 NORTON, Mass., July 29, 2020 GLOBE NEWSWIRE -- CPS Technologies Corporation NASDAQ: CPSH today announced revenues of 5.8 million and an operating profit of 331 thousand for the quarter ended June 27, 2020. This compares with revenues of 6.4 million and an operating profit of 258 thousand for the quarter ended June 29, 2019. For the six months ending June 27, 2020, revenues are 12.3 million with an operating profit of 952 thousand. This compares with revenue of 11.6 million and an operating loss of 486 thousand for the six months ended June 29, 2019.Grant Bennett, President and CEO, said: Revenues, while strong, were down compared to the first quarter of 2020 due primarily to impacts of the coronavirus pandemic on the purchasing decisions of a major customer. This customer increased inventory in Q1 to guard against possible supply chain interruptions; they then reduced purchases in Q2 to bring inventory down to more appropriate levels.Gross margins and operating profits were considerably higher in the three-month and six-month periods just ended than they were in the corresponding periods a year ago. This significant positive swing in performance reflects the pricing, product mix and operational improvements discussed in previous quarters. CPS has been open and operating throughout the pandemic. To date most of our customers remain open and operational. We saw in Q2 and expect to see in future quarters increased volatility in short-term demand as individual customers address pandemic-related issues including managing inventories up and down, shortages of other components, short-term shutdowns, longer approval cycles given many employees are working from home, etc. CPS continues to follow CDC and OSHA guidance in our workplace. Employees temperatures are taken at the beginning of each shift, shifts have been staggered to reduce employee overlap, workstations have been rearranged to ensure social distancing, all employees are using facemasks, etc.Any forward looking comments must begin with the clear caveat that the pandemic is injecting considerable uncertainty at customers and suppliers so conditions can and may change quickly. Nonetheless, we currently anticipate continued strong performance for the remainder of 2020, albeit not as strong as we were anticipating pre-pandemic. Our product sales pipeline is strong. Our sales team continues to generate new business both from existing and new customers. We note that over the past six months we have seen some customer programs using SiC die accelerating and we are particularly excited about the near-term revenue growth potential in this area.The Company will be hosting its second quarter conference call with investors at 4:45pm on Wednesday, July 29. Those interested in participating in the conference call should dial:Call in Number: 1-833-953-1394Conference ID: 6958894About CPS CPS Technologies Corporation is a global leader in producing metal-matrix composite components used to improve the reliability and performance of various electrical systems. CPS products are used in motor controllers for hybrid and electric vehicles, high-speed trains, subway cars and wind turbines. They are also used as heatspreaders in internet switches, routers and high-performance microprocessors. CPS also develops and produces metal-matrix composite armor.Safe Harbor Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2020 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as will, intends, believes, expects, plans, anticipates and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the companys expectation. Additional information concerning risk factors is contained from time to time in the companys SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release. CPS TECHNOLOGIES CORPORATIONStatements of Operations Unaudited Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, 2020 2019 2020 2019 --- --- --- --- Revenues: Product sales 5,758,015 6,366,951 12,269,586 11,636,489 --- --- --- --- Total revenues 5,758,015 6,366,951 12,269,586 11,636,489 Cost of product sales 4,574,686 5,191,964 9,536,047 10,302,078 --- --- --- --- Gross Margin 1,183,329 1,174,987 2,733,539 1,334,411 Selling, general, and administrative expense 852,773 917,079 1,781,362 1,820,765 --- --- --- --- Income loss from operations 330,556 257,908 952,176 486,354 Interest income expense, net 31,325 7,310 51,291 7,261 --- --- --- --- Net income loss before income tax 299,231 250,598 900,885 493,615 Income tax provision benefit -- -- -- -- --- --- --- --- Net income loss299,231 250,598 900,885 493,615 Net income loss per basic common share0.02 0.02 0.07 0.04 --- --- --- --- CPS TECHNOLOGIES CORPORATION Balance Sheets Unaudited June 27, December 28, 2020 2019 ASSETS--- --- Current assets: Cash and cash equivalents 116,612 133,965 Accounts receivable-trade, net 4,975,842 4,086,945 Inventories, net 3,872,868 3,099,824 Prepaid expenses and other current assets 173,237 147,786 --- --- Total current assets 9,138,559 7,468,520 --- --- Property and equipment: Production equipment 10,008,886 9,649,169 Furniture and office equipment 508,423 508,423 Leasehold improvements 934,195 934,195 --- --- Total cost 11,451,504 11,091,787 Accumulated depreciation and amortization 10,357,620 10,110,663 Construction in progress 320,209 255,754 --- --- Net property and equipment 1,414,093 1,236,878 --- --- Right-of-use lease asset 100,000 171,000 Deferred taxes, net 147,873 147,873 --- --- Total assets 10,800,525 9,024,271 continued CPS TECHNOLOGIES CORPORATION Balance Sheets Unaudited concludedLIABILITIES AND STOCKHOLDERSJune 27, December 28, EQUITY 2020 2019 --- --- Current liabilities: Borrowings against line of credit 1,026,765 1,249,588 Note payable, current portion 37,311 -- Accounts payable 1,770,160 1,436,417 Accrued expenses 908,994 815,166 Deferred revenue 482,997 21,110 Lease liability, current portion 100,000 148,000 --- --- Total current liabilities 4,326,227 3,670,281 --- --- Note payable less current portion 159,360 -- Long term lease liability -- 23,000 --- --- Total liabilities 4,485,587 3,693,281 Commitments note 4 Stockholders equity: Common stock, 0.01 par value, authorized 20,000,000 shares; issued 13,427,492; outstanding 13,207,436; at June 27, 2020 and December 28, 2019; 134,275 134,275 Additional paid-in capital 36,177,264 36,094,201 Accumulated deficit 29,479,548 30,380,433 Less cost of 220,056 common shares repurchased at June 27, 2020 and December 28, 2019 517,053 517,053 --- --- Total stockholders equity 6,314,938 5,330,990 --- --- Total liabilities and stockholders equity 10,800,525 9,024,271 CPS Technologies Corporation Chuck Griffith, Chief Financial Officer 111 South Worcester Street Norton, MA 02766 Telephone: 508 222-0614 Web Site: 