CPS Technologies Announces First Quarter 2025 Financial Results

NORTON, Mass., April 30, 2025 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal first quarter ended March 29, 2025.

First Quarter Highlights

• Revenue of $7.5 million for the first quarter of 2025, reflecting the Company’s best sales quarter ever, even without any HybridTech Armor^® business, versus $5.9 million in the first quarter of 2024
• Gross margin of 16.4 percent versus 15.3 percent in the prior-year period, reflecting improved operating leverage tied to higher revenue
• Operating profit of $0.1 million for the quarter ended March 29, 2025 compared to an operating loss of $(0.3) million in the prior-year period
• The Company’s performance also reflects the dramatic improvements that have occurred since the fourth quarter of 2024, when revenue was $5.9 million and gross margins were negative 2 percent
• As previously shared, three new Phase I Army SBIR contracts were initiated during the quarter

“What started as a very real turnaround last quarter is continuing into fiscal 2025, with the Company posting record revenue, driven accelerating demand from multiple customers,” said Brian Mackey, President and CEO. “Despite the completion of the aircraft carrier contract, the overall growth of our existing product lines has surpassed our previous revenue numbers. I’m pleased to see the return to bottom line profitability as well. While our profitability is positive, we continue to work on further margin improvement for the second quarter and beyond. Higher production volumes, recent SBIR wins, and a strategy meant to broaden our target markets and book of business are having the intended effect of strengthening the outlook for fiscal 2025. Our strategy of using our core offerings to invest in the product lines of the future in response to customer requirements, is beginning to bear fruit.”

Results of Operations
CPS reported revenue of $7.5 million in the first quarter of fiscal 2025 versus $5.9 million in the first quarter of 2024, reflecting higher production rates and shipments across the board. Gross profit was $1.2 million, or 16.4 percent of revenue, versus $0.9 million, or 15.3 percent of revenue, in the fiscal 2024 first quarter, which had lower revenue and reduced production efficiencies and was also impacted by quality control testing.

Operating profit was $0.1 million in the fiscal 2025 first quarter compared with an operating loss of $(0.3) million in the prior-year period. Reported net income was $0.1 million, or $0.01 per diluted share, versus a net loss of $(0.1) million, or $(0.01) per share, in the quarter ended March 30, 2024.

Conference Call
The Company will be hosting its first quarter 2025 earnings call tomorrow, May 1, 2025, at 9:00am Eastern. Those interested in participating in the conference call should dial the following: 
Call in Number: 1-844-943-2942
Participant Passcode: 970717

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. The Company articulates its Vision as follows: “To pioneer the next generation of high-performance materials and solve the world’s toughest engineering challenges.”

Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2025 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 CORPORATION Statements of Operations (Unaudited)
		Fiscal Quarters Ended
		March 29, 2025				March 30, 2024
Revenues:
Product sales		$	7,505,921			$	5,912,634
Total revenues			7,505,921				5,912,634
Cost of product sales			6,274,920				5,006,324
Gross Profit			1,231,001				906,310
Selling, general, and administrative expense			1,101,350				1,165,922
Operating income (loss)			129,651				(259,612	)
Other income, net			50,476				79,171
Income (loss) before taxes			180,127				(180,441	)
Income tax provision (benefit)			84,165				(37,288	)
Net income (loss)		$	95,962			$	(143,153	)
Other comprehensive income
Net unrealized gains on available for sale securities			1,300				-
Total other comprehensive income			1,300				-
Comprehensive income (loss)			97,262				(143,153	)
Net income (loss) per basic common share		$	0.01			$	(0.01	)
Weighted average number of basic common shares outstanding			14,525,960				14,519,215
Net income (loss) per diluted common share		$	0.01			$	(0.01	)
Weighted average number of diluted common shares outstanding			14,543,911				14,519,215

CPS TECHNOLOGIES CORP. Balance Sheets (Unaudited)
		March 29, 2025				December 28, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	1,929,919			$	3,280,687
Marketable securities, at fair value			1,039,714				1,031,001
Accounts receivable-trade, net			6,302,650				4,858,208
Accounts receivable-other			210,475				177,068
Inventories, net			4,812,833				4,331,066
Prepaid expenses and other current assets			389,764				480,986
Total current assets			14,685,355				14,159,016
Property and equipment:
Production equipment			10,439,670				10,382,379
Furniture and office equipment			891,921				891,921
Leasehold improvements			997,830				997,830
Total cost			12,329,421				12,272,130
Accumulated depreciation and amortization			(10,542,494	)			(10,377,756	)
Construction in progress			144,653				108,874
Net property and equipment			1,931,580				2,003,248
Right-of-use lease asset (note 4, leases)			147,000				186,000
Deferred taxes			2,444,973				2,528,682
Total Assets		$	19,208,908				18,876,946
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Note payable, current portion			-				8,130
Accounts payable			3,135,552				3,053,712
Accrued expenses			1,070,932				913,279
Deferred revenue			108,080				172,429
Lease liability, current portion			147,000				160,000
Total current liabilities			4,461,564				4,307,550
Deferred revenue – long term			31,277				31,277
Long term lease liability			-				26,000
Total liabilities			4,492,841				4,364,827
Commitments & Contingencies
Stockholders’ equity:
Common stock, $0.01 par value, authorized 20,000,000 shares; issued 14,661,487 shares; outstanding 14,525,960 shares at each March 29, 2025 and December 28, 2024			146,615				146,615
Additional paid-in capital			40,702,573				40,580,387
Accumulated other comprehensive income			1,300				15,500
Accumulated deficit			(25,794,283	)			(25,890,245	)
Less cost of 135,527 common shares repurchased at each March 29, 2025 and December 28, 2024			(340,138	)			(340,138	)
Total stockholders’ equity			14,716,067				14,512,119
Total liabilities and stockholders’ equity		$	19,208,908			$	18,876,946