CSP (NASDAQ:CSPI) Issues Quarterly Earnings Results

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

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%

Shares of CSP stock traded down $0.31 during trading hours on Friday, reaching $8.05. The stock had a trading volume of 37,265 shares, compared to its average volume of 25,895. The stock’s 50 day moving average is $8.35 and its 200 day moving average is $9.00. The firm has a market capitalization of $81.08 million, a PE ratio of -805.00 and a beta of 0.85. CSP has a twelve month low of $7.45 and a twelve month high of $15.00.

CSP Announces Dividend

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

Institutional Investors Weigh In On CSP

Institutional investors have recently modified their holdings of the business. Bank of America Corp DE raised its holdings in CSP by 3,943.3% in the 2nd quarter. Bank of America Corp DE now owns 2,426 shares of the information technology services provider’s stock worth $31,000 after purchasing an additional 2,366 shares during the period. Geode Capital Management LLC boosted its position in CSP by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 163,385 shares of the information technology services provider’s stock worth $2,043,000 after purchasing an additional 2,739 shares in the last quarter. Wells Fargo & Company MN grew its holdings in CSP by 72.6% in 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 purchasing an additional 3,204 shares during the period. JPMorgan Chase & Co. grew its holdings in CSP by 14.4% in the second quarter. JPMorgan Chase & Co. now owns 26,079 shares of the information technology services provider’s stock valued at $337,000 after purchasing an additional 3,279 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of CSP in the second quarter valued at approximately $49,000. 26.74% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a “sell (d+)” rating on shares of CSP in a report on Friday, August 7th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock has an average rating of “Sell”.

About CSP

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.