CPS Technologies Corporation (CPSH) swung to a net loss for the quarter ended Apr. 01, 2017. The company has made a net loss of $0.60 million, or $ 0.05 a share in the quarter, against a net profit of $0.20 million, or $0.01 a share in the last year period. Revenue during the quarter plunged 45.45 percent to $2.85 million from $5.22 million in the previous year period. Gross margin for the quarter stood at negative 2.83 percent as compared to a positive 21.70 percent for the previous year period. Operating margin for the quarter stood at negative 37.04 percent as compared to a positive 4.28 percent for the previous year period.
Operating loss for the quarter was $1.05 million, compared with an operating income of $0.22 million in the previous year period.
Grant Bennett, President and Chief executive officer, said: “First quarter 2017 revenues remained at the level experienced in the fourth quarter of 2016 and are reflective of continued weakness in demand for traction baseplates from our major European customers. As mentioned previously, we believe this weakness to be temporary. Towards the end of the first quarter we saw a pickup in orders for baseplates that will be reflected somewhat in our second quarter and primarily in our third and fourth quarter revenues. In the first quarter we had positive meetings in Japan and China with potential major baseplate customers who are now moving forward with qualification of CPS baseplates. We expect our baseplate revenues from Asia will be similar to our revenues from Europe over time.”
Working capital drops significantly
CPS Technologies Corporation has witnessed a decline in the working capital over the last year. It stood at $5.27 million as at Apr. 01, 2017, down 31.37 percent or $2.41 million from $7.68 million on Apr. 02, 2016. Current ratio was at 4.69 as on Apr. 01, 2017, down from 4.96 on Apr. 02, 2016. Cash conversion cycle (CCC) has decreased to 76 days for the quarter from 86 days for the last year period. Days sales outstanding went up to 85 days for the quarter compared with 59 days for the same period last year.
Days inventory outstanding has decreased to 30 days for the quarter compared with 63 days for the previous year period. At the same time, days payable outstanding went up to 39 days for the quarter from 36 for the same period last year.
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