CPS Technologies Corporation Announces Fourth Quarter 2024 Financial Results
CPS Technologies (NASDAQ:CPSH) reported fourth quarter 2024 financial results with revenue of $5.9 million, down from $6.7 million in the prior-year period. The decrease reflects the completion of the HybridTech Armor® contract with Kinetic Protection for the U.S. Navy.
The company reported a gross loss of $0.3 million (-4.6% margin) and a net loss of $1.0 million ($-0.07 per share), compared to prior year's net income of $0.2 million. Revenue increased 40% sequentially from Q3 2024 due to added third shift and increased production capacity.
CPS secured three new Phase I SBIR contracts with the U.S. Army, each valued at $250,000 over six months. The company also announced its first commercial sale of radiation shielding and continues work on a $13.3 million power module contract. Management expressed optimism for 2025, citing improved backlog and increasing demand for core products.
CPS Technologies (NASDAQ:CPSH) ha riportato i risultati finanziari del quarto trimestre 2024 con un fatturato di 5,9 milioni di dollari, in calo rispetto ai 6,7 milioni di dollari del periodo dell'anno precedente. La diminuzione riflette il completamento del contratto HybridTech Armor® con Kinetic Protection per la Marina degli Stati Uniti.
L'azienda ha riportato una perdita lorda di 0,3 milioni di dollari (-4,6% di margine) e una perdita netta di 1,0 milioni di dollari ($-0,07 per azione), rispetto a un utile netto dell'anno precedente di 0,2 milioni di dollari. Il fatturato è aumentato del 40% rispetto al Q3 2024 grazie all'aggiunta di un terzo turno e all'aumento della capacità produttiva.
CPS ha ottenuto tre nuovi contratti Phase I SBIR con l'Esercito degli Stati Uniti, ciascuno del valore di 250.000 dollari per sei mesi. L'azienda ha anche annunciato la sua prima vendita commerciale di schermatura dalle radiazioni e continua a lavorare su un contratto per un modulo di potenza del valore di 13,3 milioni di dollari. La direzione ha espresso ottimismo per il 2025, citando un portafoglio ordini migliorato e una crescente domanda per i prodotti principali.
CPS Technologies (NASDAQ:CPSH) informó los resultados financieros del cuarto trimestre de 2024 con ingresos de 5.9 millones de dólares, por debajo de los 6.7 millones de dólares del mismo período del año anterior. La disminución refleja la finalización del contrato HybridTech Armor® con Kinetic Protection para la Marina de los EE. UU.
La compañía reportó una pérdida bruta de 0.3 millones de dólares (-4.6% de margen) y una pérdida neta de 1.0 millones de dólares ($-0.07 por acción), en comparación con un ingreso neto del año anterior de 0.2 millones de dólares. Los ingresos aumentaron un 40% secuencialmente desde el Q3 2024 debido a la incorporación de un tercer turno y al aumento de la capacidad de producción.
CPS aseguró tres nuevos contratos Phase I SBIR con el Ejército de los EE. UU., cada uno valorado en 250,000 dólares durante seis meses. La compañía también anunció su primera venta comercial de blindaje contra radiación y continúa trabajando en un contrato de módulo de potencia de 13.3 millones de dólares. La dirección expresó optimismo para 2025, citando una mejora en la cartera de pedidos y una creciente demanda de productos clave.
CPS Technologies (NASDAQ:CPSH)는 2024년 4분기 재무 결과를 보고하며 수익이 590만 달러로, 전년 동기 670만 달러에서 감소했다고 밝혔습니다. 이 감소는 미국 해군을 위한 Kinetic Protection와의 HybridTech Armor® 계약 완료를 반영합니다.
회사는 30만 달러의 총 손실(-4.6% 마진)과 100만 달러의 순손실($-0.07 주당)을 보고했으며, 이는 전년도의 순이익 20만 달러에 비해 감소한 수치입니다. 수익은 2024년 3분기 대비 40% 증가했으며, 이는 세 번째 근무조와 생산 능력 증가 덕분입니다.
