CPS Technologies Corporation Announces Fourth Quarter 2019 Results
March 04 2020 - 4:00PM
CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues
of $5.4 million and an operating profit of $369 thousand for the
quarter ended December 28, 2019. This compares with revenues of
$6.1 million and an operating profit of $209 thousand for the
quarter ended December 29, 2018.
For the twelve months ending December 28, 2019, revenues were
$21.5 million with an operating loss of $597 thousand. For the
twelve months ending December 29, 2018 revenues were $21.6 million
with an operating loss of $901 thousand.
Grant Bennett, President and CEO, said: “Revenues in the fourth
quarter were down compared to the same period a year ago, but up
significantly compared to the third quarter of 2019. In our
third quarter 2019 press release we commented we had entered into
new contracts with materially higher prices and increased volumes
with our three largest customers. We also commented on our
strategic objective to increase margins through changes in product
mix. We see the initial results of these actions in our Q4
operating profit. Improved pricing and increased
volumes from these contracts are phased in over time so we expect
to see additional benefits from these contracts in the current and
upcoming quarters. These developments suggest continued
strong performance throughout 2020.
The value that AlSiC brings varies by application. In some
applications the value is very, very significant, in other cases it
is incremental or AlSiC may bring no additional value compared to
conventional solutions. In adjusting our product mix we are
focusing on those applications where AlSiC brings the greatest
value, and taking action to capture that value through appropriate
pricing.
Demand from our largest current customers is increasing, but
sustained growth requires generating new customers and new
products. We are pleased that the actions we have taken in
the last two years, and continue to take, to strengthen our sales
and marketing efforts in the US aerospace and defense electronics
industries are resulting in, and will 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, to date it has not affected our
supply chain, or reduced demand from our customers. However,
our probing of our customers and our customers’ customers indicate
the Coronavirus has the potential to impact customer demand in the
future depending on the extent and duration of the epidemic.
Internally we are following CDC guidance regarding travel
restrictions and other actions to protect employees.
The Company will be hosting its fourth quarter conference call
with investors at 4:30pm on Wednesday, March 4. Those interested in
participating in the conference call should dial:
Call in Number: 1-833-953-1394
Conference ID: 7577896
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 2019 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) |
|
|
|
|
|
|
Quarter Ended |
|
Year Ended |
|
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Dec. 28, 2019 |
Dec. 29, 2018 |
|
|
|
|
|
|
Total Revenues |
5,444,800 |
|
6,080,731 |
|
|
21,468,414 |
|
21,580,904 |
|
Cost of Sales |
4,461,907 |
|
4,880,953 |
|
|
18,928,173 |
|
18,668,052 |
|
|
|
|
|
|
|
Gross Margin |
982,893 |
|
1,199,778 |
|
|
2,540,241 |
|
2,912,852 |
|
Operating Expenses |
614,262 |
|
991,174 |
|
|
3,137,440 |
|
3,813,415 |
|
|
|
|
|
|
|
Operating Income (loss) |
368,631 |
|
208,604 |
|
|
(597,199 |
) |
(900,563 |
) |
Other income, net |
(11,791 |
) |
(9,317 |
) |
|
(35,547 |
) |
(20,985 |
) |
|
|
|
|
|
|
Income (loss) before taxes |
356,840 |
|
199,287 |
|
|
(632,746 |
) |
(921,548 |
) |
Income tax provision |
(5,456 |
) |
(3,059,419 |
) |
|
(5,456 |
) |
(2,784,419 |
) |
|
|
|
|
|
|
Net income (loss) |
351,384 |
|
(2,860,132 |
) |
|
(638,202 |
) |
(3,705,967 |
) |
|
|
|
|
|
|
Net income (loss) per common share -
diluted |
13,209,522 |
|
13,205,936 |
|
|
13,207,097 |
|
13,205,936 |
|
Wtd. Avg. basic common shares
outstanding - diluted |
0.03 |
|
(0.22 |
) |
|
(0.05 |
) |
(0.28 |
) |
|
|
|
|
|
|
CPS Technologies
Corporation |
|
|
|
Balance Sheet
(Unaudited) |
|
|
|
|
|
Dec. 28, 2019 |
Dec. 29, 2018 |
Assets |
|
|
|
Current
Assets |
|
|
|
Cash and
Cash Equivalents |
|
133,965 |
628,804 |
Accounts
Receivable Trade, net |
|
4,086,945 |
3,053,091 |
Inventories, net |
|
3,099,824 |
3,192,933 |
Prepaid
Expenses |
|
147,786 |
156,338 |
Total
Current Assets |
|
7,468,520 |
7,031,166 |
|
|
|
|
Property and
Equipment, net |
|
1,236,878 |
1,273,186 |
Right of Use
Lease Asset |
|
171,000 |
-- |
Deferred
Taxes |
|
147,873 |
186,747 |
|
|
|
|
Total Assets |
|
9,024,271 |
8,491,099 |
|
|
|
|
Liabilities and
Equity |
|
|
|
Current
Liabilities |
|
|
|
Borrowings
- Line of Credit |
|
1,249,588 |
-- |
Accounts
Payable |
|
1,436,417 |
1,680,263 |
Accrued
Expenses |
|
815,166 |
975,315 |
Deferred
Revenue |
|
21,110 |
-- |
Current
Portion Lease Liability |
|
148,000 |
-- |
Total
Current Liabilities |
|
3,670,281 |
2,655,578 |
|
|
|
|
Long Term Lease
Liability |
|
23,000 |
-- |
Total
Liabilities |
|
3,693,281 |
2,655,578 |
|
|
|
|
Stockholder’s
Equity |
|
5,365,990 |
5,835,521 |
|
|
|
|
Total Liabilities
and Stockholder’s Equity |
|
9,024,271 |
8,491,099 |
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