CPS Technologies Announces First Quarter 2025 Financial Results

2025-04-30 04:31:39

(MENAFN- GlobeNewsWire - Nasdaq) Record Revenue of $7.5 Million and Return to Profitability Underscore Improved Outlook

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

Investor Relations:
Chris Witty
646-438-9385
...

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

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