Replies to post #104902 on Savvy Trades and Investments

[2morrowsGains]

CSPI...I'm ready for CSPI and actually added back more shares in the mid $12's. So I have a nice position. Looking forward to earnings tomorrow.

[2morrowsGains]

CSPI...Nice report and they inched up the dividend...CSP Inc. Momentum Continues During Fiscal Second Quarter With 11% Revenue Growth and Diluted Earnings per Common Share of $0.07 Compared to $0.03 in the Prior Fiscal Year Second Quarter, Quarterly Dividend of $0.04 per Share Declared

Backlog Exceeds $22 Million as Demand for Award-Winning Products and Services Remain High
Recurring Revenue Increased 25% from Prior Year Second Quarter

LOWELL, MA / ACCESSWIRE / May 10, 2023 / CSP Inc.
CSPI, an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, today reported fiscal 2023 second quarter revenue grew 11% while diluted earnings per common share increased to $0.07 compared to $0.03 in the prior year second quarter. The company also announced that its Board of Directors has declared a 33% increase in the quarterly dividend, from $0.03 per share to $0.04 per share payable June 13, 2023 to shareholders of record on the close of business on May 25, 2023.

Fiscal Second Quarter Operating Highlights and Recent Achievements

Recurring revenue increased 25% compared to the year-ago fiscal second quarter
Technology Solutions and High-Performance Products businesses generated 9% and 29% revenue growth for the fiscal second quarter compared to the prior year second quarter
Diluted earnings per share of $0.07 increased by $0.04 compared to the prior year second quarter
Increased sales of higher margin products and services led to gross margin of 37.6% for the quarter, a 2.5% increase over the prior year second quarter
Backlog, without any of the backlog being recorded as net revenue, as of March 31, 2023 was $22.0 million
"Our fiscal second quarter results were slightly ahead of our internal plan and we are optimistic that we will achieve profitable results for second half of the year with our backlog and continued success with our customers and prospects," commented Victor Dellovo, Chief Executive Officer. "Our Technology Solutions and High-Performance Products businesses each grew significantly over the year-ago period.

We continue to build a pipeline of multi-million-dollar order opportunities. The exact timing of these orders is often fluid and reinforces our strategy to build recurring services revenue. During the quarter, our recurring revenue grew to approximately 16% of total revenue. At the same time, we continue to invest significant resources in new product development addressing cyber-security threats and customer needs. ARIA, which is the latest example of our R&D efforts, has fourteen customers, each of which generates reliable monthly revenue."

Fiscal Year 2023 Second Quarter Results

Revenue for the fiscal 2023 second quarter was $13.3 million, an 11% increase, compared to $12.0 million in the year-ago fiscal second quarter as the Company continued to successfully manage the business and deliver growth during the current economic environment and disruption due to continued supply chain issues with some system component providers. Gross profit for the fiscal second quarter was $5.0 million, or 37.6% of sales, compared with $4.2 million, or 35.1% of sales in the year-ago fiscal second quarter. The Company's focus on higher margin products and services enabled gross margin expansion of 2.5% compared to the 2022 fiscal second quarter. The Company reported net income of $0.3 million in the fiscal 2023 second quarter and diluted earnings per common share of $0.07 compared to net income of $0.2 million and diluted earnings per common share of $0.03 for the fiscal second quarter of fiscal 2022.

The Company had cash and cash equivalents of $13.3 million as of March 31, 2023, compared with cash and cash equivalents of $24.0 million as of September 30, 2022. The lower amount is primarily due to timing of paying a significant amount of accounts payable prior to quarter-end including a previously referenced large financing customer sale recognized in the fourth quarter of fiscal year 2022 but the cost was paid in the first quarter of fiscal year 2023, combined with moving $3.5 million into short-term held-to-maturity investments.

Fiscal Year 2023 Six Month Results

Revenue for the six months ended March 31, 2023 was $31.6 million, a 30% increase, compared with revenue of $24.4 million in same prior year period. Gross profit for the fiscal six months ended March 31, 2023 was $10.8 million, or 34% of sales, compared with $7.8 million, or 32% of sales, reflecting a more favorable product mix. The Company reported net income of $1.3 million and diluted earnings per common share of $0.27 in the fiscal six months ended March 31, 2023 compared with a net loss of $(0.2) million and diluted loss per common share of $(0.05) for the six months ended March 31, 2022.

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) today, May 10, 2023, to review CSPi's financial results and provide a business update. To listen to a live webcast of the call, the event link is https://www.webcaster4.com/Webcast/Page/2912/48374. Individuals may also listen to the call via telephone, by dialing 888-506-0062 or 973-528-0011 and use the Participant Access Code: 661658 when greeted by the live operator. 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.

[2morrowsGains]

FTK...Took advantage of FTK's large spike today (+18%) and sold a good clip.