836,865  
Accrued expenses 1,075,137  820,856  
Deferred revenue 251,755  2,521,128  
Lease liability, current portion 160,000  157,000  
        
Total current liabilities 4,068,775  5,379,560  
        
Note payable less current portion 8,090  54,847  
Deferred revenue – long term 31,277  231,020  
Long term lease liability 172,000  309,000  
        
Total liabilities 4,280,142  5,974,427  
        
Total stockholders’ equity 17,321,974  15,705,516  
        
Total liabilities and stockholders’       
equity$21,602,116 $21,679,943  

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Source: CPS Technologies Corp.

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