CPS Technologies Corporation Announces First Quarter 2020 Results
CPS Technologies Corporation (NASDAQ:CPSH) reported revenues of $6.5 million and an operating profit of $622 thousand for the quarter ending March 28, 2020, a notable increase from $5.3 million in revenues and an operating loss of $744 thousand during the same period in 2019. President Grant Bennett highlighted ongoing new contracts with major customers that are expected to drive performance through 2020. Despite challenges posed by coronavirus, demand remains robust, although some delays are anticipated. The company has implemented measures to ensure safe operations.
- Quarterly revenues increased by 22.64% year-over-year.
- Achieved an operating profit of $622 thousand compared to an operating loss in the prior year.
- Positive outlook for continued performance driven by new contracts with key customers.
- Strong demand despite some delays; all major customers remain operational.
- Increased freight costs due to pandemic.
- Higher operational expenses related to absenteeism and safety measures.
NORTON, Mass., May 05, 2020 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues of
Grant Bennett, President and CEO, said: “Revenues in the first quarter were up significantly compared to the first quarter of 2019. We have previously commented on new contracts with our three largest customers. As new prices and higher volumes from these contracts continue to be phased in, we see the positive impact they are having on our results. This phase-in period began in the fourth quarter last year should be completed during the second quarter this year. Our sales team is focused on both profitability and volume and is doing an excellent job of balancing appropriate pricing with increasing our volumes in the market segments we serve. These developments suggest continued strong performance throughout 2020 – subject of course to possible unforeseen coronavirus impacts.
We continue to generate new customers and new products. We have taken and continue to take actions to strengthen our sales and marketing efforts in the US aerospace and defense electronics industries; these actions are showing positive results. These actions should continue to result in new design wins, new bookings, new customers, and new products in our two main product families, AlSiC components and hermetic packages.
Regarding the coronavirus, as part of the Defense Industrial Base, CPS has been open and operating throughout the pandemic. To date all of our major customers remain open and operational. Some smaller customers have closed some manufacturing facilities temporarily. Demand remains strong, although we are beginning to see some demand being stretched out over a longer period of time. Similarly, most of our vendors remain open and we have not experienced any meaningful supply chain disruptions.
These observations do not mean that CPS has been or will be unaffected by the pandemic. We have seen increased freight costs on our overseas shipments and increased expenses related to higher absenteeism, higher facility cleaning costs, increased purchases and use of PPE, etc. School closures, and the need to quarantine or care for family members, continue to cause increased absenteeism.
We have implemented CDC and OSHA guidance in our workplace. Employees’ temperatures are taken at the beginning of each shift, shifts have been staggered to reduce employee overlap, workstations have been rearranged to ensure social distancing, all employees are using facemasks, etc.
It is difficult to predict the overall impact this pandemic will have on CPS’ business going forward. Nevertheless, we remain optimistic about our 2020 performance.”
The Company will be hosting its first quarter conference call with investors at 4:30pm on Tuesday, May 5. Those interested in participating in the conference call should dial:
Call in Number: 1-833-953-1394
Conference ID: 6096452
About CPS
CPS Technologies Corporation is a global leader in producing metal-matrix composite components used to improve the reliability and performance of various electrical systems. CPS products are used in motor controllers for hybrid and electric vehicles, high-speed trains, subway cars and wind turbines. They are also used as heatspreaders in internet switches, routers and high-performance microprocessors. CPS also develops and produces metal-matrix composite armor.
Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2020 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
Chuck Griffith, Chief Financial Officer
111 South Worcester Street
Norton, MA 02766
Telephone: (508) 222-0614
Web Site: www.alsic.com
| CPS TECHNOLOGIES CORPORATION | ||||||||||
| STATEMENT OF OPERATIONS (Unaudited) | ||||||||||
| Fiscal Quarters Ended | ||||||||||
| March 28, | March 30, | |||||||||
| 1%; width: | 1%; width: | 66%; width: | 1%; width: | 1%; width: | 12%; width: | 1%; width: | 3%; width: | 1%; width: | 12%; width: | 1%; width: |
| Revenues: | ||||||||||
| Product sales | $ | 6,511,571 | $ | 5,269,538 | ||||||
| Total revenues | 6,511,571 | 5,269,538 | ||||||||
| Cost of product sales | 4,961,360 | 5,110,114 | ||||||||
| Gross Margin | 1,550,211 | 159,424 | ||||||||
| Selling, general, and | ||||||||||
| administrative expense | 928,590 | 903,686 | ||||||||
| Income (loss) from operations | 621,621 | (744,262 | ) | |||||||
| Other income (expense), net | (19,966 | ) | 48 | |||||||
| Income (loss) before taxes | 601,654 | (744,214 | ) | |||||||
| Income tax provision (benefit) | -- | -- | ||||||||
| Net income (loss) | $ | 601,654 | $ | (744,214 | ) | |||||
| Net income (loss) per | ||||||||||
| basic common share | $ | 0.05 | $ | (0.06 | ) | |||||
| CPS TECHNOLOGIES CORPORATION | ||||||
| BALANCE SHEET (UNAUDITED) | ||||||
| March 28, | December 28, | |||||
| 2020 | 2019 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 122,255 | $ | 133,965 | ||
| Accounts receivable-trade, net | 5,959,224 | 4,086,945 | ||||
| Inventories, net | 3,595,338 | 3,099,824 | ||||
| Prepaid expenses and other current assets | 227,459 | 147,786 | ||||
| Total current assets | 9,904,276 | 7,468,520 | ||||
| Net property and equipment | 1,424,302 | 1,236,878 | ||||
| Right-of-use lease asset | 136,000 | 171,000 | ||||
| Deferred taxes, net | 147,873 | 147,873 | ||||
| Total Assets | $ | 11,612,451 | $ | 9,024,271 | ||
| LIABILITIES AND STOCKHOLDERS’ | ||||||
| EQUITY | ||||||
| Current liabilities: | ||||||
| Borrowings against line of credit | 1,577,506 | 1,249,588 | ||||
| Note payable, current portion | 45,980 | -- | ||||
| Accounts payable | 2,621,862 | 1,436,417 | ||||
| Accrued expenses | 691,921 | 815,166 | ||||
| Deferred revenue | 381,216 | 21,110 | ||||
| Lease liability, current portion | 136,000 | 148,000 | ||||
| Total current liabilities | 5,454,485 | 3,670,281 | ||||
| Note payable less current portion | 159,649 | -- | ||||
| Long term lease liability | -- | 23,000 | ||||
| Total liabilities | 5,614,134 | 3,693,281 | ||||
| Total stockholders’ equity | 5,998,317 | 5,330,990 | ||||
| Total liabilities and stockholders’ | ||||||
| equity | $ | 11,612,451 | $ | 9,024,271 | ||
FAQ
What were CPSH's revenues for Q1 2020?
Did CPSH achieve an operating profit in Q1 2020?
What impact has the coronavirus had on CPSH's operations?
How does CPSH plan to improve its sales in 2020?
When is CPSH's investor conference call?
