CPS Technologies Corporation Announces Second Quarter 2024 Financial Results
Rhea-AI Summary
CPS Technologies (NASDAQ:CPSH) reported financial results for Q2 2024 ended June 29, 2024. Key highlights include:
- Revenue decreased to $5.0 million from $7.4 million in Q2 2023, due to the completion of the HybridTech Armor® contract with Kinetic Protection for the US Navy.
- Gross margin declined to (4.6)% from 29.6% in Q2 2023, reflecting lower manufacturing efficiencies and fixed costs impact on reduced revenue.
- Operating loss of $1.3 million compared to an operating profit of $0.7 million in Q2 2023.
- Net loss of $1.0 million, or $(0.07) per diluted share, versus net income of $0.6 million, or $0.04 per diluted share, in Q2 2023.
The company secured a new SBIR Phase II contract valued at over $1 million from the U.S. Navy Air Systems Command for developing metal matrix composites for thermal energy storage applications.
Positive
- Secured new SBIR Phase II contract worth over $1 million from U.S. Navy Air Systems Command
- Ongoing product development initiatives in response to customer requirements
- Expansion of product development pipeline, including fiber reinforced aluminum and lightweight radiation shielding material
Negative
- Revenue decreased 32.4% year-over-year to $5.0 million
- Gross margin declined to -4.6% from 29.6% in Q2 2023
- Reported operating loss of $1.3 million compared to $0.7 million profit in Q2 2023
- Net loss of $1.0 million or $(0.07) per diluted share
News Market Reaction 1 Alert
On the day this news was published, CPSH declined 4.19%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Performance Impacted by Contract Completion as Company Focuses on New Business Development
NORTON, Mass., July 31, 2024 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal second quarter ended June 29, 2024.
Second Quarter Summary
- Revenue of
$5.0 million for the second quarter of 2024 versus$7.4 million in the prior-year period, reflecting lower overall shipments due to the end of the Company’s HybridTech Armor® contract with Kinetic Protection for the US Navy
- Gross margin of (4.6) percent versus 29.6 percent in the second quarter of 2023, largely reflecting lower manufacturing efficiencies and impact of fixed costs on lower revenue.
- Operating loss of
$1.3 million for the quarter ended June 29, 2024 compared to an operating profit of$0.7 million in the prior-year period
- The Company’s recent SBIR Phase II award and ongoing product development initiatives in response to customer requirements point to accelerating wins heading into fiscal 2025
“This quarter’s results reflect the previously-announced completion of our HybridTech® Armor contract with Kinetic Protection, as the Navy’s current needs have been fulfilled after many quarters of delivering our state-of-the-art panels to provide ballistic protection for the U.S. Navy’s fleet of aircraft carriers,” said Brian Mackey, President and CEO. “While this near-term headwind has been well known for quite some time, it does not lessen the impact it has had on our overall performance. Despite the current operating environment, our growth path going forward will be augmented by the continued expansion of our product development pipeline.
“Notably, our latest SBIR contract from the U.S. Navy Air Systems Command, valued at over
Results of Operations
CPS reported revenue of
The Company reported an operating loss of
Conference Call
The Company will be hosting its second quarter 2024 earnings call at 9:00 am tomorrow, August 1, 2024. Those interested in participating in the conference call should dial the following:
Call in Number: 1-844-943-2942
Participant Passcode: 281331
The Company encourages those who wish to participate to call in 10 minutes before the scheduled start time to ensure the operator can connect all participants.
