CSP Inc. Reports Strong Financial Results for First Quarter of Fiscal Year 2025LOWELL, Mass.–(BUSINESS WIRE)–February 10, 2025-

CSP Inc. (NASDAQ: CSPI) recently released its financial results for the first quarter of fiscal year 2025, which concluded on December 31, 2024. The company disclosed that it experienced continued business momentum and profitability during this period. Additionally, CSP Inc.’s Board of Directors declared a quarterly dividend of $0.03 per share, payable on March 10, 2025, to shareholders of record as of February 24, 2025.

Key highlights from the first quarter included a 17% growth in services revenue, driven by an increase in cloud-based and recurring revenue sources. CSP Inc. also expanded its customer base by signing new ARIA Zero Trust Protect (AZT PROTECT™) clients, particularly in sectors such as utility and wastewater treatment. The company maintained a strong balance sheet, with approximately $30.7 million in cash and cash equivalents, enabling the implementation of both short and long-term business strategies to support sustained growth and profitability.

Victor Dellovo, Chief Executive Officer of CSP Inc., expressed satisfaction with the first quarter results, stating, “The team’s efforts led to a solid start for fiscal 2025, with noticeable increases in total and services revenue, expanded gross margin, and a quarterly net income of $0.05 per common share – diluted.” Dellovo emphasized the positive performance of the Technology Solutions (TS) business segment, highlighting the success in cloud-based operations and increased sales to cruise lines. He also outlined plans to scale up the AZT PROTECT™ business through strategic partnerships to enhance market presence and drive growth.

In terms of financials, revenue for the first quarter of fiscal 2025 reached $15.7 million, marking a 2% increase from the corresponding period in the previous year. Services revenue contributed $4.7 million to the total, showing a significant 17% growth from the previous year. Gross profit for the quarter rose by 11% to $4.6 million, with the gross margin increasing over 200 basis points to 29.1% compared to the same period in the prior year.

CSP Inc. reported a net income of $0.5 million, or $0.05 per diluted common share, for the first quarter of fiscal 2025, contrasting with a net loss of $(73,000), or $(0.01) per diluted common share, during the previous year’s first quarter.

The company maintains a healthy balance sheet, ending December 31, 2024, with cash and cash equivalents of $30.7 million. This financial stability enables CSP Inc. to sustain its quarterly cash dividend payment while pursuing growth initiatives, including the promotion and expansion of the AZT PROTECT™ product line.

In light of these accomplishments, CSP Inc. will hold a conference call at 10:00 a.m. (ET) today to discuss its financial results and provide business updates. Further details and a live webcast link for the call can be found on the company’s official website.

CSP Inc. (NASDAQ: CSPI) consists of two divisions – the High Performance Product division, specializing in cybersecurity solutions such as ARIA Cybersecurity Solutions, and the Technology Solutions division, offering IT services and professional solutions in collaboration with leading technology providers.

The company relies on the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. CSP Inc. encourages investors to review its SEC filings for a comprehensive understanding of the risks associated with these statements.

For more information, please visit the CSP Inc. website or contact Gary Levine, Chief Financial Officer.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read CSP’s 8K filing here.

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.