Financial Data and Key Metrics Changes - CPS Technologies Corporation reported record revenue of $8.8 million for Q3 2025, more than doubling from $4.2 million in Q3 2024, representing a 9% growth compared to Q2 2025 [22][24] - Gross profit for the quarter was $1.5 million, approximately 17.1% of sales, compared to a gross loss of $0.5 million last year [24] - The company posted an operating profit of about $276,000 in Q3 2025, compared to an operating loss of approximately $1.5 million in Q3 2024 [25] - Net income was just over $200,000, or $0.01 per share, versus a net loss of about $1 million, or $0.07 per share, in Q3 2024 [26] Business Line Data and Key Metrics Changes - The company announced a new contract valued at approximately $15.5 million for power module components, reflecting a 16.5% year-over-year increase in value [46][48] - CPS Technologies is executing three Phase II SBIR programs simultaneously, indicating growth in federally funded research contracts [16][38] Market Data and Key Metrics Changes - Trade accounts receivable totaled $5.4 million as of September 27, 2025, compared to $4.9 million at the beginning of the fiscal year [27] - Inventories rose to $5.4 million at the end of Q3 2025, reflecting increased production and customer demand compared to $4.3 million at the start of the fiscal year [27] Company Strategy and Development Direction - The company plans to move to a larger manufacturing facility to accommodate increased production levels and meet rising demand [27][32] - CPS Technologies aims to improve operational efficiencies and gross margins while expanding its product development capabilities [25][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong demand and a robust pipeline of contracts, despite potential disruptions from the government shutdown [96][118] - The outlook for fiscal 2026 is expected to remain strong, with continued focus on new product development and market expansion [45][116] Other Important Information - The company completed a successful secondary public offering that raised over $9.5 million in net proceeds, aimed at supporting the planned move to a new manufacturing facility [16][27] - CPS Technologies has received increasing interest from various federal agencies for its technology, indicating a growing market for its products [83][85] Q&A Session Summary Question: Insights on potential players in the power module space - Management noted growth across various customer segments, with both large and medium customers increasing orders, and new customers being added to the portfolio [135][140] Question: Plans for the move to a new facility - The company is developing detailed plans for a staged move, including building up inventory to mitigate disruptions during the transition [141][145] Question: Revenue recognition for the new contract - Revenue from the new contract is expected to be stable throughout the contract term, with inventory built up to ensure no interruptions for the customer during the move [162][165] Question: Impact of the federal government shutdown - The shutdown has had minimal disruption on funded contracts, with ongoing work continuing as planned, although there may be delays in new proposals [96][168] Question: Opportunities for Almax material - Management highlighted the potential for Almax material in various applications, with ongoing discussions to validate material performance and adoption processes [184][203]