CPS Technologies Corporation Announces Second Quarter 2017 Results

NORTON, Mass., Aug. 02, 2017 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues of $3.7 million and a net loss of $333 thousand for the quarter ended July 1, 2017. This compares with revenues of $3.9 million and a net loss of $259 thousand for the quarter ended July 2, 2016.

Revenues for the six months ended July 1, 2017 were $6.6 million compared with revenues of $9.2 million for the corresponding period a year ago, a decline of 28%. The net loss for the six- month period in 2017 totaled $938 thousand compared with a net loss of $62 thousand for the corresponding period a year ago.

Grant Bennett, President and CEO, commented, “Although our revenues continue to be below our breakeven point, we are encouraged by the fact that they were 30% higher than each of the previous two quarters. This improvement was fueled by an increase in baseplate sales, particularly in Europe, after several quarters of weak demand. The discussions we have had with our major customers during the quarter and our pipeline of orders gives us confidence that the second half of this year will be stronger than our first half and that this improved trajectory will continue into 2018.”

Mr. Bennett continued, “Longer term we expect to make meaningful sales to customers in both China and Japan. We have been working with potential customers in these countries for a number of years and expect to see tangible results by year-end or early next year. In addition, multiple customers continue with evaluation and qualification of our armor solutions; this product line offers another significant potential revenue stream in the future.”

The Company will be hosting its second quarter conference call with investors at 4:30 pm on Wednesday, August 2. Those interested in participating in the conference call should dial:

Call in Number: 855-863-0441

Conference ID: 61817339

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 2017 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.

--- Quarter Ended--- -- Six Months Ended--
July 1, July 2, July 1, July 2,
2017 2016 2017 2016
Total Revenues $3,723,914 $3,934,995 $6,569,213 $9,150,612
Cost of Sales 3,309,498 3,374,078 6,235,189 7,458,138
Gross Margin 414,416 560,917 334,024 1,692,474
Operating Expenses 933,462 892,477 1,906,892 1,800,646
Operating (loss) (519,046) (331,560) (1,572,868) (108,172)
Interest income 2,622 2,722 5,250 6,462
(Loss) before income taxes (516,424) (328,838) (1,567,618) (101,710)
Income tax (benefit) (183,208) (70,100) (630,000) (40,100)
Net (loss) (333,216) (258,738) (937,618) (61,610)
Net (loss) per diluted share ($0.03) ($0.02) ($0.07) $0.00
Shares outstanding, diluted 13,203,436 13,200,269 13,203,436 13,199,210
July 1, Dec. 31,
2017 2016
Current assets:
Cash and cash equivalents $1,941,819 $3,407,760
Accounts receivable, net 2,705,653 1,959,606
Inventories, net 1,945,808 1,970,961
Prepaid expenses and other current assets 92,775 88,443
Total current assets 6,686,055 7,426,770
Property and equipment, net 1,556,296 1,783,627
Deferred taxes 3,457,349 2,827,349
Total assets $11,699,700 $12,037,746
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 934,416 662,482
Accrued expenses 839,610 623,959
Total current liabilities 1,774,026 1,286,441
Stockholders' equity 9,925,674 10,751,305
Total liabilities and stockholders' equity $11,699,700 $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