Norton, Massachusetts, May 05, 2020. CPS Technologies Corporation (Nasdaq:CPSH) today announced revenues of $6.5 million and an operating profit of $622 thousand for the quarter ended March 28, 2020. This compares with revenues of $5.3 million and an operating loss of $744 thousand for the quarter ended March 30, 2019.
Grant Bennett, President and CEO, said: “Revenues in the first quarter were up significantly compared to the first quarter of 2019. We have previously commented on new contracts with our three largest customers. As new prices and higher volumes from these contracts continue to be phased in, we see the positive impact they are having on our results. This phase-in period began in the fourth quarter last year should be completed during the second quarter this year. Our sales team is focused on both profitability and volume and is doing an excellent job of balancing appropriate pricing with increasing our volumes in the market segments we serve. These developments suggest continued strong performance throughout 2020 – subject of course to possible unforeseen coronavirus impacts.”
We continue to generate new customers and new products. We have taken and continue to take actions to strengthen our sales and marketing efforts in the US aerospace and defense electronics industries; these actions are showing positive results. These actions should continue to result in new design wins, new bookings, new customers, and new products in our two main product families, AlSiC components and hermetic packages.
Regarding the coronavirus, as part of the Defense Industrial Base, CPS has been open and operating throughout the pandemic. To date all of our major customers remain open and operational. Some smaller customers have closed some manufacturing facilities temporarily. Demand remains strong, although we are beginning to see some demand being stretched out over a longer period of time. Similarly, most of our vendors remain open and we have not experienced any meaningful supply chain disruptions.
These observations do not mean that CPS has been or will be unaffected by the pandemic. We have seen increased freight costs on our overseas shipments and increased expenses related to higher absenteeism, higher facility cleaning costs, increased purchases and use of PPE, etc. School closures, and the need to quarantine or care for family members, continue to cause increased absenteeism.
We have implemented CDC and OSHA guidance in our workplace. Employees’ temperatures are taken at the beginning of each shift, shifts have been staggered to reduce employee overlap, workstations have been rearranged to ensure social distancing, all employees are using facemasks, etc.
It is difficult to predict the overall impact this pandemic will have on CPS’ business going forward. Nevertheless, we remain optimistic about our 2020 performance.”
The Company will be hosting its first quarter conference call with investors at 4:30pm on Tuesday, May 5. Those interested in participating in the conference call should dial:
Call in Number: 1-833-953-1394
Conference ID: 6096452
About CPS Technologies Corporation:
CPS is a global leader in producing metal-matrix composite components used to improve 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, as well as heat spreaders in internet switches, routers and high-performance microprocessors.