CSP, Inc. (CSPI) Reports Q4 Loss of $0.18 on Revenues of $19.6M

CSP, Inc. (NASDAQ: CSPI) reported Q4 EPS of ($0.18), versus $0.27 reported last year. Revenue for the quarter came in at $19.6 million, versus $28.4 million reported last year.

“During fiscal 2018 we continued to execute on our strategy to transform CSPi from a company focused on defense-related multicomputers to one with significant growth opportunities in the cybersecurity and wireless managed services markets,” said Chief Executive Officer Victor Dellovo.

“We had a busy fourth quarter to end fiscal 2018,” continued Dellovo. “We closed on the sale of our Germany operations, continued to develop our next-generation cybersecurity solutions, including a new application for the ARIA™ SDS solution, and recently signed two new partnerships to expand our reach. Financially, our fourth-quarter top and bottom-line declines were primarily due to lower multicomputer sales and the delay in the launch of ARIA SDS.”

“In our High-Performance Products segment, we continued to experience stronger-than-expected demand for our legacy Myricom® network adapters from equipment manufacturers,” continued Dellovo. “By developing new software features and working with equipment manufacturers to integrate our technology into their own, we have been successful in stemming the anticipated decline in this product line while we continue the development of our next-generation cybersecurity products.”

“In Technology Solutions, revenues were down mainly due to lower product sales in the U.S, and U.K., partially offset by strong demand for managed IT services in the U.S.. In the U.K., we right-sized our business by adjusting headcount and reducing fixed costs. In the U.S., we added new clients in our managed IT business and we are growing our managed services pipeline with larger and more profitable prospects.”

“We are cautiously optimistic as we look toward fiscal 2019. While we continue to experience the supply issues that has delayed the launch of the ARIA SDS solution, we are encouraged by the diverse opportunities it presents in the cybersecurity market and expect revenue to begin to ramp in the second half of fiscal 2019. At the same time, we are focused on managing expenses and enhancing profitability,” concluded Dellovo.

For earnings history and earnings-related data on CSP, Inc. (CSPI) click here.

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