Workflow
CSP Posts Q4 Loss as Revenues Decline Y/Y, Focuses on Growth in 2025
CSPICSP (CSPI) ZACKS·2024-12-23 18:10

Core Insights - CSP reported a diluted loss per share of 18 cents in Q4 FY2024, compared to earnings of 15 cents in the same quarter last year [1] - Total quarterly revenues were 13million,reflectinga14.913 million, reflecting a 14.9% decline from 15.3 million in the prior-year quarter [13] - Gross profit for Q4 FY2024 was 3.7million,representing28.43.7 million, representing 28.4% of sales, down from 5.2 million (33.8% of sales) in the prior-year period [15] Segmental Performance - High-Performance Products (HPP) segment generated revenues of 0.4million,primarilyservingARIAcybersecuritycustomers,withexpectationsforhighersalesinFY2025[7]TechnologySolutions(TS)segmentrevenuesreached0.4 million, primarily serving ARIA cybersecurity customers, with expectations for higher sales in FY2025 [7] - Technology Solutions (TS) segment revenues reached 12.7 million, with recurring revenues increasing to approximately 17% of total revenues, up from less than 5% two years ago [14] Key Business Metrics - CSP maintained a solid balance sheet with total liabilities of 22.17million,upfrom22.17 million, up from 19.76 million the previous year, and has no long-term debt [9] - Cash and cash equivalents stood at 30.6million,a21.330.6 million, a 21.3% increase from 25.2 million as of September 30, 2023, providing ample resources for ongoing investments [16] Management Commentary - CEO Victor Dellovo expressed optimism for FY2025, highlighting strengthened partnerships and a growing pipeline of managed services and projects [17] - Management noted that operational investments in AZT PROTECT have temporarily impacted profitability but are expected to yield growth in recurring revenues and higher-margin service offerings [18][19] Other Developments - CSP's shares have declined 9.6% since the Q4 FY2024 earnings report, underperforming the S&P 500 index, which grew by 1% during the same period [12] - The company repurchased 2,800 shares for $34,000 and declared a quarterly dividend of 3 cents per share, payable on January 15, 2025 [20]