Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,514.37 65.12 0.40%
S&P 500 1,879.55 7.66 0.41%
NASDAQ 4,161.46 39.91 0.97%
Ticker Volume Price Price Delta
STOXX 50 3,195.91 -3.78 -0.12%
FTSE 100 6,687.54 5.78 0.09%
DAX 9,590.91 -9.18 -0.10%
Ticker Volume Price Price Delta
NIKKEI 14,546.27 157.50 1.09%
TOPIX 1,173.81 11.31 0.97%
HANG SENG 22,509.64 -221.04 -0.97%

CSP Inc. Reports Second-Quarter Fiscal 2013 Financial Results



CSP Inc. Reports Second-Quarter Fiscal 2013 Financial Results

Board Raises Quarterly Dividend to $0.10 Per Share From $0.03 Per Share

BILLERICA, Mass., May 8, 2013 (GLOBE NEWSWIRE) -- CSP Inc. (Nasdaq:CSPI), a
provider of IT solutions, systems integration services and dense cluster
computing systems, today reported financial results for the second quarter of
fiscal 2013 ended March 31, 2013.

The Company also announced that its board of directors has voted to increase
its quarterly dividend to $0.10 per share from $0.03 per share beginning with
the third-quarter dividend payment. The dividend is payable June 3, 2013 to
shareholders of record May 24, 2013.

Management Comments

"We performed well in the second quarter with revenues increasing 36% and net
income up 67%," said Victor Dellovo, CSP Inc. president and chief executive
officer. "All of our top and bottom-line growth came from the Service and
Systems Integration segment as our Systems segment continues to experience
significant market headwinds."

"At our Systems segment, revenue was up from the year-ago quarter, also up
from the sequential first fiscal quarter due to strong sales to international
customers," said Dellovo. "Gross margin in the quarter was significantly lower
year over year as we received $2.0 million in royalty revenue from Lockheed
Martin related to the E-2D aircraft a year ago and recorded no royalty revenue
this year. The sequester and continuing resolution is having a negative effect
on our Systems segment performance and we expect that to continue in the near
term. Multicomputer parts for Lot 1 of full-rate production for the E-2D are
on order and we expect to ship them during the current fiscal year."

"Our Service and Systems Integration segment turned in another excellent
quarter, with revenues increasing 39% year over year," added Dellovo. "Sales
were driven by strong demand at our U.S. subsidiary as well as by solid growth
in Germany. During the past several quarters we have been enhancing our
marketing efforts, working with manufacturers to obtain sales leads, and
adding to our sales force. As a result, a significant portion of our growth
this quarter came from new customers."

"Looking toward the second half of the year, while we expect a difficult
comparison with fiscal 2012 at our Systems segment, Service and Systems
Integration continues to perform very well and is demonstrating the strength
of our business diversity. We will continue to execute on our growth strategy,
including cross sell-selling between our segments and within MODCOMP, which we
believe provides us with long-term opportunities for profitable growth,"
concluded Dellovo.

Financial Results

For the second quarter of fiscal 2013, revenue increased 36% year over year to
$25.8 million. For the first six months of fiscal 2013, revenue increased 16%
year over year to $46.7 million. Foreign exchange had no effect on revenue for
the three-month period and a negative $200,000 effect on revenue for the
six-month period.

Gross margin for the second quarter decreased to 22% from 25% in the second
quarter of fiscal 2012, primarily due to a lower mix of sales from the Systems
business, including reduced royalty revenues. Gross margin for the first half
of fiscal 2013 was 21% compared with 24% in the prior-year period.

Net income for the second quarter increased to $740,000, or $0.21 per diluted
share, compared with net income of $442,000, or $0.13 per diluted share, in
the second quarter of fiscal 2012. Net income for the first six months of
fiscal 2013 was $855,000, or $0.25 per diluted share, compared with $903,000,
or $0.26 per diluted share in the first six months of fiscal 2012. 

Cash and short-term investments decreased from $20.5 million at fiscal year
end to $15.3 million at the end of the second quarter of 2013, due primarily
to higher accounts receivable. The increase in accounts receivable is the
result of a greater mix of revenues from large customers with extended payment
terms. The Company also paid out about $700,000 in dividends in the first half
of the year. CSP's cash position may vary significantly from quarter to
quarter due to the high working capital requirements needed to fund large
projects at both its Systems and its Services and Systems Integration
segments.

