CPS Technologies Corporation Announces Second Quarter 2024 Financial Results
01 August 2024 - 7:22AM
CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”)
today announced financial results for the fiscal second quarter
ended June 29, 2024.
Second Quarter Summary
- Revenue of $5.0 million for the
second quarter of 2024 versus $7.4 million in the prior-year
period, reflecting lower overall shipments due to the end of the
Company’s HybridTech Armor® contract with Kinetic Protection for
the US Navy
- Gross margin of (4.6) percent
versus 29.6 percent in the second quarter of 2023, largely
reflecting lower manufacturing efficiencies and impact of fixed
costs on lower revenue.
- Operating loss of $1.3 million for
the quarter ended June 29, 2024 compared to an operating profit of
$0.7 million in the prior-year period
- The Company’s recent SBIR Phase II
award and ongoing product development initiatives in response to
customer requirements point to accelerating wins heading into
fiscal 2025
“This quarter’s results reflect the
previously-announced completion of our HybridTech® Armor contract
with Kinetic Protection, as the Navy’s current needs have been
fulfilled after many quarters of delivering our state-of-the-art
panels to provide ballistic protection for the U.S. Navy’s fleet of
aircraft carriers,” said Brian Mackey, President and CEO. “While
this near-term headwind has been well known for quite some time, it
does not lessen the impact it has had on our overall performance.
Despite the current operating environment, our growth path going
forward will be augmented by the continued expansion of our product
development pipeline.
“Notably, our latest SBIR contract from the U.S.
Navy Air Systems Command, valued at over $1 million, will enable us
to continue to develop our novel metal matrix composites for
thermal energy storage applications. Our MMCs have been shown to
provide cutting-edge thermal energy storage, which supports
long-range missile strike capability for the Navy. Potential
applications include avionics, weapons, and high-pulse power
modules. This new program, along with ongoing efforts to address
our customer’s pressing technical challenges, with materials such
as fiber reinforced aluminum, or “FRA”, and lightweight radiation
shielding material, will continue to enhance company value. Our new
Phase II contract, the company’s first in many years, clearly
underscores not only our unique capabilities but the successful
execution of a long-term growth strategy through expanded product
development that addresses critical customer requirements.”
Results of Operations CPS reported revenue of
$5.0 million in the second quarter of fiscal 2024 versus $7.4
million in the prior-year period, reflecting the completion of the
Company’s HybridTech Armor® contract with Kinetic Protection, the
prime contractor for the US Navy. Gross loss was $0.2 million, or
(4.6) percent of revenue, versus a gross profit of $2.2 million, or
29.6 percent of revenue, in the fiscal 2023 second quarter, with
the negative variance year-over-year due to the impact of fixed
costs on lower overall revenue and reduced production efficiencies
due to new product launches.
The Company reported an operating loss of $1.3
million in the fiscal 2024 second quarter compared with an
operating profit of $0.7 million in the prior-year period. Reported
net loss was $1.0 million, or $(0.07) per diluted share, versus net
income of $0.6 million, or $0.04 per diluted share, in the quarter
ended July 1, 2023.
Conference Call The Company will be hosting its
second quarter 2024 earnings call at 9:00 am tomorrow, August 1,
2024. Those interested in participating in the conference call
should dial the following: Call in Number: 1-844-943-2942
Participant Passcode: 281331
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 CORP. Statements of
Operations and Other Comprehensive Income (Unaudited) |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 29, |
|
|
July 1, |
|
|
June 29, |
|
|
July 1, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
$ |
5,030,313 |
|
|
$ |
7,418,138 |
|
|
$ |
10,942,947 |
|
|
$ |
14,518,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
5,030,313 |
|
|
|
7,418,138 |
|
|
|
10,942,947 |
|
|
|
14,518,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales |
|
5,260,305 |
|
|
|
5,221,880 |
|
|
|
10,266,629 |
|
|
|
10,077,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
(229,992 |
) |
|
|
2,196,259 |
|
|
|
676,318 |
|
|
|
4,440,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense |
|
1,084,995 |
|
|
|
1,465,349 |
|
|
|
2,250,917 |
|
|
|
3,015,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
(1,314,987 |
) |
|
|
730,910 |
|
|
|
(1,574,599 |
) |
|
|
1,425,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net |
|
90,851 |
|
|
|
79,652 |
|
|
|
170,021 |
|
|
|
95,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) before income tax |
|
(1,224,136 |
) |
|
|
810,562 |
|
|
|
(1,404,578 |
) |
|
|
1,520,332 |
|
Income tax provision (benefit) |
|
(269,832 |
) |
|
|
210,058 |
|
|
|
(307,120 |
) |
|
|
460,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(954,304 |
) |
|
$ |
600,503 |
|
|
$ |
(1,097,458 |
) |
|
$ |
1,059,704 |
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains on available for sale securities |
|
8,701 |
|
|
|
-- |
|
|
|
8,701 |
|
|
|
-- |
|
Total other comprehensive income |
|
8,701 |
|
|
|
-- |
|
|
|
8,701 |
|
|
|
-- |
|
Total comprehensive income |
|
(945,603 |
) |
|
|
-- |
|
|
|
(1,088,757 |
) |
|
|
-- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per basic common share |
$ |
(0.07 |
) |
|
$ |
0.04 |
|
|
$ |
(0.08 |
) |
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of basic common shares outstanding |
|
14,519,215 |
|
|
|
14,493,970 |
|
|
|
14,519,215 |
|
|
|
14,473,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted common share |
$ |
(0.07 |
) |
|
$ |
0.04 |
|
|
$ |
(0.08 |
) |
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of diluted common shares outstanding |
|
14,519,215 |
|
|
|
14,621,929 |
|
|
|
14,519,215 |
|
|
|
14,630,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPS TECHNOLOGIES CORP. Balance Sheets
(Unaudited) |
|
|
June 29, |
|
|
December 30, |
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
6,306,244 |
|
|
$ |
8,813,626 |
|
Marketable Securities |
|
758,701 |
|
|
|
-- |
|
Accounts receivable-trade, net |
|
4,064,293 |
|
|
|
4,389,155 |
|
Accounts receivable-other |
|
198,348 |
|
|
|
83,191 |
|
Inventories, net |
|
4,121,678 |
|
|
|
4,581,930 |
|
Prepaid expenses and other current assets |
|
366,655 |
|
|
|
276,349 |
|
|
|
|
|
|
|
|
|
Total current assets |
|
15,815,919 |
|
|
|
18,144,251 |
|
|
|
|
|
|
|
|
|
Property and equipment: |
|
|
|
|
|
|
|
Production equipment |
|
9,940,480 |
|
|
|
11,271,982 |
|
Furniture and office equipment |
|
891,921 |
|
|
|
952,883 |
|
Leasehold improvements |
|
873,730 |
|
|
|
985,649 |
|
|
|
|
|
|
|
|
|
Total cost |
|
11,706,131 |
|
|
|
13,210,514 |
|
|
|
|
|
|
|
|
|
Accumulated depreciation and amortization |
|
(10,068,557 |
) |
|
|
(11,936,004 |
) |
Construction in progress |
|
496,331 |
|
|
|
281,629 |
|
|
|
|
|
|
|
|
|
Net property and equipment |
|
2,133,905 |
|
|
|
1,556,139 |
|
|
|
|
|
|
|
|
|
Right-of-use lease asset |
|
261,000 |
|
|
|
332,000 |
|
Deferred taxes, net |
|
1,877,302 |
|
|
|
1,569,726 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
20,088,126 |
|
|
$ |
21,602,116 |
|
|
|
|
|
|
|
|
|
CPS TECHNOLOGIES CORP.Balance Sheets
(Unaudited)(concluded) |
|
|
June 29, |
|
|
December 30, |
|
|
2024 |
|
|
2023 |
|
LIABILITIES AND STOCKHOLDERS` EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Note payable, current portion |
$ |
31,885 |
|
|
$ |
46,797 |
|
Accounts payable |
|
2,587,874 |
|
|
|
2,535,086 |
|
Accrued expenses |
|
671,853 |
|
|
|
1,075,137 |
|
Deferred revenue |
|
65,578 |
|
|
|
251,755 |
|
Lease liability, current portion |
|
160,000 |
|
|
|
160,000 |
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
3,517,190 |
|
|
|
4,068,775 |
|
|
|
|
|
|
|
|
|
Note payable less current
portion |
|
-- |
|
|
|
8,090 |
|
Deferred revenue – long
term |
|
31,277 |
|
|
|
31,277 |
|
Long term lease liability |
|
101,000 |
|
|
|
172,000 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
3,649,467 |
|
|
|
4,280,142 |
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(note 6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders` equity: |
|
|
|
|
|
|
|
Common stock, $0.01 par value, authorized 20,000,000 shares; issued
14,601,487 shares; outstanding 14,519,215 shares at each June 29,
2024 and December 30, 2023 |
|
146,015 |
|
|
|
146,015 |
|
Additional paid-in capital |
|
40,386,335 |
|
|
|
40,180,893 |
|
Accumulated other comprehensive income |
|
8,701 |
|
|
|
-- |
|
Accumulated deficit |
|
(23,852,254 |
) |
|
|
(22,754,796 |
) |
Less cost of 82,272 common shares repurchased at each June 29, 2024
and December 30, 2023 |
|
(250,138 |
) |
|
|
(250,138 |
) |
|
|
|
|
|
|
|
|
Total stockholders`
equity |
|
16,438,659 |
|
|
|
17,321,974 |
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders` equity |
$ |
20,088,126 |
|
|
$ |
21,602,116 |
|
CPS Technologies (NASDAQ:CPSH)
Historical Stock Chart
From Jul 2024 to Aug 2024
CPS Technologies (NASDAQ:CPSH)
Historical Stock Chart
From Aug 2023 to Aug 2024