Latest news with #VictorDellovo
Associated Press
02-06-2025
- Business
- Associated Press
CSPi Added to Russell 3000(R) Index
LOWELL, MA / ACCESS Newswire / June 2, 2025 / CSP Inc. (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, today announced that it has been added as a member of the broad-market Russell 3000® Index, effective after the US market opens on June 30, as part of the 2025 Russell indexes reconstitution. 'This is a significant milestone and reflects the excitement and growth potential of our emerging AZT PROTECT business,' commented Victor Dellovo, Chief Executive Officer. 'Being added to the Russell 3000® Index enhances our visibility among institutional investors at a time when we are signing new AZT PROTECT customers and further embedding ourselves with existing customers that have the potential to significantly expand into larger, six and seven figure contracts over the next eighteen months to two years.' The annual reconstitution of the Russell US indexes captures the 4,000 largest US stocks as of April 30, ranking them by total market capitalization. Membership in the Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to data as of the end of June 2024, about $10.6 trillion in assets are benchmarked against the Russell US indexes, which belong to FTSE Russell, the global index provider. About CSPi CSPi (NASDAQ:CSPI) operates two divisions, each with unique expertise in designing and implementing technology solutions to help customers use technology to success. The High Performance Product division, including ARIA Cybersecurity Solutions, recognizes that better, stronger, more effective cybersecurity starts with a smarter approach. ARIA's solutions provide new ways for organizations to protect their most critical assets - they can shield their critical applications from cyberattack with the AZT solution, while monitoring internal traffic, device-level logs, and alert output with our ARIA ADR solution to substantially improve threat detection and surgically disrupt cyberattacks and data exfiltration. Rounding out the portfolio, Aria's AZT Gateway Software allows us to interrogate network packets at 100mbps line-rate to enforce forwarding and capture policies on the fly. Customers in a range of industries rely on our solutions to accelerate incident response, automate breach detection, and protect their most critical assets and applications - no matter where they are stored, used, or accessed. CSPi's Technology Solutions division helps clients achieve their business goals and accelerate time to market through innovative IT solutions and professional services by partnering with best-in-class technology providers. For organizations that want the benefits of an IT department without the cost, we offer a robust catalog of Managed IT Services providing 24×365 proactive support. Our team of engineers have expertise across major industries supporting five key technology areas: Advanced Security; Communication and Collaboration; Data Center; Networking; and Wireless & Mobility. Safe Harbor The Company wishes to take advantage of the 'Safe Harbor' provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking under the Act. Such forward-looking statements may include but are not limited to signing new AZT PROTECT customers and further embedding ourselves with existing customers that have the potential to significantly expand into larger, six and seven figure contracts over the next eighteen months to two years. The Company cautions that numerous factors could cause actual results to differ materially from forward-looking statements made by the Company. Such risks include general economic conditions, market factors, competitive factors and pricing pressures, and others described in the Company's filings with the Securities and Exchange Commission ('SEC'). Please refer to the section on forward-looking statements included in the Company's filings with the SEC. CONTACT: CSP Inc. Gary Levine, 978-954-5040 Chief Financial Officer SOURCE: CSP Inc. press release
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
Yahoo
15-05-2025
- Business
- Yahoo
Q2 2025 CSP Inc Earnings Call
Michael Polyviou; Investor Relations; CSP Inc Victor Dellovo; President, Chief Executive Officer, Director; CSP Inc Gary Levine; Chief Financial Officer, Treasurer, Secretary; CSP Inc Joseph Nerges; Analyst; Segren Investments Operator Good morning, everyone, and welcome to the CSPi's Fiscal 2025 Second Quarter Results Conference Call. (Operator Instructions). Please note that this conference is being recorded. I will now turn the conference over to your host, Michael Polyviou. Michael Polyviou Thank you, Jenny. Hello, everyone, and thank you for joining us to review CSPi's fiscal 2025 second quarter financial results as well as recent operating developments, the fiscal quarter ended March 31, 2025. Today, with me on the call is Victor Dellovo, CSPi's Chief Executive Officer; and Gary Levine, CSPi's Chief Financial Officer. After Victor and Gary conclude their opening remarks, we'll then open the call for questions. (Event Instructions) Statements made by CSPi's management on today's call regarding the company's business that are not historical facts may be forward-looking statements as terms identified in