Q2 2026 CPS Technologies Corp Earnings Call Transcript
Key Points
- Record first-quarter revenues of $6.7 million, a 37% increase year-over-year.
- Operating profit of $547,000 in Q1 2022 exceeded the entire operating profit for fiscal year 2021.
- Gross margin improved significantly to 30% of sales, up from 19% in the prior year quarter.
- Strong book-to-bill ratio averaging 1.4 to 1.6 over the trailing twelve months, indicating robust demand.
- Won two new SBIR contracts with the Department of Defense, including a Navy award for thermal energy storage devices.
- Cash position decreased by $350,000 during the quarter due to increased inventory and reduced accrued expenses.
- SG&A expenses rose to $1.4 million from $908,000, driven by higher compensation and commission costs.
- Inventory levels increased to $4.7 million from $3.9 million, tying up cash and potentially indicating supply chain challenges.
- The transportation segment, including EV and rail, continues to lag due to COVID-19 impacts, with demand recovery not expected until 2023.
- Management acknowledges that one quarter does not make a year, and sustaining improved margins and profitability remains uncertain.
Good day.
(Operator Instructions)
I would now like to hand the call over to our speaker. Mr. Griffith, the floor is yours.
Thank you, operator. Good afternoon, everyone, and thank you for joining us. I'm joined by Michael McCormack, our President and Chief Executive Officer, who will offer his comments on our first quarter results.
Before we begin the business portion of the call, I would like to point out that statements in this conference call that are not strictly historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be considered as subject to the many uncertainties that exist in CPS's operations and environment. These uncertainties include the impact of COVID-19, the Russian invasion of Ukraine, economic conditions, market demands and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statement.
Now I will turn the
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