Our sales increased by approximately $11.6 million, or 31%, to $49.3 million for the nine months ended June 30, 2023 as compared to $37.7 million for the nine months ended June 30, 2022. The increase in sales is the result of an increase of $9.3 million in our TS segment and an increase of approximately $2.3 million in our HPP segment. HPP segment sales change was as follows for the nine months ended June 30, 2023 and 2022: 31 The $11.8 million increase in sales to the Americas was primarily the result of a ...

CSP Inc. (NASDAQ:CSPI) Q2 2023 Earnings Conference Call May 10, 2023 10:00 AM ET Company Participants Michael Polyviou - Investor Relations Victor Dellovo - Chief Executive Officer Gary Levine - Chief Financial Officer Conference Call Participants Joseph Nerges - Segren Investments Brett Davidson - Private Investor Operator Good morning, everybody and welcome to CSPI Second Quarter Fiscal Year 2023 Results Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now tur ...

Table of Contents ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 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. (NASDAQ:CSPI) Q1 2023 Earnings Conference Call February 8, 2023 10:00 AM ET Company Participants Michael Polyviou - IR Victor Dellovo - CEO Gary Levine - CFO Conference Call Participants Joseph Nerges - Sergen Investments Brett Davidson - Investletter Operator Good day, and welcome to the CSPi's First Quarter and Fiscal Year 2023 Conference Call. At this time, all participants have been placed on listen-only mode and the floor will be opened for questions and comments after the presentation. It is ...

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, 2022 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) (Registrant's telephone number, including area c ...

Revenue and Profitability - Revenue increased by approximately $5.2 million, or 10%, to $54.4 million for the fiscal year ended September 30, 2022, compared to $49.2 million for the fiscal year ended September 30, 2021[158]. - Gross profit margin percentage increased from 33% of revenues for the fiscal year ended September 30, 2021, to 35% for the fiscal year ended September 30, 2022[158]. - Total gross margin increased by $2.7 million to $18.8 million for fiscal year 2022, with total gross margin as a percentage of revenue increasing to 35%[171]. - The TS segment's GM as a percentage of revenue rose to 33% in fiscal year 2022 from 30% in fiscal year 2021, driven by a $3,474 thousand increase in revenue[174]. - The HPP segment's GM as a percentage of revenue decreased to 51% in fiscal year 2022 from 59% in fiscal year 2021, primarily due to a $796 thousand decline in revenue[175]. Segment Performance - The TS segment revenue increased by approximately $5.9 million, with a $7.1 million increase in the U.S. division, partially offset by a $1.2 million decrease in the U.K. division[164]. - HPP segment revenue decreased by approximately $0.8 million, or 17%, primarily due to a $0.6 million decrease in Multicomputer product line shipments[164]. Operating Loss and Expenses - The Company recorded an operating loss of $40 thousand for the fiscal year ended September 30, 2022, compared to an operating loss of approximately $1.4 million for the fiscal year ended September 30, 2021[160]. - Selling, general and administrative (SG&A) expenses totaled $15,783 thousand in fiscal year 2022, an 8% increase from $14,624 thousand in fiscal year 2021[178]. - The TS segment's SG&A expenses increased by $1,842 thousand, primarily due to a $1,500 thousand rise in variable compensation[178]. - Engineering and development expenses in the HPP segment increased by $200 thousand to $3,100 thousand in fiscal year 2022, mainly due to higher consulting costs[177]. Tax and Financial Position - The income tax provision was approximately $50 thousand for the fiscal year ended September 30, 2022, reflecting an effective tax rate of 3%[162]. - The income tax provision for fiscal year 2022 was approximately $50 thousand, reflecting an effective tax rate of 2.6%, a significant decrease from $444 thousand and 38.8% in fiscal year 2021[187]. - Cash and cash equivalents increased by $4,000 thousand to $24,000 thousand as of September 30, 2022, compared to $20,000 thousand as of September 30, 2021[192]. - The company maintained a line of credit with a capacity of up to $15,000 thousand, with $11,900 thousand available as of September 30, 2022[196]. - Management believes that available cash, cash equivalents, and cash generated from operations will be sufficient for working capital and capital expenditure requirements for at least 12 months[199]. Contracts and Future Revenue - The Company secured a $1.8 million contract for real-time networking monitoring for cyber attack detection, with revenue expected to be recognized in fiscal year 2023[155]. Stock and Dividends - The Company suspended its stock repurchase program and quarterly cash dividends until further economic clarity, with dividends reinstated on August 10, 2022[151]. Foreign Exchange and Gains - The company recorded a foreign exchange gain of $1,692 thousand in fiscal year 2022, a significant increase of $2,180 thousand compared to a loss of $488 thousand in fiscal year 2021[180]. Inventory and Warranty - The Company utilizes the first-in, first-out method for inventory valuation, with potential write-downs for estimated obsolescence[216]. - The Company accrues for estimated warranty costs based on prior actual warranty costs for similar products[209]. Pension and Employee Benefits - Pension expense is based on actuarial computations, with management reviewing discount rates and expected returns to ensure reasonableness[219]. - The Company has defined benefit and defined contribution plans in the U.K. and U.S., with certain plans closed to newly hired employees[218]. - The funded status of pension plans is recognized on the balance sheet, with liabilities accrued for amounts exceeding funding requirements[220]. Economic Factors - Inflation and changing prices have not significantly impacted sales or revenues, although there is a trend of increasing prices from integrated circuit vendors[222].

