CSP Inc. Q1 2026 Earnings Call Summary

Core Insights - The company experienced a total revenue decline attributed to a challenging year-over-year comparison, specifically due to a non-recurring $4.5 million product deal in the previous year [1] Revenue Performance - The company is focusing on prioritizing service revenue and expanding its Monthly Recurring Revenue (MRR) base to enhance overall margin profiles [1] - Service revenue grew by 14.6%, driven by momentum in technology solutions and managed cloud practices, particularly benefiting from complex enterprise migrations to Azure [1] Managed Service Practice (MSP) - The Managed Service Practice is beginning to see early returns from recent infrastructure investments, with new customer signings expected to generate nearly six figures in monthly revenue [1] Cybersecurity Growth - AZT Protect's cybersecurity traction is expanding through a 'seed and grow' strategy, now serving 46 unique customers across various industrial sectors such as steel, energy, and pharmaceuticals [1] - The sales cycle for cybersecurity is often delayed due to unique customer procurement processes, but the use of industry-specific case studies is starting to accelerate the education phase [1]