EX-99.1 2 ex_810374.htm EXHIBIT 99.1 ex_810374.htm

Exhibit 99.1

 

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FOR RELEASE: IMMEDIATE

 

 

CPS Technologies Announces First Quarter 2025 Financial Results

 

Record Revenue of $7.5 Million and Return to Profitability Underscore Improved Outlook

 

Norton, Massachusetts – April 30, 2025 – 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 2024

 

 

Gross margin of 16.4 percent versus 15.3 percent in the prior-year period, reflecting improved operating leverage tied to higher revenue

 

 

Operating 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 period

 

 

The 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 percent

 

 

As 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

[email protected]

 

 

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CPS TECHNOLOGIES CORPORATION

Statements of Operations (Unaudited)

Fiscal Quarters Ended

 

   

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  

 

 

 

Page 4

 

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