Latest news with #CSPI
Yahoo
20-05-2025
- Business
- Yahoo
CSP Posts Q2 Loss as HPP Sales Fall & AZT Pipeline Expands
Shares of CSP Inc. CSPI have declined 6% since the company reported its earnings for the second quarter of fiscal 2025. This compares to the S&P 500 index's 1.4% gain over the same time frame. Over the past month, the stock has risen 2.8% compared with the S&P 500's 15.5% increase. CSP reported revenues of $13.1 million for the quarter ended March 31, 2025, down 4.1% from $13.7 million in the same period a year earlier. The decline was driven by a 74% plunge in sales from the High Performance Products ('HPP') segment, which offset a 12% increase in the Technology Solutions ('TS') segment's revenues. Net loss for the quarter was $108,000, or 1 cent per diluted share, against a net income of $1.6 million, or 16 cents per diluted share, in the prior year quarter, driven largely by a non-recurring high-margin sale in the HPP segment last year. CSP Inc. price-consensus-eps-surprise-chart | CSP Inc. Quote Gross Margin and Segment Performance:Gross profit decreased to $4.2 million from $6.5 million in the prior year. The gross margin narrowed significantly to 32% from 47%. The HPP segment's gross margin fell to 57% from 86%, reflecting the absence of a large ARIA Zero Trust Gateway sale recorded in the prior-year period. The TS segment's gross margin also declined to 31% from 39%, impacted by reduced third-party maintenance revenues and higher product component costs. Operating Income:CSPI posted an operating loss of $994,000 for the second quarter of fiscal 2025 compared to operating income of $1.2 million in the same quarter last year. While SG&A expenses remained relatively flat at $4.4 million, margins were pressured by the sales mix and lower high-margin deals in the HPP segment. Balance Sheet and Capital Allocation:As of March 31, 2025, CSP held $29.5 million in cash and cash equivalents. During the quarter, the company repurchased approximately $384,000 worth of common stock and declared a quarterly dividend of 3 cents per share, reaffirming its ongoing commitment to shareholder returns. CEO Victor Dellovo described the quarter's revenue performance as aligned with internal expectations, noting a modest increase in product sales and a service revenue dip due to the absence of a repeat multi-million-dollar contract from the prior year. Importantly, Dellovo highlighted continued momentum in the ARIA AZT PROTECT line, citing the addition of six new customers and fivefold pipeline growth in recent quarters. A notable agreement was signed in South Africa with a major cell tower operator, which could potentially generate seven-figure revenues over 18 months. CFO Gary Levine attributed the year-over-year gross margin compression to higher component costs and the prior-year presence of a high-margin sale. He also cited a $683,000 tax benefit, largely from vested stock awards and tax credits, which softened the net loss impact. The sharp revenue drop in the HPP segment stemmed primarily from the lack of a repeat of a large ARIA AZT PROTECT order that had significantly boosted last year's results. Gross margins were further affected by elevated component costs. On the TS side, reduced third-party maintenance revenues weighed on margins, although managed and internal services showed modest growth. Foreign exchange losses of $132,000 and a $64,000 drop in interest income also contributed to the net loss, despite stable operating expenses and higher stock-based compensation being largely offset by other cost efficiencies. Management indicated confidence in its AZT PROTECT pipeline and emphasized continued investments in marketing and reseller partnerships. The deal with Rexel USA and a webinar co-hosted with Rockwell Automation generated promising leads expected to materialize in future quarters. Moreover, the company noted an expanding backlog of cloud-based projects, with more than 20 ongoing initiatives compared to 14 at the end of 2024. The company announced a new reseller