Shares of CSP Inc. (CSPI) have gained 1.4% since the company reported earnings for the first quarter of fiscal 2025. This compares to the S&P 500 index’s 0.7% growth over the same time frame. Over the past month, the stock has gained 27.1% compared with the S&P 500’s 3.9% growth.Financial Performance OverviewCSP reported diluted earnings per share of 5 cents in the first quarter of fiscal 2025 against a loss of 1 cent in the year-ago quarter.The company’s total quarterly revenues of $15.7 million increased ...

Table of Contents United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2024 or ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 0-10843 CSP Inc. (Exact name of Registrant as specified in its charter) Massachusetts 04-2441294 (State or other jurisdi ...

CSP Inc. (NASDAQ:CSPI) Q1 2025 Earnings Conference Call February 10, 2025 10:00 AM ET Company Participants Michael Polyviou - Investor Relations Victor Dellovo - President and Chief Executive Officer Gary Levine - Chief Financial Officer Conference Call Participants Joseph Nerges - Segren Investments Operator Greetings. Welcome to CSPi's First Quarter Fiscal Year 2025 Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Mi ...

Financial Performance - Revenue for Q1 fiscal 2025 increased 2% to $15.7 million compared to $15.4 million in Q1 fiscal 2024[4] - Services revenue grew 17% to $4.7 million, up from $4.0 million in the prior year[4] - Gross profit for the quarter increased 11% to $4.6 million, with gross margin expanding over 200 basis points to 29.1%[4] - Net income for Q1 fiscal 2025 was $0.5 million, or $0.05 per diluted common share, compared to a net loss of $(73,000) in Q1 fiscal 2024[4] - Operating expenses increased to $4.9 million, up from $4.4 million in the prior year, reflecting investments in growth[15] Cash and Assets - The company maintained cash and cash equivalents of $30.7 million as of December 31, 2024[5] - Total current assets decreased to $52.2 million from $54.8 million in the previous quarter[14] - Shareholders' equity increased to $47.5 million from $47.3 million in the previous quarter[14] Customer Growth and Partnerships - Several new customers were signed for the AZT PROTECT™ offering, indicating growth in high-demand industries[6] - The company aims to leverage momentum and increase recurring revenue through partnerships, particularly with Rockwell Automation[11]

Shares of CSP Inc. (CSPI) have declined 9.6% since reporting fourth-quarter fiscal 2024 earnings, whereas the S&P 500 index has grown 1% over the same period. Over the past month, CSPI shares have lost 19.3%, underperforming the broader market’s 0.3% decline.Earnings & Revenue PerformanceCSP reported a diluted loss per share of 18 cents in the fourth quarter of fiscal 2024 against earnings of 15 cents in the year-ago quarter.The company reported total quarterly revenues of $13 million, a 14.9% decline from ...

Financial Performance - Total sales for fiscal year 2024 were $55.219 million, a decrease of 14.6% from $64.647 million in fiscal year 2023[41] - Total sales for the year ended September 30, 2024, were $55.2 million, a decrease of 14.6% from $64.6 million in the previous year[103] - Gross profit for the same period was $18.9 million, down from $21.9 million, reflecting a gross margin decline[103] - The company reported a net loss of $0.3 million for the year ended September 30, 2024, compared to a net income of $5.2 million in the prior year[103] - Operating loss for the year was $(1.9) million, contrasting with an operating income of $1.9 million in the previous year[103] - Cash and cash equivalents increased to $30.6 million as of September 30, 2024, from $25.2 million a year earlier[101] - Total current assets rose to $54.8 million, up from $50.4 million in the previous year[101] - The company’s total liabilities increased to $22.2 million from $19.8 million year-over-year[101] Revenue Segmentation - The Technology Solutions (TS) segment generated $51.065 million in revenue, accounting for 92% of total sales, while the High Performance Products (HPP) segment generated $4.154 million, accounting for 8%[41] - For the fiscal year ended September 30, 2024, foreign-based revenue represented 3% of total revenue, consistent with the previous year[134] - The company derived below 1% of total revenue in fiscal year 2024 and 5% in fiscal year 2023 from the Department of Defense (DoD) as a subcontractor, indicating a reliance on government contracts[167] Product Development and Innovation - The ARIA Zero Trust PROTECT™ product was introduced in July 2023 and is already generating revenue from initial contracts[38] - The company plans to continue investing in the development of new cybersecurity software applications, focusing on enhancing the ARIA product set[111] - The company is focused on enhancing current products and developing new commercial products to respond to technological developments[132] - The company has made significant investments in ARIA cyber security products and services, which may not achieve expected returns[131] Market and Competitive Landscape - The markets for the company's products are highly competitive, with many competitors being larger and having greater access to capital[137] - The company has established strong relationships with major IT OEMs, which is considered a key competitive advantage in the market[55] - The company faces risks related to international operations, including regulatory complexities and potential adverse tax consequences[134] Operational Challenges - The company has experienced challenges with product defects and bugs, which could adversely affect its reputation and financial results[133] - The company acknowledges the potential for delays in product development and the impact of such delays on revenue[132] - The company experienced fluctuations in operating results due to large dollar sales to a small number of customers, making it difficult to predict future orders[150] - The company must continue to invest in research and development (R&D) to meet customer needs, as insufficient investment could adversely affect product attractiveness and business performance[149] Internal Controls and Compliance - As of September 30, 2024, the company identified material weaknesses in its internal control over financial reporting, concluding that these controls were ineffective[185] - The company is required to comply with the Sarbanes-Oxley Act of 2002, which mandates effective internal controls to produce reliable financial reports[186] - Failure to maintain effective internal controls could result in inaccurate financial statements, adversely affecting the business and investor confidence[187] Risk Management - The company has implemented a comprehensive cybersecurity risk management strategy to address significant risks posed by cybersecurity threats[213] - An annual information security risk assessment is conducted to identify vulnerabilities and implement appropriate controls[214] - The company has established robust incident reporting policies and procedures to ensure timely recognition and reporting of incidents[215] - A formal enterprise risk management matrix tracks the company's material risks and associated mitigation strategies, submitted quarterly to the Audit Committee[216] Employee and Labor Relations - As of September 30, 2024, the company had approximately 111 full-time equivalent employees, with no labor union representation and no work stoppages in the last three fiscal years[153] Economic and Regulatory Environment - Changes in federal government budgetary priorities could directly impact the company's financial performance, potentially leading to reduced purchases under contracts[169] - The ongoing military conflict between Russia and Ukraine has negatively impacted the global economy, potentially affecting the company's business through supply disruptions and changes in consumer demand[182] - The company faces risks related to U.S. Federal government contracts, including potential suspension or debarment from government business[191] - The company is subject to legal and regulatory risks that could materially affect its business and financial condition if new laws or regulations are implemented or existing ones are changed[184]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of $13 million, a decrease from $15.3 million in Q4 2023, with revenue remaining relatively flat compared to the previous quarters of fiscal 2024 [22] - The company reported a net loss of $1.7 million or $0.18 loss per share for Q4 2024, compared to a net income of $1.4 million or $0.15 per diluted share in Q4 2023 [24] - Cash and cash equivalents increased to $30.6 million from $25.2 million at the end of fiscal 2023, indicating a robust balance sheet [24] Business Line Data and Key Metrics Changes - The Technology Solutions (TS) business generated approximately $12.7 million in sales in Q4 2024, with recurring revenue increasing to 17% of total sales compared to less than 5% two years ago [8][9] - The High-Performance Products (HPP) segment reported revenue of $0.4 million, primarily from ARIA-based customers [12] - Engineering and development expenses rose to $793,000 from $705,000, attributed to outside consulting and stock compensation [25] Market Data and Key Metrics Changes - The company noted a pickup in business from cruise ship customers towards the end of Q4 2024, including a large order expected to be executed in the next fiscal year [10] - Demand for cloud services is increasing, with a dozen active cloud-based projects underway to accommodate growth [11] Company Strategy and Development Direction - The company is focused on growing its recurring revenue, particularly in cloud services and managed services, with a goal of doubling recurring revenue in the next 24 months [61] - The partnership with Rockwell Automation is emphasized as a key strategy to penetrate the operational technology (OT) market, with significant leads generated from recent trade shows [20][73] - The company is also investing in building relationships with distributors to enhance market presence and sales [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in the upcoming fiscal year, particularly in the TS sales and recurring revenue segments [20] - The company is experiencing increased interest and momentum in the market, particularly for the AZT PROTECT product offering [108] Other Important Information - The company repurchased 2,800 shares at a total cost of $34,000 and announced a quarterly dividend of $0.03 per share [24] - The company is actively participating in trade shows to generate leads and increase awareness of its products [17] Q&A Session Summary Question: Clarification on accounting points regarding employment retention credit - The CFO confirmed that the previous year's credit of $2.1 million was not included in the current year's comparison [33] Question: Status of proof-of-concepts (POCs) from recent trade shows - Management indicated that multiple POCs are ongoing, with new ones starting soon, and emphasized the importance of follow-ups in the new year [38][41] Question: Earnings potential without AZT division - Management stated that the TS division would be profitable without the losses from the AZT division, with potential earnings exceeding $1 per share [60] Question: Updates on partnerships and POCs in Australia and the Middle East - Management confirmed ongoing POCs with partners in Australia and mentioned that progress is being made with other partnerships, albeit at varying paces [72][73] Question: Size of AZT contracts with Fortune 500 companies - Management refrained from disclosing exact figures but indicated that one contract is in the millions, with thousands of endpoints involved [82] Question: Conversations with NVIDIA regarding AZT - Management confirmed ongoing discussions with NVIDIA, focusing on their robotic area, although progress has been slow [89] Question: Legacy E2D program and UCaaS contracts - Management indicated that there will be one more E2D program next year and that the UCaaS business is growing steadily with new clients being added [97][100]

CSPi Reports Fiscal Fourth Quarter and Full Year 2024 Results; Recurring Sales Continue to Rise as Percentage of Total Revenue; AZT PROTECT Market Momentum Builds; Cash Position of More Than $30 Million as of September 30, 2024 Exhibit 99.1 Board Declares $0.03 per Share Quarterly Dividend LOWELL, Mass., December 20, 2024 – 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 ...

Core Viewpoint - Vast Renewables Limited has signed a development services agreement with GGS Energy to pursue Project Bravo, a commercial-scale synthetic fuels project in the Southwest United States, utilizing concentrated solar thermal power (CSP) technology to produce green methanol and sustainable aviation fuel [1][2][6]. Group 1: Project Overview - Project Bravo will be Vast's first deployment in the U.S., leveraging CSP v3.0 technology to generate carbon-free heat and electricity for a co-located refinery [2][5]. - The project aims to produce green methanol and/or electrically powered sustainable aviation fuel (e-SAF), which are critical for decarbonizing shipping and aviation fuels [3][4]. - The development target for Project Bravo is 550 MWh of CSP generation, with further details to be released as development progresses [5]. Group 2: Market Potential and Demand - Methanol, produced using clean energy, has the potential to decarbonize shipping and aviation fuels, with CSP potentially reducing green fuel production costs by up to 40% [3]. - The demand for e-SAF is expected to grow significantly, making it essential for reducing emissions in the aviation industry over the coming decades [3]. - The collaboration between Vast and GGS Energy is anticipated to attract high-quality, long-term offtake contracts from global strategic partners [3][6]. Group 3: Strategic Partnerships - The development services agreement outlines how Vast will advance Project Bravo in collaboration with GGS Energy, which focuses on utility-scale renewable energy projects [6][7]. - Craig Wood, CEO of Vast, emphasized the potential of CSP to enable low-cost green fuel production in the U.S. and its role in decarbonizing shipping and aviation [7]. - GGS Energy expressed excitement about the partnership, highlighting the significance of advanced technology in producing low-cost green fuels [7].

da-kuk CSP Inc. (NASDAQ:CSPI) provides IT, cloud, security, and computer system products and services. I've been bullish on this stock since the introduction of Aria Zero Trust Protect ("AZT") in July 2023. AZT is designed to prevent a malicious attack before it can enter a computer. It requires no downtime to install, and the software is operating system-agnostic. AZT landed a large customer just a few months after it was launched. In a January Seeking Alpha article, I wrote that the product is a game-chan ...