Mon, Aug 19, 7:11 PM (148 days ago)
CSP Inc. reported a significant decline in sales for the quarter ending June 30, 2024, with total revenues falling 26% to $13.1 million compared to $17.7 million in the same period last year. This drop was primarily driven by a $3.8 million decrease in the Technology Solutions (TS) segment. Despite the revenue decline, gross margins improved slightly to 35%, up from 33%, due to a reduction in the cost of sales. Operating loss was reported at $720,000, contrasting with an operating income of $575,000 in the prior year. For the nine-month period, revenues decreased 14% to $42.2 million, with the TS segment experiencing a $5.6 million decline. Operating income fell to $171,000 from $2.2 million, while net income decreased to $1.33 million compared to $3.8 million in the previous year. The company maintained a strong cash position, increasing cash and equivalents to $28.9 million, supported by positive cash flow from operations of $5.7 million. The company faces uncertainties related to geopolitical tensions, which may impact future operations. Additionally, a two-for-one stock split was executed, and the company continues to evaluate its financial strategies amid evolving market conditions.