CPS Technologies Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 revenue declined to $7 million due to order timing, but strong fundamentals, a robust backlog, and new contract wins support a positive outlook for 2026. Gross margin and net income fell year-over-year, while inventory and liquidity remain strong.
Fiscal Year 2025
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Record annual revenue and improved profitability driven by strong demand and expanded production. Facility relocation and new capital investments are set to unlock further growth, with margin improvements expected as operational efficiencies increase.
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Record Q3 revenue more than doubled year-over-year, driven by strong demand and a major $15.5M contract. Gross margin improved to 17.1%, and a $9.5M capital raise will fund a facility expansion to support future growth.
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Record Q2 revenue of $8.1M, up 61% year-over-year, driven by strong demand and new contracts. Margins improved, with positive net income and robust backlog; ongoing innovation and capacity expansion support a strong outlook for the remainder of the year.
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Record Q1 revenue of $7.5M was achieved without armor sales, driven by strong demand for AlSiC and hermetic packaging products. Margins improved, and profitability returned, with ongoing initiatives targeting further margin expansion and new market opportunities in wind and defense.
Fiscal Year 2024
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Q4 revenue fell year-over-year due to the end of a major armor contract but rose 40% sequentially as new production capacity drove growth. Margins were impacted by ramp-up costs, but management expects improvement in 2025 with strong demand, new contracts, and operational efficiencies.
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Management highlighted a transition year with lower revenue, but expects improved results in Q4 and 2025 due to increased production capacity and a major $12M order. Ongoing R&D and SBIR-funded projects, plus active pursuit of new Navy contracts, support long-term growth.
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Revenue declined year-over-year due to the end of a major defense contract and customer inventory corrections, resulting in a net loss for the quarter. Recent contract wins, expanded manufacturing capacity, and resumed customer orders support optimism for improved results in Q4 and 2025.
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Q2 revenue fell to $5.0M with a net loss of $1.0M, impacted by contract completion, labor shortages, and supply chain issues. New hires, a third shift, and a $1M Navy contract are expected to drive growth and margin recovery in late 2024 and 2025.