federal securities laws. The words may, will, expect, believe, anticipate, project, plan, intend, estimate and continue as well as similar expressions are intended to identify forward-looking statements. Forward-looking statements should not be meant as a guarantee of future performance or results. The company cautions you that these statements reflect current expectations about the company's future performance or events and are subject to several uncertainties, risks and other influences, many of which are beyond the company's control that may influence the accuracy of the statements and the projections upon which the segment and statements are based. Factors that may affect the company's results include, but are not limited to, the risks and uncertainties discussed in the risk factors section of the annual report on Form 10-K and the quarterly report on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements are based on information available at the time those statements are made and management's good faith belief as of the time with respect to future events. All forward-looking statements are qualified in entirety by this cautionary statement and CSPi undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date thereof. With that, I'll turn the call over to Victor Dellovo, Chief Executive Officer. Victor, please go ahead. Victor Dellovo Thanks, Michael, and good morning, everyone. Despite an unusual operating environment, our fiscal second quarter revenue was $13.1 million, met our internal budget and expectations. The results reflected a slight increase in product sales and a decline in service revenue as compared to last year's period due to a single multimillion dollar deal that wasn't repeated this quarter. Excluding that deal, we achieved solid double-digit service revenue over the prior year period. However, a 6-figure 12-month customer support contract was signed during the second fiscal quarter relating to the multimillion dollar deal that occurred last year. AZT PROTECT continues to gain traction in the OT marketplace. Through the successful execution of our go-to-market strategy, we signed six new customers during the quarter. Some of these deals were small in nature, but have the potential to follow-on sales, and we believe that some of these could eventually become installations of seven figure values over the upcoming quarters. By focusing on the initial project to implement AZT PROTECT within the organization, improving our solution, we position ourselves for expanding revenue relationships within the corporation. As a result of this approach, our pipeline for AZT continues to expand, and we believe our total opportunities have increased some fivefold over the past couple of quarters. We continue to build relationships with our AZT PROTECT resellers, especially with the largest Rockwell Automation distributor. During the quarter, we entered a new reseller partnership with Rexel USA, an industry leader in supplying industrial equipment throughout the United States. Rexel provides a variety of products to industrial customers across the US and is a premier Rockwell Automation distributor. Rexel continues the unique capabilities of ARIA -- recognizes the unique capabilities of ARIA AZT PROTECT to safeguard its customers against industrial cyber-attacks. It is initially working with ARIA to deploy AZT at the facilities of a large building material manufacturer in need of protection from zero-day malware, ransomware and sophisticated cyber-attacks. At the end of April, we were featured in a Rockwell webinar with just over 100 of its customers signed up, and we are generating new business leads that will be worked with our distributors to come to fruition in the later quarters. We continue to make prudent investments in marketing AZT PROTECT, which includes conference participation and attending regional events held by distributors to build off their existing customer relationships. All told in less than two years of the July 2023 launch, we are where we plan to be at this juncture. And currently, we are always seeking to enhance our sales team as we scale up the business, ensuring we might have the right caliber people selling AZT PROTECT, while building brand recognitions for AZT PROTECT brand in the OT market. I strongly believe, based on the current pipeline, we are gaining traction with key prospects, while endearing ourselves to the current customers to grow the revenue opportunities. We are particularly excited about our new customers signed in April with our distributor Oryx Industries in South Africa. The contract calls for AZT PROTECT to protect small portions of the equipment owned and operated by one of the largest cell tower providers in the country. This agreement enables AZT PROTECT to be broadly deployed across the entire system over the next 18 months. This customer could generate sales in the seven figures for our company over the same period and open up new cell tower protection markets for us. Our team is highly focused on this opportunity as well as several others with similar potential as we enter the second half of the fiscal year. Oryx, which we just partnered towards the end of the quarter, is a leading provider and fieldblazer of cybersecurity solutions