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[2morrowsGains]

CSPI...Q2 Earnings were pretty much flat YoY. No mention of planes. They're still expecting ARIA to bring in first revenue during the second half of the fiscal year. Continues to pay the nice dividend but I would like to see positive EPS by year end.
Will have to listen to the cc.

CSPi Reports Second-Quarter 2019 Financial Results
Declares Quarterly Dividend of $0.15 Per Share
LOWELL, Mass., May 08, 2019 (GLOBE NEWSWIRE) -- CSPi (NASDAQ: CSPI), a provider of IT managed services, security solutions and packet capture products, today reported financial results for the second quarter ended March 31, 2019.

The Company also announced that its board of directors has voted to pay a quarterly dividend of $0.15 per share to shareholders of record on May 31, 2019, payable on June 14, 2019.

Management Comments
“During the second quarter we advanced our transformation to become a cybersecurity and wireless managed services company,” said Chief Executive Officer Victor Dellovo. “Financially, strong demand for managed IT services was offset by softer multi-computers sales and resulted in essentially flat year-over-year revenue. On the bottom line, the lower volume and higher development costs for our next-generation cybersecurity ARIA SDS solution offset the benefits of cost control measures.”

“In our High-Performance Products segment, we saw continued demand for our legacy Myricom network adaptors and advanced the customer evaluation stage for our ARIA SDS cybersecurity solution,” said Dellovo. “We saw strong demand from customers using our Myricom Sniffer packet capture application, which helps improve threat detection and incident response. We formally announced the ARIA SDS Packet Intelligence application at the RSA 2019 conference in San Francisco and received positive feedback from customers. We plan to advance our testing and evaluations in Q3 and are on track to record our first ARIA revenues in the second half of fiscal 2019.”

“In Technology Solutions, our UK operations delivered a record quarter driven by new projects and a lower cost structure,” added Dellovo. “In the US, we recorded profitable results mainly from growth in managed IT services. We are expanding our managed services customer base, while increasing the overall size and scope of existing customer contracts.”

“With solid execution on cost control and confidence in our ability to deliver on our next-generation cybersecurity products, we are well positioned to deliver growth in the second half of fiscal 2019,” concluded Dellovo.

Financial Results
For the second quarter of fiscal 2019, revenue was $16.4 million compared with $16.6 million a year ago.

Gross profit for the second quarter of fiscal 2019 was $3.7 million, or 22.9% of sales, compared with $4.0 million, or 24% of sales, a year ago.

Net loss for the second quarter of fiscal 2019 was $619,000, or $0.15 per share, compared with a net loss of $594,000, or $0.16 per share, for the second quarter of fiscal 2018. The second quarter of fiscal 2018 included income of $148,000 from discontinued operations related to the Company’s Germany operations, which was sold in July of 2018.

Cash and short-term investments were $18.2 million at the end of the second quarter of fiscal 2019 compared with $25.1 million at the end of fiscal year 2018. The decrease was due to a $3.3 million increase in accounts receivable partially due to 43% of the second quarter’s sales were recorded in March 2019. We also had a reduction of $3.2 million in accounts payable and accrued expenses and $1.2 million for payment of our quarterly dividends.

Conference Call Details
CSPi Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W. Levine will host a conference call at 10:00 a.m. (ET) on May 08, 2019 to review CSPi’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 877-876-9173 or 785-424-1667. For interested parties unable to participate in the live call, an archived version of the webcast will be available for approximately one year on CSPi’s website.
http://www.investorpoint.com/stock/CSPI-CSP%20Inc./news/5506819744701407/