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CPS Technologies Corporation Announces Fourth Quarter 2023 Financial Results

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

“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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