CPS Technologies Corporation                                 
Ralph Norwood, Chief Financial Officer                                     
111 South Worcester Street                                                                        
Norton, MA 02766
Telephone: (508) 222-0614
Web Site:  www.alsic.com




Norton, Massachusetts, March 5, 2019.  CPS Technologies Corporation (NASDAQ: CPSH) today announced revenues of $6.1 million and an operating profit of $208 thousand for the Fourth Quarter ended December 29, 2018.   This compares with revenues of $3.8 million and an operating loss of $396 thousand for the Fourth Quarter ended December 30, 2017.  

Revenues for the year ended December 29, 2018 totaled $21.6 million compared with $14.6 million for the year ended December 30, 2017.  The operating loss for the year narrowed to $0.9 million in fiscal 2018, compared with an operating loss of $1.9 million in fiscal 2017.

Grant Bennett, President and CEO, said, “In the Fourth Quarter we achieved a 60% increase in revenue versus last year, generated our largest operating profit in three years and paid off our line of credit.   These results reflect a continuation of the momentum we begin in the first quarter last year, resulting in a 48% revenue gain for the full year versus 2017 with increasing margins from the first quarter through the fourth.”

Mr. Bennett continued, “Despite the strong operating performance and expected future performance, we have established a reserve against nearly all of our $3 million deferred tax asset based on available evidence, primarily historical losses.   That being said, it is critical to point out that the establishment of this reserve has no effect on cash, has no impact on the tax return and does not dilute existing tax credits, most of which do not expire until 2030.”

Finally, Mr. Bennett added: “As we look forward this year and next, we see several growth opportunities.  Traction is our largest end market and it is growing.  In China the traction market is projected to growth rapidly, an estimated 40% in 2019 alone.  The AlSiC market in Japan is estimated to be the size of the market in Europe and we are quoting business that could become meaningful as soon as later this year.  In addition, we expect our participation in the defense and aerospace sectors will continue to grow for several years into the future.”

The Company will be hosting its fourth quarter conference call with investors at 4:30 PM today.  Those interested in participating in the conference should call:

                              Call-in Number:     855-863-0441

                              Conference ID:      5991589


About CPS
CPS Technologies Corporation is a global leader in producing metal-matrix composite components used to improve the reliability and performance of various electrical systems.  CPS products are used in motor controllers for hybrid and electric vehicles, high-speed trains, subway cars and wind turbines.  They are also used as heatspreaders in internet switches, routers and high-performance microprocessors.  CPS also develops and produces metal-matrix composite armor.

Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2018 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the       use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release.


   Quarter Ended  Year Ended
     Dec. 29,      Dec. 30,      Dec. 29,      Dec. 30,  
     2018      2017      2018      2017  
Total Revenues  $6,080,731   $3,796,008   $21,580,904   $14,577,183 
Cost of Sales   4,881,290    3,232,962    18,668,052    12,919,065 
Gross Margin   1,199,441    563,046    2,912,852    1,658,118 
Operating Expenses   991,175    958,802    3,813,415    3,609,328 
Operating income (loss)   208,266    (395,756)   (900,563)   (1,951,210)
Interest income (expense),net   (9,317)   3,411    (34,630)   11,476 
Other Income   —      —      13,645    —   
Income before income taxes   198,949    (392,345)   (921,548)   (1,939,734)
Income tax expense (benefit)   3,059,419    400,968    2,784,419    (222,032)
Net income (loss)   (2,860,470)   (793,313)   (3,705,967)   (1,717,702)
Net income (loss) per diluted share  ($ 0.22)  ($ 0.06)  ($ 0.28)  ($ 0.13)
Shares outstanding, diluted   13,205,936    13,203,436    13,205,936    13,203,436 


BALANCE SHEET (Unaudited)      
    Dec. 29,      Dec. 30,  
     2018      2017  
Current assets:          
   Cash and cash equivalents  $628,804   $1,339,572 
   Accounts receivable-trade, net   3,053,091    2,943,373 
   Inventories, net   3,192,933    2,109,513 
   Prepaid expenses   156,338    101,086 
      Total current assets   7,031,166    6,493,544 
Property and equipment, net   1,273,186    1,490,498 
Deferred taxes   186,747    3,038,666 
Total assets  $8,491,099   $11,022,708 
Liabilities and Equity          
Current liabilities:          
   Accounts payable   1,680,263    946,385 
   Accrued expenses   975,315    655,489 
   Deferred Revenue   —      100,000 
      Total current liabilities   2,655,578    1,701,874 
Stockholders' equity   5,835,521    9,320,834 
Total liabilities and stockholders' equity  $8,491,099   $11,022,708 



The following information was filed by Cps Technologies Corp (CPSH) on Wednesday, March 6, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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