SOURCE: CPS Technologies Corporation

CPS Technologies Corporation

November 10, 2011 18:00 ET

CPS Technologies Corporation Announces Third Quarter 2011 Results

NORTON, MA--(Marketwire - Nov 10, 2011) - CPS Technologies Corporation (OTCBB: CPSH), a provider of advanced material solutions, today announced revenues of $4.9 million and net income of $28 thousand for the third quarter ended October 1, 2011. These results compare with revenues of $6.0 million and net income of $421 thousand for the third quarter ended September 25, 2010. For the first three quarters of 2011, revenues totaled $15.6 million which generated $57 thousand of net income compared with revenues of $16.6 million and net income of $1.0 million for the first three quarters of 2010.

As was the case during the first half of 2011, the Company experienced continued reductions in shipments of lids and heatspreaders used in switches and routers. On a year-to-year comparison, these reductions were partially offset by increases in shipments of baseplates used in hybrid electric vehicles and traction applications as well as increased revenues earned from our cooperative agreement for armor development with the U.S. Army.

"Although revenues were lower than last year's record third quarter, we were pleased that we exceeded both revenues and profits of the previous quarter," said Grant Bennett, Chief Executive Officer of the Company. Mr. Bennett went on to say, "Our products have wide application in the areas of alternative energy and the movement to 'clean tech' which are both long-term and global in nature. In the near-term we are responding to worldwide economic uncertainties by improving efficiencies throughout the company, particularly manufacturing operations. Both these near and long-term factors give us confidence that we are well positioned to deliver future shareholder value."

About CPS Technologies Corporation:
CPS Technologies is the world leader in developing and manufacturing metal matrix composites for thermal management of electronics.

Safe Harbor Statement:
This release does contain forward looking statements. Various factors could cause actual results to differ materially from those projected in such statements. These factors include, but are not limited to, a continued or deepening general economic or business downturn in 2011 and beyond or a downturn in the demand for electronic products.

CPS TECHNOLOGIES CORPORATION
STATEMENTS OF OPERATIONS (Unaudited)
---Quarter Ended--- -- Nine Months Ended--
Oct. 1, Sept. 25, Oct. 1, Sept. 25,
2011 2010 2011 2010
---------- ---------- ---------- ----------
Total Revenues $ 4,901,040 $ 6,007,723 $ 15,583,145 $ 16,603,592
Cost of Sales 4,009,048 4,523,449 12,875,678 12,684,923
---------- ---------- ---------- ----------
Gross Margin 891,992 1,484,274 2,707,467 3,918,669
Operating Expenses 835,375 802,184 2,579,388 2,228,657
---------- ---------- ---------- ----------
Operating Income 56,617 682,090 128,079 1,690,012
Other income, net (8,528 ) (7,306 ) (26,264 ) (23,782 )
---------- ---------- ---------- ----------
Income before income taxes 48,089 674,784 101,815 1,666,230
Income tax expense 20,500 254,000 44,900 631,000
---------- ---------- ---------- ----------
Net income $ 27,589 $ 420,784 $ 56,915 $ 1,035,230
========== ========== ========== ==========
Net income per diluted share $ 0.00 $ 0.03 $ 0.00 $ 0.08
Shares outstanding, diluted 13,190,317 12,998,593 13,199,666 12,975,415
CPS TECHNOLOGIES CORPORATION
BALANCE SHEETS (Unaudited)
Oct. 1, Dec. 25,
2011 2010
---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 1,148,621 $ 1,803,222
Accounts receivable, net 4,199,095 3,922,962
Inventories 2,190,465 1,523,758
Prepaid expenses 136,973 76,579
Deferred taxes, current 326,679 354,774
---------- ----------
Total current assets 8,001,833 7,681,295
Property and equipment, net 2,080,151 2,184,301
Deferred taxes, non-current 793,750 745,505
---------- ----------
Total assets $ 10,875,734 $ 10,611,101
========== ==========
Liabilities and Equity
Current liabilities:
Accounts payable $ 959,996 $ 812,564
Accrued expenses 890,547 884,259
Capital leases, current 172,170 253,167
---------- ----------
Total current liabilities 2,022,713 1,949,990
Capital leases, non-current 59,448 175,561
---------- ----------
Total liabilities 2,082,161 2,125,551
Stockholders' equity 8,793,573 8,485,550
---------- ----------
Total liabilities and stockholders' equity $ 10,875,734 $ 10,611,101
========== ==========

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