CPS Technologies Corp. Reports Significant Decline in Revenue and Profitability in Q3 2024

CPS Technologies Corp. reported significant financial changes in its 10-Q filing for the period ending September 28, 2024. The company experienced a notable decline in revenue, with total revenues for the third quarter amounting to $4.25 million, representing a 32% decrease from $6.29 million in the same quarter of 2023. For the nine months ended September 28, 2024, total revenues were $15.19 million, down 27% from $20.80 million in the prior year.

The company's profitability was adversely affected, as evidenced by a gross loss of $(523,432) in Q3 2024, contrasting sharply with a gross profit of $1.24 million in Q3 2023. The net loss for the third quarter was $(1.04 million), compared to a net income of $171,081 in the same period last year. For the first nine months of 2024, CPS Technologies reported a net loss of $(2.14 million), a significant decline from a net income of $1.23 million in the first nine months of 2023. Cash flows from operating activities also deteriorated, resulting in a cash outflow of $(2.11 million) for the nine months ended September 28, 2024, compared to an inflow of $1.07 million in the same period of the previous year.

On the balance sheet, total assets decreased to $19.22 million as of September 28, 2024, down from $21.60 million at the end of 2023. Total current assets also fell from $18.14 million to $14.67 million during the same period. Cash and cash equivalents were reported at $4.69 million, a decrease from $8.81 million at the end of 2023. However, total liabilities decreased from $4.28 million to $3.77 million, while total stockholders' equity declined from $17.32 million to $15.45 million.

As of September 28, 2024, accounts receivable totaled $4,017, slightly down from $4,472 at the end of 2023, and inventories decreased marginally from $4,582 to $4,433. The number of shares of common stock outstanding as of October 28, 2024, was reported at 14,525,960.