partnership with Rexel USA, a top Rockwell Automation distributor, which has already initiated deployments of AZT PROTECT at an industrial client's facility. Additionally, a significant new partnership was formed with Oryx Industries in South Africa. The deal marks CSP's first move into cell tower cybersecurity protection and positions the company to potentially expand into similar markets. The targeted customer is one of the largest cell tower providers in South Africa, and the agreement could result in AZT PROTECT being deployed across the customer's entire infrastructure over 18 months. Overall, CSP faced a challenging second quarter but laid the groundwork for potential growth in the second half of fiscal 2025, largely hinging on the success of its AZT PROTECT offerings and managed services expansion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CSP Inc. (CSPI): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time Magazine
08-05-2025
- Health
- Time Magazine
Peter Lurie
The U.S. Food and Drug Administration (FDA) banned Red Dye #3 in January 2025—an act that was a long time coming for the federal government, the American public, and Dr. Peter Lurie. Back in 1984, during a gap year from medical school, Lurie helped a public interest group called Public Citizen advocate against harmful synthetic chemicals in food, including Red Dye #3. Research has linked Red Dye #3 to cancer and ADHD-like symptoms in children. Since then, whether as a physician, academic researcher, or federal official, his work has often focused on ridding the food supply of toxic chemicals. As the president and executive director of Center for Science in the Public Interest (CSPI), he directed his organization in 2022 to petition the FDA to ban Red Dye #3. But from previously working at the FDA, Lurie knew that their best shot was to pressure the agency—through the states. In California, CSPI helped develop legislation that led to a state-level ban and the removal of certain food dyes from the school meal program in 2024. After four decades, Lurie was 'thrilled' when the FDA finally passed a federal ban. Just weeks later, his team successfully helped pressure the agency to define 'healthy' food labels, so that they better align with nutrition science. 'Most people believe the government is protecting them, but it often isn't,' Lurie says. 'That's where we step in.'
Epoch Times
25-04-2025
- Health
- Epoch Times
What to Know About the Two Banned Food Dyes
It's unlikely that you'd ingest either of the two synthetic food dyes—Citrus Red No. 2 and Orange B—that the U.S. Food and Drug Administration announced on April 22 it will ban in the coming months. You'd only be at risk of the two dyes if you were to eat the peel of Florida oranges, which are often injected with Citrus Red No. 2 to make them more visually appealing to consumers, or if Orange B were currently produced—which it hasn't been for decades. 'Because it was no longer produced, there was no need to actively ban it,' Bryan Quoc Le, a food scientist and food industry consultant, told The Epoch Times in an email. 'The banning of these two dyes is fairly inconsequential.' The FDA announced it would initiate the process of revoking authorization of Citrus Red No. 2 and Orange B as part of its plan to eliminate all remaining synthetic dyes from the food supply by the end of 2026. The agency intends to work with the food industry to get all food dyes out of circulation. Orange B The FDA approved Orange B in 1966, with a limitation that it not exceed 150 parts per million in finished food. It was a colorant limited to hot dog and sausage casings and wasn't permitted in cosmetics or medications. Studies showed Orange B, an azo dye, was damaging to the spleens, livers, and kidneys in rats. The Center for Science in the Public Interest (CSPI) asked the FDA to officially ban it in its 2010 food dye Related Stories 4/22/2025 4/23/2025 'In 1978 the FDA proposed banning Orange B (Fed Reg. October 3, 1978), but, because companies stopped using it, the FDA never bothered to finalize the ban; it should do so now,' wrote authors Sarah Kobylewski and Michael F. Jacobson. Rupa Health notes that exposure to Orange B could include mild effects like skin reactions, hyperactivity, irritability, headaches, difficulty breathing, and gastrointestinal discomfort, such as nausea, vomiting, and diarrhea. Citrus Red No. 2 Citrus Red No. 2 is also an azo dye, only approved at a level of no more than two parts per million for adding color to the skins of unprocessed Florida oranges. About 1,500 pounds—enough dye to color two billion oranges—are certified annually by the FDA. 