CPS Technologies Corporation Announces Second Quarter 2022 Results

NORTON, Mass., Aug. 04, 2022 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues of $7.1 million and an operating profit of $669 thousand for the quarter ended July 2, 2022. This compares with revenues of $5.9 million and an operating profit of $253 thousand for the quarter ended June 26, 2021.

Michael McCormack, President and CEO, said: “We are pleased to report that revenues in the second quarter of 2022 were the highest in the company’s history and showed 6.3% improvement over revenues in the first quarter of 2022, our previous record high for a quarter. Even more significantly we show a revenue increase of 21% over the second quarter of 2021. Further, our second quarter operating profit represents an increase of 164% over the second quarter of 2021. We continue to realize returns on the growth initiatives and operational changes we are executing. The team is continuing to drive growth and efficiency to sustain this momentum.

The larger concerns today involve the impacts of inflation, material availability, logistics delays, and a limited labor force. We are not immune to these problems, but to date, none of these issues has had a significant impact on our business. While inflation affects both wages and material costs, we have been able to cope with these in the form of increased manufacturing efficiencies and small price increases. In an uncertain overall economic environment, we remain very pleased with our second quarter performance and are confident in our outlook.

Beyond Fiscal Year 2022, we remain cautiously optimistic that our collective growth initiatives, specifically in longer-term new product development investments, will expand the current product lines both in terms of revenues and earnings. We have re-engaged with the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs having made several submissions and will continue to do so. We have announced the award of 2 contracts under these programs, one for the Army and the other for the Navy. Lastly, we continue to make measured investments to increase the capacity of our current high-volume manufacturing.”

The Company will be hosting its second quarter conference call with investors at 9:00 AM on Friday, August 5. Those interested in participating in the conference call should dial:

Call in Number: 1-888-504-7949

Conference ID: 840275

We encourage those who wish to participate, to call in 10 minutes before the scheduled start time to ensure the operator can connect you prior to the start of the call.

About CPS
CPS is a technology and manufacturing leader in producing high-performance energy management components that facilitate the electrification of the economy. Our products and intellectual property include critical pieces of the technology puzzle for electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, the smart electric grid, 5G infrastructure and others. CPS hermetic packages can be found in many Aerospace and Satellite applications including the GPS III satellite and the Mars rover. CPS armor products provide exceptional ballistic protection and environmental durability at very light weight. CPS is committed to innovation and to supporting our customers in building solutions to this planet's problems.

Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2022 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 CORP. Statements of Operations (Unaudited)
					Three Months Ended						Six Months Ended
					July 2,		June 26,				July 2,			June 26,
					2022		2021				2022			2021
Revenues:
			Product sales		$ 7,070,743		$ 5,862,183				$ 13,723,457			$ 10,727,890
			Total revenues		7,070,743		5,862,183				13,723,457			10,727,890
Cost of product sales					5,242,106		4,510,600				9,931,330			8,432,168
			Gross Margin		1,828,637		1,351,583				3,792,127			2,295,722
Selling, general, and administrative expense					1,159,157		1,098,616				2,575,550			2,007,087
			Income from operations		669,480		252,967				1,216,577			288,635
Interest income (expense), net					1,594		(13,769)				(319)			(18,079)
Net income before income tax					671,074		239,198				1,216,258			270,556
Income tax provision					215,966		--				341,714			456
			Net income		$455,108		$239,198				$874,544			$270,101
Net income per basic common share					$0.03		$0.02				$0.06			$0.02

CPS TECHNOLOGIES CORP.
Balance Sheet (Unaudited)
				July 2,		December 25,
ASSETS				2022		2021
Current assets:
	Cash and cash equivalents			$ 5,076,282		$ 5,050,312
	Accounts receivable-trade, net			4,536,973		4,870,021
	Inventories, net			4,665,719		3,911,602
	Prepaid expenses and other current assets			313,501		225,873
		Total current assets		14,592,475		14,057,808
Net property and equipment				1,412,923		1,322,494
Right-of-use lease asset				528,000		586,000
Deferred taxes, net				2,482,720		2,823,978
Total Assets				$ 19,016,118		$ 18,800,719
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Note payable, current portion			$ 47,321		$ 55,906
	Accounts payable			1,621,278		2,100,251
	Accrued expenses			648,180		1,086,429
	Deferred revenue			1,752,543		1,707,138
	Lease liability, current portion			157,000		155,000
Total current liabilities				4,226,322		5,104,724
Note payable less current portion				77,120		98,684
Long term lease liability				371,000		431,000
Total liabilities				4,674,442		5,634,408
Total stockholders’ equity				14,341,676		13,166,311
Total liabilities and stockholders’ equity				$ 19,016,118		$ 18,800,719

CPS Technologies Corporation                  
Chuck Griffith, Chief Financial Officer                                
111 South Worcester Street
Norton, MA 02766
Telephone: (508) 222-0614
Web Site: www.cpstechnologysolutions.com