CSP (NASDAQ:CSPI) Issues Earnings Results

CSP (NASDAQ:CSPI) posted its earnings results on Friday. The information technology services provider reported ($0.09) earnings per share for the quarter, Zacks reports. CSP had a negative return on equity of 0.25% and a negative net margin of 0.20%.The business had revenue of $14.40 million during the quarter.

Here are the key takeaways from CSP’s conference call:

• Third-quarter revenue declined to $14.4 million from $15.4 million year over year, while the net loss widened to $846,000, or $0.09 per share, from $264,000. Results were affected by hardware delivery delays, higher expenses, and costs related to the U.K. pension buyout.
• Technology Solutions backlog increased 65% year over year as hardware lead times extended from roughly 30–60 days to more than 200 days; management expects supply constraints could persist for at least another year, delaying revenue recognition.
• AZT PROTECT advanced through several large enterprise opportunities, including six-figure deals nearing the end of 18–24-month sales cycles. The company also reported a 100% renewal rate at customer sites reaching their one-year renewal period, a third South African telecom purchase order, and completed integration with Acronis ahead of a planned fall launch.
• Managed cloud and service operations continued to grow, including a six-year, seven-figure agreement with a professional sports team and a three-year agreement expected to generate mid-six-figure annual recurring revenue. Service gross margin improved by 1.3 percentage points year over year.
• CSPi ended the quarter with $24.7 million in cash and continued supporting customer financing, while maintaining its $0.03-per-share dividend and repurchasing approximately 13,000 shares.

CSP Price Performance

NASDAQ:CSPI opened at $8.05 on Friday. The company has a market capitalization of $81.06 million, a price-to-earnings ratio of -114.98 and a beta of 0.85. The business has a 50 day moving average of $8.34 and a 200 day moving average of $8.99. CSP has a 1-year low of $7.45 and a 1-year high of $15.00.

CSP Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 28th will be paid a dividend of $0.03 per share. The ex-dividend date of this dividend is Friday, August 28th. This represents a $0.12 annualized dividend and a yield of 1.5%. CSP’s payout ratio is -1,200.00%.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reiterated a “sell (d+)” rating on shares of CSP in a research note on Friday, August 7th. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock presently has an average rating of “Sell”.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Bank of America Corp DE raised its stake in shares of CSP by 3,943.3% during the second quarter. Bank of America Corp DE now owns 2,426 shares of the information technology services provider’s stock valued at $31,000 after acquiring an additional 2,366 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in CSP in the 2nd quarter worth approximately $49,000. Raymond James Financial Inc. bought a new stake in shares of CSP in the 2nd quarter worth approximately $91,000. Wells Fargo & Company MN increased its stake in shares of CSP by 72.6% during the fourth quarter. Wells Fargo & Company MN now owns 7,618 shares of the information technology services provider’s stock valued at $95,000 after buying an additional 3,204 shares during the period. Finally, New York State Common Retirement Fund bought a new position in shares of CSP during the second quarter valued at approximately $122,000. Hedge funds and other institutional investors own 26.74% of the company’s stock.

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.