CPS signs supply deal

CPS Technologies has entered into a multi-year supply agreement with a major tier one automotive supplier for the supply of AlSiC pin fin coolers. Under the Agreement, CPS will supply the tier one automotive supplier with certain AlSiC pin fin coolers used in motor control modules for hybrid and electric automobiles through the end of 2015. The agreement stipulates prices, however unit volumes are not guaranteed. Based on stipulated prices and non-binding customer forecasts of unit volumes, sales from CPS to the tier one automotive supplier of components covered by the Agreement over the four year period are currently forecast to be approximately $45-50 million. "This Agreement is another validation of the significant advantages of our AlSiC pin fin coolers and baseplates in ensuring reliability in motor control applications for hybrid and electric passenger vehicles," said Grant Bennett, CEO. CPS has been shipping modest preproduction quantities of the components covered by this Agreement for several quarters, and is doing so today. Development activities for the components have been underway for several years. Production quantities under the Agreement are forecast to ramp in the 3rd and 4th quarter of this year and forecasts show demand increasing in 2013.