CSP Inc. (CSPI) Market Cap
CSP Inc. has a market capitalization of $89.8M.
Financials based on reported quarter end 2025-12-31
Price: $9.06
▼ -0.02 (-0.22%)
Market Cap: 89.81M
NASDAQ · time unavailable
CEO: Victor J. Dellovo
Sector: Technology
Industry: Information Technology Services
IPO Date: 1982-01-29
Website: https://www.cspi.com
CSP Inc. (CSPI) - Company Information
Market Cap: 89.81M · Sector: Technology
CSP Inc. develops and markets IT integration solutions, security products, managed IT 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. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.
Analyst Sentiment
Based on 0 ratings
Consensus Price Target
No data available
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"CSPI reported revenue of $12.036M and a net income of $91k for the year ending December 31, 2025. With a share count of 9.442M, the earnings per share (EPS) stands at $0.0091. Importantly, CSPI is currently in a challenging cash flow situation, exhibiting negative operating cash flow of -$2.916M and free cash flow of -$3.021M. The balance sheet reflects total assets of $69.154M against total liabilities of $24.344M, resulting in total equity of $44.810M and a negative net debt of -$22.219M, indicating a strong liquidity position. However, shareholder returns appear unimpressive, with no dividends paid recently despite multiple declarations of $0.03 per share, and a significant decline in stock price of about 50.42% over the past year. This decline coupled with minimal revenue growth and negative cash flow could create investor concerns about the company's short-term performance and long-term sustainability."
Revenue Growth
Minimal revenue growth with $12.036M.
Profitability
Net income is low at $91k and profitability is weak.
Cash Flow Quality
Negative cash flow, both operating and free cash.
Leverage & Balance Sheet
Strong balance sheet with significant equity relative to liabilities.
Shareholder Returns
No dividends paid in the year, significant stock price decline.
Analyst Sentiment & Valuation
Negative market performance indicates poor investor sentiment.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management sounded confident on service momentum and improving gross margin, but the Q&A exposed execution and timing friction in AZT multi-site deployments. Financially, Q1 revenue fell to $12.0M (from $15.7M) largely due to the absence of a ~$4.5M one-time product deal from the prior-year quarter. The company offset that with service revenue +14.6% to $5.3M and a sharp gross margin expansion to 39.3% from 29.1% (+~10.2pp). On the strategic upside, MSP is adding incremental scale: management clarified that by last quarter it was billing net close to $100k of additional MSP revenue per month. However, analysts pressed on Acronis embedding revenue predictability—management admitted APIs/integration are not complete and refused to quantify timing. For AZT, they highlighted approvals for second/third sites but acknowledged slow, customer-by-customer procurement cycles and that exponential momentum is still too early. Overall tone: upbeat operationally, constrained by integration and sales-cycle hurdles.
Growth Catalysts
- Service revenue momentum: technology solution and managed service practice drove service revenue +14.6% to $5.3M
- Technology Solution leading performance across networking/wireless/mobility/UC&C/data centers/advanced security
- AZT Protect cybersecurity traction: year-over-year product revenue growth; 46 unique customers served within ~1 year
- Multi-site AZT Protect expansion with second/third site approvals; plan for rapid execution to show value and reduce disruption from cyberattacks
Business Development
- Microsoft Azure ecosystem: MSP practice is described as a platinum partner with Microsoft
- Acronis OEM embedding partnership: AZT Protect to be embedded into Acronis platform (integration via APIs; webinar ~200 attendees; 12+ demo requests)
- Acronis branding transition referenced by analyst: Acronis Cyber Backup moving to Acronis Cyber Protect GUI; CSPI customers already using Acronis down there (CSPI potentially can add AZT into backup workflow where customers choose to spend for AZT)
Financial Highlights
- Revenue: $12.0M vs $15.7M prior-year Q1 (decline attributed to ~$4.5M one-time product deal in year-ago quarter that did not repeat)
- Product revenue: $6.7M vs $11.0M prior-year Q1 (same driver: lack of repeat one-time orders)
- Service revenue: $5.3M vs $4.7M prior-year Q1 (+14.6%)
- Gross profit: $4.7M vs $4.6M prior-year Q1
- Gross margin: 39.3% of sales vs 29.1% prior-year (change approx. +10.2 percentage points; management ties to service mix/margin improvement)
- R&D expense: +9.2% to $858k (supports AZT Protect deployment customization and OEM embedding development)
- Tax: tax expense $280k; year-to-date effective tax rate 75.5% (driven by state income taxes, valuation allowance changes on state credits, and nondeductible executive comp)
- Net income: $91k vs $42k prior-year; diluted EPS $0.01 vs $0.05 (EPS down despite higher net income—per transcript values provided)
Capital Funding
- Cash and cash equivalents: $24.9M as of 12/31/2025
- Dividend declared/paid: $0.03 per share on March 12 to holders of record Feb 26
- Financing deals: cash decrease from 09/30/2025 primarily due to several financing deals closed in Q1; expected to collect ~$3.3M from financing payments over next two quarters
- Share repurchase timing: blackout period; company said window opens 'in the next forty-eight hours' and buybacks will occur 'this quarter' (no dollar amount disclosed)
- Financing role: management reiterated they remain active in financing arrangements (3-year deals; payment structures vary by customer)
Strategy & Ops
- Managed service investment monetization: new MSP customers begin billing this quarter; nearly six-figures in monthly revenue per management
- Concrete MSP incremental run-rate: as of last quarter, starting to bill 'net close to $100,000' additional per month of net-new MSP revenue (clarified by CEO in Q&A; 'additional increase per month' vs total customer base)
- AZT OEM integration execution: building APIs; management will not quantify revenue impact yet because integration not fully completed
- AZT multi-site go-to-market process optimization: industry one-pagers and messaging to speed sales; references to local partners to reduce POC burden
Market Outlook
- Expect to deliver 'steady profitable improvements' and 'operating leverage' as revenue grows throughout fiscal 2026
- Reporting cadence: progress update expected in May
- AZT revenue outlook: management said 'sizable AZT sales for the fiscal year unfolds' but no dollar guidance provided
- Acronis/AZT revenue quantification: management stated it is 'way too early' to provide outlook until API integration rollout; CEO would include quantified outlook only after integration is finished
Risks & Headwinds
- AZT multi-site procurement timing delays: unique procurement/development criteria per customer causes 'various timing delays' and 'very, very slow' cycles; requires site-by-site POs and sometimes re-POC/budget approvals
- Sales process not yet 'exponential': management said momentum is positive but 'still a little too early' and 'still… only been truly a year' to accumulate enough data
- No tariff/macro/FX risks explicitly mentioned in transcript
Sentiment: MIXED
Note: This summary was synthesized by AI from the CSPI Q1 2026 (fiscal quarter ended 12/31/2025) earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.