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CSPi to Announce Fiscal 2026 First Quarter Results on February 12, 2026
Accessnewswire· 2026-02-06 16:00
LOWELL, MA / ACCESS Newswire / February 6, 2026 / CSPi (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, announced that it will issue its fiscal 2026 first quarter financial results before the open of the market on Thursday, February 12, 2026. CSPi President and Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W. ...
CSPI's Service Shift Fuels Margin Surge, AZT PROTECT Accelerates
ZACKS· 2026-01-08 18:05
Core Insights - CSP Inc. (CSPI) has improved its operating profile as it enters fiscal 2026, driven by a growing service mix in its Technology Solutions (TS) segment and increased adoption of its AZT PROTECT cybersecurity platform in the High-Performance Products (HPP) segment [1] Financial Performance - CSPI reported revenues of $14.5 million for Q4 fiscal 2025, an 11% increase from $13 million in the same quarter last year [2] - The gross margin increased to 37%, up more than 800 basis points year-over-year, primarily due to accelerated service growth [2] - Service revenues surged by 63% or $2.5 million, improving gross profit and narrowing operating losses despite a decline in product revenues [3] Service Segment Growth - Services accounted for 44% of total revenues in Q4 fiscal 2025, up from approximately 30% in the prior-year quarter, and for the full year, services rose to 36% from 33% [4] - The managed cloud and managed service provider offerings expanded at a healthy double-digit rate in fiscal 2025, with plans to allocate more resources and add sales representatives for further expansion in 2026 [5] Maritime Industry Focus - CSPI's managed service strategy has been particularly effective in the maritime vertical, with expectations for service contracts from expanded installations to contribute significantly in fiscal 2026 [6] - The company entered fiscal 2026 with a backlog related to cruise ship installations and upgrades, enhancing revenue visibility [6] Customer Adoption and Expansion Strategy - The HPP segment is positioning AZT PROTECT as a long-cycle growth engine, with a growing pipeline of deployment opportunities and a channel approach through "gold star resellers" [7] - The company has successfully executed a strategy of deploying at one operational site and expanding to additional locations within the same enterprise [8] - Customers span multiple industries, including steel, energy, manufacturing, and telecommunications, with potential for significant multi-site deployments [9] Lead Generation and Channel Validation - Participation in Rockwell events has become a major commercial catalyst for AZT PROTECT, with a 50% year-over-year increase in leads reported during the 2025 Rockwell Fair [10] - The quality of leads has improved significantly due to greater distributor involvement, which is crucial for scaling AZT PROTECT adoption [11] Product Development in IIoT - CSPI has expanded AZT PROTECT into embedded industrial IoT (IIoT) environments, addressing challenges in protecting industrial IoT devices [12] - Enhancements to the software allow integration into existing systems of industrial IoT vendors, with a growing pipeline into the unserved industrial edge compute market [13] Balance Sheet Development - The company entered a buy-in contract in October 2024 as part of a planned termination of its U.K. defined benefit pension plan, paying £8.5 million, with expectations for this to transition into a buy-out contract in fiscal 2026 [14]
CSPI Q4 Loss Narrows Y/Y, Revenues Grow Amid Volatility
ZACKS· 2025-12-18 17:56
Core Insights - CSP Inc. (CSPI) shares have decreased by 15.1% since the fourth quarter results for fiscal 2025, contrasting with a 0.2% decline in the S&P 500 index, but have rebounded by 16.2% over the past month compared to a 2.7% increase in the S&P 500 [1] Financial Performance - For the quarter ending September 30, 2025, CSP reported revenues of $14.5 million, an 11% increase from $13 million in the same quarter last year, primarily driven by a surge in service revenues [2] - Gross profit rose to $5.3 million from $3.7 million a year earlier, resulting in a gross margin increase of 800 basis points to 37% from 28% [2] - The company posted a net loss of $191,000, or 2 cents per diluted share, an improvement from a net loss of $1.7 million, or 18 cents per diluted share, in the prior-year quarter [2] Annual Performance - For fiscal 2025, revenues increased by 6% to $58.7 million, while the net loss narrowed to $91,000, or 1 cent per share, from $326,000, or 4 cents per