'Citrus Red No. 2 is classified as 'possibly carcinogenic to humans,' which is why it is only allowed for orange peels that will not be eaten, and not for oranges that will be processed, which would release the dye into the edible portions, such as juice. Animal studies found that it can cause bladder tumors,' Quoc Le said. A Other studies have raised concerns about cancer, according to the CSPI report. Because the federal Food, Drug, and Cosmetic Act that governs toxicology levels for human health forbids any link to cancer in human or animal studies, the CSPI has long argued that Citrus Red No. 2 shouldn't be used in food. Some recipes call for cooking with grated orange peels, and the CSPI report noted experts' concern about eating peels this way. The CSPI report quoted an internal FDA memo written by FDA veterinarian Kent J. Davis saying, 'Citrus Red 2 then becomes an intolerable human health hazard if only from the amounts consumed from fingers after peeling oranges treated with this dye. (Some additional dye may be ingested with peel or orange.)' Plans for Bans As early as the 1930s, azo-derived dyes were All food colorants—including natural ones, like those derived from beets, carrots, and turmeric—must be approved by the FDA. The nine synthetic dyes—Green No. 3, Red No. 40, Yellow No. 5, Yellow No. 6, Blue No. 1, Blue No. 2, Citrus Red 2, Orange B, and Red No. 3—currently used must also be certified when a new batch is made, a process that ensures accurate measurements. The FDA banned Red No. 3 in early 2025 with a grace period that expires Jan. 15, 2027, for food and Jan. 18, 2028, for medication. As part of the April 22 announcement, the FDA is asking companies to voluntarily remove Red No. 3 prior to the deadlines. Future plans will include a timeline for phasing out synthetic dyes, the FDA said. It also But there are questions about how exactly RFK Jr.'s ban on food dyes will play out. Susan Mayne, former head of FDA's Center for Food Safety and Applied Nutrition during the Obama, Trump, and first two years of the Biden administration, says the ban is not really a ban. It cannot be enforced because it did not follow standard procedure. She said this week's FDA announcement amounts to a call for voluntary action on the part of food makers. 'People were left very unclear in terms of what they are going to be doing,' she said. 'At the same time, there are state actions that are moving to ban products from coming into the state food supply or into school lunch programs.' Mayne said it is unclear how this federal approach will relate to the policies already being enacted at the state level. Why Dye? Florida resorted to dying their naturally pale oranges in the 1930s. By the 1950s, Florida opted to sell a large part of their harvested oranges to food manufacturers for use in concentrate—and those oranges cannot be tainted with dye. That's why the FDA regulation on Citrus Red No. 2 is specific about its use for unprocessed oranges. As a percentage of the total pounds of synthetic food dyes that the FDA certifies in batch tests every year, neither Orange B nor Citrus Red No. 2 register as a fraction of a percent. Quoc Le said banning them is a sensible way to phase out all synthetic dyes. 'With few uses for these dyes, it's much easier to remove them from the food system, as only a handful of applications exist and substitutions can be done quickly. These dyes are fairly low-hanging fruit.'