CSP Inc. (NASDAQ:CSPI) Q4 2022 Results Conference Call December 6, 2022 10:00 AM ET Company Participants Michael Polyviou - IR Victor Dellovo - CEO Gary Levine - CFO Operator Good morning, ladies and gentlemen. And welcome to the CSPI’s Fourth Quarter Fiscal Year 2022 Financial and Operating Results Conference Call. At this time, all participants have been 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 turn the floor o ...

Financial Data and Key Metrics Changes - The company reported net sales of $13.3 million for the fiscal third quarter, slightly below the previous year's level but representing an 11% sequential increase over the second quarter of fiscal 2022 [9] - Gross profit was $5 million, or 37.3% of sales, compared to $4.2 million, or 30.8% of sales in the same quarter last year, indicating an improvement of over six percentage points [28] - Net income for the quarter was $684,000, or $0.15 per diluted share, compared to a net loss of $423,000, or $0.10 loss per share for the same quarter of the previous year [33] Business Line Data and Key Metrics Changes - The Technology Solutions (TS) business generated revenue of $12.6 million, remaining flat compared to the previous year but achieving a 16% increase over the second quarter of fiscal 2022 [16] - Service revenue grew by 37% compared to the same quarter last year and was up 30% from the second quarter of fiscal 2022, driven by growth in managed services [29] - The High-Performance Products (HPP) division reported revenue of $0.7 million, which was below expectations, but maintained a multimillion-dollar backlog [20] Market Data and Key Metrics Changes - The overall backlog increased to $60 million, reflecting rising demand for products and services, with a service backlog of $20 million as of June 30, 2022 [9][10] - The company noted that the global supply chain pressures remain high, impacting delivery timelines from suppliers [12] Company Strategy and Development Direction - The company is focusing on migrating revenue to higher-margin products and services, which has resulted in record gross margins [10][26] - The strategy includes aggressively seeking alternative sources for components to convert backlog into revenue [13] - The company is exploring partnerships and channel programs to enhance its offerings, particularly in cybersecurity solutions [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain challenges and inflationary pressures affecting costs and recruitment [15] - The backlog is viewed as a substantial undervalued asset, and management is committed to converting it into revenue [59] - The company anticipates that the backlog will continue to grow despite challenges in converting it to revenue [26] Other Important Information - The Board declared a quarterly dividend of $0.03 per share, payable on September 9, 2022, reflecting the company's commitment to returning cash to shareholders [35] - The company ended the fiscal third quarter with cash and cash equivalents of $21.4 million, an increase of $1.4 million from the previous year [34] Q&A Session Summary Question: Clarification on backlog figures - The reported backlog is $23.8 million, confirming the figure mentioned in the press release [37] Question: Share repurchase details - The company repurchased 7,000 shares, not $7,000 worth [38] Question: Delivery timeline for High-Performance Products - Delivery for the $1.8 million order for the High-Performance Products group is expected in the first quarter of the next fiscal year [39][40] Question: Strengthening of managed services - The company is seeing varied demand across managed services, including managed firewalls and desktop support [41] Question: Supply chain issues affecting UCaaS business - The company can obtain phones easily, but the supply chain issues primarily affect switching and firewalls [42] Question: Interest in Zero Trust solutions - The company is in discussions with large customers regarding the Zero Trust solutions introduced in the webinar [43][44] Question: Talent acquisition and mergers - The company has explored various avenues for acquiring talent but has found current pricing and integration challenges [48] Question: Normal backlog without supply chain issues - Under normal circumstances, the backlog would be around $4 million to $5 million [50]

