Core Insights - CSP reported a diluted loss per share of 18 cents in Q4 FY2024, compared to earnings of 15 cents in the same quarter last year [1] - Total quarterly revenues were $13 million, reflecting a 14.9% decline from $15.3 million in the prior-year quarter [13] - Gross profit for Q4 FY2024 was $3.7 million, representing 28.4% of sales, down from $5.2 million (33.8% of sales) in the prior-year period [15] Segmental Performance - High-Performance Products (HPP) segment generated revenues of $0.4 million, primarily serving ARIA cybersecurity customers, with expectations for higher sales in FY2025 [7] - Technology Solutions (TS) segment revenues reached $12.7 million, with recurring revenues increasing to approximately 17% of total revenues, up from less than 5% two years ago [14] Key Business Metrics - CSP maintained a solid balance sheet with total liabilities of $22.17 million, up from $19.76 million the previous year, and has no long-term debt [9] - Cash and cash equivalents stood at $30.6 million, a 21.3% increase from $25.2 million as of September 30, 2023, providing ample resources for ongoing investments [16] Management Commentary - CEO Victor Dellovo expressed optimism for FY2025, highlighting strengthened partnerships and a growing pipeline of managed services and projects [17] - Management noted that operational investments in AZT PROTECT have temporarily impacted profitability but are expected to yield growth in recurring revenues and higher-margin service offerings [18][19] Other Developments - CSP's shares have declined 9.6% since the Q4 FY2024 earnings report, underperforming the S&P 500 index, which grew by 1% during the same period [12] - The company repurchased 2,800 shares for $34,000 and declared a quarterly dividend of 3 cents per share, payable on January 15, 2025 [20]

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]

Revenue Performance - Revenue for the fiscal fourth quarter ended September 30, 2024, was $13.0 million, a decrease of 15.0% compared to $15.3 million in the same quarter of the previous year[4] - For the full fiscal year 2024, revenue was $55.2 million, down from $64.6 million in fiscal 2023, representing a decline of 14.5%[7] Profitability - The company reported a net loss of $(1.7) million, or $(0.18) per diluted common share, compared to net income of $1.4 million, or $0.15 per diluted common share for the same quarter last year[4] - Gross profit for fiscal year 2024 was $18.9 million, or 34.1% of sales, compared to $21.9 million, or 33.9% of sales in the previous year[7] Recurring Revenue - Recurring revenue increased to approximately 17% of total revenue for fiscal 2024, up from under 5% two years ago[3] Cash Position - The company had cash and cash equivalents of $30.6 million as of September 30, 2024, allowing for the implementation of growth strategies[5] Business Development - The partnership with Rockwell Automation generated over 100 new business leads for the AZT PROTECT™ product line[2] - The company signed over 10 new customers in the cloud-based business during the fourth quarter[2] - The cruise line business is positioned for strong bookings and pipeline for fiscal year 2025[2] Dividend Declaration - The board declared a quarterly dividend of $0.03 per share, payable on January 15, 2025[1]

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 ...

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 June 30, 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) | --- | --- | |------------------------------------- ...

CSP Inc.'s (CSPI) third-quarter fiscal 2024 results reflect a challenging transition from last year's backlogdriven revenue boost to more normalized operations. The company faced a decline in product sales and overall revenues, leading to a slight net loss. However, growth in its Services segment and strong cash reserves underscore strategic efforts to enhance profitability and position the company for success. Q2 Results CSPI reported a third-quarter fiscal 2024 loss per share of 2 cents, moving down from ...

Financial Data and Key Metrics Changes - For Q3 2024, the company reported revenues of $13.1 million, a decrease from $17.7 million in Q3 2023, attributed to a normalization of business following previous supply chain issues [19] - Gross profit for the quarter was $4.6 million, representing 35% of sales, compared to $5.9 million or 33.5% of sales in the prior year, indicating a 150 basis point improvement in gross margin percentage despite lower revenue [19] - The company reported a net loss of $185,000 or $0.02 per share, compared to a net income of $2.5 million or $0.26 per share in Q3 2023, largely due to a prior year tax benefit of $1.7 million [20] - Operating cash flow for the quarter was $2.4 million, with cash and cash equivalents at $28.9 million, up from $13.9 million a year ago [21] Business Line Data and Key Metrics Changes - Service revenue increased by 10% in Q3 2024, contributing to a 150 basis point improvement in gross margin [6] - The Technology Solutions (TS) business continues to generate the majority of revenue, driven by increased implementation, installation, and training capabilities [15] - The UCaaS offering is gaining traction, with several new customers signed in Q4, expected to double the annual revenue run rate compared to the previous fiscal year [17] Market Data and Key Metrics Changes - The company is focusing on small to mid-tier enterprises due to shorter sales cycles, while also pursuing larger opportunities that can represent multimillion-dollar contracts [8] - The AZT PROTECT product line is gaining recognition, having won multiple industry awards, which is expected to enhance brand awareness and market presence [6] Company Strategy and Development Direction - The company aims to drive higher-margin business and build infrastructure for the AZT PROTECT product line, which is seen as transformative for the high-performance product business [5] - A multi-pronged sales strategy is being employed to target various enterprise sizes, with a focus on building partnerships and expanding brand presence in the operational technology (OT) market [10][12] - The company is committed to developing high-margin products and services, which has led to improved gross margins and cash balances [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to a normalized revenue run rate and highlighted the importance of the AZT PROTECT product line in reshaping the company's future [5] - The recent CrowdStrike incident is viewed as an opportunity to promote AZT PROTECT, emphasizing the need for robust cybersecurity measures in both IT and OT environments [14] - Management is focused on building a strong sales team and partnerships to support growth in the AZT PROTECT business [7][10] Other Important Information - The company repurchased 4,800 shares for a total cost of $70,000 during the quarter [21] - A quarterly dividend of $0.03 per share was approved, payable on September 10, 2024 [21] Q&A Session Summary Question: Integration of AZT PROTECT into the Forescout platform - Management indicated that integration planning is underway and could take 4 to 6 months [22][24] Question: Urgency from Rockwell's customers due to CrowdStrike incident - Management acknowledged the urgency and is working with Rockwell's partners to address customer concerns [28] Question: Differences in the IT version of AZT PROTECT - The IT version is designed to handle constant updates and requires individual approval for updates, contrasting with the more stable OT environment [32]