share, in fiscal 2024 [3] Revenue Composition - Service revenues surged by 63% year over year in the fiscal fourth quarter, accounting for 44% of total revenues compared to about 30% in the previous year [4] - For fiscal 2025, services represented 36% of total revenues versus 33% a year earlier, indicating a shift towards higher-margin offerings [4] Operating Metrics - The operating loss for the quarter narrowed to $0.5 million from $2 million a year earlier, reflecting margin expansion and stable operating expenses [5] - CSP ended fiscal 2025 with $27.4 million in cash and cash equivalents, down from $30.6 million a year earlier, while financing receivables increased [5] Management Insights - Management characterized the quarter as a strong finish to the fiscal year, highlighting the Technology Solutions segment's role in driving growth [6] - There is an emphasis on high customer retention and the contribution of managed services and cloud offerings to service revenue growth [6] - Leadership discussed expanding the sales organization to capture a larger share of the services market, citing opportunities for continued double-digit growth [7] Strategic Focus - Management pointed to the rapid growth in service revenues as a significant factor behind the quarter's results, which has a higher gross margin than product sales [8] - Continued investment in building a sales pipeline and customer adoption is expected to support long-term growth, despite weighing on near-term profitability [9] Future Outlook - Management expressed optimism about delivering additional growth and improving profitability in fiscal year 2026, with expectations for continued momentum in services and increased adoption of AZT PROTECT [10][11] - The timing of customer rollouts and revenue recognition may be uneven, leading to variability in quarterly revenue patterns [11] Corporate Developments - In the fiscal fourth quarter, CSP's board declared a quarterly cash dividend of 3 cents per share, payable January 15, 2026, and repurchased approximately 19,500 shares for $234,000 [12] - The company highlighted partnerships with Rockwell Automation distributors and an agreement to integrate AZT PROTECT into Acronis' Cyber Protect solution, reflecting efforts to broaden distribution [12]
CSP (CSPI) - 2025 Q4 - Annual Report
2025-12-16 22:17
Financial Performance - Revenue increased by approximately $3.5 million, or 6%, to $58.7 million for the fiscal year ended September 30, 2025, compared to $55.2 million for the fiscal year ended September 30, 2024[120]. - Gross profit margin percentage decreased to 32% for the fiscal year ended September 30, 2025, compared to 34% for the fiscal year ended September 30, 2024[120]. - Operating loss was $(3.1) million for the fiscal year ended September 30, 2025, compared to an operating loss of $(1.9) million for the fiscal year ended September 30, 2024[120]. - The net loss for the fiscal year ended September 30, 2025, was $(91) thousand, compared to a net loss of $(326) thousand for the fiscal year ended September 30, 2024[121]. - Total costs and expenses increased to $61.8 million for the fiscal year ended September 30, 2025, compared to $57.1 million for the fiscal year ended September 30, 2024[121]. Revenue Breakdown - TS segment revenue increased by approximately $5.7 million, with a $5.5 million increase in the U.S. division and a $0.2 million increase in the U.K. division[124]. - HPP segment revenue decreased by approximately $2.2 million, or 54%, primarily due to decreased ARIA AZT revenue of $1.7 million[126]. - The Americas revenue increased by $3.8 million for the fiscal year ended September 30, 2025, primarily due to increased revenue from the TS-US division[130]. Expenses and Costs - Research and development expenses increased by $0.3 million from $3.0 million in fiscal year 2024 to $3.3 million in fiscal year 2025, primarily for product engineering expenses related to ARIA cyber security products[135]. - SG&A expenses for the TS segment increased by $0.6 million (5%) to $13.8 million, while the HPP segment remained flat at $4.6 million for the fiscal year ended September 30, 2025[136]. - Total other income for the year ended September 30, 2025 was $1.448 million, a decrease of $5, primarily due to a foreign exchange gain increase of $0.5 million[137]. - Interest expense rose by $0.1 million to $0.357 million for the year ended September 30, 2025, attributed to multi-year vendor agreements in the TS U.S. division[138]. - Interest income decreased by $0.2 million to $1.854 million for the year ended September 30, 2025, due to lower average balances and interest