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, 2022 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) | --- | --- | |------------------------------------- ...

Financial Data and Key Metrics Changes - The company reported sales of $12 million for the fiscal second quarter, with service revenue growing 21% compared to the same quarter last year [6] - Gross margins increased by 4% year-over-year, reaching 35% for the second fiscal quarter, contributing to a profit of $0.03 per diluted share, compared to a net loss of $0.20 per share in the prior year [6][19] - Cash and cash equivalents stood at $20.3 million as of March 31, 2022, an increase of $1 million from December 31, 2021 [20] Business Line Data and Key Metrics Changes - The Technology Solutions (TS) business generated revenue of $10.9 million, exceeding internal plans, with approximately 75% of the backlog attributed to this segment [11] - The High-Performance Products (HPP) division reported revenue of $1.1 million, with ongoing supply chain issues affecting revenue growth [14] - Managed Service Practice (MSP) continues to show strong performance, with expectations for sustained growth due to increasing demand for IT outsourcing [12] Market Data and Key Metrics Changes - The global managed service market is projected to grow to $300 billion by 2025, indicating a robust demand for managed services [12] - The labor market remains tight, particularly in Florida, with an unemployment rate of 3.2%, impacting recruitment and wage adjustments [8] Company Strategy and Development Direction - The company aims to transform into a cybersecurity, wireless, and managed service provider, focusing on higher-margin products and services [20] - The strategy includes adapting to a post-pandemic environment by enhancing go-to-market strategies and leveraging a strong backlog as a valuable asset [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying business trends, citing high demand for products and services despite ongoing supply chain challenges [5][6] - The company is committed to prudent expense management while pursuing growth opportunities in a rising sector expected to outpace many other industries [16][20] Other Important Information - The company repurchased nearly 13,000 shares at an average cost of $7.81 per share, indicating a belief that the stock is undervalued [17][22] - Management highlighted the importance of maintaining a strong cash position while seeking returns on investments in the current interest rate environment [27][29] Q&A Session Summary Question: Stock valuation and repurchase strategy - The participant noted the stock is undervalued and inquired about the possibility of block purchases from larger shareholders instead of open market transactions [22] - Management acknowledged the suggestion and stated they would consider it [23] Question: Cash deployment and investment returns - The participant asked about deploying cash for better returns given the current treasury bill rates [27] - Management confirmed they are investing cash and benefiting from rising rates [28][29] Question: Supply chain and delivery timelines - The participant inquired about the potential for faster delivery of components amid ongoing supply chain issues [30] - Management responded that they are actively working with distributors but face challenges common across the industry [31][32] Question: UCaaS product line and market demand - The participant asked if the shift to remote work positively impacted UCaaS sales [33] - Management indicated that demand is neutral, as both office and home users require the service, and timing issues with contracts affect sales [34] Question: Royalties and revenue expectations - The participant questioned the timing of expected royalties in the second half of the fiscal year [35] - Management expressed hope for royalties but noted that timelines have been pushed out [36]