GlobeNewswire Inc | Feb 24, 2021 04:00PM EST

February 24, 2021

NORTON, Mass., Feb. 24, 2021 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues of $20.9 million and an operating profit of $914 thousand for the year ended December 26, 2020. This compares with revenues of $21.5 million and an operating loss of $597 thousand for the year ended December 28, 2019.

For the quarter ending December 26, 2020, revenues were $4.2 million with an operating loss of $291 thousand. For the quarter ending December 28, 2019, revenues were $5.4 million with an operating profit of $367 thousand.

Grant Bennett, President and CEO, said, 2020 was unique. As the year progressed, customer demand for our existing, higher volume products, particularly baseplates for traction power modules, declined each quarter because of the increasing effects of Covid-19.

On the other hand, demand increased for other products, particularly aerospace applications, and customers largely held to development schedules for new products as a result new products continued to move through our pipeline. With travel all but eliminated, we redeployed resources to accelerate continuous improvement projects internally to increase margins. We also implemented planned price increases. The net result of these factors, both negative and positive, was a 2.8% decline in revenues, but a positive swing of $1.5 million in operating profits (a 253% increase).

Globally, Covid business disruption continues to inject uncertainty in forecasting; however, taking all available information into consideration, including customer forecasts, inventory levels throughout the supply chain and manufacturing schedules, we believe the fourth quarter most likely represented the bottom in terms of demand.

Let me highlight some recent important developments. Michael E. McCormack II joined us on January 4 as our Chief Operating Officer. Michael brings, among other capabilities, deep skills in business development, new product expansion and M&A and has significant experience in the defense, aerospace, and armor markets. He is up and running and a wonderful addition to our management team.

We continue to be excited about the HybridTech Armor panel order which we recently announced. We expect to begin shipping these panels towards the end of the second quarter of this year; the third quarter will be the first full quarter of production of these panels.

We congratulate NASA and the Jet Propulsion Laboratory on the remarkable successful landing of the Mars Rover Perseverance and are delighted to have produced the AlSiC hermetic package on the Rover.

More broadly, we are pleased with the results of the actions we have taken in the last two years, and continue to take, to strengthen our sales, marketing and business development efforts in the US aerospace and defense electronics industries. These results include new design wins, new bookings, new customers, and new products, said Bennett.

CPS products play critical roles in the electrification of the green economy. Green energy generation, electric vehicles, the smart grid, aerospace and satellite communications all represent significant growth markets for our products.

The Company will be hosting its fourth quarter conference call with investors at 4:45pm on Wednesday, February 24. Those interested in participating in the conference call should dial:

Call in Number: 1-833-953-1394

Conference ID: 9283248

Please dial-in 10 minutes prior to the start time and tell the operator you are calling in for the CPS Technologies Corporation Year-end Investor Conference Call.

A replay of the webcast will be available approximately two hours after the presentation at (855)-859-2056 for the Conference ID shown above for a period of 48 hours and through the Investor Call Transcripts link on the General Information link on the Investors page of the Companys website thereafter.

About CPS CPS is a technology and manufacturing leader in producing high-performance energy management components that facilitatethe electrification of the economy. Our products and intellectualproperty include critical piecesof 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 very light weight. 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 to2020 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 CORPORATIONSTATEMENT OFOPERATIONS (Unaudited) Quarter Ended Year Ended Dec. 26, Dec. 28, Dec. 26, Dec. 28, 2020 2019 2020 2019 Total Revenues 4,150,637 5,444,800 20,872,611 21,468,414 Cost of Sales 3,651,988 4,461,907 16,702,848 18,928,173 Gross Margin 498,649 982,893 4,169,763 2,540,241 Operating 789,329 614,262 3,255,527 3,137,440 Expenses Operating Income (290,679 ) 368,631 914,236 (597,199 )(loss)Other income, net 57,839 (11,791 ) (14,719 ) (35,547 ) Income (loss) (232,840 ) 356,840 899,517 (632,746 )before taxesIncome tax -- (5,456 ) 456 (5,456 )provision Net income (loss) (232,840 ) 351,384 $ 899,061 (638,202 ) Wtd. Avg. basiccommon shares 13,302,558 13,209,522 13,348,582 13,207,097 outstanding -dilutedNet income (loss)per common share (0.02 ) 0.03 0.07 (0.05 )- diluted

CPS Technologies Corporation Balance Sheet (Unaudited) Dec. 26, 2020 Dec. 28, 2019Assets Current Assets Cash and Cash Equivalents 195,203 133,965Accounts Receivable Trade, net 2,914,801 4,086,945Inventories, net 3,709,471 3,099,824Prepaid Expenses 71,506 147,786Total Current Assets 6,890,981 7,468,520 Property and Equipment, net 1,287,946 1,236,878Right of Use Lease Asset 25,000 171,000Deferred Taxes 107,996 147,873 Total Assets 8,311,923 9,024,271 Liabilities and Equity Current Liabilities Borrowings - Line of Credit -- 1,249,588 Note Payable, current portion 58,134 --Accounts Payable 909,290 1,436,417Accrued Expenses 804,091 815,166Deferred Revenue 12,177 21,110Current Portion Lease Liability 25,000 148,000Total Current Liabilities 1,808,692 3,670,281 Note Payable, less current portion 154,570 --Long Term Lease Liability -- 23,000Total Liabilities 1,963,262 3,693,281 Stockholder?s Equity 6,348,661 5,365,990 Total Liabilities and Stockholder?s Equity 8,311,923 9,024,271

CPS Technologies Corporation Chuck Griffith, Chief Financial Officer 111 South Worcester Street Norton, MA 02766 Telephone: (508) 222-0614 Web Site: www.alsic.com