in South Africa, and we look forward to working with them to attract other businesses that are in critical need of our services as the country is seeing an increase in cyber-attacks. Other parts of the business did well during the second quarter. The Technology Solution, or TS business, generated $12 million in revenue and continues to be profitable. We are executing contracts with cruise lines and ocean freighter liner market, and we continue to generate increased demand for our cloud-based services for companies wanting to outsource their critical needs to value-tested platform. Earlier this quarter, we were awarded a professional and cloud consumption service project to architect, implement and manage a Microsoft Azure migration for a Florida-based health care provider, which operates clinics across the state. Our mandate is to deliver the next-generation cloud solutions following Microsoft Azure well-architected framework, ensuring seamless support for the clients' enterprise workloads. We finished the quarter with more than $29 million in cash and cash equivalents, while continuing to invest in our AZT product line. We repurchased 384,000 worth of common shares during the quarter, and the Board of Directors authorized another $0.03 per share quarterly cash dividend. In summary, we entered the second half of the fiscal year with some momentum, specifically the South African AZT PROTECT contract and the Technology Solution contract to deliver our critical Microsoft Azure Protect for the Florida-based health care providers. The second half of the fiscal year is off to a promising start. We may face challenging operating conditions, namely price increases on the products that TS purchases for resale as well as customers may reduce spending through reduced headcount in project postponement as they realign their teams. The flexibility of our organization and the prospects for AZT PROTECT growth positions us to maximize our opportunities, and that is our dedicated focus. Now I will ask Gary to provide a brief overview of the fiscal second quarter and 6 months financial performance. Gary? Gary Levine Thanks, Victor. For the second quarter ended March 31, 2024, we reported $13.1 million as compared to $13.7 million for the prior year. Service revenue represented $4.6 million of overall sales compared to $5.2 million of overall sales during the year ago period. Gross profit for the three months ended March 31, 2025, was $4.2 million or 32% of sales compared to gross profit of $6.2 million or 45.3% of sales for the quarter ended March 31, 2025, reflecting higher component costs in the product side of the business, and there was a single multimillion-dollar sales contract at a high margin recognized in the fiscal 2024 second quarter. Our overall operating expenses were essentially flat with the prior period. We had a tax benefit of $683,000 due to excess tax benefit of restricted stock awards that vested in the quarter and tax credits, which we expect to be utilized against our federal and state taxes. We had a loss for the quarter of $108,000 or $0.01 per diluted share for the fiscal second quarter. For the six months, our revenue was $28.5 million versus $29.1 million for the first six months of fiscal 2024. We had a net profit of $341,000 or $0.04 per diluted share of common. The company continues to maintain a robust balance sheet as of March 31, 2025, and had cash and cash equivalents of over $29 million. The higher cash balance relative to our liabilities enhances the company's resource to pay a quarterly cash dividend while executing growth, which includes the continued rollout and market awareness of the AZT product offering. We spent $380,000 during the quarter purchasing 23,800 shares of common. Lastly, as Victor mentioned, the Board of Directors approved a $0.03 cash dividend for shareholders of record on May 28, 2025, payable on June 11, 2025. With that, I will turn it over to the operator for your questions. Operator (Operator Instructions) Joseph Nerges, Segren Investments. Joseph Nerges Thank you. Good morning, guys. Now I got to lead this -- I've got two people I got Brent call -- Brett called me -- Brett Davidson called me. He's got a dental appointment, emergency dental appointment. So I've got to ask questions for Brett, too. Well -- and I think you've covered much of what he wanted to know in your remarks, Victor. He was asking for some more color on the backlog for AZT, and I'm guessing that he was looking for something in the neighborhood of, numbers back on the backlog as well as the potential size of some of these contracts. Do you want to elaborate any more than what you said? Victor Dellovo No, no, no. Like I said, the pipeline is growing. We continue to talk to new customers and the pipeline is -- the total pipeline is in different stages. We cut it out to four different stages, and we have different deals and they're all at different levels of the sales process. So I'd rather just not comment on that. And tell Brett, he can call me if he had any other questions. Joseph Nerges Okay. And the other question he had was on the cruise ship business. And of course, you mentioned that, too, i.e., is it continuing? Do we see more -- and you said not only the cruise ships, but also