×

CPS Technologies Corporation Announces First Quarter 2017 Results

NORTON, Mass., May 09, 2017 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues of $2.8 million and a net loss of $604 thousand for the quarter ended April 1, 2017. This compares with revenues of $5.2 million and net income of $197 thousand for the quarter ended April 2, 2016.

Grant Bennett, President and CEO, said: “First quarter 2017 revenues remained at the level experienced in the fourth quarter of 2016 and are reflective of continued weakness in demand for traction baseplates from our major European customers. As mentioned previously, we believe this weakness to be temporary. Towards the end of the first quarter we saw a pickup in orders for baseplates that will be reflected somewhat in our second quarter and primarily in our third and fourth quarter revenues. In the first quarter we had positive meetings in Japan and China with potential major baseplate customers who are now moving forward with qualification of CPS baseplates. We expect our baseplate revenues from Asia will be similar to our revenues from Europe over time.”

Mr. Bennett continued, “Historically a small number of European customers in the traction power module market have generated the majority of our revenues. Demand has been volatile. While we seek to deepen our penetration of this market worldwide, particularly in Asia, we are also focused on diversifying our customer and product base to reduce dependence on any one market and on a small number of customers. Our sales cycle is long, often three to four years, because it usually begins at the design stage of our customers, but once we are designed in, most programs last for many years. We refer to those identified opportunities in various stages of our sales cycle as being in our pipeline. As stated in a letter to shareholders dated April 26, ‘the pipeline is fuller today than it has ever been.”

“Where will growth come in the future? Based on what is in our pipeline today, we see applications in the US defense electronics market becoming a larger share of our revenues, shipments to Japan and China growing, and new products being introduced in both current and new markets. Also, demand in Europe, having proved to be volatile, is beginning to rebound,” said Bennett.

The Company will be hosting its first quarter conference call with investors at 4:30pm on Tuesday, May 9. Those interested in participating in the conference call should dial:

Call in Number: 1-855-863-0441

Conference ID: 16653385

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 2016 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
STATEMENT OF OPERATIONS (Unaudited)
---Quarter Ended---
April 1,April 2,
2017 2016
------------ ------------
Total Revenues $2,845,299 $5,215,617
Cost of Sales 2,925,691 4,084,060
------------- -------------
Gross Margin (80,392) 1,131,557
Operating Expenses 973,430 908,169
------------- -------------
Operating Income (loss) (1,053,822) 223,388
Interest income, net 2,628 3,740
-------------- -------------
Income (loss) before taxes (1,051,194) 227,128
Income tax provision (benefit) (446,792) 30,000
-------------- --------------
Net income (loss) $(604,402)$ 197,128
======== ========
Net income (loss) per common share$ (0.05)$ 0.01
Weighted average shares outstanding 13,203,436 13,198,236


CPS TECHNOLOGIES CORPORATION
BALANCE SHEET (Unaudited)
April 1,Dec. 31,
2017 2016
----------- -----------
Assets
Current assets:
Cash and cash equivalents$2,875,613$3,407,760
Accounts receivable, net 1,753,119 1,959,606
Inventories, net 1,947,851 1,970,961
Prepaid expenses 124,827 88,443
--------------- -------------
Total current assets 6,701,410 7,426,770
Property and equipment, net 1,675,510 1,783,627
Deferred taxes 3,274,141 2,827,349
------------- -------------
Total assets $11,651,061$12,037,746
========== =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 884,420$ 662,482
Accrued expenses 545,325 623,959
-----------------------------
Total current liabilities 1,429,745 1,286,441
Stockholders' equity 10,221,316 10,751,305
------------------------------
Total liabilities and stockholders' equity$11,651,061$12,037,746
========== =========


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

Source:CPS Technologies Corp