CPS Technologies Corp (CPSH) Reports Q3 2023 Earnings: Revenue Down 6.9% YoY, Net Income at $0.2M
CPS Technologies Corp (NASDAQ:CPSH) reported Q3 2023 revenue of $6.3 million, down 6.9% from $6.7 million in Q3 2022.
Net income for the quarter stood at $0.2 million, or $0.01 per diluted share, compared to $1.0 million, or $0.07 per diluted share, in the same quarter last year.
The company's gross profit was $1.2 million, or 19.7% of revenue, compared to $1.9 million, or 27.9% of revenue, in Q3 2022.
CPSH remains optimistic about future growth, with two major wins announced that will positively impact fiscal 2024.
On November 3, 2023, CPS Technologies Corp (NASDAQ:CPSH) announced its financial results for the third quarter ended September 30, 2023. Despite a slight dip in revenue, the company remains on track for a record-setting year.
Financial Highlights
CPSH reported a revenue of $6.3 million for Q3 2023, a decrease from $6.7 million in the same period last year. The company attributed this to order timing and certain shipments being delayed into the fourth quarter. Gross profit stood at $1.2 million, or 19.7% of revenue, compared to $1.9 million, or 27.9% of revenue, in Q3 2022. The lower gross margin year-over-year reflects lower overall sales.
Operating profit was $0.1 million in Q3 2023, compared to $0.7 million in Q3 2022. Net income for the quarter was $0.2 million, or $0.01 per diluted share, versus $1.0 million, or $0.07 per diluted share, in the same quarter last year.
CEO's Commentary
As anticipated, revenue during the period was negatively impacted by certain shipments being delayed into the fourth quarter, which is looking to be particularly strong, said Brian Mackey, President and CEO. Im excited that we remain in solid shape to finish fiscal 2023 with a record-setting performance, setting the stage for continued success going forward. We recently announced two major wins for CPS that will positively impact fiscal 2024, including a new SBIR award, complemented by a $7.7 million contract with one of our larger customers."
Financial Position
As of September 30, 2023, CPSH had cash and cash equivalents of $8.8 million, up from $8.3 million at the end of 2022. The company's total current assets stood at $18.9 million, while total liabilities were at $5.4 million. The company's total stockholders' equity was $17.2 million.
Despite the challenges faced in Q3, CPSH remains optimistic about its future growth. The company's focus on R&D investment and business development initiatives is expected to drive higher returns and top-line expansion.
Explore the complete 8-K earnings release (here) from CPS Technologies Corp for further details.
This article first appeared on GuruFocus.
