SOURCE: CPS Technologies Corporation

CPS Technologies Corporation

August 13, 2012 16:30 ET

CPS Technologies Corporation Announces Second Quarter 2012 Results

NORTON, MA--(Marketwire - Aug 13, 2012) - CPS Technologies Corporation (OTCBB: CPSH) today announced revenues of $3.6 million and a net loss of $373 thousand for the quarter ended June 30, 2012. This compares with revenues of $4.8 million and net income of $13 thousand for the quarter ended July 2, 2011.

Revenues for the six months ended June 30, 2012 decreased 33% to $7.2 million from $10.7 million for the corresponding period in 2011. The net loss for the six month period was $907 thousand compared with net income of $29 thousand for the first half of 2011.

Mr. Bennett, CEO, said, "As a component manufacturer, our revenues in the short term are a function of demand for current products; our revenues in the intermediate and long term are a function of demand for current products plus demand generated by new design wins. To paraphrase Charles Dickens, who was referring to a previous European crisis, this year has been 'the best of times, the worst of times.' It is the best of times because we have achieved very significant design wins which will generate new demand in the future, including new demand in Q4 of this year and Q1 of next year. These design wins include several baseplates for hybrid automobiles, for example.

"It is 'the worst of times' because demand for current products, particularly in Europe which accounts for more than half our revenue, has declined throughout the year. None of our European customers have been able to accurately forecast the impact of the Euro crisis on customer demand and all surprises this year have been negative.

"Earlier this month we reduced employment in both manufacturing and overhead positions to match our costs to what we believe demand will be for the rest of this year. Our assessment of demand is based primarily on actual demand over the last few months rather than on customer provided forecasts which continue to show higher demand. Manufacturing personnel are currently operating 4 days a week because we believe we will need to respond quickly in Q4 to meet demand from new design wins and this can be done immediately by returning to 5 days a week.

"Related to the new design wins, we are also having success in expanding our customer base in Asia and Europe for our AlSiC components and hermetic package product lines. We remain confident and excited about future growth and profitability."

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.

                         
CPS TECHNOLOGIES CORPORATION                    
STATEMENT OF OPERATIONS (Unaudited)               
                         
    Quarter Ended     Six Months Ended  
    June 30,     July 2,     June 30,     July 2,  
    2012     2011     2012     2011  
                         
Total Revenues   $ 3,628,265     $ 4,841,760     $ 7,183,041     $ 10,682,105  
Cost of Sales     3,435,286       3,882,344       7,023,902       8,866,629  
                                 
Gross Margin     192,979       959,416       159,139       1,815,476  
Operating Expenses     845,009       927,068       1,653,732       1,744,014  
                                 
Operating income (loss)     (652,030 )     32,348       (1,494,593 )     71,462  
Interest expense, net     (5,694 )     (8,065 )     (11,466 )     (17,736 )
                                 
Income (loss) before income taxes     (657,724 )     24,283       (1,506,059 )     53,726  
Income tax expense (benefit)     (285,000 )     11,100       (599,000 )     24,400  
                                 
Net income (loss)   $ (372,724 )   $ 13,183     $ (907,059 )   $ 29,326  
                                 
Net income (loss) per diluted share   $ ( 0.03 )   $ 0.00     $ (0.07 )   $ 0.00  
Shares outstanding, diluted     12,869,483       13,229,112       12,867,571       13,204,616  
                                 
           
CPS TECHNOLOGIES CORPORATION          
BALANCE SHEET (Unaudited)          
           
    June 30,     Dec. 31,
    2012     2011
           
Assets          
           
Current assets:          
  Cash and cash equivalents $ 374,328   $ 1,142,429
  Accounts receivable, net   1,749,711     3,112,960
  Inventories   3,360,415     3,138,617
  Prepaid expenses   110,632     152,444
  Deferred taxes, current             -      287,056
             
    Total current assets   5,595,086     7,833,506
           
 Property and equipment, net   2,105,865     2,307,045
 Deferred taxes, non-current   2,079,817     1,193,761
           
Total assets $ 9,780,768   $ 11,334,312
           
           
Liabilities and Equity          
           
Current liabilities:          
  Accounts payable $ 980,866   $ 1,463,997
  Accrued expenses   512,391     660,031
  Capital leases, current   142,348     208,504
             
    Total current liabilities   1,635,605     2,332,532
           
Capital leases, non-current   127,751     199,738
           
Total liabilities   1,763,356     2,532,270
           
Stockholders' equity   8,017,412     8,802,042
           
Total liabilities and stockholders' equity $ 9,780,768   $ 11,334,312
           

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