CPS Technologies (CPSH) investor relations material

Executive summary

• Q3 revenue was $8.900M, up from $8.804M a year earlier; gross margin rose to 20.9% and operating income reached $357,747.

• Strong demand and new orders support continued growth, while the planned move to a larger Attleboro facility is intended to expand production capacity and improve efficiency.

Financial highlights

• Q3 gross profit was $1.856M versus $1.503M; net income was $346,757 versus $207,964, and diluted EPS was $0.02 versus $0.01.

• 9M revenue was $24.239M versus $24.388M; operating loss was $423,415 versus operating income of $542,659, and net income was $90,324 versus $407,759.

• 9M operating cash flow was negative $2.63M versus positive $447K, including a $4.72M inventory increase in operating cash-flow adjustments.

• Q3 SG&A was $1.5M versus $1.2M YoY, including $88K of non-cash lease charges.

• At September 26, cash and cash equivalents were $3.30M and marketable securities were $15.61M; accounts receivable was $4.7M and inventory was $10.32M.

Outlook and guidance

• Significant volume orders from the largest semiconductor customer support deliveries into FY2027 at levels consistent with the prior-year period; management expects continued growth and higher financial results.

• Approximately $10M of Attleboro build-out capital expenditure is expected in 2027; funding may come from cash, marketable securities and operating cash flow, with up to $3.2M of qualifying costs eligible for tenant-improvement reimbursement.

• A partial move may begin earlier in 2027; complex production requirements could extend full build-out into H2 2027, with occupancy expected in November 2027.

• Inventory is being built to support customer supply continuity through the production transition; management expects existing liquidity to cover requirements for the foreseeable future.