CPS Technologies Corporation (NASDAQ: CPSH) today announced revenues of $6.1 million and an operating profit of $208 thousand for the Fourth Quarter ended December 29, 2018. This compares with revenues of $3.8 million and an operating loss of $396 thousand for the Fourth Quarter ended December 30, 2017.
Revenues for the year ended December 29, 2018 totaled $21.6 million compared with $14.6 million for the year ended December 30, 2017. The operating loss for the year narrowed to $0.9 million in fiscal 2018, compared with an operating loss of $1.9 million in fiscal 2017.
Grant Bennett, President and CEO, said, “In the Fourth Quarter we achieved a 60% increase in revenue versus last year, generated our largest operating profit in three years and paid off our line of credit. These results reflect a continuation of the momentum we begin in the first quarter last year, resulting in a 48% revenue gain for the full year versus 2017 with increasing margins from the first quarter through the fourth.”
Mr. Bennett continued, “Despite the strong operating performance and expected future performance, we have established a reserve against nearly all of our $3 million deferred tax asset based on available evidence, primarily historical losses. That being said, it is critical to point out that the establishment of this reserve has no effect on cash, has no impact on the tax return and does not dilute existing tax credits, most of which do not expire until 2030.”
Finally, Mr. Bennett added: “As we look forward this year and next, we see several growth opportunities. Traction is our largest end market and it is growing. In China, rail spending is projected to growth rapidly, an estimated 45% in 2019 alone. The AlSiC market in Japan is estimated to be the size of the market in Europe and we are quoting business that could become meaningful as soon as later this year. In addition, we expect our participation in the defense and aerospace sectors will continue to grow for several years into the future.”
The Company will be hosting its fourth quarter conference call with investors at 4:30PM today.
Those interested in participating in the conference should call:
Call-in Number: 855-863-0441
Conference ID: 5991589
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 2018 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—– —–Year Ended—–
Dec. 29, Dec. 30, Dec. 29, Dec. 30,
2018 2017 2018 2017
———– ———– ———– ———–
Total Revenues $6,080,731 $3,796,008 $21,580,904 $14,577,183
Cost of Sales 4,881,290 3,232,962 18,668,052 12,919,065
———– ———– ———– ———–
Gross Margin 1,199,441 563,046 2,912,852 1,658,118
Operating Expenses 991,175 958,802 3,813,415 3,609,328
———– ———– ———– ———–
Operating income (loss) 208,266 (395,756) (900,563) (1,951,210)
Interest income (expense),net (9,317) 3,411 (34,630) 11,476
Other Income — — 13,645 —
———– ———– ———– ———–
Income before income taxes 198,949 (392,345) (921,548) (1,939,734)
Income tax expense (benefit) 3,059,419 400,968 2,784,419 (222,032)
———– ———– ———– ———–
Net income (loss) (2,860,470) (793,313) (3,705,967) (1,717,702)
========= ========= ========= =========
Net income (loss) per diluted share ($0.22) ($0.06) ($0.28) ($0.13)
Shares outstanding, diluted 13,205,936 13,203,436 13,205,936 13,203,436
CPS TECHNOLOGIES CORPORATION
BALANCE SHEET (Unaudited)
Dec. 29, Dec. 30,
2018 2017
———– ———–
Assets
Current assets:
Cash and cash equivalents $628,804 $1,339,572
Accounts receivable-trade, net 3,053,091 2,943,373
Inventories, net 3,192,933 2,109,513
Prepaid expenses 156,338 101,086
————- ————-
Total current assets 7,031,166 6,493,544
Property and equipment, net 1,273,186 1,490,498
Deferred taxes 186,747 3,038,666
————- ————-
Total assets $8,491,099 $11,022,708
========= =========
Liabilities and Equity
Current liabilities:
Accounts payable 1,680,263 946,385
Accrued expenses 975,315 655,489
Deferred Revenue — 100,000
————- ————-
Total current liabilities 2,655,578 1,701,874
Stockholders’ equity 5,835,521 9,320,834
————- ————-
Total liabilities and stockholders’ equity $8,491,099 $11,022,708
========= =========
