CSP Inc. Grows Fiscal First Quarter Revenue 48% from Prior Year First Quarter; Reports EPS of $0.21
CSPi reported strong financial results for the fiscal 2023 first quarter ending December 31, 2022, achieving $18.3 million in revenue, a 48% increase from the previous year. Product revenue soared by 63%, while services revenue grew 13%. The company declared a quarterly dividend of $0.03 per share, payable on March 14, 2023. Gross profit rose to $5.8 million, marking a gross margin of 31.7%, up nearly 2.5 percentage points year-over-year. The gross backlog stood at $22.9 million. CSPi's consistent growth reflects its strategic shift toward higher-value cybersecurity and managed services offerings.
- Revenue increased 48% to $18.3 million year-over-year.
- Product revenue grew 63% compared to the prior year.
- Gross profit of $5.8 million, reflecting a gross margin improvement to 31.7%.
- The declared quarterly cash dividend of $0.03 per share.
- Gross backlog of $22.9 million as of December 31, 2022.
- Cash and cash equivalents decreased by approximately $4.4 million from September 30, 2022.
- Supply chain issues persisted, affecting some system components.
Gross Backlog of Approximately
LOWELL, MA / ACCESSWIRE / February 8, 2023 / CSP Inc. (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, today reported continued business momentum for the fiscal 2023 first quarter ended December 31, 2022. The Company also announced that the Board of Directors declared a quarterly dividend of
Fiscal First Quarter Operating Highlights and Recent Achievements
- Product revenue grew
63% compared to the prior year first quarter - Services revenue grew
13% compared to the prior year first quarter - EPS of
$0.21 increased significantly from a loss of$(0.09) in the prior year first quarter - Increased sales of higher margin products and services lead to gross margin of
31.7% for the quarter, nearly a 2.5 percentage point increase over the prior year first quarter - Gross backlog (backlog) as of December 31, 2022, of
$22.9 million
"The continued migration of our business to offer differentiated, higher value cybersecurity, wireless and managed services offerings, is propelling our growth," commented Victor Dellovo, Chief Executive Officer. "We have now reported consecutive quarters of revenue growth in excess of
"Our Technology Solutions business continued to grow during the first quarter. At the same time, our High-Performance Products business revenue more than doubled compared to the year ago first quarter. This growth was primarily due to a sizeable customer engagement in the 2023 fiscal first quarter, and we are cautiously optimistic the HPP business will be a growing contributor as the fiscal year progresses.
"Our business, and the opportunity pipeline we have in front of us, is stronger today than at any time in our Company's history. Our strategy, combined with our financial resources provides us with the opportunity to provide our customers with attractive financing that contributes to our profitability. These transactions position CSPi to generate increased levels of future cash flow while we enhance our relationship with customers and provide us future growth opportunities."
2023 Fiscal First Quarter Results
Revenue for the fiscal 2023 first quarter was
Gross profit for the fiscal first quarter was
The Company had cash and cash equivalents of
Conference Call Details
CSPi Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W. Levine will host a conference call at 10:00 a.m. (ET) today, February 8, 2023 to review CSPi's financial results and provide a business update. To listen to a live webcast of the call, the event link is https://www.webcaster4.com/Webcast/Page/2912/47591.. Individuals may also listen to the call via telephone, by dialing 888-506-0062 or 973-528-0011 and use the Participant Access Code: 478992 when greeted by the live operator. For interested parties unable to participate in the live call, an archived version of the webcast will be available for approximately one year on CSPi's website.
About CSPi
CSPi (NASDAQ: CSPI) operates two divisions, each with unique expertise in designing and implementing technology solutions to help their customers use technology to success. The High Performance Product division, including ARIA Cybersecurity Solutions, originated from supporting initiatives for the Department of Defense and Western intelligence agencies related to network monitoring, data protection, and intelligence initiatives. This focused mindset now results in foolproof data protection, enterprise wide. Our ARIA Software Defined Security solutions set provides enhanced network security, as well as accelerating incident response capabilities, while our Myricom nVoy Series appliances provide automated breach identification and notification, enabled by the 10G dropless packet capture inherent in our Myricom intelligent adapters. CSPi's Technology Solutions division helps clients achieve their business goals and accelerate time to market through innovative IT solutions and professional services by partnering with best-in-class technology providers. For organizations that want the benefits of an IT department without the cost, we offer a robust catalog of Managed IT Services providing 24×365 proactive support. Our team of engineers have expertise across major industries supporting five key technology areas: Advanced Security; Communication and Collaboration; Data Center; Networking; and Wireless & Mobility.
