CSP Inc
NASDAQ:CSPI
CSP Inc
CSP, Inc. engages in developing and marketing information technology integration solutions advanced security products, managed IT services, purpose built network adapters, and cluster computer systems. The company is headquartered in Charlestown, Massachusetts and currently employs 112 full-time employees. The firm operates through two segments: Technology Solutions (TS) and High Performance Products (HPP). TS focuses on value added reseller (VAR) integrated solutions including third party hardware, software and technical computer related consulting and managed services. HPP segment designs, manufactures and delivers products and services to customers that require cyber security services, networking and signal processing products. HPP segment also provides Myricom network adapters for high-performance packet capture and application offloading.
CSP, Inc. engages in developing and marketing information technology integration solutions advanced security products, managed IT services, purpose built network adapters, and cluster computer systems. The company is headquartered in Charlestown, Massachusetts and currently employs 112 full-time employees. The firm operates through two segments: Technology Solutions (TS) and High Performance Products (HPP). TS focuses on value added reseller (VAR) integrated solutions including third party hardware, software and technical computer related consulting and managed services. HPP segment designs, manufactures and delivers products and services to customers that require cyber security services, networking and signal processing products. HPP segment also provides Myricom network adapters for high-performance packet capture and application offloading.
Revenue Decline: CSPi reported Q1 revenue of $12 million, down from $15.7 million last year, mainly due to a $4.5 million one-time product deal in the prior period not repeating.
Service Revenue Growth: Service revenue rose 14.6% to $5.3 million, driven by momentum in technology solutions and managed services.
Margin Improvement: Gross profit margin increased to 39.3%, up from 29.1% a year ago, due to a higher mix of services.
AZT Protect Traction: The cybersecurity solution AZT Protect saw year-over-year revenue growth, with the customer base expanding to over 46 and multiple multisite deals underway.
Strong Cash Position: CSPi ended the quarter with $24.9 million in cash and equivalents, despite a decrease from the previous quarter due to timing of financing deals.
Dividend Announced: A dividend of $0.03 per share will be paid on March 12 to shareholders of record in February.
Share Repurchases: Management intends to resume share buybacks in the current quarter after a blackout period.
Positive Outlook: Management is confident fiscal 2026 will be a growth year, supported by service segment momentum and continued investment in core offerings.