Yahoo
23-04-2025
- Health
- Yahoo
The FDA Wants Food Companies to Start Phasing Out All Artificial Dyes
Several synthetic food dyes have been targeted for removal from the food supply. Two rarely used dyes—Citrus Red No. 2 and Orange B—will no longer be allowed to be used. Red No. 3, which has been flagged as a potential carcinogen, will be phased out sooner than previously agreed. Six other food dyes have been highlighted for a voluntary phase-out—but manufacturer lobbying groups are pushing back. Some synthetic food dyes have been linked in studies to hyperactivity in people with ADHD, and cancer and tumor growth in lab rats. Naturally derived dyes like vegetable juices and flower extracts are being suggested for potential use in lieu of artificial food Food and Drug Administration (FDA) announced an attempt to phase out artificial dyes from the food supply. The FDA will revoke authorization for two rarely used food colorings, ask food manufacturers to phase out six other popular synthetic dyes, and move up the timeline for removing FD&C Red No. 3. But the announcement may do little to get artificial dyes out of foods, as most of the synthetic food dyes used today would only be subject to a voluntary removal. Related: Food Additives to Watch Out For—and Where You'll Find Them Artificial food dyes are petroleum-based products that add or enhance color in ultra-processed foods. They're basically the reason why candy is, well, candy-colored, in bright rainbow shades. But synthetic food dyes aren't just relegated to sweets or obviously dyed foods. They can be used to make subtle color shifts in everything from beef jerky to barbecue sauces to salad dressings to give them a more palatable hue. Artificial food dyes have been a subject of concern. Several studies have linked artificial food dyes to issues like hyperactivity in people with ADHD, and some animal studies found potential links to cancer and some synthetic dyes, according to the Center for Science in the Public Interest (CSPI). Red No. 3 was banned from cosmetics in 1990 as it was shown to cause cancer in lab rats—but that was decades before the phase-out from foods began earlier this year. Several different tactics are being used in this announcement, and some have more teeth than others. The two food colorings that will have their authorization revoked are Citrus Red No. 2 and Orange B—and revoking authorization ensures these dyes are off the market. However, Citrus Red No. 2 is currently only used for dyeing the skins of oranges, and it is used in such small amounts that the health risk is minimal. Orange B was once used to color hot dogs and sausages, but it hasn't been used in decades, after the FDA proposed (but never finalized) a ban in 1978, according to CSPI. "The only real regulatory moves here are to move to ban two rarely used dyes, Citrus Red 2 and Orange B, 'within the coming months,'" says Peter G. Lurie, president of the CSPI, in a statement. There are six dyes the FDA would like to phase out with a voluntary "understanding" with food manufacturers: FD&C Green No. 3 FD&C Red No. 40 FD&C Yellow No. 5 FD&C Yellow No. 6 FD&C Blue No. 1 FD&C Blue No. 2 But because it's an "understanding," food manufacturers can ignore it—and some manufacturers have already come out with statements defending the safety of these food dyes. This suggests that some food companies may ignore the FDA's recommendations. "The ingredients used in America's food supply have been rigorously studied following an objective science and risk-based evaluation process and have been demonstrated to be safe," says Melissa Hockstad, president and CEO of the Consumer Brands Association, a lobbying organization that represents U.S. packaged food manufacturers, in a statement. FD&C Red No. 3 was scheduled to be removed from foods and oral drugs by 2028, but the FDA announced that they plan to shorten the deadline for companies to remove the dye from their foods—with no specific timeline announced. Related: 8 Red Flags to Look Out for on Food Labels, According to Nutrition Experts The FDA suggests replacing artificial food dyes with natural options—which could include extracts and juices from vegetables, fruits, flowers, and minerals. The FDA plans to fast-track research into alternative food dyes such as calcium phosphate, Galdieria extract blue, gardenia blue, and butterfly pea flower extract. In general, new products to the market may be the first to see these changes, as food companies may add the natural dyes to them before they start changing older food formulations. But because food manufacturers aren't legally required to remove the commonly used artificial food colorants from their foods, the government may need to revoke authorization down the line to actually get them out of the food supply. In general, highly processed foods, such as snack foods, candy, baked goods, and soft drinks, tend to feature high quantities of artificial dyes. (Those bright reds and neon greens in everything from Flamin' Hot Cheetos to M&Ms come from synthetic food dyes.) To get a sense of what foods may have high levels of these food dyes, you can use the Environmental Working Group's Food Scores Tool, where you can search by product or ingredient to look for specific food dyes in the foods you eat. Products that contain synthetic dyes need to disclose them on their labels, so you can also review the foods in your pantry and fridge to see if they contain the six food dyes that the government is hoping manufacturers will remove from foods. Read the original article on Real Simple
Newsweek
23-04-2025
- Health
- Newsweek
Food Dye Ban: What Health Risks Do the 8 Additives Being Phased Out Have?