Safe Harbor
The Company wishes to take advantage of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking under the Act. Such forward-looking statements may include but are not limited to, in addition, our gross backlog increasing to over
The Company cautions that numerous factors could cause actual results to differ materially from forward-looking statements made by the Company. Such risks include general economic conditions, market factors, competitive factors and pricing pressures, and others described in the Company's filings with the Securities and Exchange Commission ("SEC"). Please refer to the section on forward looking statements included in the Company's filings with the SEC.
CSP INC. AND SUBSIDIARIES (Amounts in thousands) | ||||||||
| December 31, 2022 | September 30, 2022 | |||||||
| (unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and short-term investments | $ | 19,585 | $ | 23,982 | ||||
Accounts receivable, net | 22,232 | 22,993 | ||||||
Inventories | 4,116 | 4,372 | ||||||
Other current assets | 7,699 | 8,110 | ||||||
Total current assets | 53,632 | 59,457 | ||||||
Property, equipment and improvements, net | 604 | 647 | ||||||
Operating lease right-of-use assets | 1,011 | 1,160 | ||||||
Long-term receivable | 6,932 | 7,412 | ||||||
Other assets | 6,795 | 6,386 | ||||||
Total assets | $ | 68,974 | $ | 75,062 | ||||
Liabilities and Shareholders` Equity | ||||||||
Current liabilities | $ | 23,064 | $ | 30,182 | ||||
Pension and retirement plans | 1,295 | 1,337 | ||||||
Operating lease liabilities | 531 | 623 | ||||||
Notes Payable | - | 449 | ||||||
Other non-current liabilities | 3,374 | 3,508 | ||||||
Shareholders` equity | 40,710 | 38,963 | ||||||
Total liabilities and shareholders` equity | $ | 68,974 | $ | 75,062 | ||||
CSP INC. AND SUBSIDIARIES (Amounts in thousands, except per share data ) | ||||||||
| Three months ended | ||||||||
| December 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
Sales: | ||||||||
Product | $ | 14,221 | $ | 8,720 | ||||
Services | 4,123 | 3,649 | ||||||
Total sales | 18,344 | 12,369 | ||||||
Cost of sales: | ||||||||
Product | 10,771 | 7,277 | ||||||
Services | 1,756 | 1,478 | ||||||
Total cost of sales | 12,527 | 8,755 | ||||||
Gross profit | 5,817 | 3,614 | ||||||
Operating expenses: | ||||||||
Engineering and development | 836 | 627 | ||||||
Selling, general and administrative | 3,617 | 3,383 | ||||||
Total operating expenses | 4,453 | 4,010 | ||||||
Operating income (loss) | 1,364 | (396 | ) | |||||
Other income (expense), net | (270 | ) | 42 | |||||
Income (loss) before income taxes | 1,094 | (354 | ) | |||||
Income tax expense | 133 | 12 | ||||||
Net income (loss) | $ | 961 | $ | (366 | ) | |||
Net income (loss) attributable to common shareholders | $ | 906 | $ | (366 | ) | |||
Net income (loss) per share - basic | $ | 0.21 | $ | (0.09 | ) | |||
Weighted average shares outstanding - basic | 4,295 | 4,200 | ||||||
Net income (loss) per share - diluted | $ | 0.21 | $ | (0.09 | ) | |||
Weighted average shares outstanding - diluted | 4,328 | 4,200 | ||||||
CONTACT:
CSP Inc.
Gary Levine, 978-954-5040
Chief Financial Officer
SOURCE: CSP, Inc.
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FAQ
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