CPS Technologies Corporation Announces First Quarter 2017 Results
May 09 2017 - 4:00PM
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
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