CPS는 미국 육군과 세 개의 Phase I SBIR 계약을 체결했으며, 각 계약은 6개월 동안 25만 달러의 가치가 있습니다. 회사는 또한 방사선 차폐의 첫 상업적 판매를 발표했으며, 1330만 달러의 전원 모듈 계약에 대한 작업을 계속하고 있습니다. 경영진은 2025년에 대한 낙관적인 전망을 나타내며, 개선된 수주 잔고와 핵심 제품에 대한 수요 증가를 언급했습니다.
CPS Technologies (NASDAQ:CPSH) a annoncé les résultats financiers du quatrième trimestre 2024 avec un chiffre d'affaires de 5,9 millions de dollars, en baisse par rapport à 6,7 millions de dollars au cours de la même période l'année précédente. Cette baisse reflète l'achèvement du contrat HybridTech Armor® avec Kinetic Protection pour la Marine américaine.
L'entreprise a déclaré une perte brute de 0,3 million de dollars (-4,6 % de marge) et une perte nette de 1,0 million de dollars ($-0,07 par action), contre un bénéfice net de 0,2 million de dollars l'année précédente. Les revenus ont augmenté de 40 % par rapport au T3 2024 grâce à l'ajout d'un troisième quart de travail et à une capacité de production accrue.
CPS a obtenu trois nouveaux contrats Phase I SBIR avec l'Armée américaine, chacun d'une valeur de 250 000 dollars sur six mois. L'entreprise a également annoncé sa première vente commerciale de protection contre les radiations et continue de travailler sur un contrat de module de puissance de 13,3 millions de dollars. La direction a exprimé son optimisme pour 2025, citant un carnet de commandes amélioré et une demande croissante pour les produits phares.
CPS Technologies (NASDAQ:CPSH) hat die finanziellen Ergebnisse des vierten Quartals 2024 veröffentlicht, mit einem Umsatz von 5,9 Millionen Dollar, ein Rückgang von 6,7 Millionen Dollar im Vorjahreszeitraum. Der Rückgang spiegelt den Abschluss des HybridTech Armor®-Vertrags mit Kinetic Protection für die US Navy wider.
Das Unternehmen meldete einen Bruttoverlust von 0,3 Millionen Dollar (-4,6% Marge) und einen Nettoverlust von 1,0 Millionen Dollar ($-0,07 pro Aktie), im Vergleich zu einem Nettogewinn von 0,2 Millionen Dollar im Vorjahr. Der Umsatz stieg im Vergleich zum Q3 2024 um 40% aufgrund der Hinzufügung einer dritten Schicht und einer erhöhten Produktionskapazität.
CPS sicherte sich drei neue Phase I SBIR-Verträge mit dem US Army, jeder im Wert von 250.000 Dollar über sechs Monate. Das Unternehmen gab auch den ersten kommerziellen Verkauf von Strahlenschutz bekannt und arbeitet weiterhin an einem Vertrag über ein Leistungsmodul im Wert von 13,3 Millionen Dollar. Das Management äußerte Optimismus für 2025 und verwies auf einen verbesserten Auftragsbestand und eine steigende Nachfrage nach Kernprodukten.
- Revenue grew 40% sequentially from Q3 2024
- Secured three new Army SBIR contracts worth $750,000 total
- First commercial sale of radiation shielding achieved
- Ongoing $13.3M power module contract
- Increased production capacity with third shift addition
- Revenue decreased to $5.9M from $6.7M year-over-year
- Reported gross loss of $0.3M (-4.6% margin) vs. profit of $1.1M year-over-year
- Net loss of $1.0M vs. net income of $0.2M year-over-year
- EPS declined to -$0.07 from $0.01 year-over-year
Insights
CPS Technologies' Q4 2024 results reveal a company in transition, balancing near-term financial challenges with promising strategic developments. The $5.9 million revenue represents a 40% sequential increase from Q3, though still below the $6.7 million from Q4 2023 following the conclusion of their Navy armor contract.
The financial metrics show clear operational pressures: a gross margin of -4.6% (versus +17.0% year-over-year), an operating loss of $1.3 million, and a net loss of $0.07 per share. However, this deterioration appears largely attributable to temporary factors including training expenses and startup costs for the new third shift - a capacity expansion that signals management confidence despite current losses.
