CPS Technologies Announces First Quarter 2025 Financial Results

Record Revenue of $7.5 Million and Return to Profitability Underscore Improved Outlook April 30, 2025 16:20 ET | Source: CPS Technologies Corp. NORTON, Mass., April 30, 2025 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal first quarter ended March 29, 2025. First Quarter Highlights Revenue of $7.5 million for the first quarter of 2025, reflecting the Company’s best sales quarter ever, even without any HybridTech Armor® business, versus $5.9 million in the first quarter of 2024Gross margin of 16.4 percent versus 15.3 percent in the prior-year period, reflecting improved operating leverage tied to higher revenueOperating profit of $0.1 million for the quarter ended March 29, 2025 compared to an operating loss of $(0.3) million in the prior-year periodThe Company’s performance also reflects the dramatic improvements that have occurred since the fourth quarter of 2024, when revenue was $5.9 million and gross margins were negative 2 percentAs previously shared, three new Phase I Army SBIR contracts were initiated during the quarter “What started as a very real turnaround last quarter is continuing into fiscal 2025, with the Company posting record revenue, driven accelerating demand from multiple customers,” said Brian Mackey, President and CEO. “Despite the completion of the aircraft carrier contract, the overall growth of our existing product lines has surpassed our previous revenue numbers. I’m pleased to see the return to bottom line profitability as well. While our profitability is positive, we continue to work on further margin improvement for the second quarter and beyond. Higher production volumes, recent SBIR wins, and a strategy meant to broaden our target markets and book of business are having the intended effect of strengthening the outlook for fiscal 2025. Our strategy of using our core offerings to invest in the product lines of the future in response to customer requirements, is beginning to bear fruit.” Results of Operations CPS reported revenue of $7.5 million in the first quarter of fiscal 2025 versus $5.9 million in the first quarter of 2024, reflecting higher production rates and shipments across the board. Gross profit was $1.2 million, or 16.4 percent of revenue, versus $0.9 million, or 15.3 percent of revenue, in the fiscal 2024 first quarter, which had lower revenue and reduced production efficiencies and was also impacted by quality control testing. Operating profit was $0.1 million in the fiscal 2025 first quarter compared with an operating loss of $(0.3) million in the prior-year period. Reported net income was $0.1 million, or $0.01 per diluted share, versus a net loss of $(0.1) million, or $(0.01) per share, in the quarter ended March 30, 2024. Conference Call The Company will be hosting its first quarter 2025 earnings call tomorrow, May 1, 2025, at 9:00am Eastern. Those interested in participating in the conference call should dial the following: Call in Number: 1-844-943-2942 Participant Passcode: 970717 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. The Company articulates its Vision as follows: “To pioneer the next generation of high-performance materials and solve the world’s toughest engineering challenges.” Safe Harbor Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2025 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) Fiscal Quarters Ended March 29, 2025 March 30, 2024 Revenues: Product sales $7,505,921 $5,912,634 Total revenues 7,505,921 5,912,634 Cost of product sales 6,274,920 5,006,324 Gross Profit 1,231,001 906,310 Selling, general, and administrative expense 1,101,350 1,165,922 Operating income (loss) 129,651 (259,612)Other income, net 50,476 79,171 Income (loss) before taxes 180,127 (180,441)Income tax provision (benefit) 84,165 (37,288) Net income (loss) $95,962 $(143,153)Other comprehensive income Net unrealized gains on available for sale securities 1,300 - Total other comprehensive income 1,300 - Comprehensive income (loss) 97,262 (143,153) Net income (loss) per basic common share $0.01 $(0.01) Weighted average number of basic common shares outstanding 14,525,960 14,519,215 Net income (loss) per diluted common share $0.01 $(0.01) Weighted average number of diluted common shares outstanding 14,543,911 14,519,215 CPS TECHNOLOGIES CORP. Balance Sheets (Unaudited) March 29, 2025 December 28, 2024 ASSETS Current assets: Cash and cash equivalents $1,929,919 $3,280,687 Marketable securities, at fair value 1,039,714 1,031,001 Accounts receivable-trade, net 6,302,650 4,858,208 Accounts receivable-other 210,475 177,068 Inventories, net 4,812,833 4,331,066 Prepaid expenses and other current assets 389,764 480,986 Total current assets 14,685,355 14,159,016 Property and equipment: Production equipment 10,439,670 10,382,379 Furniture and office equipment 891,921 891,921 Leasehold improvements 997,830 997,830 Total cost 12,329,421 12,272,130 Accumulated depreciation and amortization (10,542,494) (10,377,756)Construction in progress 144,653 108,874 Net property and equipment 1,931,580 2,003,248 Right-of-use lease asset (note 4, leases) 147,000 186,000 Deferred taxes 2,444,973 2,528,682 Total Assets $19,208,908 18,876,946 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Note payable, current portion - 8,130 Accounts payable 3,135,552 3,053,712 Accrued expenses 1,070,932 913,279 Deferred revenue 108,080 172,429 Lease liability, current portion 147,000 160,000 Total current liabilities 4,461,564 4,307,550 Deferred revenue – long term 31,277 31,277 Long term lease liability - 26,000 Total liabilities 4,492,841 4,364,827 Commitments & Contingencies Stockholders’ equity: Common stock, $0.01 par value, authorized 20,000,000 shares; issued 14,661,487 shares; outstanding 14,525,960 shares at each March 29, 2025 and December 28, 2024 146,615 146,615 Additional paid-in capital 40,702,573 40,580,387 Accumulated other comprehensive income 1,300 15,500 Accumulated deficit (25,794,283) (25,890,245)Less cost of 135,527 common shares repurchased at each March 29, 2025 and December 28, 2024 (340,138) (340,138) Total stockholders’ equity 14,716,067 14,512,119 Total liabilities and stockholders’ equity $19,208,908 $18,876,946

CPS Technologies Announces First Quarter 2025 Financial Results

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