CPS Technologies: A Turnaround Story in the Making!
Wednesday, Mar 12, 2025 5:51 pm ET
2min read Ladies and gentlemen, buckle up! We've got a stock that's on the cusp of a major turnaround, and you need to pay attention. cps technologies corporation (NASDAQ:CPSH) just announced its fourth-quarter 2024 financial results, and the numbers are a mixed bag, but the story is one of resilience and innovation. Let's dive in!
The Numbers: A Tale of Two Quarters
First, the bad news: Revenue for the fourth quarter of 2024 was $5.9 million, down from $6.7 million in the prior-year period. That's a hit, no doubt, but it's not all doom and gloom. The decrease reflects the completion of the HybridTech Armor® contract with Kinetic Protection for the U.S. Navy, a significant revenue driver. But here's where it gets interesting: revenue rose 40% sequentially from the third quarter, thanks to an added third shift and increased production capacity. That's right, folks—CPS is back in the game!
The Strategy: Diversification and Innovation
CPS isn't just sitting back and hoping for the best. They're actively pursuing new opportunities and expanding their product portfolio. They've secured three new Phase I SBIR contracts with the U.S. Army, each valued at $250,000 over six months. Two of these contracts address advanced challenges related to artillery, and the third aims to enhance fuel efficiency and extend the operational range of military vehicles using the Company’s Fiber Reinforced Aluminum (FRA). And if that wasn't enough, they've also announced their first commercial sale of radiation shielding. This is a company on the move!
The Outlook: Bright and Shiny
Brian Mackey, President and CEO of cps, had this to say: "As we enter 2025, we are achieving critical milestones as we execute our plan to leverage our unique materials capabilities and bring new products to market." He's talking about growth, growth, growth! With an ongoing $13.3 million power module contract and a higher backlog, CPS is positioning itself for stronger results going forward. The future looks bright, folks—really bright!
The Challenges: Not All Sunshine and Rainbows
Now, let's talk about the elephant in the room. The company reported a gross loss of $0.3 million, or (4.6) percent of revenue, and an operating loss of $1.3 million. That's a tough pill to swallow, but it's important to remember that these losses are largely due to temporary factors like training and startup expenses related to the initiation of a third shift of operations. This is a company investing in its future, and that's something you want to see!
The Bottom Line: Buy, Buy, Buy!
Listen, I'm not going to sugarcoat it. cps technologies is a stock with potential, but it's not without its risks. The company is in the midst of a significant transition, and there are no guarantees. But if you're looking for a company with a strong management team, a diversified product portfolio, and a clear path to profitability, then CPS Technologies is a stock you need to own. So, do yourself a favor and get in on the ground floor. This is a turnaround story in the making, and you don't want to miss out!
BOO-YAH! CPS Technologies is a winner, and you need to own this stock!