rates[139]. Taxation - The effective tax rate for the fiscal year ended September 30, 2025, was 94.5%, compared to 22.2% for the fiscal year ended September 30, 2024[120]. - The company recorded an income tax benefit of $(1.6) million, resulting in an effective tax rate of 94.5% for the year ended September 30, 2025[140]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $3.2 million to $27.4 million as of September 30, 2025, from $30.6 million as of September 30, 2024[145]. - Cash provided by operating activities was $2.3 million for the year ended September 30, 2025, down from $4.2 million in the prior year[147]. - Cash used in investing activities increased to $(428) thousand for the year ended September 30, 2025, compared to $(256) thousand in the prior year[148]. - Cash used in financing activities was $(5.0) million for the year ended September 30, 2025, compared to $1.4 million provided in the prior year[149]. - The company maintained a line of credit with a capacity of up to $15.0 million, with $14.1 million available as of September 30, 2025[152]. Accounting Policies - Revenue recognition is recorded as gross when the company is the principal party, and net when acting as a broker, affecting the overall revenue reported[163]. - The company recognizes deferred tax assets and liabilities based on enacted tax rates, with adjustments made for changes in tax rates impacting income[166]. Pension and Retirement Plans - Pension and retirement plans are recognized on the balance sheet, with gains and losses recorded in accumulated other comprehensive loss until amortized[169]. - Defined benefit plans in the U.K. are closed to new hires, while defined contribution plans cover most employees, impacting future pension obligations[170]. - Pension expense calculations involve estimates for expected return on assets and compensation increases, with changes in these estimates affecting overall pension expense[171]. - The company funds its pension plans to meet legal requirements, with liabilities for excess funding levels accrued on the balance sheet[172].
CSP (CSPI) - 2025 Q4 - Earnings Call Transcript
2025-12-16 16:02
Financial Data and Key Metrics Changes - Overall fourth quarter revenue increased by 11% to $14.5 million compared to $13 million in the same quarter last year [5][13] - Gross margins improved by over 800 basis points to 37% in the fourth quarter, driven by significant growth in service revenue [5][13] - For the full fiscal year, revenue grew by 6%, with gross profit at $18.5 million, representing 32% of sales [15][16] Business Line Data and Key Metrics Changes - Service revenue grew by 63% in the fourth quarter, accounting for approximately 44% of total revenue, up from 30% in the prior year [6][13] - For the full year, service revenue represented 36% of total revenue, compared to 33% the previous year [6] - Product revenue decreased by $1.1 million in the fourth quarter [13] Market Data and Key Metrics Changes - The company expanded its customer base across various industries, including finance, manufacturing, oil and gas, healthcare, aerospace, education, utilities, telecommunications, and maritime [6] - The managed cloud and MSP services segment experienced healthy double-digit growth during the fiscal year [7] Company Strategy and Development Direction - The company aims to build on the growth of its service business by allocating more resources and adding sales representatives [7] - There is a focus on expanding the AZT Protect cybersecurity offering, particularly in the maritime industry and industrial IoT devices [10][11] - The company is optimistic about converting its growing pipeline into significant sales in fiscal 2026 [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the strong finish to the fiscal year and the potential for increased profitability in fiscal 2026 [5][12] - The company believes it is well-positioned to leverage revenue growth going forward, supported by investments made in infrastructure [12] Other Important Information - The company reported a net loss of $191,000 for the fourth quarter, compared to a net income of $1.7 million in the prior year [14] - Cash and cash equivalents stood at $27.4 million as of September 30, 2025, down about 10% from the previous year [15] Q&A Session Summary Question: Service revenue calculation - Analyst confirmed the service revenue in the fourth quarter was approximately $6.4 million, based on 44% of total sales [19][20] Question: IIoT expansion of AZT Protect - Management acknowledged the potential for significant growth in the IIoT market and the need for OEM agreements [25][26] Question: Acronis integration - Management stated that AZT is being integrated into Acronis software, but revenue projections are still uncertain [51][52] Question: UFT relationship updates - Management provided updates on the relationship with UFT, indicating progress with case studies and future marketing events [53] Question: Revenue predictability - Management indicated that revenue projections for the upcoming year are uncertain and may vary [72]
CSP (CSPI) - 2025 Q4 - Earnings Call Transcript
2025-12-16 16:02
Financial Data and Key Metrics Changes - Overall fourth quarter revenue increased by 11% to $14.5 million compared to $13 million in the same quarter last year [14] - Gross margins improved by over 800 basis points to 37% in the fourth quarter, driven by significant service revenue growth [5][14] - For the full fiscal year, revenue grew by 6%, with gross profit at $18.5 million, representing 32% of sales [16] Business Line Data and Key Metrics Changes - Service revenue grew by 63% in the fourth quarter, accounting for approximately 44% of total revenue, up from 30% in the prior year [6][14] - For the full year, service revenue represented 36% of total revenue, compared to 33% a year ago [6] - Product revenue decreased by $1.1 million in the fourth quarter [14] Market Data and Key Metrics Changes - The company expanded its customer base across various industries, including finance, manufacturing, oil and gas, healthcare, aerospace, education, utilities, telecommunications, and maritime [6] - The Managed Cloud and MSP services segment grew at a healthy double-digit rate during fiscal 2025 [7] Company Strategy and Development Direction - The company aims to build on the growth of its service business by allocating more resources and adding sales representatives [7] - There is a focus on expanding the AZT PROTECT cybersecurity offering, particularly in the maritime industry and Industrial IoT devices [10][11] - The company is optimistic about converting its growing pipeline into significant sales in fiscal 2026 [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating consistent profitability improvements for fiscal 2026, supported by infrastructure investments [13] - The company is excited about the potential for growth in the service segment and the product business as it enters fiscal 2026 [12][13] Other Important Information - The company reported a net loss of $191,000 for the fourth quarter, compared to a net income of $1.7 million in the prior year [15] - Cash and cash equivalents stood at $27.4 million as of September 30, 2025, down about 10% from the previous year [16] Q&A Session Summary Question: Service revenue calculation - Analyst confirmed the service revenue in the fourth quarter was approximately $6.4 million, which was well received by management [21][22] Question: IIoT expansion and potential customers - Management acknowledged the potential for significant deployments in the IIoT market and the need for OEM agreements [27][28] Question: Leads from Rockwell show - Management reported a 50% increase in leads from the Rockwell show compared to the previous year, with improved quality of leads due to established relationships [42][45] Question: Integration with Acronis - Management confirmed that AZT is being integrated into Acronis software, but revenue projections are still uncertain [54][68] Question: UFT relationship and case studies - Management provided updates on the relationship with UFT, indicating progress with case studies and future marketing efforts [56][57] Question: Share repurchase blackout period - Management clarified the blackout period for share repurchases due to earnings reporting schedules [58][60]
CSP (CSPI) - 2025 Q4 - Earnings Call Transcript
2025-12-16 16:00
Financial Data and Key Metrics Changes - For the fiscal fourth quarter, revenue increased by 11% to $14.5 million compared to $13 million in the same quarter last year [13] - Gross margins improved by over 800 basis points to 37%, driven by significant growth in service revenue [5][14] - The company reported a net loss of $191,000 or $0.02 per diluted share for the fourth quarter, compared to a net income of $1.7 million or $0.18 per diluted share in the prior year [15] Business Line Data and Key Metrics Changes - Service revenue grew by 63% year-over-year, representing approximately 44% of total revenue in the fourth quarter, up from 30% in the same quarter last year [6][14] - For the full fiscal year, service revenue accounted for 36% of total revenue, compared to 33% the previous year [6] - Product revenue decreased by $1.1 million in the fourth quarter [13] Market Data