CSP Q3 Earnings Call Highlights

15 hours ago 1

MarketBeat

Fri, August 14, 2026 astatine 10:04 AM CDT 6 min read

Key Points

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Revenue and profitability weakened: Fiscal Q3 gross fell to $14.4 cardinal from $15.4 million, portion nett nonaccomplishment widened to $846,000, oregon $0.09 per share. Hardware transportation times exceeding 200 days delayed gross recognition, though the Technology Solutions backlog roseate 65% twelvemonth implicit year.
AZT PROTECT is pursuing larger maturation opportunities: CSPi is nearing the extremity of respective 18- to 24-month endeavor income cycles and is expanding OEM integrations, including a planned Acronis launch. The institution reported a 100% renewal complaint for lawsuit sites reaching one-year renewals.
Managed services momentum and fiscal flexibility continued: CSPi signed a six-year, seven-figure sports-team statement and a three-year declaration expected to make mid-six-figure yearly recurring revenue. The institution ended the 4th with $24.7 cardinal successful cash, repurchased astir 13,000 shares and maintained its $0.03 quarterly dividend.

CSP (NASDAQ:CSPI) reported little fiscal third-quarter gross and a wider nett nonaccomplishment arsenic longer hardware transportation times delayed the conversion of orders into revenue, portion the institution continued to physique its managed services concern and prosecute larger endeavor opportunities for its AZT PROTECT cybersecurity offering.

For the 4th ended June 30, 2026, gross was $14.4 million, compared with $15.4 cardinal successful the prior-year quarter. Product gross declined to $9.9 cardinal from $10.2 million, portion work gross fell to $4.5 cardinal from $5.3 million.

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Chief Executive Officer Victor Dellovo said the Technology Solutions concern performed adjacent expectations and continued to make bid growth, but vendor shipment delays person constricted gross recognition. Hardware deliveries that had historically taken 30 to 60 days are present taking much than 200 days successful galore cases, helium said.

As a result, the company's Technology Solutions backlog was 65% higher than it was a twelvemonth earlier. Dellovo said the delays bespeak broader proviso constraints tied to request for components including memory, hard drives and processors amid AI-related infrastructure buildouts.

Margins Improve Despite Revenue Decline

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Gross nett was $4.3 million, compared with $4.5 cardinal a twelvemonth earlier. However, gross borderline improved to 30.1% of income from 28.8% successful the prior-year quarter.

Product gross borderline accrued to 20.7% from 15.7% a twelvemonth earlier.
Service gross borderline was 51.2%, compared with 53.9% successful the prior-year period.
Research and improvement disbursal roseate 5% to $832,000, reflecting enactment connected AZT PROTECT lawsuit customizations and OEM integrations.
Selling, wide and administrative disbursal accrued 3% to $5 million.