SOURCE: CPS Technologies Corporation

CPS Technologies Corporation

July 30, 2015 16:00 ET

CPS Technologies Corporation Announces Second Quarter 2015 Results

NORTON, MA--(Marketwired - Jul 30, 2015) - CPS Technologies Corporation (NASDAQ: CPSH) today announced revenues of $5.6 million and net income of $114 thousand for the quarter ended June 27, 2015. This compares with revenues of $5.1 million and a net loss of $58 thousand for the quarter ended June 28, 2014.

Revenues for the six months ended June 27, 2015 were $10.9 million compared with revenues of $11.1 million for the corresponding period a year ago, a decline of 2%. Net Income for the six month period in 2015 totaled $187 thousand compared with net income of $190 thousand for the corresponding period a year ago.

Grant Bennett, President and CEO, commented, "This was a challenging quarter as we grappled with the impact of the continued strengthening of the dollar, especially in relation to the Euro. The stronger dollar makes our products more expensive overseas. Despite this challenge, we generated revenue growth in both baseplates and hermetic packages, achieved improvements in our manufacturing operations versus the second quarter of 2014, and maintained tight controls on overhead spending. As a result we generated cash and earned a profit, even after lowering selected prices in response to the movement of exchange rates."

Mr. Bennett continued, "In the quarter just ended we continued to make progress on a number of initiatives. Recently we have received orders for dissolvable spheres used in fracking, giving us confidence that business will be noticeably stronger in the second half of the year. After an extensive search process we hired an experienced technical sales manager or China. Our new sales representatives continued to gain momentum in identifying and pursuing new business in their regions in the U.S."

The Company will be hosting its second quarter conference call with investors at 4:30 pm on Thursday, July 30. Those interested in participating in the conference call should dial:

Call in Number: 855-863-0441

Conference ID: 95839306

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 2015 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 27,   June 28,     June 27,   June 28,  
  2015   2014     2015   2014  
                           
Total Revenues $ 5,635,889   $ 5,134,662     $ 10,926,155   $ 11,120,713  
Cost of Sales   4,336,853     4,076,326       8,491,754     8,524,008  
Gross Margin   1,299,036     1,058,336       2,434,401     2,596,705  
Operating Expenses   1,112,295     1,153,214       2,125,133     2,279,002  
Operating income (loss)   186,741     (94,878 )     309,268     317,703  
Interest income (expense)   851     (539 )     851     (1,501 )
Income (loss) before income taxes   187,652     (95,417 )     310,119     316,202  
Income tax expense (benefit)   73,760     (38,000 )     122,500     126,000  
Net income (loss)   113,832     (57,417 )     187,619     190,202  
Net income (loss) per diluted share $ 0.01   $ 0.00     $ 0.01   $ 0.01  
Shares outstanding, diluted   13,627,346     13,084,968       13,679,355     13,705,570  
                           
                           
                           
CPS TECHNOLOGIES CORPORATION      
BALANCE SHEET (Unaudited)      
       
  June 27,   Dec. 27,
  2015   2014
Assets          
           
Current assets:          
  Cash and cash equivalents $ 2,753,269   $ 2,305,580
  Accounts receivable, net   3,840,398     3,589,191
  Inventories, net   2,800,912     2,528,954
  Prepaid expenses and other current assets   91,537     166,783
  Deferred taxes, current   609,847     682,968
  Total current assets   10,095,963     9,273,476
           
Property and equipment, net   1,639,724     1,757,543
Deferred taxes, non-current   1,617,497     1,617,497
Total assets $ 13,353,184   $ 12,648,516
           
Liabilities and Stockholders' Equity          
           
Current liabilities:          
  Accounts payable   1,806,435     1,352,418
  Accrued expenses   920,994     1,049,616
  Total current liabilities   2,727,429     2,402,034
           
Stockholders' equity   10,625,755     10,246,482
Total liabilities and stockholders' equity $ 13,353,184   $ 12,648,516
           

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