Loading...
•
Mar 31, 2020
CSP Q2 2020 Earnings Report
CSP Inc. reported financial results for the 2020 fiscal second quarter ended March 31, 2020.
Key Takeaways
CSP Inc. reported a slight decrease in revenue to $16.1 million compared to $16.4 million in the year-ago quarter. The company experienced a net loss of $732,000, or $(0.18) per share, compared to a net loss of $619,000, or $(0.15) per share in the previous year's quarter. Gross profit increased to $4.5 million, representing 27.9% of sales, driven by a favorable mix of higher margin services business.
Revenue for the fiscal second quarter was $16.1 million.
Gross profit for the fiscal second quarter was $4.5 million, or 27.9% of sales.
Net loss of $732,000 for the second quarter, or $(0.18) per share.
Cash and cash equivalents of $15.2 million as of March 31, 2020.
CSP
CSP
CSP Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
The Company cautiously optimistic it will convert a good number of these opportunities to revenue when the business environment is more favorable.
Positive Outlook
- Rising interest in ARIA and UCaaS offerings.
- Adjusted operations to comply with local and federal requirements.
- Over 90% of the team is working remotely to maintain contact with customers.
- Continuing to experience a growing interest in ARIA.
- Virtual demonstrations are leading to customer engagements.
Challenges Ahead
- COVID-19 pandemic may cause harm to the company.
- Disruption to operations due to the unavailability of employees.
- Volatility in the demand for or availability of products and services.
- Inability to meet customers’ needs due to disruptions in the manufacture, sourcing and distribution of products and services.
- Suspended share repurchase program and cash dividends to preserve financial resources.
Revenue & Expenses
Visualization of income flow from segment revenue to net income