CSPi Reports US$21.6 Million in Revenue

CSPi (NASDAQ:CSPI), cybersecurity company announced its third quarter 2019 financial results. The company witness an increase in revenue, reaching US$21.6 million for the quarter, up from US$20 million at the same time last year. Net income also rose to US$532,000.

As quoted in the press release:

Net income for the third quarter of fiscal 2019 was $532,000, or $0.12 per diluted share, compared with net income of $3,000, or $0.00 per diluted share, for the third quarter of fiscal 2018. The third quarter of fiscal 2018 included a loss of $428,000, or $0.11 per share, from discontinued operations. The Company had a tax benefit of $326,000 for the third quarter of fiscal 2019. The high effective tax rate was due in part to no tax expense recorded for U.K. income due to a large pension contribution, adjustments of taxes payable and reconciliation of tax provision to the prior year tax returns and the benefit of the research and development credit.

Cash and short-term investments were $16.8 million at the end of the third quarter, down from $25.1 million at the close of fiscal year 2018. The decrease was due to a $3.6 million increase in accounts receivable due to order timing, a $2.7 million increase in inventory, and $1.8 million paid in dividends.

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