CPS Technologies(US:CPSH)2026-03-03 22:27Financial Performance - Total revenue for 2025 was $32.6 million, a 54% increase from $21.1 million in 2024, driven by core business growth and the addition of a third production shift [127]. - Gross profit in 2025 was $5.3 million, representing 16% of sales, compared to a gross loss of $(0.1) million, or (1)% of sales, in 2024 [128]. - The Company recorded operating income of $0.4 million in 2025, a significant improvement from an operating loss of $4.4 million in 2024 [130]. Expenses - Selling, general and administrative (SG&A) expenses increased to $4.8 million in 2025 from $4.3 million in 2024, primarily due to higher variable compensation and sales commission expenses [129]. - Recent inflationary trends have impacted profitability, leading to wage increases and improvements in the employee benefit package, while some price increases from suppliers have been absorbed temporarily [144]. Assets and Liabilities - Trade accounts receivable at December 27, 2025, totaled $5.2 million, with Days Sales Outstanding (DSO) decreasing to 61 days from 75 days at the end of 2024 [136]. - Inventories increased to $5.6 million at December 27, 2025, from $4.3 million at December 28, 2024, primarily due to increased work in process [137]. - The Company had cash and cash equivalents of $4.5 million at December 27, 2025, up from $3.3 million at December 28, 2024, due to an equity raise [135]. - The Company entered into a line of credit (LOC) of $3.0 million with Rockland Trust Company, secured by accounts receivable and other assets, with a borrowing base allowing for an additional $3.0 million as of December 27, 2025 [140]. - As of December 27, 2025, the Company had $460 thousand in construction in progress and no material outstanding commitments for production equipment purchases [141]. Customer Concentration - The top three customers accounted for 64% of revenue in 2025, up from 58% in 2024, indicating a concentration in customer base [118]. Gold Price Impact - The price of gold contributed $1.9 million to total revenue in 2025, compared to $0.5 million in 2024, impacting profit margins [127]. Lease Agreements - The Norton, MA facility lease was renewed in August 2025, with annual rental payments of $165 thousand, expiring in February 2028 [142]. Future Outlook - The Company expects to continue funding its operations in 2026 from existing cash balances and profits [138].