CSP Q2 Earnings Call Highlights

CSP (NASDAQ:CSPI) executives highlighted a instrumentality to maturation successful the company’s fiscal 2nd 4th of 2026, pointing to beardown merchandise demand, rising services momentum and accrued enactment astir its AZT PROTECT operational exertion (OT) cybersecurity offering.

Management cites maturation drivers and “land and expand” advancement

Chief Executive Officer Victor Dellovo said CSPi “returned to growth” during the 4th arsenic merchandise income grew 30% and the services concern grew 7% versus the prior-year quarter, driven by the company’s U.S. exertion solutions concern and respective ample lawsuit acquisition orders.

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Dellovo said CSPi saw an “appreciable pickup” successful AZT PROTECT orders, including much than 10 “land and expand” orders with caller customers—double the fig signed successful the aforesaid 4th of fiscal 2025. He described these archetypal orders arsenic constricted deployments utilized to validate AZT PROTECT wrong a customer’s existing cybersecurity environment, followed by efforts to grow deployments crossed further sites.

However, Dellovo said the enlargement signifier has taken longer than anticipated owed to factors specified arsenic stakeholder changes, interior reappraisal requirements, and further validation requests from aboriginal deployment sites. He besides noted that immoderate IT teams initially attack OT information needs done an IT infrastructure lens, requiring further acquisition connected OT-specific requirements.

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Despite those timing challenges, Dellovo said CSPi is making progress. He cited AZT PROTECT being deployed astatine a 4th works for a large earthy worldly manufacturer, adding that further works rollouts person taken little clip arsenic the product’s way grounds builds. He besides said different customers that started with a single-site deployment successful 2025 are expanding to further sites.

New multi-year cement statement and different deployments

Dellovo pointed to a large “land and expand” narration signed successful April: a three-year statement covering “more than 2 twelve U.S. sites” for a planetary cement manufacturer. He said the declaration carries a “six-figure yearly gross value” expected to beryllium recorded successful fiscal 3rd 4th and noted it took astir 13 months to finalize.

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During the Q&A, Dellovo said the U.S. rollout represents the archetypal signifier and that CSPi is successful discussions with a “sister company” for sites extracurricular the U.S., describing the planetary accidental arsenic “over 100 plants.” He added determination is besides imaginable for further maturation successful the U.S. footprint.