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].
CSP (CSPI) - 2024 Q3 - Quarterly Results