CSP Inc. Reports 22% Year-Over-Year Sales Growth in Q1 2005

Strategic Insights -

CSP Inc., a leading provider of IT solutions, systems integration services, and dense cluster computing systems, has reported significant financial results for the first quarter of fiscal 2005, ended December 31, 2004. The company's sales grew by 22% to $14.4 million from $11.8 million in the year-earlier quarter, with a first-quarter net income of $237,000 or $0.06 per share (diluted). This marked the company's sixth consecutive quarter of year-over-year revenue growth.

Key Takeaways:

  • CSP Inc. reported a 22% year-over-year increase in sales to $14.4 million, a significant growth in the company's financial performance.
  • The company's MultiComputer Group saw growth driven by demand for its StarGate 2923 and FastCluster 2942 open system multicomputers, with a significant international contract win for both products.
  • CSP launched its new line of fully ruggedized multicomputers, the FastCluster 220R, which was selected for its high-quality, ruggedized product that conforms to military specifications.
  • The FastCluster 220R is targeted to the exacting military standards for fast and accurate digital signal and data processing for Command Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance applications.
  • CSP's MODCOMP subsidiary continued to see robust demand for its integration consulting services for complex IT environments, driven by the trend toward consolidation of servers and associated storage systems.
  • One of the key growth drivers for MODCOMP is network security consulting and maintenance, with the company helping clients enhance their network security infrastructure and reduce maintenance costs.
  • CSP plans to build its pipeline of leading-edge products through focused R&D investments and execute on its growth strategy throughout fiscal 2005.

Statistics:

  • Sales growth: 22%
  • Sales for Q1 2005: $14.4 million
  • Sales for Q1 2004: $11.8 million
  • Net income for Q1 2005: $237,000
  • Net loss for Q1 2004: $(228,000)
  • Six consecutive quarters of year-over-year revenue growth

Sources:

  • CSP Inc. press release, dated February 8, 2005.
  • CSP Inc. filing with the Securities and Exchange Commission, reference filing date not specified.
  • CSP Inc. web site, http://www.cspi.com/
  • MODCOMP, Inc. web site, http://www.modcomp.com
  • Private Securities Litigation Reform Act of 1995.