CPS Technologies Corporation Announces Second Quarter 2023 Financial Results
August 02, 2023 at 04:02 pm EDT
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NORTON, Mass., Aug. 02, 2023 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal second quarter ended July 1, 2023.
Second Quarter Highlights
Revenue of $7.4 million for the second quarter of 2023 versus $7.1 million in the prior-year period
Gross margin of 29.6 percent, up 370 basis points from the second quarter of 2022
Operating profit of $0.7 million for the quarter ended July 1, 2023, slightly higher than the prior-year period
“Fiscal 2023 continues to play out as expected, with solid top line growth and improved bottom line results,” said Chuck Griffith, CFO and acting President. “Revenue rose 5% year-over-year, to a record $7.4 million, and our gross margin increased 370 basis points versus the second quarter of 2022. In addition, our trailing twelve month book-to-bill ratio remains strong at 108%, as we execute a strategy of penetrating new customers and markets to accelerate growth going forward.
“At the same time, and as recently announced, the Company selected seasoned industry veteran – and retired officer of the US Army Corps of Engineers – Brian Mackey as the Company’s new president and chief executive officer. His leadership and business acumen are anticipated to bolster our expansion plans in the quarters and years to come, unlocking the value of our innovative technology and unique applications. With Brian at the helm, and a strong book of business in hand, we look forward to driving the Company to higher growth and improved financial returns.”
Results of Operations CPS reported revenue of $7.4 million for the second quarter of fiscal 2023 versus $7.1 million in the prior-year period, reflecting higher product shipments. Gross profit rose to $2.2 million, or 29.6 percent of revenue, from $1.8 million, or 25.9 percent of revenue, in the fiscal 2022 second quarter. The higher gross margin year-over-year reflects increased operating leverage and improved product mix.
Operating profit was $0.7 million in the fiscal 2023 second quarter, slightly higher than the prior-year period. Reported net income was $0.6 million, or $0.04 per diluted share, versus $0.5 million, or $0.03 per diluted share, in the quarter ended July 2, 2022.
Conference Call The Company will be hosting its second quarter 2023 earnings call at 9:00 am on Thursday, August 3. 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 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' armor products provide exceptional ballistic protection and environmental durability at a very lightweight. 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 2023 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
Six Months Ended
July 1,
July 2,
July 1,
July 2,
2023
2022
2023
2022
Revenues:
Product sales
$
7,418,138
$
7,070,743
$
14,518,405
$
13,723,457
Total revenues
$
7,418,138
$
7,070,743
$
14,518,405
$
13,723,457
Cost of product sales
5,221,880
5,242,106
10,077,444
9,931,330
Gross Margin
2,196,259
1,828,637
4,440,961
3,792,127
Selling, general, and
administrative expense
1,465,349
1,159,157
3,015,871
2,575,550
Income from operations
730,910
669,480
1,425,090
1,216,577
Interest/Other income (expense)
79,652
1,594
95,242
(319)
Net income before
income tax
810,562
671,074
1,520,332
1,216,258
Income tax provision (benefit)
210,058
215,966
460,628
341,714
Net income
$
600,503
$
455,108
$
1,059,704
$
874,544
Wtd. Avg. basic common shares outstanding - diluted
CPS Technologies Corp. is a technology and manufacturing company, which is engaged in producing material solutions for its customers. The Company provides advanced material solutions for the transportation, automotive, energy, computing/Internet, telecommunications, aerospace, and defense markets. Its primary material solution is metal matrix composites (MMCs). 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, fifth generation (5G) infrastructure and others. Its products are manufactured using the Quickset Injection Molding Process and the QuickCast Pressure Infiltration Process. The Company primarily manufactures MMC components comprised of aluminum silicon carbide (AlSiC). The Company is also producing HybridTech Armor panels strike faces for the United States Navy.