Sales Performance - Sales increased by $0.3 million, or 2%, to $15.7 million for the three months ended December 31, 2024, compared to $15.4 million for the same period in 2023[113]. - TS segment sales remained flat at $10.9 million for the three months ended December 31, 2024, while service sales increased by $0.6 million, or 16%[115]. - Sales in the Americas increased by $0.9 million, or 6%, primarily driven by the TS segment's U.S. division[118]. Profitability - Gross margin percentage increased to 29% for the three months ended December 31, 2024, up from 27% for the same period in 2023[119]. - Net income for the three months ended December 31, 2024, was $472 thousand, compared to a net loss of $(73) thousand for the same prior year period[113]. - The overall HPP segment gross margin increased to 50% for the three months ended December 31, 2024, from 47% for the same period in 2023[122]. - Service gross margin as a percentage of service sales increased to 58% for the three months ended December 31, 2024, compared to 50% for the same period in 2023[121]. Operating Loss and Expenses - Operating loss was $(0.4) million for the three months ended December 31, 2024, compared to an operating loss of $(0.3) million for the same period in 2023[113]. - Engineering and development expenses for the HPP segment increased by $0.1 million to $0.8 million for the three months ended December 31, 2024, primarily due to increased consulting and stock compensation expenses[123]. - SG&A expenses totaled $4.1 million for the three months ended December 31, 2024, an increase of $0.4 million compared to the prior year, with the TS segment accounting for a $0.3 million increase due to higher commissions and stock compensation[124]. Other Income and Tax - Other income, net was $0.7 million for the three months ended December 31, 2024, compared to $0.3 million for the same period in 2023[113]. - Total other income, net increased by $0.4 million to $711 thousand for the three months ended December 31, 2024, primarily driven by a foreign exchange gain of $469 thousand[125]. - An income tax benefit of $115 thousand was recorded for the three months ended December 31, 2024, compared to an income tax expense of $13 thousand in the same period of 2023[130]. Cash Flow and Financing - Cash and cash equivalents increased by $0.1 million to $30.7 million as of December 31, 2024, from $30.6 million as of September 30, 2024[132]. - Cash provided by operating activities was $1.7 million for the three months ended December 31, 2024, remaining flat compared to the prior year[134]. - Cash used in investing activities decreased to $47 thousand for the three months ended December 31, 2024, down from $126 thousand in the prior year[135]. - Cash used in financing activities was $1.6 million for the three months ended December 31, 2024, compared to $1.2 million in the prior year, primarily due to a net payment on the line of credit[136]. - The company has a line of credit with a capacity of up to $15.0 million, with $12.4 million available as of December 31, 2024[139]. - The company expects to receive $2.4 million related to financing receivables in the remainder of fiscal year 2025[140].

Financial Data and Key Metrics Changes - The company reported revenue of $15.7 million for Q1 2025, an increase from $15.4 million in Q1 2024 and $13 million in Q4 2024 [22] - Service revenue grew by 17% to $4.7 million compared to $4 million in both the prior year's first quarter and the previous quarter [22] - Gross profit increased to $4.6 million, representing 29.1% of sales, up from $4.1 million or 26.6% of sales in the same quarter last year [23] - Net income for the quarter was $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 [23] Business Line Data and Key Metrics Changes - The Technology Solutions business generated approximately $15.2 million in sales, contributing significantly to overall revenue [10] - The company added a second major cruise line order and continued to grow in the ocean freight liner market, enhancing monthly recurring revenue [10] Market Data and Key Metrics Changes - The company is expanding its presence in the Operational Technology (OT) markets, where demand for enhanced cybersecurity solutions is increasing [12] - A partnership with United Flow Technologies aims to implement AZT PROTECT in water treatment facilities, addressing vulnerabilities to cyber attacks [14] Company Strategy and Development Direction - The company is focusing on the middle market OT customers through partnerships with Rockwell distributors, which are expected to have shorter sales cycles [18] - The strategy includes leveraging industry awards for AZT PROTECT to enhance market visibility and credibility [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a significant increase in revenue from AZT PROTECT in the current fiscal year [62] - The company is actively working to build name recognition and market presence through partnerships and trade shows [55][59] Other Important Information - The Board of Directors authorized a quarterly cash dividend of $0.03 per share [9] - The company maintains a robust balance sheet with cash and cash equivalents of $30.7 million, supporting growth initiatives [25] Q&A Session Summary Question: Inquiry about AZT PROTECT upgrades - Management confirmed that an additional feature upgrade for AZT PROTECT will be announced soon [34] Question: Status of patents related to ARIA platform - Three patents have been issued, with two more expected to issue by year-end and two recent submissions anticipated by 2026 [36] Question: Sales channels for AZT PROTECT - Current sales have not yet come through Rockwell channels, as contracts are still being established [41] Question: Potential for overseas sales - There are no restrictions preventing AZT PROTECT from being sold in overseas markets [46] Question: Partnerships for market entry - Management indicated that no partnerships have been established yet, focusing on building recognition through distributors [55] Question: Anticipated revenue ramp-up for AZT - Management is budgeting for a significant increase in AZT revenues this year [62] Question: Share buyback plans - Management is considering more aggressive share buybacks in the future [68]

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]

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 ...