CPS Technologies Announces MMAP Award
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The award granted to CPS Technologies Corporation by the Massachusetts Manufacturing Accelerate Program signifies a strategic investment in advanced manufacturing technology. The procurement of a 5-axis CNC machine is likely to enhance the company's competitive edge by expanding its manufacturing capabilities. This move not only positions CPS to meet more complex client requirements but also potentially increases the company's operational efficiency. By bringing more work in-house, CPS can reduce reliance on external suppliers, which may lead to cost savings and improved quality control.
Furthermore, the investment in new machinery is indicative of a commitment to innovation and growth within the local economy. The anticipated workforce expansion and training programs underscore a positive impact on employment and skill development in the Massachusetts area. Investors and stakeholders might view this as a long-term value creation strategy, as workforce enhancement can lead to increased productivity and potentially higher quality outputs.
The financial injection of $200,000 into CPS Technologies Corporation is relatively modest when considered against the backdrop of industrial capital expenditures. However, the specific allocation towards a 5-axis CNC machine could have a leveraged effect on the company's financials. It is crucial to monitor how this capital expenditure translates into return on investment through enhanced production capabilities and the acquisition of new business. Stakeholders should look for improvements in key financial metrics such as gross margin and EBITDA in subsequent financial reporting periods as indicators of the investment's efficacy.
Additionally, the company's initiative to grow its workforce in response to increased manufacturing capacity suggests confidence in sustained demand for its products. This could be a signal to the market of anticipated revenue growth, although it also implies an increase in operational expenses. The balance between these two factors will be critical in assessing the financial health and growth trajectory of CPS post-investment.
The integration of a 5-axis CNC machine into CPS Technologies' manufacturing process represents a significant technological advancement. Unlike traditional 3-axis machines, a 5-axis CNC can move a part or a tool on five different axes simultaneously, allowing for complex shapes and geometries to be machined with high precision. This capability is particularly beneficial for industries requiring intricate components, such as aerospace, defense and medical devices.
For CPS, this could mean entry into new markets or the enhancement of its product offerings in existing markets. The ability to produce more complex parts in-house not only streamlines the production process but also reduces the time-to-market for new products. This strategic move could result in a stronger market position and a more diverse customer base, which is crucial for business resilience and long-term success.
NORTON, Mass., March 04, 2024 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced it has received an award from the Massachusetts Manufacturing Accelerate Program (“MMAP”) in response to a proposal submitted by the Company in the fourth quarter of 2023. The award, valued at
This new capability will build on the Company’s core competencies while enabling CPS to fulfill a new generation of customer requirements and capture additional business. The addition of a 5-axis CNC machine will also allow the Company to complete more work in the Commonwealth of Massachusetts and, more specifically, in-house. With this increased manufacturing capacity, CPS expects to grow its workforce to keep up with demand and train existing and new machinists and technicians to operate and maintain the 5-axis CNC.
CEO & President Brian Mackey said of the award, “The Company has a long history here in Massachusetts, and we are committed to remaining a key contributor to our local manufacturing economy. We are proud to receive this award from MMAP and look forward to passing on the benefits that a 5-axis CNC provides through expanded offerings to our customers.”
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. 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 for the transition to clean energy.
Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2023 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
111 South Worcester Street
Norton, MA 02766
www.cpstechnologysolutions.com
Investor Relations:
Chris Witty
646-438-9385
cwitty@darrowir.com
