CPS Technologies Corporation Announces Third Quarter 2024 Financial Results
CPS Technologies (NASDAQ:CPSH) reported Q3 2024 financial results with revenue of $4.2 million, down from $6.3 million in Q3 2023. The company posted a gross margin of -12% compared to 20% in the prior year, and an operating loss of $1.5 million versus a $0.1 million profit. The decline was primarily due to the end of the HybridTech Armor® contract and reduced manufacturing efficiencies. However, CPS secured new contracts including a $12 million award from a semiconductor customer and a $1.1 million Phase II contract from the U.S. Department of Energy. The company expects improved performance in Q4 2024 with its new third shift operations and a book-to-bill ratio of 1.22.
CPS Technologies (NASDAQ:CPSH) ha riportato i risultati finanziari del Q3 2024 con un fatturato di 4,2 milioni di dollari, in calo rispetto ai 6,3 milioni di dollari nel Q3 2023. L'azienda ha registrato un margine lordo del -12% rispetto al 20% dell'anno precedente, e una perdita operativa di 1,5 milioni di dollari rispetto a un profitto di 0,1 milioni. Il calo è stato principalmente dovuto alla conclusione del contratto HybridTech Armor® e a minori efficienze produttive. Tuttavia, CPS ha assicurato nuovi contratti, tra cui un assegno di 12 milioni di dollari da un cliente del settore dei semiconduttori e un contratto di Fase II da 1,1 milioni di dollari dal Dipartimento dell'Energia degli Stati Uniti. L'azienda prevede un miglioramento delle prestazioni nel Q4 2024 con l'avvio di un nuovo turno di lavoro e un rapporto book-to-bill di 1,22.
CPS Technologies (NASDAQ:CPSH) reportó los resultados financieros del Q3 2024 con ingresos de 4.2 millones de dólares, una disminución con respecto a los 6.3 millones del Q3 2023. La compañía tuvo un margen bruto del -12% en comparación con el 20% del año anterior, y una pérdida operativa de 1.5 millones de dólares frente a una ganancia de 0.1 millones. La caída se debió principalmente al final del contrato de HybridTech Armor® y a una reducción en las eficiencias de fabricación. Sin embargo, CPS aseguró nuevos contratos incluyendo un premio de 12 millones de dólares de un cliente del sector de semiconductores y un contrato de Fase II de 1.1 millones de dólares del Departamento de Energía de EE. UU. La compañía espera un rendimiento mejorado en el Q4 2024 con sus nuevas operaciones de tercer turno y una relación book-to-bill de 1.22.
CPS Technologies (NASDAQ:CPSH)는 2024년 3분기 재무 결과를 보고하며, 수익은 420만 달러로 2023년 3분기의 630만 달러에서 감소했습니다. 회사는 지난해 20%에 비해 총 마진이 -12%로 나타났고, 10만 달러의 이익에 대해 150만 달러의 운영 손실을 기록했습니다. 감소는 주로 HybridTech Armor® 계약 종료와 제조 효율성 감소로 인한 것이었습니다. 그러나 CPS는 반도체 고객으로부터 1200만 달러의 수주와 미국 에너지부로부터 110만 달러 규모의 2단계 계약을 확보했습니다. 회사는 새로운 3교대 운영으로 2024년 4분기에 개선된 성과를 기대하며, book-to-bill 비율이 1.22에 이를 것으로 예상하고 있습니다.
CPS Technologies (NASDAQ:CPSH) a déclaré ses résultats financiers du T3 2024, avec un chiffre d'affaires de 4,2 millions de dollars, en baisse par rapport à 6,3 millions de dollars au T3 2023. L'entreprise a affiché une marge brute de -12% contre 20% l'année précédente, et une perte opérationnelle de 1,5 million de dollars par rapport à un bénéfice de 0,1 million. Cette baisse est principalement due à la fin du contrat HybridTech Armor® et aux réductions de l'efficacité de la fabrication. Cependant, CPS a sécurisé de nouveaux contrats, incluant un prix de 12 millions de dollars d'un client dans le secteur des semi-conducteurs et un contrat de Phase II de 1,1 million de dollars du Département de l'Énergie des États-Unis. L'entreprise s'attend à une amélioration des performances au T4 2024 avec ses nouvelles opérations de troisième quart de travail et un ratio book-to-bill de 1,22.
