NASDAQ$CSPI

Csp Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

CSP Inc. reported a net loss for Q1 2024, impacted by delayed order closures, while securing significant contracts and raising the quarterly dividend.

CSP Inc. reported a decrease in revenue to $15.4 million compared to $18.3 million in the same quarter last year. The company experienced a net loss of $73,000, or $(0.02) per diluted share, compared to a net income of $1.0 million, or $0.21 per diluted share, in the prior year. Despite the loss, the company secured a multi-million dollar contract for its ARIA Zero Trust PROTECT offering and increased its quarterly dividend to $0.05 per share.

  • Revenue decreased to $15.4 million from $18.3 million year-over-year.
  • Net loss of $73,000, or $(0.02) per diluted share, compared to net income of $1.0 million, or $0.21 per diluted share, in the prior year.
  • Secured multi-million dollar contract for ARIA Zero Trust PROTECT with a global pharmaceutical company.
  • Quarterly dividend raised to $0.05 per share.

Headline financials

Total Revenue

$15.4M

Previous: $18.3M-16.2%
EPS

-$0.02

Previous: $0.21-109.5%
Capital Expenditures

-$120K

Previous: -$44K-172.7%
Free Cash Flow

-$193K

Previous: $917K-121.0%
Net Income

-$73K

Previous: $961K-107.6%
Operating Income

-$343K

Previous: $1.36M-125.1%
Gross Profit

$4.1M

Previous: $5.82M-29.6%
Cash & Equivalents

$25.6M

Previous: $19.6M+30.8%
Total Assets

$67.4M

Previous: $69M-2.2%
R&D Expense

$700K

No prior period
Stock-Based Comp

$296K

Previous: $259K+14.3%

Revenue & EPS history

CSP · Revenue · Quarterly

$15.4M

Q1 2024-16.2%vs Q1 2023

Revenue by segment

CSP · $15.3M total across 2 segments · Q4 2023

  • Product
    $11M-2.7%
  • Services
    $4.32M-19.6%

Forward guidance

The company anticipates the sales funnel and prioritized leads to increase exponentially, driven by industry events and partnerships, with cautious optimism for the second quarter and the second half of the fiscal year.

Tailwinds

  • Early success and demand for ARIA Zero Trust PROTECT exceeding initial expectations.
  • High customer satisfaction enhancing the company's reputation.
  • Partnerships with leading resellers accelerating adoption of AZT.
  • Representative dollar value of the new business pipeline is higher compared to any other time in the company’s history.
  • Continued enthusiasm of ARIA Zero Trust PROTECT offering remains high and continues to generate growing interest among small, mid and large scale companies and organizations with OT environments

Headwinds

  • Orders expected to close in the first quarter were pushed out due to the holidays.
  • General economic conditions.
  • Market factors.
  • Competitive factors and pricing pressures.
  • Risk described in the company's filings with the Securities and Exchange Commission (“SEC”).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.3%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+2.6%

Avg return

30 days after

53%

33 / 62 earnings

Positive

+43.2%

Q2 2013

Best reaction

-21.4%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.6%-0.8%-3.9%
Q1 2026-8.4%-8.8%-11.1%
Q4 2025-15.4%-10.4%-19.9%
Q2 2025+2.8%-6.5%-27.4%
Q1 2025+2.3%-1.6%-18.4%
Q4 2024-7.1%-3.9%-1.5%
Q3 2024-17.0%-12.5%-24.8%
Q2 2024+6.1%+9.3%+13.7%
Q1 2024+11.4%+14.5%+43.3%
Q4 2023-14.1%-26.2%-12.1%
Q3 2023+7.6%+8.6%+52.9%
Q2 2023-14.0%-10.1%+3.5%
Q1 2023-7.1%+4.0%-0.9%
Q4 2022+9.6%+10.9%+15.3%
Q3 2022+0.0%+2.0%-1.4%
Q2 2022+2.6%+7.5%+35.1%
Q1 2022-7.7%-7.1%-13.2%
Q4 2021-6.0%-8.1%-3.8%
Q3 2021-0.4%-3.3%-5.0%
Q2 2021+3.7%+12.0%+23.2%
Q1 2021-16.5%-13.4%-28.3%
Q4 2020+0.3%-0.8%+33.6%
Q3 2020+3.1%+21.5%+16.8%
Q2 2020-21.4%-22.1%-18.1%
Q1 2020+0.7%+4.0%-39.9%
Q4 2019+3.6%+4.9%+2.7%
Q3 2019-0.3%-3.3%-1.2%
Q2 2019-5.9%-4.8%+11.4%
Q1 2019+1.5%+2.0%+10.7%
Q4 2018-4.5%-3.6%-5.7%
Q3 2018+1.9%+9.8%+23.5%
Q2 2018-12.6%-11.4%-12.9%
Q1 2018-15.5%-16.9%-18.1%
Q4 2017+5.6%+20.4%+61.9%
Q3 2017+1.4%+0.7%-1.0%
Q2 2017-3.3%+1.0%-3.0%
Q1 2017-8.3%-13.4%+3.3%
Q4 2016+2.3%+0.6%-0.8%
Q3 2016+13.3%+13.8%+22.5%
Q2 2016+15.4%
Q1 2016+4.3%
Q4 2015+11.8%
Q3 2015-0.6%
Q2 2015+2.6%
Q1 2015+1.4%
Q4 2014-4.6%
Q3 2014-1.8%
Q2 2014-2.7%
Q1 2014-3.4%
Q3 2013-19.6%
Q2 2013+43.2%
Q1 2013-1.8%
Q4 2012+4.4%
Q3 2012-6.1%
Q2 2012-1.8%
Q1 2011+1.5%
Q4 2011+10.8%
Q1 2012+10.8%
Q2 2011+10.8%
Q3 2010+4.3%
Q3 2011+4.3%
Q4 2010+4.3%

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