Company: CPSH
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001437749-25-014320
Chunk: 7

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 the Company is well positioned to offer our solutions to current and new customers as these demands grow.

CPS was incorporated in Massachusetts in 1984 as Ceramics Process Systems Corporation and reincorporated in Delaware in April 1987 through a merger into a wholly-owned Delaware subsidiary organized for purposes of the reincorporation. In July 1987, CPS completed our initial public offering of 1.5 million shares of our Common Stock. In March 2007, we changed our name from Ceramics Process Systems Corporation to CPS Technologies Corporation.

Results of Operations for the First Fiscal Quarter of 2025 (Q1 2025) Compared to the First Fiscal Quarter of 2024 (Q1 2024); (all $ in 000’ s)

Revenues totaled $7,506 in Q1 2025 compared with $5,913 generated in Q1 2024, an increase of 27%. The major factor contributing to this increase is the continued expansion of production capacity to meet growing demand, including the addition of our third shift and the continued improvement of our production associates as they gain more experience. As announced in Q4 2024, CPS received an order from an existing customer approximately $5 million greater than the same order received in Q4 2023.

Gross margin in Q1 2025 totaled $1,231 or 16% of sales. This compares with gross margin in Q1 2024 of $906 or 15% of sales. This increase was primarily due to the impact of higher sales volumes on fixed costs.

Selling, general and administrative (SG& A) expenses totaled $1,101 in Q1 2025 compared with SG& A expenses of $1,166 in Q1 2024, a 6% decrease year over year. There are a number of areas in which management has been able to reduce SG& A expenses compared to last year.

The Company experienced operating income of $130 in Q1 2025 compared with an operating loss of $260 in Q1 2024. This increase was a result of the increased gross margin and by the decrease in SG& A expenses. Net after tax income was $96 in Q1 2025 compared to an after tax loss of $143 in Q1 2024.

CPS does not rely on raw materials from Ukraine, Russia, Israel or Gaza. As a result, we do not believe that the Russian invasion of Ukraine or the conflict in Israel and Gaza will have a direct