CPS Technologies (NASDAQ:CPSH) berichtete über die Finanzergebnisse für das 3. Quartal 2024 mit einem Umsatz von 4,2 Millionen Dollar, im Vergleich zu 6,3 Millionen Dollar im 3. Quartal 2023. Das Unternehmen verzeichnete eine Bruttomarge von -12% im Vergleich zu 20% im Vorjahr und einen Betriebsverlust von 1,5 Millionen Dollar im Gegensatz zu einem Gewinn von 0,1 Millionen Dollar. Der Rückgang war hauptsächlich auf das Ende des HybridTech Armor®-Vertrags und verringerte Fertigungseffizienzen zurückzuführen. Dennoch sicherte sich CPS neue Verträge, darunter einen 12-Millionen-Dollar-Auftrag von einem Halbleiterkunden und einen 1,1 Millionen-Dollar-Vertrag der Phase II vom US-Energieministerium. Das Unternehmen erwartet im 4. Quartal 2024 eine verbesserte Leistung durch den neuen dritten Schichtbetrieb und ein Book-to-Bill-Verhältnis von 1,22.
- Secured new $12 million contract for power module components from semiconductor customer
- Won $1.1 million Phase II contract from U.S. Department of Energy
- Book-to-bill ratio of 1.22 indicates strong future demand
- Added third shift to increase production capacity
- Revenue declined 33% YoY to $4.2 million from $6.3 million
- Gross margin turned negative at -12% compared to +20% in Q3 2023
- Operating loss of $1.5 million versus $0.1 million profit year-over-year
- Net loss of $0.07 per share compared to $0.01 profit per share in Q3 2023
Insights
The Q3 results reveal significant challenges with
However, there are several positive catalysts ahead:
- A new
$12 million semiconductor contract - A
$1.1 million Department of Energy Phase II contract - A book-to-bill ratio of 1.22, indicating strong future demand
- Expected efficiency improvements as the third shift becomes fully operational
While the
Set for Improved Financial Performance in Fourth Quarter and Beyond
NORTON, Mass., Oct. 30, 2024 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal third quarter ended September 28, 2024.
Third Quarter Summary
- Revenue of
$4.2 million for the third quarter of 2024 versus$6.3 million in the prior-year period, reflecting lower overall shipments due to the previously-announced end of the Company’s HybridTech Armor® contract with Kinetic Protection for the U.S. Navy - Gross margin of (12) percent versus 20 percent in the third quarter of 2023, largely reflecting lower manufacturing efficiencies as well as start-up costs tied to hiring and training of a third shift, the benefit of which will be seen in the fourth quarter and beyond.
- Operating loss of
$1.5 million for the quarter ended September 28, 2024 compared to an operating profit of$0.1 million in the prior-year period - Recently won a Phase II contract from the U.S. Department of Energy, worth
$1.1 million over 24 months, to continue development of “Modular Radiation Shielding for Transportation and Use of Microreactors” - Secured a new
$200 K development contract from the U.S. Naval Air Systems Command, or NAVAIR, under which CPS will continue development of metal matrix composite solutions for applications requiring high strength at reduced weight. - The Company today announced that it has received an award, valued at approximately
$12 million , from a longstanding global semiconductor customer to provide power module components and related solutions. See separate press release for further details.
“While this quarter was negatively impacted by the costs related to staffing and training a third operating shift, we are optimistic about significantly improved performance in the fourth quarter and beyond,” said Brian Mackey, President and CEO. “We recently won another Phase II award from the U.S. government – with the Department of Energy – and just today announced a
Results of Operations
CPS reported revenue of
Gross loss was
The Company reported an operating loss of
Conference Call
The Company will be hosting its third quarter 2024 earnings call at 9:00 am tomorrow, October 31, 2024. Those interested in participating in the conference call should dial the following:
Call in Number: 1-844-943-2942
Participant Passcode: 475242
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 CORPORATION Statements of Operations (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 30, | September 28, | September 30, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenues: | ||||||||||||||||
Product sales | $ | 4,247,116 | $ | 6,285,041 | $ | 15,190,063 | $ | 20,803,447 | ||||||||