Revenue Performance - Service revenue grew by 10% to $5.3 million compared to $4.8 million in the same quarter last year, contributing to a 150 basis point improvement in gross margin percentage [2]. - Total revenue for the fiscal third quarter was $13.1 million, down from $17.7 million in the same quarter last year, as the company returned to a normalized run rate [4]. - Total sales for the three months ended June 30, 2024, were $13,105,000, a decrease of 25.0% compared to $17,708,000 for the same period in 2023 [12]. Profitability and Loss - The company reported a net loss of $0.2 million, or $0.02 per diluted common share, compared to net income of $2.5 million, or $0.26 per diluted common share in the prior year [5]. - Operating loss for the three months ended June 30, 2024, was $(720,000), compared to operating income of $575,000 for the same period in 2023 [12]. - Net loss attributable to common shareholders for the three months ended June 30, 2024, was $(185,000), compared to net income of $2,355,000 for the same period in 2023 [12]. - Net loss per common share - basic for the three months ended June 30, 2024, was $(0.02), compared to earnings of $0.27 for the same period in 2023 [12]. Cash and Financial Position - Cash and cash equivalents reached $28.9 million, providing resources for the AZT PROTECT product offering growth strategy [5]. - The company has a robust balance sheet with a near-record cash level, allowing for the implementation of near and long-term business initiatives [2]. Cost and Expenses - Gross profit for the nine months ended June 30, 2024, was $15,155,000, down 9.5% from $16,734,000 in the same period of 2023 [12]. - Total cost of sales for the nine months ended June 30, 2024, was $27,031,000, a decrease of 17.0% from $32,587,000 in the same period of 2023 [12]. - Engineering and development expenses for the three months ended June 30, 2024, were $737,000, slightly down from $741,000 in the same period of 2023 [12]. - Selling, general and administrative expenses for the nine months ended June 30, 2024, were $12,821,000, an increase of 5.8% from $12,123,000 in the same period of 2023 [12]. Business Development and Strategy - The company expects to enter the new fiscal year with an annual revenue run rate that is more than double what it was entering fiscal 2024 due to strong UCaaS business development [10]. - The AZT PROTECT offering continues to gain traction with new customer additions and increased reseller partnerships, enhancing its market penetration [2]. - The Technology Solutions business added new MSP customers and expanded relationships with existing customers, contributing to overall business growth [3]. Other Income and Tax - Other income for the three months ended June 30, 2024, was $460,000, compared to $247,000 for the same period in 2023 [12]. - Income tax benefit for the three months ended June 30, 2024, was $(75,000), compared to an expense of $(1,692,000) for the same period in 2023 [12]. Share Repurchase - The company repurchased 4,800 shares for a total cost of $70,000 during the fiscal third quarter [5].

Core Viewpoint - Zacks Investment Research has initiated coverage of CSP Inc. (CSPI) with an "Outperform" recommendation, highlighting the company's strong position to benefit from global IT spending trends, particularly in the generative AI market [1] Financial Performance - CSPI reported a net income of $1.6 million for the second quarter of fiscal 2024, a significant increase from $0.3 million in the previous year, driven by efficient cost management and a 23% growth in high-margin services [2] - The total revenues for the six months ending March 31, 2024, experienced an 8% decrease compared to the previous year, influenced by downturns in both Technology Solutions and High-Performance Products segments [5] Strategic Initiatives - The company's success is attributed to its focus on high-margin offerings, such as the AZT PROTECT software, which addresses emerging cybersecurity threats and is positioned well due to recent regulatory changes [3] - CSPI has a solid base of six patents for its AZT PROTECT software, enhancing its competitive edge in the tech landscape [4] - The company has secured a significant contract with a global pharmaceutical firm, indicating strong market demand for its products [4] Market Positioning - CSPI has a robust cash position of $27.1 million and minimal debt, allowing it to pursue growth through innovation and market expansion [3] - The company's shares have increased by 18.7% over the past six months and 160.6% over the last 12 months, with current trading at an EV/Sales multiple lower than industry benchmarks, presenting an attractive investment opportunity [6] Competitive Landscape - CSPI operates in a highly competitive sector, facing challenges from both niche firms and established giants like Cisco and IBM, which could impact market share and margins [5]