NORTON, MA--(Marketwired - May 8, 2013) - CPS Technologies Corporation (
Gross margin in the first quarter of 2013 was $914 thousand compared with a negative $34 thousand in the first quarter of 2012. This improvement in margin was due to in large part to the 42% increase in revenues, but also benefitted from the absence of additional costs associated with an outside finishing operation incurred in the First Quarter of 2012.
Commenting on the results, Grant Bennett, President and CEO, said: "I am very pleased with our first quarter results as we were able to breakeven for the first time since the third quarter of 2011. On a sequential basis, our revenues were up over 20% from our fourth quarter of 2012 which, in turn, was up 50% over the third quarter of 2012. Our traction business has been the driver of our rebound, but we have also experienced growth in our parts sold to hybrid electric vehicles and hermetic package customers."
Mr. Bennett continued, "The current forecasts of our major customers suggest that their demand will remain strong for the foreseeable future. However, we are closely monitoring the situation as economic conditions remain volatile, especially in Europe."
"Looking longer term, while we continue to make excellent technical progress in armor, our opportunities continue to expand into new markets. For example we have had considerable interest in using metal matrix composites from the oil and gas industry. These needs are wide ranging in scope, well beyond the applications we are serving today," said Bennett.
About CPS CPS Technologies Corporation is a global leader in producing metal-matrix composite components used to improve the 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. They are also used as heatspreaders in internet switches, routers and high-performance microprocessors. CPS also develops and produces metal-matrix composite armor.
Safe Harbor Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2012 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 | ||||||||
| STATEMENT OF OPERATIONS (Unaudited) | ||||||||
| ---Quarter Ended--- | ||||||||
| Mar. 30, | Mar. 31, | |||||||
| 2013 | 2012 | |||||||
| Total Revenues | $ | 5,031,078 | $ | 3,554,776 | ||||
| Cost of Sales | 4,116,641 | 3,588,616 | ||||||
| Gross Margin | $ | 914,437 | $ | (33,840 | ) | |||
| Operating Expenses | $ | 899,915 | $ | 808,723 | ||||
| Operating Income (loss) | $ | 14,522 | $ | (842,563 | ) | |||
| Interest expense | $ | (10,192 | ) | $ | (5,772 | ) | ||
| Income (loss) before taxes | $ | 4,330 | $ | (848,335 | ) | |||
| Income tax provision (benefit) | $ | 1,720 | $ | (314,000 | ) | |||
| Net income (loss) | $ | 2,610 | $ | (534,335 | ) | |||
| Net income (loss) per common share | $ | 0.00 | $ | (0.04 | ) | |||
| Weighted average shares outstanding | 12,871,759 | 12,865,659 | ||||||
| CPS TECHNOLOGIES CORPORATION | ||||||||
| BALANCE SHEET (Unaudited) | ||||||||
| Mar. 30, | Dec. 29, | |||||||
| 2013 | 2012 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 305,674 | $ | 306,854 | ||||
| Accounts receivable, net | 4,144,115 | 2,876,149 | ||||||
| Inventories | 2,053,169 | 2,457,315 | ||||||
| Prepaid expenses | 133,114 | 140,723 | ||||||
| Deferred taxes, current | 353,105 | 354,825 | ||||||
| Total current assets | 6,989,177 | 6,135,866 | ||||||
| Property and equipment, net | 1,806,548 | 1,781,220 | ||||||
| Deferred taxes, non-current | 2,432,148 | 2,432,148 | ||||||
| Total assets | $ | 11,227,873 | $ | 10,349,234 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,366,532 | $ | 1,179,313 | ||||
| Accrued expenses | 1,345,855 | 938,043 | ||||||
| Borrowings against Line of Credit | 600,000 | 500,000 | ||||||
| Borrowings against Lease Line | 163,155 | -- | ||||||
| Capital leases, current | 108,102 | 123,366 | ||||||
| Total current liabilities | 3,583,644 | 2,740,722 | ||||||
| Capital leases, non-current | 55,848 | 76,372 | ||||||
| Total liabilities | 3,639,492 | 2,817,094 | ||||||
| Stockholders' equity | 7,588,381 | 7,532,140 | ||||||
| Total liabilities and stockholders' equity | $ | 11,227,873 | $ | 10,349,234 | ||||
CPS Technologies Corporation Ralph Norwood Chief Financial Officer 111 South Worcester Street Norton, MA 02766 Telephone: (508) 222-0614 Web Site: www.alsic.com
