CPS Technologies Corporation Announces 2017 Results
March 01 2018 - 4:00PM
CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues
of $3.8 million and a net loss of $793 thousand for the Fourth
Quarter ended December 30, 2017. (Had it not been for the
impact of the Tax Cut and Jobs Act, the net loss would have been
$165 thousand in the quarter.) This compares with revenues of $2.9
million and a net loss of $253 thousand for the Fourth Quarter
ended December 31, 2016.
Revenues for the year ended December 30, 2017 totaled $14.6
million compared with $15.4 million for the year ended December 31,
2016. The net loss for the year totaled $1.7 million for
fiscal 2017, compared with a net loss of $455 thousand for fiscal
2016. (The loss in 2017 would have been $1.1 million in the
absence of the impact of the Tax Cut and Jobs Act.)
Grant Bennett, President and CEO, said, “The loss we experienced
in the Fourth Quarter, before considering the impact of the Tax Cut
and Jobs Act, was due in large part to two isolated incidents which
had a negative impact of $392 thousand on our bottom line:
non-recurring severance costs, and sales returns due to an error by
one of our plating vendors. Our vendor has accepted
responsibility, is reworking the product at no cost to the Company,
and the product is expected to be shipped to the customer during
the First Quarter of 2018.”
Mr. Bennett continued, “The loss for the year obscures the
progress we have made in 2017. At this time a year ago our
annual revenue run rate had declined to $12 million. We were
confident the weakness in demand we were experiencing was
temporary. While we shrunk our direct labor force and kept a
lid on discretionary spending, we maintained our core resources and
even increased our spending in sales and marketing. Our
assessment of the market has proved to be correct and, since the
second quarter of 2017, we have been running at an annual revenue
rate of $16 million. As we look forward we are seeing
continued growth in demand and, as a result, are hiring
manufacturing personnel in all three shifts. In the Fourth
Quarter alone, we increased our full-time staffing from 125 to 143
to meet the demand projections of our key customers. We
also made progress in our armor business during the year where we
have been providing prototypes to three customers which, in each
case, has the potential to result in a production order in the next
12 to 24 months. In addition to the initiatives in armor, we
have continued to commit resources in both Japan and
China. Although we are in the early stage of generating
revenues in each of these markets, both have the potential to be
among our largest markets 3-5 years from now.”
The Company will be hosting its fourth quarter conference call
with investors at 4:30PM today. Those interested in
participating in the conference should call:
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Call-in Number: |
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855-863-0441 |
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Conference ID: |
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3563218 |
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.
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CPS
TECHNOLOGIES CORPORATION |
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STATEMENT
OF OPERATIONS (Unaudited) |
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-----Quarter Ended----- |
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-----Year Ended----- |
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Dec.
30, |
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Dec. 31, |
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Dec.
30, |
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Dec.
31, |
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2017 |
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2016 |
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2017 |
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2016 |
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Total
Revenues |
$ |
3,796,008 |
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$ |
2,873,510 |
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$ |
14,577,183 |
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$ |
15,351,053 |
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Cost of
Sales |
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3,232,962 |
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2,796,265 |
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12,919,065 |
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13,195,501 |
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----------- |
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----------- |
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----------- |
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Gross
Margin |
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563,046 |
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77,245 |
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1,658,118 |
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2,155,552 |
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Operating
Expenses |
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958,802 |
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772,725 |
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3,609,328 |
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3,336,631 |
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----------- |
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----------- |
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Operating
income |
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(395,756 |
) |
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(695,480 |
) |
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(1,951,210 |
) |
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(1,181,079 |
) |
Interest
income |
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3,411 |
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|
3,114 |
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11,476 |
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51,318 |
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----------- |
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----------- |
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----------- |
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Income
before income taxes |
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(392,345 |
) |
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(692,366 |
) |
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(1,939,734 |
) |
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(1,129,761 |
) |
Income tax
expense (benefit) |
|
400,968 |
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(439,144 |
) |
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(222,032 |
) |
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(676,144 |
) |
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----------- |
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----------- |
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----------- |
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----------- |
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Net income
(loss) |
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(793,313 |
) |
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(253,222 |
) |
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(1,717,702 |
) |
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(453,617 |
) |
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========= |
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========= |
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========= |
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========= |
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Net income
(loss) per diluted share |
($0.06 |
) |
($0.02 |
) |
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($0.13 |
) |
($0.03 |
) |
Shares
outstanding, diluted |
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13,203,436 |
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13,203,436 |
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13,203,436 |
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13,201,284 |
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CPS TECHNOLOGIES
CORPORATION |
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BALANCE SHEET
(Unaudited) |
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Dec. 30, |
Dec. 31, |
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2017 |
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2016 |
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Assets |
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Current assets: |
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Cash and
cash equivalents |
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$ |
1,339,572 |
$ |
3,407,760 |
Accounts
receivable-trade, net |
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2,943,373 |
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1,959,606 |
Inventories, net |
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2,109,513 |
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1,970,961 |
Prepaid
expenses |
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101,086 |
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88,443 |
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------------- |
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Total
current assets |
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6,493,544 |
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7,426,770 |
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Property and equipment,
net |
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1,490,498 |
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1,783,627 |
Deferred taxes |
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3,038,666 |
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2,827,349 |
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------------- |
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Total assets |
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$ |
11,022,708 |
$ |
12,037,746 |
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========= |
========= |
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Liabilities and
Equity |
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Current
liabilities: |
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Accounts
payable |
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946,385 |
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662,482 |
Accrued
expenses |
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655,489 |
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623,959 |
Deferred
Revenue |
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100,000 |
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-- |
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Total
current liabilities |
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1,701,874 |
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1,286,441 |
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Stockholders'
equity |
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9,320,834 |
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10,751,305 |
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------------- |
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Total liabilities and
stockholders' equity |
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$ |
11,022,708 |
$ |
12,037,746 |
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========= |
========= |
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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