24 March 2002
24 March 2002
Ceramics Process Systems Corporation announced a net loss of $480 thousand on revenue of $4.5 million for the fiscal year ended December 29, 2001.
This compares with a net loss of $194 thousand on revenue of $5.0 million for the year ended December 30, 2001. Grant Bennett, President, said: ""2001 was a difficult year for CPS and many companies in the electronics sector. At CPS customer demand collapsed in the first quarter, continued to weaken in the second quarter, rebounded in the third quarter, and remained steady in the fourth quarter. The stronger demand in the third and fourth quarters was attributable primarily to demand for new products. In total, 2001 revenues were 12% lower than 2000 revenues.
At year-end 2001, customer-provided forecasts indicate demand in 2002 will increase from Q4 2001 levels. We believe that excess inventory levels at both our customers and at end users have been depleted and demand for CPS products will track market usage in 2002. In addition, several customers have notified us they will introduce new systems into the market in 2002 which use our products and as a result we expect revenue from new products in 2002 will increase.
In 2001 we reduced costs when demand declined and as demand rebounded we incurred some inefficiencies in rehiring and training. Total operating expenses in 2001 were 7% lower than operating expenses in 2000; however the decline in revenues was greater than the decline in expenses resulting in a loss of $480 thousand in 2001 compared to a loss of $194 thousand in 2000.
In the fourth quarter of 2001, we saw an opportunity to rapidly establish a strong position in a targeted market segment and we accelerated the introduction of several new products, incurring some manufacturing inefficiencies which are reflected in the loss in Q4 2001 versus profit in Q3 2001. We strengthened our market position and we continued to reduce our dependence on a limited number of customers. We believe our current cost structure is appropriate for our revenue forecast going forward,"" said Bennett.
CPS develops, manufactures and markets advanced metal-matrix composites for housing and providing thermal management of high-density electronics. The Company's products are primarily used in wireless communications basestations, high-density microprocessor packaging, motor controllers and satellite communications.