Page 1

EX - 99.12 ex 298887.htm EXHIBIT 99.1 CPS CPS Technologies CPS Technologies Corporation Chuck Griffith , Chief Financial Officer 111 South Worcester Street Norton , MA 02766 Telephone : ( 508 ) 222-0614 Web Site : www.alsic.com Exhibit 99.1 CPS TECHNOLOGIES CORPORATION ANNOUNCES THIRD QUARTER 2021 RESULTS Norton , Massachusetts , October 27 , 2021. CPS Technologies Corporation ( NASDAQ : CPSH ) today announced revenues of $ 5.5 million and an operating loss of $ 88 thousand for the quarter ended September 25 , 2021. This compares with revenues of $ 4.5 million and an operating profit of $ 253 thousand for the quarter ended September 26 , 2020 . Michael McCormack , President and CEO , said : " Revenues in the third quarter 2021 showed significant improvement over revenues in the third quarter of 2020 , reflecting the lessening impact of the Covid - 19 pandemic on our business . Revenues in the third quarter 2021 were 24 % higher than the third quarter 2020 , and our 2021 bookings are 158 % of shipments , reflecting our current and expected future growth . Unfortunately , we are showing a loss for the third quarter , but it is not without explanation . As a result of the mandate from the Board of Directors to grow both the top and bottom line , several steps were taken in the quarter to further streamline the business . These steps resulted in $ 327 thousand of non - recurring restructuring costs incurred during the quarter . As a reminder , GAAP requires that these types of expenses be recognized when the liability is incurred . Although some of these charges will not be paid immediately , the entire expense is being charged in this quarter . Without these expenses CPS would have been solidly profitable in the third quarter . In addition , our new sales and technical hires made in 2021 are now showing positive results as evidenced by our book to bill ratio mentioned above . I would also like to point out that although our net after tax profit for the quarter is $ 2.8 million , it does not relate to Q3 activities or results . This is the result of the reversal of our deferred tax valuation allowance . In 2018 , due to recurring losses , it was judged " more likely than not " that CPS would be unable to use its deferred tax asset . As such , a reserve was set up against that asset and an additional loss of $ 3.0 million was incurred . After further evaluation , based on the Company's profitability and the expected growth of CPS over the next several years , we have now judged that it is " more likely than not ” that CPS will be able to use the deferred tax asset and the remaining reserve of $ 2.8 million has been reversed . As part of the Defense Industrial Base , CPS has been open and operating throughout the Covid - 19 pandemic . To date all of our major customers remain open and operational . Although some have been negatively affected by the pandemic , others continue to grow . These observations do not mean that CPS will be unaffected by the pandemic going forward , but we continue to see demand increasing rather than declining . We remain very optimistic about our 2021 performance , and the future long - term growth opportunities across all lines of business into Fiscal Year 2022 . Beyond Fiscal Year 2022 , we are cautiously optimistic that our collective growth initiatives , specifically in longer - term new product development investments , will expand the current product line pipelines both in terms of revenues and earnings . In addition , we will make additional measured investments to increase the capacity of our current high volume manufacturing capacity . " The Company will be hosting its first quarter conference call with investors at 4:45 pm on Wednesday , October 27. Those interested in participating in the conference call should dial : Call in Number : 1-833-953-1394 Conference ID : 8251606 We encourage those who wish to participate , to call in 10 minutes before the scheduled start time to ensure the operator can connect you prior to the start of the call . About CPS CPS is a technology and manufacturing leader in producing high - performance energy management components that facilitate the electrification of the economy . Our products and intellectual property include critical pieces of the technology puzzle for electric trains and subway cars , wind turbines , hybrid vehicles , electric vehicles , the smart electric grid , 5G infrastructure and others . CPS hermetic packages can be found in many Aerospace and Satellite applications . CPS armor products provide exceptional ballistic protection and environmental durability at very light weight . CPS is committed to innovation and to supporting our customers in building solutions to this planet's problems . Safe Harbor Statements made in this document that are not historical facts or which apply prospectively , including those relating to 2021 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