About CPS
CPS is a technology and manufacturing leader in producing high-performance materials solutions for its customers. The company’s products and intellectual property address critical needs in a variety of applications, including electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, Navy ships, 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 2024 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
| CPS TECHNOLOGIES CORP. Statements of Operations and Other Comprehensive Income (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 29, | July 1, | June 29, | July 1, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Product sales | $ | 5,030,313 | $ | 7,418,138 | $ | 10,942,947 | $ | 14,518,405 | |||||||
| Total revenues | 5,030,313 | 7,418,138 | 10,942,947 | 14,518,405 | |||||||||||
| Cost of product sales | 5,260,305 | 5,221,880 | 10,266,629 | 10,077,444 | |||||||||||
| Gross margin | (229,992 | ) | 2,196,259 | 676,318 | 4,440,961 | ||||||||||
| Selling, general, and administrative expense | 1,084,995 | 1,465,349 | 2,250,917 | 3,015,871 | |||||||||||
| Income (loss) from operations | (1,314,987 | ) | 730,910 | (1,574,599 | ) | 1,425,090 | |||||||||
| Interest income (expense), net | 90,851 | 79,652 | 170,021 | 95,242 | |||||||||||
| Net income (loss) before income tax | (1,224,136 | ) | 810,562 | (1,404,578 | ) | 1,520,332 | |||||||||
| Income tax provision (benefit) | (269,832 | ) | 210,058 | (307,120 | ) | 460,628 | |||||||||
| Net income (loss) | $ | (954,304 | ) | $ | 600,503 | $ | (1,097,458 | ) | $ | 1,059,704 | |||||
| Other comprehensive income | |||||||||||||||
| Net unrealized gains on available for sale securities | 8,701 | -- | 8,701 | -- | |||||||||||
| Total other comprehensive income | 8,701 | -- | 8,701 | -- | |||||||||||
| Total comprehensive income | (945,603 | ) | -- | (1,088,757 | ) | -- | |||||||||
| Net income per basic common share | $ | (0.07 | ) | $ | 0.04 | $ | (0.08 | ) | $ | 0.07 | |||||
| Weighted average number of basic common shares outstanding | 14,519,215 | 14,493,970 | 14,519,215 | 14,473,128 | |||||||||||
| Net income per diluted common share | $ | (0.07 | ) | $ | 0.04 | $ | (0.08 | ) | $ | 0.07 | |||||
| Weighted average number of diluted common shares outstanding | 14,519,215 | 14,621,929 | 14,519,215 | 14,630,765 | |||||||||||
| CPS TECHNOLOGIES CORP. Balance Sheets (Unaudited) | |||||||
| June 29, | December 30, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 6,306,244 | $ | 8,813,626 | |||
| Marketable Securities | 758,701 | -- | |||||
| Accounts receivable-trade, net | 4,064,293 | 4,389,155 | |||||
| Accounts receivable-other | 198,348 | 83,191 | |||||
| Inventories, net | 4,121,678 | 4,581,930 | |||||
| Prepaid expenses and other current assets | 366,655 | 276,349 | |||||
| Total current assets | 15,815,919 | 18,144,251 | |||||
| Property and equipment: | |||||||
| Production equipment | 9,940,480 | 11,271,982 | |||||
| Furniture and office equipment | 891,921 | 952,883 | |||||
| Leasehold improvements | 873,730 | 985,649 | |||||
| Total cost | 11,706,131 | 13,210,514 | |||||
| Accumulated depreciation and amortization | (10,068,557 | ) | (11,936,004 | ) | |||
| Construction in progress | 496,331 | 281,629 | |||||
| Net property and equipment | 2,133,905 | 1,556,139 | |||||
| Right-of-use lease asset | 261,000 | 332,000 | |||||
| Deferred taxes, net | 1,877,302 | 1,569,726 | |||||
| Total assets | $ | 20,088,126 | $ | 21,602,116 | |||
| CPS TECHNOLOGIES CORP. Balance Sheets (Unaudited) (concluded) | |||||||
| June 29, | December 30, | ||||||
| 2024 | 2023 | ||||||
| LIABILITIES AND STOCKHOLDERS` EQUITY | |||||||
| Current liabilities: | |||||||
| Note payable, current portion | $ | 31,885 | $ | 46,797 | |||
| Accounts payable | 2,587,874 | 2,535,086 | |||||
| Accrued expenses | 671,853 | 1,075,137 | |||||
| Deferred revenue | 65,578 | 251,755 | |||||
| Lease liability, current portion | 160,000 | 160,000 | |||||
| Total current liabilities | 3,517,190 | 4,068,775 | |||||
| Note payable less current portion | -- | 8,090 | |||||
| Deferred revenue – long term | 31,277 | 31,277 | |||||
| Long term lease liability | 101,000 | 172,000 | |||||
| Total liabilities | 3,649,467 | 4,280,142 | |||||
| Commitments and contingencies (note 6) | |||||||
| Stockholders` equity: | |||||||
| Common stock, | 146,015 | 146,015 | |||||
| Additional paid-in capital | 40,386,335 | 40,180,893 | |||||
| Accumulated other comprehensive income | 8,701 | -- | |||||
| Accumulated deficit | (23,852,254 | ) | (22,754,796 | ) | |||
| Less cost of 82,272 common shares repurchased at each June 29, 2024 and December 30, 2023 | (250,138 | ) | (250,138 | ) | |||
| Total stockholders` equity | 16,438,659 | 17,321,974 | |||||
| Total liabilities and stockholders` equity | $ | 20,088,126 | $ | 21,602,116 | |||
FAQ
What was CPS Technologies' (CPSH) revenue for Q2 2024?
Why did CPS Technologies (CPSH) experience a revenue decline in Q2 2024?
What new contract did CPS Technologies (CPSH) secure in Q2 2024?
What was CPS Technologies' (CPSH) earnings per share for Q2 2024?
