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]
CSP (CSPI) - 2025 Q1 - Earnings Call Transcript