SOURCE: CPS Technologies Corporation

CPS Technologies Corporation

March 03, 2015 16:00 ET

CPS Technologies Corporation Announces 2014 Results

NORTON, MA--(Marketwired - Mar 3, 2015) -  CPS Technologies Corporation (NASDAQ: CPSH) today announced revenues of $5.9 million and a net profit of $619 thousand for the Fourth Quarter ended December 27, 2014. This compares with revenues of $5.1 million and a net profit of $276 thousand for the Fourth Quarter ended December 28, 2013. 

Revenues for the year ended December 27, 2014 totaled $23.1 million compared with $21.4 million for the year ended December 28, 2013. Net income for the year totaled $1.0 million for both the fiscal years ended December 27, 2014 and December 28, 2013.

Grant Bennett, President and CEO, said, "We were very pleased with fourth quarter results as well as setting a revenue record for the year. In the fourth quarter our gross margin percentage rebounded to 26%, up from 22% in our third quarter when we experienced manufacturing inefficiencies.

"In 2014 a key objective was to broaden our salesforce. We added new sales representatives in Israel and in four regions in the USA. Although our sales cycles are long, the new sales representatives are bearing fruit in generating prototyping opportunities and design wins that will generate future growth. 

"We are making progress in diversifying into new market segments to both generate growth, and, through the portfolio effect, help moderate fluctuations in demand in individual segments. For example, in the fourth quarter shipments of fracking balls totaled $400 thousand and the final shipment of a component to the Raytheon Corporation for the development phase of the Advance Missile Defense Radar ("AMDR") program totaled $300 thousand. We believe that these two new products have the potential to be significant revenue streams in the years to come. However, the sale of fracking balls is very volatile as oil prices fluctuate and future sales of our AMDR component is dependent upon the Navy approval to advance the Program into the production phase.

Mr. Bennett continued, "Other important accomplishments in 2014 include generating cash to a level over $2 million at year end, the highest level in several years, qualifying for listing on NASDAQ as of January 8th, 2015, and adding Tom Culligan, retired Senior Vice-President of the Raytheon Corporation to our Board of Directors."

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 2014 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. 27,     Dec. 28,     Dec. 27,   Dec. 28,  
  2014     2013     2014   2013  
                             
Total Revenues $ 5,946,647     $ 5,099,890     $ 23,137,590   $ 21,405,999  
Cost of Sales   4,411,717       3,738,700       17,666,780     16,048,922  
Gross Margin   1,534,930       1,361,190       5,470,810     5,357,077  
Operating Expenses   958,164       930,522       4,254,977     3,897,588  
Operating income (loss)   576,766       430,668       1,215,833     1,459,489  
Other income (expense), Net   6,883       (3,854 )     5,083     (30,327 )
Income (loss) before income taxes   583,649       426,814       1,220,916     1,429,162  
Income tax expense (benefit)   (34,852 )     150,987       218,148     462,707  
Net income (loss)   618,501       275,827       1,002,768     966,455  
Net income (loss) per diluted share $ 0.05     $ 0.02     $ 0.08   $ 0.07  
Shares outstanding, diluted   13,662,889       13,489,954       13,703,005     13,265,486  
                             
                             
                             
CPS TECHNOLOGIES CORPORATION
BALANCE SHEET (Unaudited)
 
    Dec. 27,   Dec. 28,
    2014   2013
Assets            
             
Current assets:            
  Cash and cash equivalents   $ 2,305,580   $ 1,571,054
  Accounts receivable-trade, net     3,589,191     2,900,457
  Inventories, net     2,528,954     2,183,699
  Prepaid expenses     166,783     175,726
  Deferred taxes, current     682,968     649,420
    Total current assets     9,273,476     7,480,356
             
Property and equipment, net     1,757,543     1,832,787
Deferred taxes, non-current     1,617,497     1,826,482
Total assets   $ 12,648,516   $ 11,139,625
             
Liabilities and Equity            
             
Current liabilities:            
  Accounts payable     1,352,418     1,091,909
  Accrued expenses     1,049,616     1,106,813
  Capital leases, current     ---     76,372
    Total current liabilities     2,402,034     2,275,094
             
Stockholders' equity     10,246,482     8,864,531
Total liabilities and stockholders' equity   $ 12,648,516   $ 11,139,625

Contact Information

  • CPS Technologies Corporation
    Ralph Norwood
    Chief Financial Officer
    111 South Worcester Street
    Norton, MA 02766
    Telephone: (508) 222-0614
    Web Site: www.alsic.com