CSP (CSPI) - 2025 Q1 - Quarterly Report

Sales Performance - Sales increased by $0.3 million, or 2$15.7 million for the three months ended December 31, 2024, compared to $15.4 million for the same period in 2023[113]. - TS segment sales remained flat at$10.9 million for the three months ended December 31, 2024, while service sales increased by $0.6 million, or 16$0.9 million, or 6%, primarily driven by the TS segment's U.S. division[118]. Profitability - Gross margin percentage increased to 29% for the three months ended December 31, 2024, up from 27% for the same period in 2023[119]. - Net income for the three months ended December 31, 2024, was $472 thousand, compared to a net loss of$(73) thousand for the same prior year period[113]. - The overall HPP segment gross margin increased to 50% for the three months ended December 31, 2024, from 47% for the same period in 2023[122]. - Service gross margin as a percentage of service sales increased to 58% for the three months ended December 31, 2024, compared to 50% for the same period in 2023[121]. Operating Loss and Expenses - Operating loss was $(0.4) million for the three months ended December 31, 2024, compared to an operating loss of$(0.3) million for the same period in 2023[113]. - Engineering and development expenses for the HPP segment increased by $0.1 million to$0.8 million for the three months ended December 31, 2024, primarily due to increased consulting and stock compensation expenses[123]. - SG&A expenses totaled $4.1 million for the three months ended December 31, 2024, an increase of$0.4 million compared to the prior year, with the TS segment accounting for a $0.3 million increase due to higher commissions and stock compensation[124]. Other Income and Tax - Other income, net was$0.7 million for the three months ended December 31, 2024, compared to $0.3 million for the same period in 2023[113]. - Total other income, net increased by$0.4 million to $711 thousand for the three months ended December 31, 2024, primarily driven by a foreign exchange gain of$469 thousand[125]. - An income tax benefit of $115 thousand was recorded for the three months ended December 31, 2024, compared to an income tax expense of$13 thousand in the same period of 2023[130]. Cash Flow and Financing - Cash and cash equivalents increased by $0.1 million to$30.7 million as of December 31, 2024, from $30.6 million as of September 30, 2024[132]. - Cash provided by operating activities was$1.7 million for the three months ended December 31, 2024, remaining flat compared to the prior year[134]. - Cash used in investing activities decreased to $47 thousand for the three months ended December 31, 2024, down from$126 thousand in the prior year[135]. - Cash used in financing activities was $1.6 million for the three months ended December 31, 2024, compared to$1.2 million in the prior year, primarily due to a net payment on the line of credit[136]. - The company has a line of credit with a capacity of up to $15.0 million, with$12.4 million available as of December 31, 2024[139]. - The company expects to receive $2.4 million related to financing receivables in the remainder of fiscal year 2025[140].