In This Article:
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Revenue (Q4 2024): $13 million, down from $15.3 million in Q4 2023.
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Service Revenue (Q4 2024): $4.4 million, compared to $4.3 million in Q4 2023.
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Gross Profit (Q4 2024): $3.7 million or 28.4% of sales, compared to $5.2 million or 33.8% of sales in Q4 2023.
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Net Loss (Q4 2024): $1.7 million or $0.18 loss per share, compared to net income of $1.4 million or $0.15 per share in Q4 2023.
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Cash and Cash Equivalents (End of FY 2024): $30.6 million, up from $25.2 million at the end of FY 2023.
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Stock Repurchase (Q4 2024): 2,800 shares at a total cost of $34,000.
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Quarterly Dividend: $0.03 per share, payable on January 15, 2025.
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Engineering and Development Expenses (Q4 2024): $793,000, up from $705,000 in Q4 2023.
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SG&A Expenses (Q4 2024): $5.5 million, compared to $4.8 million in Q4 2023.
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Full Year Revenue (FY 2024): $15.2 million, compared to $64.6 million in FY 2023.
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Full Year Gross Profit (FY 2024): $18.9 million or 34.1% of sales, compared to $21.9 million or 33.9% of sales in FY 2023.
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Net Loss (FY 2024): $0.3 million or $0.04 per share, compared to net income of $5.2 million or $0.55 per share in FY 2023.
Release Date: December 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Recurring revenue increased to 17% of total sales, up from less than 5% a few years ago.
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CSP Inc (NASDAQ:CSPI) finished the year with over $30 million in cash and cash equivalents.
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The company signed a large order with cruise ship customers, indicating growth in that sector.
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CSP Inc (NASDAQ:CSPI) is experiencing increased demand for cloud services, with a dozen active cloud-based projects.
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The partnership with Rockwell Automation and other distribution partners is expanding, generating over 100 leads for the AC T Protect product.
Negative Points
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Revenue for the fourth quarter was $13 million, down from $15.3 million in the same quarter last year.
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The company reported a net loss of $1.7 million for the fourth quarter, compared to a net income of $1.4 million in the previous year.
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Gross profit margin decreased to 28.4% from 33.8% due to a higher percentage of product sales.
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The transition of the AC T Protect sales effort is still in progress, indicating potential delays in revenue generation.
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Engineering and development expenses increased, impacting overall profitability.
Q & A Highlights
Q: Can you provide an update on the proof of concept (PoC) testing for the ZT Protect product? A: We have more than a dozen PoCs ongoing in various stages. Some PoCs have been completed, and we are waiting for budget approvals or final decisions. Recent trade shows have generated significant leads, and we expect more PoCs to start after the New Year.