CSP Inc (CSPI) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth ...

GuruFocus News

Thu, May 15, 2025, 12:14 AM 3 min read

• Revenue: $13.1 cardinal for the fiscal 2nd quarter.

• Service Revenue: $4.6 million, down from $5.2 cardinal successful the anterior twelvemonth period.

• Gross Profit: $4.2 cardinal oregon 32% of sales, compared to $6.2 cardinal oregon 45.3% of income successful the erstwhile year.

• Net Loss: $108,000 oregon $0.01 per diluted stock for the fiscal 2nd quarter.

• Six-Month Revenue: $28.5 million, compared to $29.1 cardinal for the archetypal six months of fiscal 2024.

• Net Profit for Six Months: $341,000 oregon $0.04 per diluted share.

• Cash and Cash Equivalents: Over $29 cardinal arsenic of March 31, 2025.

• Share Repurchase: $380,000 spent purchasing 23,800 shares of communal banal during the quarter.

• Quarterly Cash Dividend: $0.03 per stock approved, payable connected June 11, 2025.

• Warning! GuruFocus has detected 4 Warning Signs with CSPI.

Release Date: May 14, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• CSP Inc (NASDAQ:CSPI) met its interior fund and expectations with a fiscal 2nd 4th gross of $13.1 million.

• The institution signed six caller customers for its AZT PROTECT product, indicating increasing traction successful the OT marketplace.

• A caller reseller concern with Rexel USA was established, enhancing organisation capabilities for AZT PROTECT.

• CSP Inc (NASDAQ:CSPI) maintains a robust equilibrium expanse with implicit $29 cardinal successful currency and currency equivalents.

• The Technology Solution concern generated $12 cardinal successful gross and continues to beryllium profitable, with ongoing contracts successful the cruise enactment and water freighter liner markets.

• Service gross declined compared to the erstwhile twelvemonth owed to the lack of a azygous multimillion-dollar deal.

• Gross nett decreased to $4.2 cardinal oregon 32% of sales, down from $6.2 cardinal oregon 45.3% of income successful the anterior year, owed to higher constituent costs.

• The institution reported a nonaccomplishment of $108,000 oregon $0.01 per diluted stock for the fiscal 2nd quarter.

• Price increases connected products purchased for resale and imaginable lawsuit spending reductions airs challenges for aboriginal operations.

• Some imaginable customers successful the compartment operation marketplace person not responded to outreach efforts, indicating imaginable hurdles successful marketplace expansion.

Q: Can you supply much details connected the backlog for AZT and the imaginable size of these contracts? A: Victor Dellovo, President and CEO, stated that the pipeline is increasing with caller customers, and it is segmented into 4 antithetic stages. However, helium preferred not to remark further connected circumstantial numbers oregon imaginable declaration sizes.

Q: Is the cruise vessel and freighter concern continuing to grow, oregon is it steady? A: Victor Dellovo, President and CEO, mentioned that the concern is steady. The docket depends connected erstwhile ships are disposable for modifications, which is unpredictable arsenic it aligns with their drydock schedules.