Conference Call Details

CSP Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W.
Levine will host a conference call at 10:00 a.m. (ET) today to review CSP's
financial results and provide a business update. To listen to a live webcast
of the call, please visit the "Investor Relations" section of the Company's
website at www.cspi.com. Individuals may also listen to the call via
telephone, by dialing (877) 407-5790 or (201) 689-8328. For interested parties
unable to participate in the live call, an archived version of the webcast
will be available for approximately one year on CSP's website.

About CSP Inc.

Based in Billerica, Massachusetts and founded in 1968, CSP Inc. and its
subsidiaries develop and market IT integration solutions and high-performance
computer systems to meet the diverse requirements of our industrial,
commercial, and defense customers worldwide.

CSP's Systems segment includes the MultiComputer Division, which designs and
manufactures commercial high-performance computer signal processing systems
for a variety of complex real time applications in defense and commercial
markets. The Company's MODCOMP Inc. subsidiary, also part of its Service and
Systems Integration segment was founded in 1970, and has offices in the U.S.,
U.K. and Germany. Modcomp provides solutions and services for complex IT
environments including storage and servers, unified communications solutions,
IT security solutions and consulting services. More information about CSP is
available on the company's website at www.cspi.com.

To learn more about MODCOMP, Inc., consult www.modcomp.com.

Safe Harbor

The Company wishes to take advantage of the "Safe Harbor" provisions of the
Private Securities Litigation Reform Act of 1995 with respect to statements
that may be deemed to be forward-looking under the Act. Such forward-looking
statements may include, but are not limited to, expectations for E2-D related
shipments, expectations related to the second half of the year, and long-term
growth opportunities. The Company cautions that numerous factors could cause
actual results to differ materially from forward-looking statements made by
the Company. Such risks include general economic conditions, market factors,
competitive factors and pricing pressures, and others described in the
Company's filings with the SEC. Please refer to the section on forward-looking
statements included in the Company's filings with the Securities and Exchange
Commission.

                                                      
                                                      
CSP INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
                                                      
                                                      
                                           March 31, September 30,
                                           2013      2012
Assets                                                
                                                      
Current assets:                                       
 Cash and short-term investments            $ 15,291  $ 20,493
 Accounts receivable, net                  20,312    12,145
 Inventories                               4,516     6,276
 Other current assets                      4,573     5,792
 Total current assets                      44,692    44,706
Property, equipment and improvements, net  1,247     991
Other assets                               5,466     5,369
Total assets                                $ 51,405  $ 51,066
                                                      
                                                      
Liabilities and Shareholders' Equity                  
                                                      
Current liabilities                         $ 18,592  $ 18,168
Pension and retirement plans               9,108     9,431
Non-current liabilities                    447       426
                                                      
Shareholders' equity                       23,258    23,041
Total liabilities and shareholders' equity  $ 51,405  $ 51,066

 
 
CSP INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data )
                                                                      
                                                                      
                                       Three Months Ended  Six Months Ended
                                       March 31, March 31, March 31, March 31,
                                       2013      2012      2013      2012
Sales:                                                                
Product                                $19,537   $12,125   $34,842   $27,279
Services                               6,286     6,904     11,851    12,843
Total sales                            25,823    19,029    46,693    40,122
                                                                      
Cost of sales:                                                        
Product                                15,676    10,610    28,900    23,375
Services                               4,380     3,704     7,849     7,209
Total cost of sales                    20,056    14,314    36,749    30,584
                                                                      
 Gross Profit                          5,767     4,715     9,944     9,538
                                                                      
Operating expenses:                                                   
Engineering and development            380       474       824       857
Selling, general & administrative      4,165     3,572     7,725     7,248
                                                                      
Total operating expenses               4,545     4,046     8,549     8,105
                                                                      
Operating income                       1,222     669       1,395     1,433
                                                                      
Other income (expense), net            (25)      (36)      34        (70)
                                                                      
Income before income taxes             1,197     633       1,429     1,363
                                                                      
Provision for income taxes             457       191       574       460
                                                                      
Net income                             $740      $442      $855      $903
                                                                      
Net income attributable to common      $724      $434      $838      $888
stockholders
                                                                      
Net income per share - basic           $0.21     $0.13     $0.25     $0.26
                                                                      
Weighted average shares outstanding -  3,375     3,363     3,369     3,360
basic
                                                                      
Net income per share - diluted         $0.21     $0.13     $0.25     $0.26
                                                                      
Weighted average shares outstanding -  3,424     3,401     3,416     3,398
diluted

CONTACT: Gary Levine
         Chief Financial Officer
         CSP Inc.
         Tel:  978.663.7598 ext. 1200
         Fax: 978.663.0150

CSP Inc. Logo
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement