Shares of CSP Inc. (CSPI) have lost 15.1% since reporting results for the fourth quarter of fiscal 2025, underperforming the S&P 500 index’s 0.2% decline over the same period. Over the past month, however, the stock has moved in the opposite direction, gaining 16.2% compared with the S&P 500’s 2.7% advance, indicating a sharp rebound in more recent trading activity despite the post-earnings pullback.For the quarter ended Sept. 30, 2025, CSP reported revenues of $14.5 million, up 11% from $13 million in the ...

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 (NasdaqGM:CSPI) Q4 2025 Earnings Call December 16, 2025 10:00 AM ET Company ParticipantsVictor Dellovo - CEO and General ManagerGary Levine - CFOMichael Polyviou - Investor Relations PartnerJoseph Nerges - Managing Director of Equity ResearchConference Call ParticipantsBrett Davidson - AnalystWill Lauber - AnalystMike Price - AnalystOperatorGood day, everyone, and welcome to the CSPI's Fiscal Fourth Quarter and Full Year 2025 Conference Call. At this time, all participants are placed on a listen-only mo ...

CSP (NasdaqGM:CSPI) Q4 2025 Earnings Call December 16, 2025 10:00 AM ET Company ParticipantsVictor Dellovo - CEO and General ManagerGary Levine - CFOMichael Polyviou - Investor Relations PartnerJoseph Nerges - Managing Director of Equity ResearchConference Call ParticipantsBrett Davidson - AnalystWill Lauber - AnalystMike Price - AnalystOperatorGood day, everyone, and welcome to the CSPI's Fiscal Fourth Quarter and Full Year 2025 Conference Call. At this time, all participants are placed on a listen-only mo ...

CSP (NasdaqGM:CSPI) Q4 2025 Earnings Call December 16, 2025 10:00 AM ET Speaker4Good day, everyone, and welcome to the CSPI's Fiscal Fourth Quarter and Full Year 2025 Conference Call. At this time, all participants are placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Michael Polyviou. Sir, the floor is yours.Speaker5Thank you, Matthew, and hello, everyone. Thank you for joining us to re ...

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].

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]

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]

Core Insights - The article discusses the challenges and unpredictability of financial markets, emphasizing the difficulty in accurately predicting trends and identifying value opportunities [1]. Group 1 - The author expresses a strong interest in financial history and its application to current market analysis [1]. - There is a focus on the subjective nature of opinions regarding market predictions, suggesting that they should be taken with caution [2]. - The article highlights the importance of understanding past performance while acknowledging that it does not guarantee future results [3].

Core Viewpoint - CSPI reported strong revenue growth in its fiscal third quarter, driven by the Technology Solutions segment and the AZT PROTECT cybersecurity solution, despite facing margin pressures and a modest net loss [12]. Revenue & Earnings Performances - CSPI generated revenues of $15.4 million for the quarter ended June 30, 2025, an 18% increase from $13.1 million in the same period last year [2]. - Product sales rose 29% to $10.2 million, while service revenues increased marginally to $5.3 million [2]. - Gross profit decreased to $4.5 million from $4.6 million, with margins contracting to 29% from 34% due to a higher mix of product revenues and increased component costs [2]. - The company reported a net loss of $0.3 million, or 3 cents per share, compared to a net loss of $0.2 million, or 2 cents per share, a year earlier [2]. Other Key Business Metrics - The Technology Solutions segment achieved a 20% year-over-year revenue increase, driven by strong demand for cloud services and activity in the maritime sector [3]. - The TS division secured a significant Microsoft Azure project for a Florida-based healthcare provider, highlighting CSPI's strength in managed cloud offerings [3]. High-Performance Products (HPP) - The AZT PROTECT cybersecurity solution saw momentum, with new customer deployments in the steel, concrete, and lumber industries, and follow-up contracts in South Africa [4]. - Management noted that reseller partnerships with leading Rockwell Automation distributors are transitioning from early adoption to revenue acceleration, setting the stage for broader penetration in fiscal 2026 [4]. Management Commentary - CEO Victor Dellovo emphasized a land and expand strategy, where initial deployments of AZT PROTECT serve as proof points for broader rollouts across enterprise networks [5]. - Customers reported measurable operational benefits, such as preventing system outages in critical industrial environments, indicating potential for recurring contracts as the installed base grows [5]. Financial Overview - CFO Gary Levine explained that gross margin pressure was due to product mix and higher costs, while operating expenses increased from higher sales and marketing expenditures [6]. - The company ended the quarter with $26.3 million in cash and continued share repurchases, reflecting financial flexibility despite near-term earnings softness [6]. Factors Influencing Performance - Revenue growth was strong, but profitability was limited by a higher weighting of lower-margin product revenues and additional engineering and consulting expenses for AZT PROTECT [7][8]. - Modest service revenue growth tempered the recurring revenue contribution that typically supports margin stability [8]. Future Outlook - Management expressed optimism for the fourth quarter and fiscal 2025, noting momentum in both TS and HPP segments [10]. - There is accelerating interest from resellers and international partners, which could lead to larger contract opportunities [10]. Other Developments - CSPI was added to the Russell 3000 Index, increasing its exposure to institutional investors [11]. - The company authorized a quarterly dividend of $0.03 per share, reflecting a commitment to shareholder returns [11]. - CSPI repurchased over 19,000 shares for $0.3 million, with additional shares available under the 2021 repurchase program [11].