CPS Technologies Corporation Announces Second Quarter 2024 Financial Results
CPS Technologies (NASDAQ:CPSH) reported financial results for Q2 2024 ended June 29, 2024. Key highlights include:
- Revenue decreased to $5.0 million from $7.4 million in Q2 2023, due to the completion of the HybridTech Armor® contract with Kinetic Protection for the US Navy.
- Gross margin declined to (4.6)% from 29.6% in Q2 2023, reflecting lower manufacturing efficiencies and fixed costs impact on reduced revenue.
- Operating loss of $1.3 million compared to an operating profit of $0.7 million in Q2 2023.
- Net loss of $1.0 million, or $(0.07) per diluted share, versus net income of $0.6 million, or $0.04 per diluted share, in Q2 2023.
The company secured a new SBIR Phase II contract valued at over $1 million from the U.S. Navy Air Systems Command for developing metal matrix composites for thermal energy storage applications.
CPS Technologies (NASDAQ:CPSH) ha riportato i risultati finanziari per il secondo trimestre del 2024, terminato il 29 giugno 2024. I punti salienti includono:
- I ricavi sono diminuiti a $5,0 milioni rispetto a $7,4 milioni nel Q2 2023, a causa del completamento del contratto HybridTech Armor® con Kinetic Protection per la Marina degli Stati Uniti.
- Il margine lordo è sceso a (4,6)% rispetto al 29,6% nel Q2 2023, riflettendo una minore efficienza produttiva e l'impatto dei costi fissi sui ricavi ridotti.
- La perdita operativa è stata di $1,3 milioni, rispetto a un utile operativo di $0,7 milioni nel Q2 2023.
- La perdita netta è stata di $1,0 milioni, o $(0,07) per azione diluita, rispetto a un utile netto di $0,6 milioni, o $0,04 per azione diluita, nel Q2 2023.
L'azienda ha ottenuto un nuovo contratto SBIR Phase II del valore di oltre $1 milione dal U.S. Navy Air Systems Command per lo sviluppo di compositi a matrice metallica per applicazioni di stoccaggio di energia termica.
CPS Technologies (NASDAQ:CPSH) reportó resultados financieros para el segundo trimestre de 2024, finalizado el 29 de junio de 2024. Los puntos destacados incluyen:
- Los ingresos disminuyeron a $5,0 millones desde $7,4 millones en el Q2 2023, debido a la finalización del contrato HybridTech Armor® con Kinetic Protection para la Marina de los EE. UU.
- El margen bruto cayó a (4,6)% desde 29,6% en el Q2 2023, reflejando menores eficiencias de fabricación y el impacto de los costos fijos en los ingresos reducidos.
- Pérdida operativa de $1,3 millones en comparación con una ganancia operativa de $0,7 millones en el Q2 2023.
- Pérdida neta de $1,0 millones, o $(0,07) por acción diluida, frente a una ganancia neta de $0,6 millones, o $0,04 por acción diluida, en el Q2 2023.
La empresa obtuvo un nuevo contrato SBIR Phase II valorado en más de $1 millón del Comando de Sistemas Aeroespaciales de la Marina de los EE. UU. para desarrollar compuestos de matriz metálica para aplicaciones de almacenamiento de energía térmica.
CPS Technologies (NASDAQ:CPSH)는 2024년 2분기, 2024년 6월 29일 종료된 재무 결과를 보고했습니다. 주요 사항은 다음과 같습니다:
- 수익은 2023년 2분기 $7.4백만에서 $5.0백만으로 감소했으며, 이는 미 해군을 위한 Kinetic Protection과의 HybridTech Armor® 계약 완료에 기인합니다.
- 총 마진은 2023년 2분기 29.6%에서 (4.6)%로 감소했으며, 이는 제조 효율 감소와 고정 비용이 수익 감소에 미친 영향을 반영합니다.
- 운영 손실은 $1.3백만이며, 이는 2023년 2분기 운영 이익 $0.7백만과 비교됩니다.
- 순손실은 $1.0백만, 또는 희석 주당 $(0.07)로, 2023년 2분기 순이익 $0.6백만, 또는 희석 주당 $0.04와 비교됩니다.
회사는 미 해군 항공 시스템 사령부로부터 열 에너지 저장 응용을 위한 금속 매트릭스 복합재 개발에 대해 $1백만 이상의 가치가 있는 새로운 SBIR Phase II 계약을 확보했습니다.
CPS Technologies (NASDAQ:CPSH) a publié ses résultats financiers pour le deuxième trimestre 2024, se terminant le 29 juin 2024. Les points clés comprennent :
- Les revenus ont diminué à $5,0 millions contre $7,4 millions au Q2 2023, en raison de l'achèvement du contrat HybridTech Armor® avec Kinetic Protection pour la Marine des États-Unis.
