CPS Technologies Corporation (CPSH) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.25 million, or $ 0.01 a share in the quarter, against a net profit of $0.25 million, or $0.02 a share in the last year period. Revenue during the quarter plunged 46.91 percent to $2.87 million from $5.41 million in the previous year period. Gross margin for the quarter contracted 2053 basis points over the previous year period to 2.69 percent. Operating margin for the quarter stood at negative 24.20 percent as compared to a positive 5.47 percent for the previous year period.
Operating loss for the quarter was $0.70 million, compared with an operating income of $0.30 million in the previous year period.
Grant Bennett, president and chief executive officer, said, "Revenues in the fourth quarter continued to be weak, as expected. We have discussed this development in previous communications as far back as the second quarter last year. This weakness is centered in our major European customers who indicate that they are experiencing general weakness in demand, similar to that experienced in 2012. In addition, we are adversely impacted by the strength of the U.S. dollar which limits our pricing flexibility, adversely affecting both our unit volume and margins. The market conditions are temporary and while we are maintaining a tight rein on most spending, we are continuing aggressive sales and marketing activities, in both old and new sectors, which are critical to returning to a growth path."
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