CPS Technologies Corporation reported its financial results for the first fiscal quarter of 2025, revealing a revenue increase of 27% to $7.5 million, compared to $5.9 million in the same period last year. The company achieved a gross profit of $1.2 million, representing a gross margin of 16%, up from 15% in the prior year. Operating income improved significantly to $130,000, reversing an operating loss of $260,000 in the first quarter of 2024. Net income for the quarter was $96,000, compared to a net loss of $143,000 in the previous year.
The financial performance reflects a strategic expansion in production capacity, including the addition of a third shift to meet growing demand. This operational enhancement was supported by an increase in accounts receivable, which rose to $6.3 million from $4.9 million at the end of 2024. The company’s cash and cash equivalents decreased to $1.9 million from $3.3 million, primarily due to the increase in accounts receivable. Additionally, inventories increased to $4.8 million, up from $4.3 million, indicating a proactive approach to managing supply in response to anticipated demand.
CPS Technologies continues to focus on its core business of advanced material solutions, particularly metal-matrix composites, which are utilized in various industries including electronics and defense. The company has not reported any reliance on raw materials from conflict-affected regions, mitigating potential supply chain disruptions. However, inflationary pressures have impacted costs, and while CPS has been able to pass some of these costs onto customers, future pricing adjustments may be constrained by existing agreements.
Looking ahead, CPS Technologies remains optimistic about its growth trajectory, citing a strong demand for its products and a commitment to innovation. The company plans to leverage its existing cash balances and operational efficiencies to fund its activities throughout 2025. However, management acknowledges the potential for elevated uncertainty due to inflation and market conditions, which could affect future financial performance. The company maintains a $3 million revolving line of credit, which remains untapped, providing additional liquidity if needed.
About CPS TECHNOLOGIES CORP/DE/
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