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CSP Inc. (CSPI+2.22%) has filed its annual report on Form 10-K for the fiscal year ended September 30, 2024 filing.
The filing outlines CSP Inc.'s operations in two segments: Technology Solutions (TS) and High Performance Products (HPP). The TS segment focuses on IT integration solutions, while the HPP segment provides cybersecurity solutions and network adapters.
For the fiscal year 2024, CSP Inc. reported total sales of $55.2 million, a decrease from $64.6 million in the previous year. The TS segment contributed $51.1 million, while the HPP segment contributed $4.2 million.
The company recorded an operating loss of $1.9 million, compared to an operating income of $1.9 million in the prior year. The net loss for the year was $326,000, down from a net income of $5.2 million in 2023.
Revenue from the TS segment decreased by 12% to $51.1 million, primarily due to reduced product revenue in the U.S. division. The HPP segment revenue decreased by 40% to $4.2 million, mainly due to non-recurring transactions in the prior year.
CSP Inc.'s gross margin remained consistent at 34% for both fiscal years 2024 and 2023. The HPP segment's gross margin increased to 65% due to a high-margin ARIA AZT sale.
Research and development expenses for the year were approximately $3.0 million, slightly down from $3.1 million in the previous year. The focus was on the development of the ARIA product line.
The company reported an income tax benefit of $93,000, reflecting an effective tax rate of 22.2%. This was primarily driven by windfalls from restricted stock awards and changes in valuation allowances.
CSP Inc.'s cash and cash equivalents increased to $30.6 million as of September 30, 2024, from $25.2 million the previous year. The increase was attributed to cash provided by operating activities and net borrowing on the line of credit.
The filing also discusses CSP Inc.'s plans for future product development, market expansion, and addressing identified material weaknesses in internal controls over financial reporting.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the CSP Inc. annual 10-K report dated December 20, 2024. To report an error, please email earnings@qz.com.