the freighters, right, you were doing, and so -- and that's increasing or is it pretty steady or? Victor Dellovo Yeah, it's been steady. As we continue to modify the ships, we get another one or another two, it's on their schedule. So we actually never know what's coming. It's just depending when the ships are going to be on land, drydock, as they call it, yes. Joseph Nerges Okay. Well, I'll go to my quick question here. This is on a cell tower contract. And I'm particularly interested in Gary Southwell's comment in the contract. He said other solutions were considered less effective and too complex to operate. I guess my question is, do we have something unique here where we can go -- or is the cell tower thing unique in itself? Is this company unique, where we can go after more cell tower companies that have the same structure, if you want to call it, the same endpoint needs? Victor Dellovo We were unique because the amount of space we take up on the cell tower because they don't -- it's not like they have a huge computer sitting there, right? The amount of space and the amount of CPU power was very attractive to them because like I said, those cell towers there, they have limited CPU and storage on each cell tower. So that was a big, plus we work in Linux where some other companies don't. In some of the versions of the software were a little dated also. So that was one of the perfect customers. I think that's kind of why it might have moved as fast as it did just because we had a lot of check boxes right out of the bat on that particular one. Joseph Nerges So a follow-up there would be, do the other cells -- do we know of other cell companies have limitations on their towers, let's say, storage? Victor Dellovo We're reaching out to those different companies. Some of them are not calling back right at this second, but we will continue to reach out to various companies that we did some research on that is similar to the company in South Africa. Joseph Nerges Okay. And just one other quick thing from -- I'm going back to your letter, the December letter where you talked about the cloud-based projects you had, I guess, at the time, 14 at the end of the year. Is that still -- do we still have a pretty sizable backlog of cloud-based projects at the end -- Victor Dellovo Yeah. It's definitely more than 14. It's probably in the 20s right now. I don't know the exact number. Yeah. Joseph Nerges Okay. Well, I'll drop back and let somebody else ask a question. Thank you, guys. Victor Dellovo Thanks Joe. Operator (Operator Instructions) Okay, I'm not seeing anyone else in the queue for questions, so I will now hand back over to Victor for any closing comments. Victor Dellovo Thank you, Jenny. I want to thank our shareholders for their continued interest and support. We have some momentum heading into the second half of fiscal year due to some recent contracts, and I believe the increased activity we are experiencing is encouraging. With each passing quarter, the AZT PROTECT name is becoming more widely known and the relationship with Rockwell ensures this will continue. Our goal is to go out there with the maximum effort, close deals and once installed, grow the base. We're fortunate to have the TS business that generates the profit to fund the ARIA business, and we look forward to updating you on our next progress during the fiscal third quarter call in August; until then, stay safe. Thank you. Operator Thank you very much. That does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation.
Associated Press
14-05-2025
- Business
- Associated Press
CSPi Reports Fiscal 2025 Second Quarter Results; AZT PROTECT New Business Pipeline Continues to Increase Globally
Board Declares $0.03 per Share Quarterly Dividend LOWELL, MA / ACCESS Newswire / May 14, 2025 / CSP Inc. (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, today announced results for the fiscal second quarter ended March 31, 2025. The Company also announced that the Board of Directors declared a quarterly dividend of $0.03 per share payable June 11, 2025, to shareholders of record at the close of business on May 28, 2025. Recent Achievements and Operating Highlights 'Excluding a single, multi-million-dollar deal recorded in the year-ago fiscal second quarter, our business generated double-digit sales growth in the fiscal second quarter compared to the year-ago period,' commented Victor Dellovo, Chief Executive Officer. 'The prior year multi-million-dollar sale has proven to be successful resulting in the customer renewing customer support for twelve months in a six-figure contract during the fiscal second quarter. Despite challenging operating conditions, we're pleased with the overall performance of the Technology Solutions-based businesses and the market penetration of our AZT PROTECT product line. The flexibility of our organization, and the prospects for AZT PROTECT growth enable our company to maximize our opportunities in the current operating environment.' 