CSP Inc. Earnings Call Transcripts
Fiscal Year 2026
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Q3 revenue declined year-over-year due to hardware delivery delays and longer sales cycles, but gross margin improved and backlog rose 65%. Managed services and AZT PROTECT showed growth, with several large deals nearing completion. Cash and receivables remain strong.
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Q2 FY2026 saw strong product and service growth, margin expansion in services, and a major multi-site AZT PROTECT contract. Net income turned positive, and management expects continued growth, supported by a robust balance sheet and expanding channel partnerships.
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Q1 2026 revenue declined year-over-year due to a prior one-time deal, but service revenue grew 14.6% and gross margin rose to 39.3%. Managed services and AZT PROTECT cybersecurity solutions are driving growth, with new customer wins and multi-site expansion opportunities.
Fiscal Year 2025
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Fourth quarter revenue rose 11% year-over-year, driven by a 63% surge in service revenue and higher gross margins. The company is investing in growth areas like managed services and industrial IoT cybersecurity, with a strong balance sheet and positive outlook for 2026.
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Q3 revenue rose 18% year-over-year to $15.4M, led by strong technology solutions and expanding AZT Protect deployments. Gross margin declined to 29% due to higher component costs, but cash reserves remain robust. Momentum continues into Q4, with expectations for further growth.
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Q2 revenue was $13.1M, with a net loss of $108K, as service revenue declined due to a non-recurring deal last year. AZT Protect expanded its pipeline and signed key contracts, while TS business remained profitable. Cash exceeded $29M, supporting dividends and share repurchases.
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Q1 2025 delivered revenue growth, higher service sales, and improved margins, with net income of $472,000 and $30.7 million in cash. AZT PROTECT gained traction in OT cybersecurity, and management expects a significant revenue ramp-up this year.
Fiscal Year 2024
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Q4 and full-year 2024 results met expectations, with recurring revenue rising to 17% of sales and strong cash reserves. AZT PROTECT gained momentum with new Fortune 500 clients and distribution partnerships, while TS managed services and cloud projects drove growth.
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Q3 FY24 saw normalized revenue at $13.1M, with gross margin up to 35% and a net loss of $185K. Service revenue grew 10%, AZT PROTECT won multiple awards, and new partnerships and resellers expanded global reach. Cash balance rose to $28.9M.