Company: CPSH
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024312
Chunk: 11

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 2024.

Selling, general and administrative ("SG& A") expenses totaled $1,199 in Q2 2025 compared with SG& A expenses of $1,085 in Q2 2024. This increase was due to several factors including, the increase in variable compensation as a result of stronger results from operations in Q2 2025 as compared to Q2 2024, the weakening of the U. S. dollar relative to the Euro and its impact on our costs with European vendors, and increased commission costs due to higher revenue.

The Company experienced an operating profit of $137 in Q2 2025 compared with an operating loss of $1,315 in Q2 2024. This increase was a result of the increased gross margin, partially offset by the increase in SG& A expenses. Net after tax income was $104 in Q2 2025 compared to an after tax loss of $954 in Q2 2024.

Results of Operations for the First Six Months of 2025 Compared to the First Six Months of 2024 (all $ in 000s)

Total revenue was $15,585 in the first half of 2025, a 42% increase compared with total revenue of $10,943 in the first half of 2024. In spite of the completion of our armor order for the U. S. Navy during Q2 2024, growing demand in our other product lines has significantly increased in 2025 compared to last year. In September 2024 the Company added a third shift in order to meet this growing demand. In addition, the company received significantly more funding under the federal government’s SBIR program in Q2 of 2025 as compared to Q2 2024.

Gross profit in the first six months of 2025 totaled $2,567 or 16% of sales. In the first six months of 2024 gross margin totaled $676 or 6% of sales. This percentage increase was due to several factors including the impact of fixed costs on significantly higher revenues, as well as abnormally low production yield levels in some of our hermetic package products during Q2 of 2024.

Selling, general and administrative (SG& A) expenses were $2,300 during the first six months of 2025, up 2% compared with SG& A expenses of $2,251 in the first six months of 2024. Increased variable compensation accruals and increased commissions, both