CPSH CPS Technologies Corp

CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal second quarter ended July 1, 2023.

Second Quarter Highlights

• Revenue of $7.4 million for the second quarter of 2023 versus $7.1 million in the prior-year period
• Gross margin of 29.6 percent, up 370 basis points from the second quarter of 2022
• Operating profit of $0.7 million for the quarter ended July 1, 2023, slightly higher than the prior-year period

“Fiscal 2023 continues to play out as expected, with solid top line growth and improved bottom line results,” said Chuck Griffith, CFO and acting President. “Revenue rose 5% year-over-year, to a record $7.4 million, and our gross margin increased 370 basis points versus the second quarter of 2022. In addition, our trailing twelve month book-to-bill ratio remains strong at 108%, as we execute a strategy of penetrating new customers and markets to accelerate growth going forward.

“At the same time, and as recently announced, the Company selected seasoned industry veteran – and retired officer of the US Army Corps of Engineers – Brian Mackey as the Company’s new president and chief executive officer. His leadership and business acumen are anticipated to bolster our expansion plans in the quarters and years to come, unlocking the value of our innovative technology and unique applications. With Brian at the helm, and a strong book of business in hand, we look forward to driving the Company to higher growth and improved financial returns.”

Results of Operations CPS reported revenue of $7.4 million for the second quarter of fiscal 2023 versus $7.1 million in the prior-year period, reflecting higher product shipments. Gross profit rose to $2.2 million, or 29.6 percent of revenue, from $1.8 million, or 25.9 percent of revenue, in the fiscal 2022 second quarter. The higher gross margin year-over-year reflects increased operating leverage and improved product mix.

Operating profit was $0.7 million in the fiscal 2023 second quarter, slightly higher than the prior-year period. Reported net income was $0.6 million, or $0.04 per diluted share, versus $0.5 million, or $0.03 per diluted share, in the quarter ended July 2, 2022.

Conference Call The Company will be hosting its second quarter 2023 earnings call at 9:00 am on Thursday, August 3. 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 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' armor products provide exceptional ballistic protection and environmental durability at a very lightweight. CPS is committed to innovation and to supporting our customers in building solutions to this planet's problems.

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

CPS TECHNOLOGIES CORPORATION
Statements of Operations (Unaudited)
		Three Months Ended						Six Months Ended
		July 1,			July 2,			July 1,			July 2,
		2023			2022			2023			2022
Revenues:
	Product sales	$	7,418,138		$	7,070,743		$	14,518,405		$	13,723,457
	Total revenues	$	7,418,138		$	7,070,743		$	14,518,405		$	13,723,457
Cost of product sales		5,221,880			5,242,106			10,077,444			9,931,330
	Gross Margin	2,196,259			1,828,637			4,440,961			3,792,127
Selling, general, and
	administrative expense	1,465,349			1,159,157			3,015,871			2,575,550
	Income from operations	730,910			669,480			1,425,090			1,216,577
Interest/Other income (expense)		79,652			1,594			95,242			(319)
Net income before
	income tax	810,562			671,074			1,520,332			1,216,258
Income tax provision (benefit)		210,058			215,966			460,628			341,714
	Net income	$	600,503		$	455,108		$	1,059,704		$	874,544
Wtd. Avg. basic common shares outstanding - diluted		14,621,929			14,708,646			14,630,765			14,682,516
Net income per
	basic common share	$ 0.04			$ 0.03			$ 0.07			$ 0.06

CPS TECHNOLOGIES CORPORATION
BALANCE SHEET (UNAUDITED)
									July 1,										December 31,
										2023										2022
ASSETS
Current assets:
			Cash and cash equivalents								$				8,681,225				$	8,266,753
			Accounts receivable-trade, net							5,074,559										3,777,975
			Accounts Receivable - other							74,639										685,668
			Inventories, net							4,813,753										4,875,901
			Prepaid expenses and other current assets												288,315					211,242
					Total current assets										18,932,491					17,817,539
Net property and equipment													1,507,578								1,326,968
Right-of-use lease asset										400,000										466,000
Deferred taxes, net															1,664,032					2,069,436
Total Assets											$				22,504,101				$	21,679,943
LIABILITIES AND STOCKHOLDERS’
		EQUITY
Current liabilities:
		Note payable, current portion										56,681								43,711
		Accounts payable										2,359,532								1,836,865
		Accrued expenses										861,514								820,856
		Deferred revenue										1,828,068								2,521,128
		Lease liability, current portion										158,000								157,000
Total current liabilities												5,263,795								5,379,560
Note payable less current portion												20,437								54,847
Deferred revenue – long term												31,277								231,020
Long term lease liability												242,000								309,000
Total liabilities												5,557,509								5,974,427
Total stockholders’ equity												16,946,592								15,705,516
Total liabilities and stockholders’
equity											$	22,504,101							$	21,679,943