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Dec 31, 2023
CSP Q1 2024 Earnings Report
CSP Inc. reported a net loss for Q1 2024, impacted by delayed order closures, while securing significant contracts and raising the quarterly dividend.
Key Takeaways
CSP Inc. reported a decrease in revenue to $15.4 million compared to $18.3 million in the same quarter last year. The company experienced a net loss of $73,000, or $(0.02) per diluted share, compared to a net income of $1.0 million, or $0.21 per diluted share, in the prior year. Despite the loss, the company secured a multi-million dollar contract for its ARIA Zero Trust PROTECT offering and increased its quarterly dividend to $0.05 per share.
Revenue decreased to $15.4 million from $18.3 million year-over-year.
Net loss of $73,000, or $(0.02) per diluted share, compared to net income of $1.0 million, or $0.21 per diluted share, in the prior year.
Secured multi-million dollar contract for ARIA Zero Trust PROTECT with a global pharmaceutical company.
Quarterly dividend raised to $0.05 per share.
CSP
CSP
CSP Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
The company anticipates the sales funnel and prioritized leads to increase exponentially, driven by industry events and partnerships, with cautious optimism for the second quarter and the second half of the fiscal year.
Positive Outlook
- Early success and demand for ARIA Zero Trust PROTECT exceeding initial expectations.
- High customer satisfaction enhancing the company's reputation.
- Partnerships with leading resellers accelerating adoption of AZT.
- Representative dollar value of the new business pipeline is higher compared to any other time in the company’s history.
- Continued enthusiasm of ARIA Zero Trust PROTECT offering remains high and continues to generate growing interest among small, mid and large scale companies and organizations with OT environments
Challenges Ahead
- Orders expected to close in the first quarter were pushed out due to the holidays.
- General economic conditions.
- Market factors.
- Competitive factors and pricing pressures.
- Risk described in the company's filings with the Securities and Exchange Commission (“SEC”).
Revenue & Expenses
Visualization of income flow from segment revenue to net income