CPS Technologies Corporation Announces Second Quarter 2021 Results

Rhea-AI Summary

CPS Technologies Corporation (NASDAQ:CPSH) reported revenues of $5.9 million with an operating profit of $253 thousand for Q2 2021. This shows a slight increase in revenue compared to $5.8 million and operating profit of $331 thousand in the same quarter of 2020. The company noted a 20% revenue increase from Q1 2021, driven by demand for hermetic packaging and new pre-production AlSiC orders. CPS expressed optimism about future growth, stating that demand is recovering post-pandemic, and they intend to invest in production capacity and product development.

Positive

• Achieved revenues of $5.9 million in Q2 2021, an improvement over Q1 2021.
• Operating profit of $253 thousand, despite a decrease from the previous year.
• 20% revenue increase from Q1 2021, indicating recovery.
• Growing demand for hermetic packaging products in aerospace and defense.
• New pre-production AlSiC orders signal potential for future growth.
• CPS remains operational throughout the pandemic with major customers open.

Negative

• Operating profit decreased from $331 thousand in Q2 2020 to $253 thousand in Q2 2021.
• Demand suppression in high-speed train baseplates due to the pandemic.

NORTON, Mass., July 28, 2021 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues of $5.9 million and an operating profit of $253 thousand for the quarter ended June 26, 2021. This compares with revenues of $5.8 million and an operating profit of $331 thousand for the quarter ended June 27, 2020.

Michael McCormack, President and CEO, said: “The impact of the pandemic on CPS’s business continues to subside. Revenues in the second quarter 2021 showed continuing improvement over revenues in each of the previous 4 quarters. We previously commented that we felt the fourth quarter 2020 was the low point in terms of reduced demand caused by the pandemic. Our 2021 results confirm this to be the case. Revenues in the second quarter 2021 were 20% higher than the first quarter 2021, and in both quarters of 2021 our bookings were significantly above shipments.

Looking at the quarter performance in more detail, on the positive side we are seeing a number of new pre-productions AlSiC orders which have the potential for significant additional growth in the future. We continue to see significant increases in demand for our hermetic packaging products, primarily for aerospace and defense applications, and we are seeing increased interest and quotation activity in our armor product line in addition to the order for the U.S. Navy on which we have commented in the past. We began shipments of our HybridTech^™ Armor panels for crew-served weapons stations in the second quarter which had a positive impact on both the top and bottom lines.

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. The pandemic has suppressed demand, particularly for baseplates in the high-speed train market, but most customers are experiencing or at least forecasting improvement in their businesses as more people are vaccinated and government-mandated closures, both foreign and domestic, are lessening. These observations do not mean that CPS will be unaffected by the pandemic going forward, but we continue to see demand increasing rather than declining going forward. We remain very optimistic about our 2021 performance, and the future long-term growth opportunities across all lines of business into Fiscal Year 2022.

Beyond Fiscal Year 2022, we are cautiously optimistic that our collective growth initiatives, specifically in longer-term new product development investments, will expand the current product line pipelines both in terms of revenues and earnings. In addition, we will make additional measured investments to increase the capacity of our current high volume manufacturing capacity.”

The Company will be hosting its first quarter conference call with investors at 4:45pm on Wednesday, July 28. Those interested in participating in the conference call should dial:

Call in Number: 1-833-953-1394

Conference ID: 1989645

We encourage those who wish to participate, to call in 10 minutes before the scheduled start time to ensure the operator can connect you prior to the start of the call.

About CPS
CPS is a technology and manufacturing leader in producing high-performance energy management components that facilitate the electrification of the economy. Our products and intellectual property include critical pieces of the technology puzzle for electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, 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 to this planet's problems.

Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2021 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
Statements of Operations (Unaudited)

		Three Months Ended				Six Months Ended
		June 26,		June 27,		June 26,		June 27,
		2021		2020		2021		2020
		------------		------------		------------		------------
Revenues:
	Product sales	$5,862,183		$5,758,015		$10,727,890		$12,269,586
		------------		------------		------------		------------
	Total revenues	5,862,183		5,758,015		10,727,890		12,269,586
Cost of product sales		4,510,600		4,574,686		8,432,168		9,536,047
		------------		------------		------------		------------
	Gross Margin	1,351,583		1,183,329		2,295,722		2,733,539
Selling, general, and
	administrative expense	1,098,616		852,773		2,007,087		1,781,362
		------------		------------		------------		------------
	Income from operations	252,967		330,556		288,635		952,176
Interest income (expense), net		(13,769)		(31,325)		(18,079)		(51,291)
		------------		------------		------------		------------
Net income before
	income tax	239,198		299,231		270,556		900,885
Income tax provision		--		--		456		--
		------------		------------		------------		------------
	Net income	$239,198		$299,231		$270,100		$900,885
		=========		=========		=========		=========
Net income per
	basic common share	$0.02		$0.02		$0.02		$0.07
		------------		------------		------------		------------

CPS TECHNOLOGIES CORPORATION
BALANCE SHEET (UNAUDITED)
								June 26,						June 27,
								2021						2020
ASSETS								-------------						-------------
Current assets:
			Cash and cash equivalents					$ 3,015,760						$    195,203
			Accounts receivable-trade, net					4,432,310						2,914,800
			Inventories, net					3,989,435						3,709,471
			Prepaid expenses and other current assets					273,523						71,506
								-------------						-------------
					Total current assets			11,711,028						6,890,980
								-------------						-------------
Net property and equipment						1,172,862										1,287,947
Right-of-use lease asset								638,000						25,000
Deferred taxes, net								117,000						117,000
							-------------						-------------
Total Assets							$   13,638,890						$  8,320,927
						=========										=========
LIABILITIES AND STOCKHOLDERS’ EQUITY
	Current liabilities:
		Note payable, current portion							$     59,438					$     58,134
		Accounts payable							1,522,336					909,291
		Accrued expenses							997,755					804,091
		Deferred revenue							400,874					12,177
		Lease liability, current portion							151,000					25,000
									-------------					-------------
	Total current liabilities								3,131,403					1,808,693
									-------------					-------------
	Note payable less current portion								124,566					154,570
	Long term lease liability								487,000					--
									-------------					-------------
	Total liabilities								3,742,969					1,963,263
	Total stockholders’ equity								9,895,921					6,357,664
									-------------					-------------
	Total liabilities and stockholders’
	equity								$   13,638,890					$8,320,927
									==========					==========

CPS Technologies Corporation                  
Chuck Griffith, Chief Financial Officer                                
111 South Worcester Street
Norton, MA 02766
Telephone: (508) 222-0614
Web Site: www.alsic.com

FAQ

What were CPS Technologies' revenues for Q2 2021?

CPS Technologies reported revenues of $5.9 million for Q2 2021.

What is the operating profit of CPSH for the latest quarter?

CPS Technologies reported an operating profit of $253 thousand for Q2 2021.

How did CPSH's Q2 2021 performance compare to Q2 2020?

In Q2 2021, CPSH's revenues increased slightly from $5.8 million and operating profit decreased from $331 thousand in Q2 2020.

What sectors is CPSH seeing increased demand in?

CPSH is seeing increased demand primarily for hermetic packaging products in aerospace and defense.

What future growth opportunities does CPSH foresee?

CPSH is optimistic about new product development and expects significant growth opportunities across all business lines into FY 2022.