CPS Technologies Corporation Announces Fourth Quarter and Year-End 2020 Results
February 24 2021 - 4:00PM
CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues
of $20.9 million and an operating profit of $914 thousand for the
year ended December 26, 2020. This compares with revenues of $21.5
million and an operating loss of $597 thousand for the year ended
December 28, 2019.
For the quarter ending December 26, 2020, revenues
were $4.2 million with an operating loss of $291 thousand. For the
quarter ending December 28, 2019, revenues were $5.4 million with
an operating profit of $367 thousand.
Grant Bennett, President and CEO, said, “2020 was
unique. As the year progressed, customer demand for our existing,
higher volume products, particularly baseplates for traction power
modules, declined each quarter because of the increasing effects of
Covid-19.
On the other hand, demand increased for other
products, particularly aerospace applications, and customers
largely held to development schedules for new products – as a
result new products continued to move through our pipeline. With
travel all but eliminated, we redeployed resources to accelerate
continuous improvement projects internally to increase margins. We
also implemented planned price increases. The net result of these
factors, both negative and positive, was a 2.8% decline in
revenues, but a positive swing of $1.5 million in operating profits
(a 253% increase).
Globally, Covid business disruption continues to
inject uncertainty in forecasting; however, taking all available
information into consideration, including customer forecasts,
inventory levels throughout the supply chain and manufacturing
schedules, we believe the fourth quarter most likely represented
the bottom in terms of demand.
Let me highlight some recent important
developments. Michael E. McCormack II joined us on January 4 as our
Chief Operating Officer. Michael brings, among other capabilities,
deep skills in business development, new product expansion and
M&A and has significant experience in the defense, aerospace,
and armor markets. He is up and running and a wonderful addition to
our management team.
We continue to be excited about the HybridTech
Armor panel order which we recently announced. We expect to begin
shipping these panels towards the end of the second quarter of this
year; the third quarter will be the first full quarter of
production of these panels.
We congratulate NASA and the Jet Propulsion
Laboratory on the remarkable successful landing of the Mars Rover
Perseverance and are delighted to have produced the AlSiC hermetic
package on the Rover.
More broadly, we are pleased with the results of
the actions we have taken in the last two years, and continue to
take, to strengthen our sales, marketing and business development
efforts in the US aerospace and defense electronics industries.
These results include new design wins, new bookings, new customers,
and new products,” said Bennett.
CPS products play critical roles in the
electrification of the green economy. Green energy generation,
electric vehicles, the smart grid, aerospace and satellite
communications all represent significant growth markets for our
products.
The Company will be hosting its fourth quarter
conference call with investors at 4:45pm on Wednesday, February 24.
Those interested in participating in the conference call should
dial:
Call in Number: 1-833-953-1394
Conference ID: 9283248
Please dial-in 10 minutes prior to the start time
and tell the operator you are calling in for the CPS Technologies
Corporation Year-end Investor Conference Call.
A replay of the webcast will be available
approximately two hours after the presentation at (855)-859-2056
for the Conference ID shown above for a period of 48 hours and
through the Investor Call Transcripts link on the General
Information link on the Investors page of the Company’s website
thereafter.
About CPS CPS is a technology and manufacturing
leader in producing high-performance energy management components
that facilitate the electrification of the economy. Our
products and intellectual property include critical
pieces of the technology puzzle for electric trains and subway
cars, wind turbines, hybrid vehicles, electric vehicles, the smart
electric grid, 5G infrastructure and others. 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 to this planet's
problems.
Safe Harbor Statements made in this document that
are not historical facts or which apply prospectively, including
those relating to 2020 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 |
|
Year Ended |
|
Dec. 26, 2020 |
|
Dec. 28, 2019 |
|
|
|
Dec. 26, 2020 |
|
Dec. 28, 2019 |
|
|
|
|
|
|
|
Total Revenues |
4,150,637 |
|
5,444,800 |
|
|
|
20,872,611 |
|
21,468,414 |
|
Cost of
Sales |
3,651,988 |
|
4,461,907 |
|
|
|
16,702,848 |
|
18,928,173 |
|
|
|
|
|
|
|
Gross
Margin |
498,649 |
|
982,893 |
|
|
|
4,169,763 |
|
2,540,241 |
|
Operating
Expenses |
789,329 |
|
614,262 |
|
|
|
3,255,527 |
|
3,137,440 |
|
|
|
|
|
|
|
Operating
Income (loss) |
(290,679 |
) |
368,631 |
|
|
|
914,236 |
|
(597,199 |
) |
Other
income, net |
57,839 |
|
(11,791 |
) |
|
|
(14,719 |
) |
(35,547 |
) |
|
|
|
|
|
|
Income
(loss) before taxes |
(232,840 |
) |
356,840 |
|
|
|
899,517 |
|
(632,746 |
) |
Income tax
provision |
-- |
|
(5,456 |
) |
|
|
456 |
|
(5,456 |
) |
|
|
|
|
|
|
Net income
(loss) |
(232,840 |
) |
351,384 |
|
|
$ |
899,061 |
|
(638,202 |
) |
|
|
|
|
|
|
Wtd. Avg.
basic common shares outstanding - diluted |
13,302,558 |
|
13,209,522 |
|
|
|
13,348,582 |
|
13,207,097 |
|
Net income
(loss) per common share - diluted |
(0.02 |
) |
0.03 |
|
|
|
0.07 |
|
(0.05 |
) |
|
|
|
|
|
|
CPS Technologies Corporation |
|
|
Balance
Sheet (Unaudited) |
|
|
|
Dec. 26, 2020 |
Dec. 28, 2019 |
Assets |
|
|
Current
Assets |
|
|
Cash and Cash Equivalents |
195,203 |
133,965 |
Accounts Receivable Trade, net |
2,914,801 |
4,086,945 |
Inventories, net |
3,709,471 |
3,099,824 |
Prepaid Expenses |
71,506 |
147,786 |
Total Current Assets |
6,890,981 |
7,468,520 |
|
|
|
Property and
Equipment, net |
1,287,946 |
1,236,878 |
Right of Use
Lease Asset |
25,000 |
171,000 |
Deferred
Taxes |
107,996 |
147,873 |
|
|
|
Total
Assets |
8,311,923 |
9,024,271 |
|
|
|
Liabilities
and Equity |
|
|
Current
Liabilities |
|
|
Borrowings - Line of Credit |
-- |
1,249,588 |
|
|
|
Note Payable, current portion |
58,134 |
-- |
Accounts Payable |
909,290 |
1,436,417 |
Accrued Expenses |
804,091 |
815,166 |
Deferred Revenue |
12,177 |
21,110 |
Current Portion Lease Liability |
25,000 |
148,000 |
Total Current Liabilities |
1,808,692 |
3,670,281 |
|
|
|
Note
Payable, less current portion |
154,570 |
-- |
Long Term
Lease Liability |
-- |
23,000 |
Total
Liabilities |
1,963,262 |
3,693,281 |
|
|
|
Stockholder’s Equity |
6,348,661 |
5,365,990 |
|
|
|
Total
Liabilities and Stockholder’s Equity |
8,311,923 |
9,024,271 |
|
|
|
CPS Technologies Corporation Chuck Griffith, Chief Financial
Officer 111 South Worcester Street Norton, MA 02766 Telephone:
(508) 222-0614 Web Site: www.alsic.com
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