Total revenues | 4,247,116 | 6,285,041 | 15,190,063 | 20,803,447 | ||||||||||||
Cost of product sales | 4,770,548 | 5,049,177 | 15,037,177 | 15,126,621 | ||||||||||||
Gross profit (loss) | (523,432 | ) | 1,235,864 | 152,886 | 5,676,826 | |||||||||||
Selling, general, and administrative expense | 963,064 | 1,105,227 | 3,214,831 | 4,121,099 | ||||||||||||
Income (loss) from operations | (1,486,496 | ) | 130,637 | (3,061,945 | ) | 1,555,727 | ||||||||||
Interest income (expense), net | 71,650 | 78,181 | 241,686 | 176,325 | ||||||||||||
Other income (expense), net | (676 | ) | (1,228 | ) | 159 | (4,130 | ) | |||||||||
Net income (loss) before income tax | (1,415,522 | ) | 207,590 | (2,820,100 | ) | 1,727,922 | ||||||||||
Income tax provision (benefit) | (372,683 | ) | 36,509 | (679,803 | ) | 497,137 | ||||||||||
Net income (loss) | $ | (1,042,839 | ) | $ | 171,081 | $ | (2,140,297 | ) | $ | 1,230,785 | ||||||
Other comprehensive income | ||||||||||||||||
Net unrealized gains on available for sale securities | 8,745 | -- | 17,446 | -- | ||||||||||||
Total other comprehensive income | 8,745 | -- | 17,446 | -- | ||||||||||||
Total comprehensive income (loss) | $ | (1,034,094 | ) | $ | 171,081 | $ | (2,122,851 | ) | $ | 1,230,785 | ||||||
Net income (loss) per basic common share | $ | (0.07 | ) | $ | 0.01 | $ | (0.15 | ) | $ | 0.08 | ||||||
Weighted average number of basic common shares outstanding | 14,525,664 | 14,517,364 | 14,520,827 | 14,487,873 | ||||||||||||
Net income (loss) per diluted common share | $ | (0.07 | ) | $ | 0.01 | $ | (0.15 | ) | $ | 0.08 | ||||||
Weighted average number of diluted common shares outstanding | 14,525,664 | 14,636,241 | 14,520,827 | 14,632,591 |
CPS TECHNOLOGIES CORP. Balance Sheets (Unaudited) | |||||||
September 28, | December 30, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,689,004 | $ | 8,813,626 | |||
Marketable securities, at fair value | 1,020,952 | -- | |||||
Accounts receivable-trade, net | 3,654,549 | 4,389,155 | |||||
Accounts receivable-other | 362,312 | 83,191 | |||||
Inventories, net | 4,433,412 | 4,581,930 | |||||
Prepaid expenses and other current assets | 506,126 | 276,349 | |||||
Total current assets | 14,666,355 | 18,144,251 | |||||
Property and equipment: | |||||||
Production equipment | 9,953,702 | 11,271,982 | |||||
Furniture and office equipment | 891,921 | 952,883 | |||||
Leasehold improvements | 988,804 | 985,649 | |||||
Total cost | 11,834,427 | 13,210,514 | |||||
Accumulated depreciation and amortization | (10,200,302 | ) | (11,936,004 | ) | |||
Construction in progress | 448,184 | 281,629 | |||||
Net property and equipment | 2,082,309 | 1,556,139 | |||||
Right-of-use lease asset | 224,000 | 332,000 | |||||
Deferred taxes, net | 2,249,985 | 1,569,726 | |||||
Total assets | $ | 19,222,649 | $ | 21,602,116 |
(continued)
CPS TECHNOLOGIES CORP. Balance Sheets (Unaudited) (concluded) | |||||||
September 28, | December 30, | ||||||
2024 | 2023 | ||||||
LIABILITIES AND STOCKHOLDERS` EQUITY | |||||||
Current liabilities: | |||||||
Note payable, current portion | $ | 20,103 | $ | 46,797 | |||
Accounts payable | 2,497,055 | 2,535,086 | |||||
Accrued expenses | 840,757 | 1,075,137 | |||||
Deferred revenue | 160,412 | 251,755 | |||||
Lease liability, current portion | 160,000 | 160,000 | |||||
Total current liabilities | 3,678,327 | 4,068,775 | |||||
Note payable less current portion | – | 8,090 | |||||
Deferred revenue – long term | 31,277 | 31,277 | |||||
Long term lease liability | 64,000 | 172,000 | |||||
Total liabilities | 3,773,604 | 4,280,142 | |||||
Commitments and contingencies | |||||||
Stockholders` equity: | |||||||
Common stock, | 146,615 | 146,015 | |||||
Preferred stock, no shares issued or outstanding | – | – | |||||
Additional paid-in capital | 40,520,215 | 40,180,893 | |||||
Accumulated other comprehensive income | 17,446 | – | |||||
Accumulated deficit | (24,895,093 | ) | (22,754,796 | ) | |||
Less cost of 135,527 common shares repurchased at September 28, 2024 and 82,272 common shares repurchased at December 30, 2023 | (340,138 | ) | (250,138 | ) | |||
Total stockholders` equity | 15,449,045 | 17,321,974 | |||||
Total liabilities and stockholders` equity | $ | 19,222,649 | $ | 21,602,116 |
FAQ
What was CPS Technologies (CPSH) revenue in Q3 2024?
What new contracts did CPSH win in Q3 2024?
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