Several strategic achievements strengthen the forward outlook:
- Successful revenue diversification, with Q4 revenue slightly exceeding Q1 levels despite the completed armor contract
- Three new U.S. Army SBIR contracts valued at $750,000 collectively, expanding externally funded programs to six
- First commercial sale of radiation shielding products, representing the company's first successful new product introduction in years
- Increased backlog and ongoing $13.3 million power module contract providing revenue stability
The expansion into radiation shielding and Fiber Reinforced Aluminum (FRA) applications for military vehicles represents a pivotal diversification strategy. These developments, coupled with sequential revenue growth and increased production capacity, indicate the potential for improved financial performance despite the current losses.
With a market cap of $25.4 million against annual revenue approaching $24 million, the market appears to be pricing in a successful operational turnaround in 2025. The critical question remains whether the company can translate its product development initiatives into sustainable profit margins while managing the near-term cash burn from operational losses.
Top Line Growth Set to Continue; Improving Outlook for 2025
NORTON, Mass., March 12, 2025 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal fourth quarter ended December 28, 2024.
Fourth Quarter Summary
- Revenue of
$5.9 million for the fourth quarter of 2024 versus$6.7 million in the prior-year period, reflecting the previously-announced fulfillment of the Company’s HybridTech Armor® contract with Kinetic Protection for the U.S. Navy; revenue rose significantly relative to the third quarter of 2024, due to higher production rates and associated customer shipments. In addition, fourth quarter revenue was slightly higher than first quarter revenue, demonstrating that the Company has fully replaced its armor contract with revenue from other products.
- After the end of the quarter, the Company announced three Phase I SBIR contracts, raising the number of externally funded programs to six, including five SBIRs. All three new contracts are funded by the U.S. Army, with each valued at
$250,000 over six months. Two of them address advanced challenges related to artillery, and the third aims to enhance fuel efficiency and extend the operational range of military vehicles using the Company’s Fiber Reinforced Aluminum (FRA).
- The Company also recently announced its first commercial sale of radiation shielding, signifying the first new successful expansion of its product offerings in many years.
“As we enter 2025, we are achieving critical milestones as we execute our plan to leverage our unique materials capabilities and bring new products to market,” said Brian Mackey, President and CEO. “These efforts – led by our first commercial order for radiation shielding as well as Army SBIR funding in support of Fiber Reinforced Aluminum (FRA) – will expand our product portfolio into promising new areas, including vehicles, aircraft, munitions, and industrial applications. Our highly successful approach to externally funded research awards validates our ability to develop unique new offerings with critical material properties for demanding operating conditions.
“Revenue rose
Results of Operations
CPS reported revenue of
Operating loss was
Conference Call
The Company will be hosting its fourth quarter 2024 earnings call tomorrow, March 13, 2024, at 9:00am Eastern. Those interested in participating in the conference call should dial the following:
Call in Number: 1-800-346-2923
Participant Passcode: 785874
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 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
cwitty@darrowir.com
| CPS TECHNOLOGIES CORPORATION Statements of Operations (Unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | |||||||||||||
| Revenues: | ||||||||||||||||
| Product sales | $ | 5,933,283 | $ | 6,747,199 | $ | 21,123,346 | $ | 27,550,646 | ||||||||
