CPS Technologies Announces First Quarter 2025 Financial Results
NORTON, Mass., April 30, 2025 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) ("CPS" or the "Company") today announced financial results for the fiscal first quarter ended March 29, 2025.
First Quarter Highlights
- Revenue of $7.5 million for the first quarter of 2025, reflecting the Company's best sales quarter ever, even without any HybridTech Armor® business, versus $5.9 million in the first quarter of 2024
- Gross margin of 16.4 percent versus 15.3 percent in the prior-year period, reflecting improved operating leverage tied to higher revenue
- Operating profit of $0.1 million for the quarter ended March 29, 2025 compared to an operating loss of $(0.3) million in the prior-year period
- The Company's performance also reflects the dramatic improvements that have occurred since the fourth quarter of 2024, when revenue was $5.9 million and gross margins were negative 2 percent
- As previously shared, three new Phase I Army SBIR contracts were initiated during the quarter
"What started as a very real turnaround last quarter is continuing into fiscal 2025, with the Company posting record revenue, driven accelerating demand from multiple customers," said Brian Mackey, President and CEO. "Despite the completion of the aircraft carrier contract, the overall growth of our existing product lines has surpassed our previous revenue numbers. I'm pleased to see the return to bottom line profitability as well. While our profitability is positive, we continue to work on further margin improvement for the second quarter and beyond. Higher production volumes, recent SBIR wins, and a strategy meant to broaden our target markets and book of business are having the intended effect of strengthening the outlook for fiscal 2025. Our strategy of using our core offerings to invest in the product lines of the future in response to customer requirements, is beginning to bear fruit."
Results of Operations
CPS reported revenue of $7.5 million in the first quarter of fiscal 2025 versus $5.9 million in the first quarter of 2024, reflecting higher production rates and shipments across the board. Gross profit was $1.2 million, or 16.4 percent of revenue, versus $0.9 million, or 15.3 percent of revenue, in the fiscal 2024 first quarter, which had lower revenue and reduced production efficiencies and was also impacted by quality control testing.
Operating profit was $0.1 million in the fiscal 2025 first quarter compared with an operating loss of $(0.3) million in the prior-year period. Reported net income was $0.1 million, or $0.01 per diluted share, versus a net loss of $(0.1) million, or $(0.01) per share, in the quarter ended March 30, 2024.
Conference Call
The Company will be hosting its first quarter 2025 earnings call tomorrow, May 1, 2025, at 9:00am Eastern. Those interested in participating in the conference call should dial the following:
Call in Number: 1-844-943-2942
Participant Passcode: 970717
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. The Company articulates its Vision as follows: "To pioneer the next generation of high-performance materials and solve the world's toughest engineering challenges."
Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2025 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
[email protected]
| CPS TECHNOLOGIES CORPORATION Statements of Operations (Unaudited) | ||||||||
| Fiscal Quarters Ended | ||||||||
| March 29, 2025 | March 30, 2024 | |||||||
| Revenues: | ||||||||
| Product sales | $ | 7,505,921 | $ | 5,912,634 | ||||
| Total revenues | 7,505,921 | 5,912,634 | ||||||
| Cost of product sales | 6,274,920 | 5,006,324 | ||||||
| Gross Profit | 1,231,001 | 906,310 | ||||||
| Selling, general, and administrative expense | 1,101,350 | 1,165,922 | ||||||
| Operating income (loss) | 129,651 | (259,612 | ) | |||||
| Other income, net | 50,476 | 79,171 | ||||||
| Income (loss) before taxes | 180,127 | (180,441 | ) | |||||
| Income tax provision (benefit) | 84,165 | (37,288 | ) | |||||
| Net income (loss) | $ | 95,962 | $ | (143,153 | ) | |||
| Other comprehensive income | ||||||||
| Net unrealized gains on available for sale securities | 1,300 | - | ||||||
| Total other comprehensive income | 1,300 | - | ||||||
| Comprehensive income (loss) | 97,262 | (143,153 | ) | |||||
| Net income (loss) per basic common share | $ | 0.01 | $ | (0.01 | ) | |||
| Weighted average number of basic common shares outstanding | 14,525,960 | 14,519,215 | ||||||
| Net income (loss) per diluted common share | $ | 0.01 | $ | (0.01 | ) | |||
| Weighted average number of diluted common shares outstanding | 14,543,911 | 14,519,215 | ||||||
| CPS TECHNOLOGIES CORP. Balance Sheets (Unaudited) | ||||||||
| March 29, 2025 | December 28, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,929,919 | $ | 3,280,687 | ||||
| Marketable securities, at fair value | 1,039,714 | 1,031,001 | ||||||
| Accounts receivable-trade, net | 6,302,650 | 4,858,208 | ||||||
| Accounts receivable-other | 210,475 | 177,068 | ||||||
| Inventories, net | 4,812,833 | 4,331,066 | ||||||
| Prepaid expenses and other current assets | 389,764 | 480,986 | ||||||
| Total current assets | 14,685,355 | 14,159,016 | ||||||
| Property and equipment: | ||||||||
| Production equipment | 10,439,670 | 10,382,379 | ||||||
| Furniture and office equipment | 891,921 | 891,921 | ||||||
| Leasehold improvements | 997,830 | 997,830 | ||||||
| Total cost | 12,329,421 | 12,272,130 | ||||||
| Accumulated depreciation and amortization | (10,542,494 | ) | (10,377,756 | ) | ||||
| Construction in progress | 144,653 | 108,874 | ||||||
| Net property and equipment | 1,931,580 | 2,003,248 | ||||||
| Right-of-use lease asset (note 4, leases) | 147,000 | 186,000 | ||||||
| Deferred taxes | 2,444,973 | 2,528,682 | ||||||
| Total Assets | $ | 19,208,908 | 18,876,946 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Note payable, current portion | - | 8,130 | ||||||
| Accounts payable | 3,135,552 | 3,053,712 | ||||||
| Accrued expenses | 1,070,932 | 913,279 | ||||||
| Deferred revenue | 108,080 | 172,429 | ||||||
| Lease liability, current portion | 147,000 | 160,000 | ||||||
| Total current liabilities | 4,461,564 | 4,307,550 | ||||||
| Deferred revenue – long term | 31,277 | 31,277 | ||||||
| Long term lease liability | - | 26,000 | ||||||
| Total liabilities | 4,492,841 | 4,364,827 | ||||||
| Commitments & Contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock, $0.01 par value, authorized 20,000,000 shares; issued 14,661,487 shares; outstanding 14,525,960 shares at each March 29, 2025 and December 28, 2024 | 146,615 | 146,615 | ||||||
| Additional paid-in capital | 40,702,573 | 40,580,387 | ||||||
| Accumulated other comprehensive income | 1,300 | 15,500 | ||||||
| Accumulated deficit | (25,794,283 | ) | (25,890,245 | ) | ||||
| Less cost of 135,527 common shares repurchased at each March 29, 2025 and December 28, 2024 | (340,138 | ) | (340,138 | ) | ||||
| Total stockholders' equity | 14,716,067 | 14,512,119 | ||||||
| Total liabilities and stockholders' equity | $ | 19,208,908 | $ | 18,876,946 | ||||