- La marge brute a chuté à (4,6)% contre 29,6% au Q2 2023, ce qui reflète une efficacité de fabrication réduite et l'impact des coûts fixes sur les revenus diminués.
- La perte d'exploitation s'est élevée à $1,3 millions, contre un bénéfice d'exploitation de $0,7 millions au Q2 2023.
- La perte nette s'est établie à $1,0 millions, soit $(0,07) par action diluée, contre un revenu net de $0,6 millions, soit $0,04 par action diluée, au Q2 2023.
L'entreprise a obtenu un nouveau contrat SBIR Phase II d'une valeur de plus de $1 million du Commandement aérien de la Marine des États-Unis pour le développement de composites à matrice métallique pour des applications de stockage d'énergie thermique.
CPS Technologies (NASDAQ:CPSH) hat die Finanzergebnisse für das 2. Quartal 2024 bekannt gegeben, das am 29. Juni 2024 endete. Die wichtigsten Highlights sind:
- Der Umsatz sank auf $5,0 Millionen von $7,4 Millionen im Q2 2023, was auf den Abschluss des HybridTech Armor®-Vertrags mit Kinetic Protection für die US Navy zurückzuführen ist.
- Die Bruttomarge fiel auf (4,6)% von 29,6% im Q2 2023, was geringere Fertigungseffizienzen und den Einfluss der fixen Kosten auf den gesunkenen Umsatz widerspiegelt.
- Der Betriebsverlust betrug $1,3 Millionen im Vergleich zu einem Betriebsgewinn von $0,7 Millionen im Q2 2023.
- Der Nettoverlust betrug $1,0 Millionen oder $(0,07) pro verwässerter Aktie, im Vergleich zu einem Nettoergebnis von $0,6 Millionen oder $0,04 pro verwässerter Aktie im Q2 2023.
Das Unternehmen sicherte sich einen neuen SBIR Phase II-Vertrag im Wert von über $1 Million vom U.S. Navy Air Systems Command zur Entwicklung von metallischen Matrixverbundwerkstoffen für Anwendungen zur thermischen Energiespeicherung.
- Secured new SBIR Phase II contract worth over $1 million from U.S. Navy Air Systems Command
- Ongoing product development initiatives in response to customer requirements
- Expansion of product development pipeline, including fiber reinforced aluminum and lightweight radiation shielding material
- Revenue decreased 32.4% year-over-year to $5.0 million
- Gross margin declined to -4.6% from 29.6% in Q2 2023
- Reported operating loss of $1.3 million compared to $0.7 million profit in Q2 2023
- Net loss of $1.0 million or $(0.07) per diluted share
Insights
CPS Technologies' Q2 2024 results reveal significant challenges, with revenue dropping to
While the contract's end was anticipated, its impact on financials is severe. The company's ability to replace this revenue stream quickly is crucial. The negative gross margin is particularly concerning, indicating inefficiencies in production and the burden of fixed costs on lower revenue. This suggests that CPS may need to reassess its cost structure and production processes to remain viable at lower revenue levels.
On a positive note, the recent SBIR Phase II award, valued at over
Overall, CPS Technologies faces a critical period of transition. Its ability to commercialize new technologies and secure new contracts will be vital for its financial recovery and long-term growth prospects.
CPS Technologies' focus on advanced materials, particularly metal matrix composites (MMCs), positions them at the forefront of critical defense and energy applications. The company's work on thermal energy storage for long-range missile capabilities demonstrates the strategic importance of their research. This aligns with the growing demand for high-performance materials in defense and aerospace sectors.
The development of fiber reinforced aluminum (FRA) and lightweight radiation shielding materials further showcases CPS's innovative capabilities. These materials have potential applications beyond defense, including in the rapidly growing electric vehicle and renewable energy markets. The company's expertise in hermetic packaging for aerospace and satellite applications also provides diversification opportunities.
However, the transition from research to commercialization is a significant challenge in the materials science field. The negative gross margin in Q2 suggests difficulties in scaling production efficiently for new products. This is not uncommon in the advanced materials sector but needs to be addressed promptly.
The company's future success will depend on its ability to optimize production processes for new materials and effectively market their unique properties to potential customers across various industries. The recent SBIR Phase II award is a positive indicator of the government's interest in CPS's technologies, but commercial adoption will be key to long-term financial stability.
Performance Impacted by Contract Completion as Company Focuses on New Business Development
NORTON, Mass., July 31, 2024 (GLOBE NEWSWIRE) -- 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
Results of Operations
CPS reported revenue of
The Company reported an operating loss of
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, | 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 | |||
FAQ
What was CPS Technologies' (CPSH) revenue for Q2 2024?
Why did CPS Technologies (CPSH) experience a revenue decline in Q2 2024?
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