| Total revenues | $ | 5,933,283 | $ | 6,747,199 | $ | 21,123,346 | $ | 27,550,646 | ||||||||
| Cost of product sales | 6,204,808 | 5,598,616 | 21,241,984 | 20,725,237 | ||||||||||||
| Gross Profit (Loss) | (271,525 | ) | 1,148,583 | (118,638 | ) | 6,825,409 | ||||||||||
| Selling, general, and administrative expense | 1,047,459 | 1,004,948 | 4,262,290 | 5,126,046 | ||||||||||||
| Income (Loss) from operations | (1,318,984 | ) | 143,635 | (4,380,928 | ) | 1,699,363 | ||||||||||
| Interest/Other income (expense) | 45,134 | 80,823 | 286,979 | 253,018 | ||||||||||||
| Net income (Loss) before income tax | (1,273,850 | ) | 224,458 | (4,093,949 | ) | 1,952,381 | ||||||||||
| Income tax provision (benefit) | (278,697 | ) | 84,948 | (958,500 | ) | 582,085 | ||||||||||
| Net income | $ | (995,153 | ) | $ | 139,510 | $ | (3,135,449 | ) | $ | 1,370,296 | ||||||
| Wtd. Avg. basic common shares outstanding - diluted | 14,525,960 | 14,617,473 | 14,522,513 | 14,628,811 | ||||||||||||
| Net income per basic common share | $ | (0.07 | ) | $ | 0.01 | $ | (0.22 | ) | $ | 0.09 | ||||||
| CPS TECHNOLOGIES CORP. Balance Sheets (Unaudited) | ||||||||
| December 28, 2024 | December 30, 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,280,687 | $ | 8,813,626 | ||||
| Marketable securities, at fair value | 1,031,001 | – | ||||||
| Accounts receivable-trade, net | 4,858,208 | 4,389,155 | ||||||
| Accounts receivable-other | 177,068 | 83,191 | ||||||
| Inventories | 4,331,066 | 4,581,930 | ||||||
| Prepaid expenses and other current assets | 480,986 | 276,349 | ||||||
| Total current assets | 14,159,016 | 18,144,251 | ||||||
| Property and equipment: | ||||||||
| Production equipment | 10,382,379 | 11,271,982 | ||||||
| Furniture and office equipment | 891,921 | 952,883 | ||||||
| Leasehold improvements | 997,830 | 985,649 | ||||||
| Total cost | 12,272,130 | 13,210,514 | ||||||
| Accumulated depreciation and amortization | (10,377,756 | ) | (11,936,004 | ) | ||||
| Construction in progress | 108,874 | 281,629 | ||||||
| Net property and equipment | 2,003,248 | 1,556,139 | ||||||
| Right-of-use lease asset | 186,000 | 332,000 | ||||||
| Deferred taxes, net | 2,528,682 | 1,569,726 | ||||||
| Total assets | $ | 18,876,946 | $ | 21,602,116 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Notes payable, current portion | $ | 8,130 | $ | 46,797 | ||||
| Accounts payable | 3,053,712 | 2,535,086 | ||||||
| Accrued expenses | 913,279 | 1,075,137 | ||||||
| Deferred revenue | 172,429 | 251,755 | ||||||
| Lease liability, current portion | 160,000 | 160,000 | ||||||
| Total current liabilities | 4,307,550 | 4,068,775 | ||||||
| Notes payable less current portion | - | 8,090 | ||||||
| Deferred revenue – long term | 31,277 | 31,277 | ||||||
| Long term lease liability | 26,000 | 172,000 | ||||||
| Total liabilities | 4,364,827 | 4,280,142 | ||||||
| Commitments & Contingencies | ||||||||
| Stockholders’ Equity: | ||||||||
| Common stock, issued 14,661,487 and 14, 601,487 shares; outstanding 14,525,960 and 14, 519,215; at December 28, 2024 and December 30, 2023, respectively | 146,615 | 146,015 | ||||||
| Preferred stock, no shares issued or outstanding | – | – | ||||||
| Additional paid-in capital | 40,580,387 | 40,180,893 | ||||||
| Accumulated other comprehensive income | 15,500 | – | ||||||
| Accumulated deficit | (25,890,245 | ) | (22,754,796 | ) | ||||
| Less cost of 135,527 and 82,272 common shares repurchased at December 28, 2024 and December 30, 2023, respectively | (340,138 | ) | (250,138 | ) | ||||
| Total stockholders’ equity | 14,512,119 | 17,321,974 | ||||||
| Total liabilities and stockholders’ equity | $ | 18,876,946 | $ | 21,602,116 |
FAQ
What caused CPSH's revenue decline in Q4 2024 compared to Q4 2023?
How much are the new SBIR contracts worth for CPSH in 2024?
What was CPSH's earnings per share (EPS) in Q4 2024?
What is the value of CPSH's current power module contract?
How much did CPSH's revenue grow from Q3 to Q4 2024?