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Donald Trump's administration has announced a plan to phase out eight synthetic food dyes from the U.S. food supply by the end of 2026. The Food and Drug Administration's decision to remove the petroleum-based artificial color additives follows mounting scientific evidence and advocacy from health organizations such as the Center for Science in the Public Interest (CSPI), which has long warned of the risks associated with synthetic dyes. Health and Human Services Secretary Robert F. Kennedy Jr., who has repeatedly criticized food additives, said at a news conference announcing the policy change on Tuesday that if consumers "want to eat petroleum, they ought to add it themselves at home." Why It Matters The FDA's policy change reflects growing concern over the potential health consequences of color additives, particularly for children and Kennedy Jr. repeatedly calling for attention to the issue of American health. Synthetic dyes offer no nutritional value and are often added for purely aesthetic reasons, according to CSPI. Several of the targeted dyes have already been banned in California, as they have been linked to hyperactivity, allergic reactions and cancer risks in animal studies. While the FDA has historically maintained that these dyes are safe in regulated quantities, critics argue that newer research justifies their removal. Which Food Dyes Are Being Phased Out? The FDA has moved to eliminate the following eight dyes from the U.S. food market: Red No. 40 (Allura Red AC) Yellow No. 5 (Tartrazine) Yellow No. 6 (Sunset Yellow FCF) Blue No. 1 (Brilliant Blue FCF) Blue No. 2 (Indigo Carmine) Green No. 3 (Fast Green FCF) Citrus Red No. 2 Orange B These dyes are commonly used in products such as candies, cereals, beverages and snacks - many of which are marketed to children. Health and Human Services Secretary Robert F. Kennedy Jr. speaks during a news conference on the FDA's intent to phase out the use of petroleum-based synthetic dyes in the nation's food supply at the Hubert... Health and Human Services Secretary Robert F. Kennedy Jr. speaks during a news conference on the FDA's intent to phase out the use of petroleum-based synthetic dyes in the nation's food supply at the Hubert Humphrey Building Auditorium in Washington, Tuesday, April 22, 2025. More AP What Health Risks Do the Food Dyes Have? Red No. 40 (Allura Red AC): This dye has been linked to behavioral changes in children. Research found that it may also cause hypersensitivity reactions. Yellow No. 5 (Tartrazine): Tartrazine has been shown in research to cause allergic reactions, particularly in people who are sensitive to aspirin, and hyperactivity in children. It has also been found to contain benzidine, a contaminant classified as a human carcinogen. Yellow No. 6 (Sunset Yellow FCF): Animal tests referenced in the CSPI report linked this additive to adrenal and kidney tumors, though the FDA dispute these findings. It is also suspected to exacerbate hyperactivity in children. Blue No. 1 (Brilliant Blue FCF): Research found that this dye may interfere with nerve cell development. Blue No. 2 (Indigo Carmine): This dye has shown evidence of brain tumor development in rats. Green No. 3 (Fast Green FCF): This dye has been associated with bladder tumors in animal research. Citrus Red No. 2: This dye, which is primarily used on the skin of oranges, has been shown to cause bladder and internal tumors in animal studies. Orange B: Once used in sausage casings, this dye has mostly fallen out of use. Still, studies cited by CSPI linked it to carcinogenic outcomes in lab animals. What People Are Saying FDA Commissioner Dr. Marty Makary said at a news conference on Tuesday: "The FDA will establish a standard and timeline for industry to switch to natural alternatives, revoke authorization for dyes not in production within coming weeks and take steps to remove remaining dyes on the market." Kennedy Jr. said at the same news conference: "Food dye is just a no-brainer. Nobody wants to eat petroleum. Everybody knows there's enough science out there that we know it's terrible for you. It causes health problems but also behavioral problems." Newsweek has contacted the FDA and the HSS, via email, for comment. What Happens Next The FDA has urged manufacturers affected by the ban to shift toward using natural coloring agents such as beet, watermelon or carrot juice. Authorization for Citrus Red No. 2 and Orange B is set to be revoked in the coming months but manufacturers have until the end of 2026 to removed the other six from their supply.
