CSP (NASDAQ:CSPI) Issues Quarterly Earnings Results

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

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 Trading Down 3.7%

CSPI stock traded down $0.31 during midday trading on Friday, reaching $8.05. The company had a trading volume of 37,265 shares, compared to its average volume of 10,915. CSP has a 1 year low of $7.45 and a 1 year high of $15.00. The company has a market capitalization of $81.06 million, a P/E ratio of -805.00 and a beta of 0.85. The company has a 50 day moving average of $8.34 and a two-hundred day moving average of $8.99.

CSP Announces Dividend

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

Hedge Funds Weigh In On CSP

Hedge funds have recently modified their holdings of the stock. Bank of America Corp DE boosted its position in 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 purchasing an additional 2,366 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of CSP during the 2nd quarter worth about $49,000. Raymond James Financial Inc. acquired a new stake in shares of CSP during the 2nd quarter valued at about $91,000. Wells Fargo & Company MN grew its stake in shares of CSP by 72.6% in the 4th 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 in the last quarter. Finally, New York State Common Retirement Fund acquired a new position in CSP in the second quarter worth approximately $122,000. 26.74% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

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

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.