'During the quarter, our reseller and distribution-focused strategy resulted in an increase in new AZT PROTECT customers and an expanded pipeline of new business opportunities. Launching a revolutionary new product requires significant investment, which we have been diligently making while carefully managing our resources. Nearly two years into the launch, we are where we thought we would be, our brand is more widely known, and we are gaining traction with key manufacturers, resellers and customers. In addition to the new customers signed in the fiscal second quarter, in April we were engaged to protect equipment at one of the largest cell tower providers in South Africa. This relationship, along with several other previously signed customers, have the potential to significantly expand into larger, six and seven figure contracts over the next eighteen months to two years.' Fiscal 2025 Second Quarter Results Revenue for the fiscal second quarter ended March 31, 2025, was $13.1 million compared to revenue of $13.7 million for the fiscal second quarter ended March 31, 2024. Product revenue represented $8.6 million of overall sales, a slight increase compared to the year-ago Product revenue of $8.5 million. Services revenue for the period was $4.6 million as compared to $5.2 million during the fiscal 2024 second quarter. The year-ago fiscal second quarter included a multi-million dollar agreement with a global pharmaceutical company, significantly increasing the prior year period revenue, gross profit, gross margin and net income. Gross profit for the three months ended March 31, 2025, was $4.2 million compared to $6.5 million. Gross margin for the fiscal second quarter ended March 31, 2025, was 32% of sales compared to 47% of sales for the year ago fiscal second quarter. The company had an income tax benefit of $683 thousand primarily from the vesting of restricted stock awards in the quarter. The Company reported a net loss of $(0.1) million, or $(0.01) per diluted common share for the fiscal second quarter, compared to net income of $1.6 million, or $0.16 per diluted common share for the prior fiscal year second quarter. The Company continued to maintain a robust balance sheet and as of March 31, 2025, had cash and cash equivalents of $29.5 million. The financial resources, coupled with no long term debt, are allowing the Company to continue to build market awareness for the AZT PROTECT offering. Additionally, during the quarter the Company repurchased 23,800 shares for a total cost of $384 thousand. Approximately 311 thousand shares remain available under the share repurchase authorization approved by the Board of Directors in 2011. Fiscal Year 2025 Six Month Results Revenue for the fiscal six months ended March 31, 2025, was $28.8 million compared with revenue of $29.1 million in prior year period, which included the aforementioned multi-million-dollar agreement with a global pharmaceutical company. Gross profit for the fiscal six months ended March 31, 2025, was $8.8 million, or 30% of sales compared with $10.6 million, or 36% of sales. The Company had an income tax benefit of $798 thousand primarily from restricted stock awards. The Company reported net income of $364 thousand, or $0.04 income per diluted common share in the fiscal six months ended March 31, 2025, compared with net income of $1.5 million, or $0.15 income per diluted common share for the fiscal six months ended March 31, 2024. Conference Call Details CSPi Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W. Levine will host a conference call at 10:00 a.m. (ET) today to review CSPi's financial results and provide a business update. To listen to a live webcast of the call, the event link Individuals also may listen to the call via telephone, by dialing 973-528-0011 or 888-506-0062 and use the Participant Access Code: 300898 when greeted by the live operator. For interested parties unable to participate in the live call, an archived version of the webcast will be available for approximately one year on CSPi's website. About CSPi CSPi (NASDAQ:CSPI) operates two divisions, each with unique expertise in designing and implementing technology solutions to help customers use technology to success. The High Performance Product division, including ARIA Cybersecurity Solutions, recognizes that better, stronger, more effective cybersecurity starts with a smarter approach. ARIA's solutions provide new ways for organizations to protect their most critical assets-they can shield their critical applications from cyberattack with the AZT solution, while monitoring internal traffic, device-level logs, and alert output with our ARIA ADR solution to substantially improve threat detection and surgically disrupt cyberattacks and data exfiltration. Rounding out the portfolio, Aria's AZT Gateway Software allows us to interrogate network packets at 100mbps line-rate to enforce forwarding and capture policies on the fly. Customers in a range of industries rely on our solutions to accelerate incident response, automate breach detection, and protect their most critical assets and applications-no matter where they are stored, used, or accessed. CSPi's Technology Solutions division helps clients achieve their business goals and accelerate time to market through innovative IT solutions and professional services by partnering with best-in-class technology providers. For organizations that want the benefits of an IT department without the cost, we offer a robust catalog of Managed IT Services providing 24×365 proactive support. Our