The following is a summary of the CSP Inc. (CSPI) Q3 2024 Earnings Call Transcript:

Financial Performance:

• CSP Inc. reported Q3 fiscal 2024 revenues of $13.1 million, down from $17.7 million in Q3 fiscal 2023.

• Gross profit was $4.6 million, or 35% of sales, which represents a 150 basis point improvement in gross margin percentage year-over-year.

• The company reported a net loss of $185,000 or $0.02 per common share, contrasting the net income of $2.5 million or $0.26 per diluted common share in Q3 fiscal 2023.

• CSP Inc. repurchased 4,800 shares for a total cost of $70,000 and declared a quarterly dividend of $0.03 per share.

Business Progress:

• CSP Inc.'s AZT PROTECT has gained significant market traction, winning multiple industry awards and expanding through new partnerships with companies like Forescout Technologies and Ebix.

• New VPS of Sales, Greg Pysher, was hired to focus on sales for the AZT PROTECT product line to both small and mid-tier enterprises and large entities.

• The Company is nearing completion on several large contracts that could positively affect fiscal 2025 results.

• Implementation of a wireless conversion for a global hospitality company covering over 70 locations is underway and set to continue through 2025.

• Continued expansion of the UCaaS offering, expecting to enter the new fiscal year with double the annual revenue run rate compared to the start of fiscal Q4.

Opportunities:

• CSP's success with the AZT PROTECT product line provides significant ongoing opportunities for expansion, both in terms of market reach and strategic partnerships.

• The integration partnerships with Forescout Technologies and collaboration with large global resellers to distribute AZT PROTECT solutions further enhance market penetration and brand visibility.

• Participation in targeted industry events and conferences such as the American Petroleum Institute Conference and the industrial control system cybersecurity conference.

Risks:

• Geared towards diversification and enhancing the cybersecurity portfolio, the dependency on the successful integration of AZT PROTECT into larger platforms like Forescout's could involve extended time frames and uncertainties related to technical and marketing synergies.

More details: CSP Inc IR

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