CSP Inc. Urges Shareholders to Vote for the Company's Board of Directors
Reviews Excellent Fiscal 2012 Financial Results
Reiterates New Strategy to Capitalize on Market Opportunities
Recommends Shareholders Reject Tactics by Small Hedge Fund; Dissident Director
Candidates Appear to Possess No Relevant Experience in CSP's Two Primary
BILLERICA, Mass., Feb. 6, 2013 (GLOBE NEWSWIRE) -- CSP Inc. (Nasdaq:CSPI), a
provider of IT solutions, systems integration services and dense cluster
computing systems, has sent a letter to shareholders urging them to vote for
the CSP's Board of Directors.
Dear Fellow CSP Stockholder:
We are requesting your vote for CSP's Board of Directors, for the 2013 Annual
Meeting of Stockholders, which has been scheduled for Tuesday, February
12th.There has been a delay in the finalization of your Company's proxy
materials, so the time until the annual meeting is extremely short.
PLEASE SIGN, DATE AND RETURN THE ENCLOSED PROXY CARD TODAY, TO HELP ASSURE THE
PRESENCE OF A QUORUM, SO THAT CSP's ANNUAL MEETING OF STOCKHOLDERS CAN BE HELD
WITHOUT ANY FURTHER DELAY.
Under the leadership of our new President and Chief Executive Officer, Victor
Dellovo, CSP Inc. concluded an excellent 2012 Fiscal year, with strong results
in the fourth quarter:
-Revenue increased 35% to $22.3 million for Q4 and grew 15% to $84.8 million
for Fiscal 2012
-Net income was $4.9 million for our 4th quarter, compared with a net loss of
$92 thousand a year ago; Full year net income increased 1690% to $6.6 million
from $369 thousand in fiscal 2011
-CSP's cash position increased by $4.6 million during fiscal 2012, to $20.5
-CSP's stock price appreciated by more than 40% during fiscal 2012
-Over the past 12 months, your Board of Directors has declared three special
dividends that totaled to 42 cents per share.
We are executing on a new strategy to capitalize on many opportunities that we
see in our markets, including the cross selling of our Systems segment
multi-computers with our Services and Systems Integration software and
services, to become a more effective end-to-end supplier.
We also will be focused on winning higher-margin consulting business, as well
as managed services business, and seek to leverage an increasing number of
partnerships across both of CSP's business segments.
Fiscal 2013 will mark an important transition year for CSP, as we execute on
our new strategy that we expect will reduce the year-to-year volatility in our
sales, and position your Company for sustained, long-term growth and
The primary reason for the delay in the mailing of CSP's proxy materials was
that a small hedge fund disclosed its intention to nominate four individuals
for election to your Company's five member Board of Directors.
This fund, the North & Webster Value Opportunities Fund, LP has a history of
threatening proxy contests against small publicly traded companies, and then
extracting settlement payments from such companies.North & Webster has
already disclosed its intention to seek at least $100,000 from CSP.
None of North & Webster's four director candidates appear to possess any
relevant business experience in CSP's two primary business segments, nor has
North & Webster put forth any plan to help grow CSP's business and create
long-term stockholder value.
IF YOU SHOULD RECEIVE ANY PROXY MATERIALS FROM NORTH & WEBSTER, WE URGE YOU TO
COMPLETELY DISREGARD THEM AND TAKE NO ACTION.
YOUR VOTE IS IMPORTANT— WE URGE ALL CSP STOCKHOLDERS TO VOTE CSP'S DIRECTOR
NOMINEES, BY SIGNING, DATING AND RETURNING THE PROXY CARD OR VOTING
INSTRUCTION FORM TODAY.
Your vote is very important, no matter how few CSP shares you own.
For your further convenience, you may also vote by phone or Internet, by
following the instructions on the proxy card or voting form.If you have any
questions or need any assistance with voting your shares, please contact The
Proxy Advisory Group, LLC, who is assisting your Company in this matter,
toll-free at (888) 337-7799 or (888)33-PROXY.
We are optimistic about CSP's future.Your management and directors are
committed to CSP's continued improvement in financial performance, and the
creation of sustainable long-term value for CSP stockholders.We thank you
for your support.
/s/ Victor Dellovo /s/ C. Shelton James
Chief Executive Officer Chairman of the Board
CSP INC. CSP INC.
CONTACT: Gary Levine
Chief Financial Officer
Tel: 978.663.7598 ext. 1200
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