CSPi Reports Second-Quarter Fiscal 2018 Financial Results

CSPi (NASDAQ:CSPI), a provider of IT managed services, security solutions and packet capture products reported its financial results for the second quarter ended March 31, 2018.

The company said that its board of directors have voted to pay a quarterly dividend of $0.11 per share to shareholders of record on March 31, 2018.

As quoted in the press release:

Financial Results
For the second quarter of fiscal 2018, revenue decreased to $22.0 million from $25.3 million in the second quarter a year.

Gross profit for the second quarter of fiscal 2018 was $4.9 million, or 22.4% of sales, compared with $5.7 million, or 22.5% of sales, a year ago.

Net loss for the second quarter of fiscal 2018 was $594,000, or $0.16 per share, compared with net income of $428,000, or $0.11 per diluted share, for the second quarter of fiscal 2017.

Cash and short-term investments decreased to $12 million at the end of the second quarter of fiscal 2018 from $13.9 million at 2017 fiscal year end primarily as a result of payment of the quarterly dividends, reduction of the accounts payable and accrued expenses, partially offset by decrease in accounts receivable.

“During the second quarter, we made good progress toward our strategy of transforming CSPi into a provider of innovative technology solutions and cybersecurity products. Our pipeline of managed services has grown, as we continue to focus on the development of new security products which expand market opportunities” said Chief Executive Officer, Victor Dellovo. “Revenues were down 13% due primarily to softness in our European Technology Solutions businesses, as well as the timing of E-2D multicomputer orders coupled with the delay of new product launches in our High Performance Products (HPP) division. On the bottom line, we reported a loss per share of $0.16 versus net income per share $0.11 a year ago, due to lower year-over-year volume and planned investments in new product development.”

“In the High Performance Products, we are actively investing in the development of our recently announced ARIA Software Defined Security platform, which provides advanced cybersecurity protection capabilities. During the quarter we partnered closely with our customers to add services and functionality to our platform. With these new capabilities, we have the opportunity to grow ARIA revenues within the Managed Security Service Provider (MSSP) market. We expect to launch a beta version of the product in the current third fiscal quarter and begin to realize revenues from this new market by the end of the year.”

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