Business
CPS Technologies Corporation Announces Third Quarter 2021 Results
NORTON, Mass., Oct. 27, 2021 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues of $5.5 million and an operating loss of
About this update from Cps Technologies Corp.
[{"type":"text","content":"NORTON, Mass., Oct. 27, 2021 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) today announced revenues of $5.5 million and an operating loss of $88 thousand for the quarter ended September 25, 2021. This compares with revenues of $4.5 million and an operating profit of $253 thousand for the quarter ended September 26, 2020. Michael McCormack, President and CEO, said: “Revenues in the third quarter 2021 showed significant improvement over revenues in the third quarter of 2020, reflecting the lessening impact of the Covid-19 pandemic on our business. Revenues in the third quarter 2021 were 24% higher than the third quarter 2020, and our 2021 bookings are 158% of shipments, reflecting our current and expected future growth. Unfortunately, we are showing a loss for the third quarter, but it is not without explanation. As a result of the mandate from the Board of Directors to grow both the top and bottom line, several steps were taken in the quarter to further streamline the business. These steps resulted in $327 thousand of non-recurring restructuring costs incurred during the quarter. As a reminder, GAAP requires that these types of expenses be recognized when the liability is incurred. Although some of these charges will not be paid immediately, the entire expense is being charged in this quarter. Without these expenses CPS would have been solidly profitable in the third quarter. In addition, our new sales and technical hires made in 2021 are now showing positive results as evidenced by our book to bill ratio mentioned above. I would also like to point out that although our net after tax profit for the quarter is $2.8 million, it does not relate to Q3 activities or results. This is the result of the reversal of our deferred tax valuation allowance. In 2018, due to recurring losses, it was judged “more likely than not” that CPS would be unable to use its deferred tax asset. As such, a reserve was set up against that asset and an additional loss of $3.0 million was incurred. After further evaluation, based on the Company’s profitability and the expected growth of CPS over the next several years, we have now judged that it is “more likely than not” that CPS will be able to use the deferred tax asset and the remaining reserve of $2.8 million has been reversed. As part of the Defense Industrial Base, CPS has been open and...