SOURCE: CPS Technologies Corporation

CPS Technologies Corporation

November 05, 2013 16:00 ET

CPS Technologies Corporation Announces Third Quarter 2013 Results

NORTON, MA--(Marketwired - Nov 5, 2013) - CPS Technologies Corporation (OTCQB: CPSH) today announced revenues of $6.0 million and net income of $452 thousand for the quarter ended September 28, 2013. This compares with revenues of $2.7 million and a net loss of $531 thousand for the quarter ended September 29, 2012.

Revenues for the nine months ended September 28, 2013 increased 64% to $16.3 million from $9.9 million for the corresponding period in 2012. Net Income for the nine month period in 2013 totaled $691 thousand, compared with a net loss of $1,438 thousand for the first nine months of 2012.

Grant Bennett, President and CEO, commented, "This is the fourth consecutive quarter that we have achieved increases in revenues, gross margin, operating profit and net income while also generating positive cash flow. The percentage increases in revenues were well into the double digits for all major product lines for both the quarter and nine months versus 2012. While our business is and will continue to be volatile quarter to quarter, it is clear that demand for our products has returned to levels prior to the Eurozone crisis which significantly depressed our 2012 revenues. When demand declined in 2012 we retained professional staff and continued production line improvements; as a result our margins are higher today than prior to the crisis."

Mr. Bennett continued, "Our strategy is rooted in the belief that there are numerous opportunities for growth in metal matrix composites, the class of materials in which we are the world-wide market leader. While we continue to strengthen our strong relationships with customers in the traction and automotive sectors, we are also expanding our sales and marketing efforts in Japan where we see substantial opportunities with large electronic companies. In addition we are allocating increased resources to address new opportunities where our technology offers a compelling advantage such as the military and the oil and gas areas."

The Company announced last week that it will hold its quarterly investor conference call on November 5, 2013 at 4:30 P.M. (Eastern). Grant Bennett, President and Chief Executive Officer, and Ralph Norwood, Chief Financial Officer, will discuss the Company's financial results for the three months ended September 28, 2013.

Those interested in participating in the conference call should dial:

1-855-863-0441

Conference ID: 95646946

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     Nine Months Ended  
    Sept. 28,     Sept. 29,     Sept. 28,     Sept. 29,  
    2013     2012     2013     2012  
                         
Total Revenues   $ 5,974,489     $ 2,744,181     $ 16,306,109     $ 9,927,222  
Cost of Sales     4,256,337       2,980,288       12,310,222       10,004,190  
Gross Margin     1,718,152       (236,107 )     3,995,887       (76,968 )
Operating Expenses     1,059,033       641,046       2,967,066       2,294,778  
Operating income (loss)     659,119       (877,153 )     1,028,821       (2,371,746 )
Interest expense, net     (3,603 )     (4,792 )     (26,473 )     (16,258 )
Income (loss) before income taxes     655,516       (881,945 )     1,002,348       (2,388,004 )
Income tax expense (benefit)     204,000       (351,000 )     311,720       (950,000 )
Net income (loss)     451,516       (530,945 )     690,628       (1,438,004 )
Net income (loss) per diluted share   $ 0.03     $ (0.04 )   $ 0.05     $ (0.11 )
Shares outstanding, diluted     13,522,495       12,871,659       13,242,069       12,868,934  
                                 
                                 
                                 
CPS TECHNOLOGIES CORPORATION
BALANCE SHEET (Unaudited)
         
    Sept. 28,   Dec. 29,
    2013   2012
         
Assets            
             
Current assets:            
  Cash and cash equivalents   $ 595,753   $ 306,854
  Accounts receivable-trade, net     4,223,095     2,876,149
  Inventories, net     2,048,860     2,457,315
  Prepaid expenses     173,368     140,723
  Deferred taxes, current     160,378     354,825
    Total current assets     7,201,454     6,135,866
             
Property and equipment, net     1,846,705     1,781,220
Deferred taxes, non-current     2,432,148     2,432,148
Total assets   $ 11,480,307   $ 10,349,234
             
Liabilities and Equity            
             
Current liabilities:            
  Line of Credit   $ ---   $ 500,000
  Equipment lease line of credit     163,155     ---
  Accounts payable     1,537,597     1,179,313
  Accrued expenses     1,160,693     938,043
  Capital leases, current     82,555     123,366
    Total current liabilities     2,944,000     2,740,722
             
Capital leases, non-current     14,117     76,372
Total liabilities     2,958,117     2,817,094
             
Stockholders' equity     8,522,190     7,532,140
Total liabilities and stockholders' equity   $ 11,480,307   $ 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: www.alsic.com