and Key Metrics Changes - The company expanded its customer base across various industries, including finance, manufacturing, oil and gas, healthcare, aerospace, education, utilities, telecommunications, and maritime [6] - The managed cloud and MSP services segment experienced healthy double-digit growth during fiscal 2025 [7] Company Strategy and Development Direction - The company aims to build on the growth of its service business by allocating more resources, including adding sales representatives [7] - There is a focus on expanding the AZT Protect cybersecurity offering, particularly in the maritime industry and Industrial IoT devices [10][11] - The company is optimistic about generating consistent profitability improvements in fiscal 2026 due to infrastructure investments and growth strategies [12] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the strong results from the service segment and the potential for growth in fiscal 2026 [11][12] - The company believes it has a competitive advantage in the cybersecurity space and aims to convert building momentum into significant sales [10] Other Important Information - The company maintained a strong balance sheet with cash and cash equivalents of $27.4 million, despite a 10% decrease from the previous year [16] - The company plans to pay a $0.03 per share dividend on July 15, 2026, to shareholders of record on December 26, 2025 [16] Q&A Session Summary Question: Service revenue calculation - The service revenue in the fourth quarter was approximately $6.4 million, which is 44% of total sales [20] Question: Expansion of AZT Protect - Management acknowledged that the expansion of AZT Protect is a game changer and is focusing on signing OEM agreements in the IIoT environment [25][26] Question: Integration with Acronis - AZT is being integrated into Acronis software, but revenue projections are too early to determine [53] Question: Relationship with UFT - The relationship with UFT is strong, and case studies are being developed for implementation with their customers [55] Question: Share repurchase blackout period - The company is subject to a blackout period for share repurchases until mid-February due to earnings reporting [56][59]
CSP (CSPI) - 2025 Q4 - Annual Results
2025-12-16 14:28
Financial Performance - CSP Inc. reported an 11% increase in total revenue for the fiscal fourth quarter ended September 30, 2025, reaching $14.5 million compared to $13.0 million in the same prior year quarter [2][7]. - For the full fiscal year 2025, total revenue was $58.7 million, a 6% increase from $55.2 million in the prior year [10]. - The company experienced a net loss of $(191) thousand, or $(0.02) loss per diluted common share, significantly improved from a net loss of $(1.7) million, or $(0.18) loss per diluted common share in the prior fiscal year fourth quarter [8][10]. Revenue Composition - Services revenue surged by 63%, accounting for 44% of total revenue in the fiscal 2025 fourth quarter [6]. - Gross margin expanded more than 800 basis points to 37% from 28% in the same prior year quarter, driven by a higher proportion of services revenue [6][8]. Business Development - The Technology Solutions business achieved near-record profitability and is expanding its sales team to capture a larger share of the services market [4]. - AZT PROTECT customer engagements increased significantly, setting the stage for growth in fiscal 2026, with new features enabling entry into the Embedded IIOT market [6][5]. Shareholder Returns - The company declared a quarterly dividend of $0.03 per share, payable on January 15, 2026 [2][6]. - The company repurchased approximately 19,500 shares for a total cost of $234 thousand during the fiscal fourth quarter [9]. Cash Position - Cash and cash equivalents as of September 30, 2025, were $27.4 million, supporting growth strategies for the AZT PROTECT offering [9].
CSPi to Announce Fiscal Fourth Quarter and Full Year Results on December 16, 2025
Accessnewswire· 2025-12-12 15:55
Core Viewpoint - CSPi is set to release its fiscal 2025 fourth quarter and full year financial results on December 16, 2025, before the market opens [1] Company Summary - CSPi is recognized as an award-winning provider of security and packet capture products, managed IT and professional services, and technology solutions [1] - The announcement was made by CSPi's President and CEO Victor Dellovo, along with CFO Gary W. [1]
Cloud Service Provider sector trends remain positive; upside seen in TSMC, Western Digital: analysts
Proactiveinvestors NA· 2025-09-29 16:49
Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production [5]