10-Q - CPS TECHNOLOGIES CORP/DE/ (0000814676) (Filer)

Fri, May 2, 7:56 PM (20 days ago)

**CPS Technologies Corp. (CPSH) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $7,506,000, up 27% from Q1 2024 ($5,913,000). - **Gross Profit Margin:** 16% (Q1 2025) vs. 15% (Q1 2024). - **Operating Income:** $130,000 (Q1 2025) vs. -$260,000 (Q1 2024). - **Net Income:** $96,000 (Q1 2025) vs. -$143,000 (Q1 2024). - **Cash Flow from Operations:** -$1,252,723 (Q1 2025) vs. $128,857 (Q1 2024). **Key Metrics and Trends:** - **Sales Growth:** Driven by expanded production capacity and increased demand. - **Profitability:** Improved due to higher sales volumes and reduced SG&A expenses. - **Liquidity:** Cash and cash equivalents decreased to $1,930,000 (Q1 2025) from $3,281,000 (Q2 2024) due to increased accounts receivable. - **Accounts Receivable:** Increased to $6,303,000 (Q1 2025) from $4,858,000 (Q2 2024), with DSO increasing from 76 to 78 days. - **Inventory Turnover:** Decreased to 5.5 times (Q1 2025) from 5.9 times (2024). **Uncertainties and Future Operations:** - **Inflation and Tariffs:** Potential impacts on costs and pricing. - **Customer Concentration:** Reliance on a limited number of customers. - **Geopolitical Risks:** Potential supply chain disruptions and energy cost impacts. - **Cash Flow:** Negative cash flow from operations in Q1 2025, but management expects to fund operations from existing cash balances and revenues. **Future Outlook:** - **Revenue Growth:** Expected to continue due to growing demand for MMC and other products. - **Cost Management:** Ongoing efforts to reduce SG&A expenses and manage inflationary pressures. - **Liquidity:** Management believes existing cash balances will be sufficient to fund operations for the foreseeable future.