team of engineers have expertise across major industries supporting five key technology areas: Advanced Security; Communication and Collaboration; Data Center; Networking; and Wireless & Mobility. Safe Harbor The Company wishes to take advantage of the 'Safe Harbor' provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking under the Act. Such forward-looking statements may include but are not limited to projections or guidance concerning business performance, revenue, earnings, cash flow, the current economic environment, liquidity, strategic decisions and actions, and other financial and operational measures. Statements include we were engaged to protect equipment at one of the largest cell tower providers in South Africa. This relationship, along with several other previously signed customers, has the potential to significantly expand into larger, six and seven figure contracts over the next eighteen months to two year. The Company cautions that numerous factors could cause actual results to differ materially from forward-looking statements made by the Company. Such risks include general economic conditions, market factors, competitive factors and pricing pressures, and others described in the Company's filings with the Securities and Exchange Commission ('SEC'). Please refer to the section on forward-looking statements included in the Company's filings with the SEC. CONTACT: CSP Inc. Gary Levine, 978-954-5040 Chief Financial Officer SOURCE: CSP, Inc. press release
Yahoo
11-02-2025
- Business
- Yahoo
CSP Inc (CSPI) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Expansions
Total Revenue: $15.7 million, up from $15.4 million in the prior year's first quarter. Service Revenue: $4.7 million, compared to $4 million in the previous year and the fiscal fourth quarter. Gross Profit: $4.6 million, representing 29.1% of sales, up from $4.1 million or 26.6% of sales in the prior year. Net Income: $472,000 or $0.05 per diluted common share, compared to a net loss of $73,000 or $0.01 per diluted common share in the prior year. Cash and Cash Equivalents: $30.7 million as of December 30, 2024. Engineering and Development Expenses: $786,000, up from $700,000 in the prior year. SG&A Expenses: $4.1 million, compared to $3.7 million in the prior year. Dividend: Authorized $0.03 per share quarterly cash dividend. Warning! GuruFocus has detected 3 Warning Signs with CSPI. Release Date: February 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CSP Inc (NASDAQ:CSPI) reported a 17% increase in service revenue for the first quarter of fiscal 2025. The company expanded its gross margins by 200 basis points, reflecting improved profitability. CSP Inc (NASDAQ:CSPI) ended the quarter with over $30 million in cash and cash equivalents, indicating strong liquidity. The company secured a second major cruise line order and continued success in the ocean freight liner market, boosting monthly recurring revenue. CSP Inc (NASDAQ:CSPI) signed several new customers for its AZT Protect product, expanding its presence in the operational technology cybersecurity market. Despite the positive developments, AZT Protect revenues are not yet material in the estimated $50 billion OT market. The company faces long sales cycles, particularly with large OT customers, which can delay revenue realization. CSP Inc (NASDAQ:CSPI) has not yet fully leveraged its partnership with Rockwell Automation, as sales through this channel are still in the early stages. The company has been slow to gain name recognition in the market, which could hinder faster adoption of its products. There is ongoing concern among investors about the dilution of shares due to management stock compensation, with calls for more aggressive share buybacks. Q: Can you provide an update on the AZT Protect product and any upcoming upgrades? A: Victor Dellovo, President and CEO, confirmed that there is a slight upgrade in progress for AZT Protect, which will be announced soon. The product continues to evolve to meet security needs. Q: How many patents does CSPI currently hold, and are there any pending? A: Victor Dellovo stated that CSPI has three issued patents, with two more expected by year-end and two additional submissions anticipated to be completed by 2026. Q: What sales channels are being used for AZT Protect, and have any sales come through the Rockwell channel? A: Victor Dellovo explained that current sales have not yet come through the Rockwell channel, as they are still setting up contracts with large distributors. However, they anticipate sales through Rockwell partners as the year progresses. Q: Has CSPI considered partnering with a company that has greater name recognition to accelerate AZT Protect's market penetration? A: Victor Dellovo mentioned that no such partnership has been approached, but they are working with large distributors to build name recognition and expand market reach. Q: Is there a plan to use cash reserves to buy back shares, especially to offset shares given to management and directors? A: Victor Dellovo and Gary Levine acknowledged the importance of this strategy and indicated that they are actively considering purchasing more shares to support the stock and prevent dilution. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
