CSP (NASDAQ:CSPI) Posts Earnings Results

CSP (NASDAQ:CSPI) released its quarterly earnings data on Thursday. The information technology services provider reported $0.01 earnings per share for the quarter, FiscalAI reports. The firm had revenue of $12.04 million during the quarter. CSP had a negative return on equity of 0.27% and a negative net margin of 0.21%.

Here are the key takeaways from CSP’s conference call:

• Total revenue declined to $12.0M from $15.7M a year ago, driven by lower product sales ( $6.7M vs. $11M) after a ~$4.5M one-time product deal in the prior-year quarter did not repeat.
• Service revenue grew 14.6% to $5.3M, with managed-services momentum including new MSP customers expected to add nearly $100,000 of monthly recurring revenue beginning this quarter.
• Mix shifted toward higher-margin services, lifting gross margin to 39.3% (vs. 29.1% prior year) and increasing gross profit by about $171,000, while net income improved to $91,000.
• AZT PROTECT showed commercial traction — now deployed at over 46 unique customers with multi-site expansion opportunities (some potentially seven-figure) and an OEM integration path with Acronis that generated strong webinar interest (≈200 attendees, 12+ demo requests).

CSP Stock Performance

CSPI stock traded down $0.65 during midday trading on Thursday, reaching $9.39. 37,661 shares of the company traded hands, compared to its average volume of 21,266. The firm has a market capitalization of $92.96 million, a price-to-earnings ratio of -939.00 and a beta of 0.73. CSP has a 52-week low of $9.11 and a 52-week high of $20.39. The business has a 50 day moving average of $12.17 and a 200-day moving average of $11.87.

CSP Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, January 15th. Shareholders of record on Friday, December 26th were paid a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend was Friday, December 26th. CSP’s payout ratio is presently -1,200.00%.

Wall Street Analysts Forecast Growth

CSPI has been the subject of several recent analyst reports. Wall Street Zen upgraded CSP to a “hold” rating in a research note on Saturday, January 10th. Weiss Ratings reissued a “hold (c-)” rating on shares of CSP in a report on Monday, December 29th. One investment analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has an average rating of “Hold”.

Institutional Trading of CSP

A number of institutional investors have recently bought and sold shares of CSPI. Geode Capital Management LLC increased its position in CSP by 113.0% during the second quarter. Geode Capital Management LLC now owns 158,355 shares of the information technology services provider’s stock valued at $2,049,000 after acquiring an additional 83,999 shares during the last quarter. Visionary Wealth Advisors boosted its stake in shares of CSP by 5.7% during the 2nd quarter. Visionary Wealth Advisors now owns 740,187 shares of the information technology services provider’s stock worth $9,578,000 after purchasing an additional 39,738 shares during the period. Segall Bryant & Hamill LLC bought a new position in CSP during the 3rd quarter valued at about $222,000. Squarepoint Ops LLC purchased a new stake in CSP in the 3rd quarter worth about $157,000. Finally, Goldman Sachs Group Inc. lifted its stake in CSP by 66.0% in the first quarter. Goldman Sachs Group Inc. now owns 29,800 shares of the information technology services provider’s stock worth $457,000 after purchasing an additional 11,850 shares during the last quarter. 26.74% of the stock is currently owned by institutional investors.

CSP Company Profile

CSP Inc develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value-added reseller to various customers in web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries.