SOURCE: CPS Technologies Corporation

CPS Technologies Corporation

May 08, 2013 16:30 ET

CPS Technologies Corporation Announces First Quarter 2013 Results

NORTON, MA--(Marketwired - May 8, 2013) -  CPS Technologies Corporation (OTCBB: CPSH) today announced revenues of $5.0 million and net income of $3 thousand for the quarter ended March 30, 2013. This compares with revenues of $3.6 million and a net loss of $534 thousand for the quarter ended March 31, 2012.

Gross margin in the first quarter of 2013 was $914 thousand compared with a negative $34 thousand in the first quarter of 2012. This improvement in margin was due to in large part to the 42% increase in revenues, but also benefitted from the absence of additional costs associated with an outside finishing operation incurred in the First Quarter of 2012.

Commenting on the results, Grant Bennett, President and CEO, said: "I am very pleased with our first quarter results as we were able to breakeven for the first time since the third quarter of 2011. On a sequential basis, our revenues were up over 20% from our fourth quarter of 2012 which, in turn, was up 50% over the third quarter of 2012. Our traction business has been the driver of our rebound, but we have also experienced growth in our parts sold to hybrid electric vehicles and hermetic package customers."

Mr. Bennett continued, "The current forecasts of our major customers suggest that their demand will remain strong for the foreseeable future. However, we are closely monitoring the situation as economic conditions remain volatile, especially in Europe."

"Looking longer term, while we continue to make excellent technical progress in armor, our opportunities continue to expand into new markets. For example we have had considerable interest in using metal matrix composites from the oil and gas industry. These needs are wide ranging in scope, well beyond the applications we are serving today," said Bennett.

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 2012 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.

    ---Quarter Ended---  
    Mar. 30,     Mar. 31,  
      2013       2012  
Total Revenues   $ 5,031,078     $ 3,554,776  
Cost of Sales     4,116,641       3,588,616  
Gross Margin   $ 914,437     $ (33,840 )
Operating Expenses   $ 899,915     $ 808,723  
Operating Income (loss)   $ 14,522     $ (842,563 )
Interest expense   $ (10,192 )   $ (5,772 )
Income (loss) before taxes   $ 4,330     $ (848,335 )
Income tax provision (benefit)   $ 1,720     $ (314,000 )
Net income (loss)   $ 2,610     $ (534,335 )
Net income (loss) per common share   $ 0.00     $ (0.04 )
Weighted average shares outstanding     12,871,759       12,865,659  
    Mar. 30,   Dec. 29,
    2013   2012
Current assets:            
  Cash and cash equivalents   $ 305,674   $ 306,854
  Accounts receivable, net     4,144,115     2,876,149
  Inventories     2,053,169     2,457,315
  Prepaid expenses     133,114     140,723
  Deferred taxes, current     353,105     354,825
    Total current assets     6,989,177     6,135,866
Property and equipment, net     1,806,548     1,781,220
Deferred taxes, non-current     2,432,148     2,432,148
Total assets   $ 11,227,873   $ 10,349,234
Liabilities and Stockholders' Equity            
Current liabilities:            
  Accounts payable   $ 1,366,532   $ 1,179,313
  Accrued expenses     1,345,855     938,043
  Borrowings against Line of Credit     600,000     500,000
  Borrowings against Lease Line     163,155     --
  Capital leases, current     108,102     123,366
    Total current liabilities     3,583,644     2,740,722
Capital leases, non-current     55,848     76,372
Total liabilities     3,639,492     2,817,094
Stockholders' equity     7,588,381     7,532,140
Total liabilities and stockholders' equity   $ 11,227,873   $ 10,349,234

Contact Information

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