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CSP Inc. Reports Fourth-Quarter And Year-End Fiscal 2012 Financial Results

Stocks in this article: CSPI

"We are executing on a new strategy to capitalize on many opportunities that we see in our markets," said Dellovo. "This strategy includes cross selling our Systems segment multicomputers with our Services and Systems Integration software and services to become more of an end-to-end supplier; becoming a global partner to our customers by cross selling between our three Modcomp geographic locations; focusing on winning higher-margin consulting as well as managed services business; leveraging an increasing number of partnerships across both segments; and maintaining a vigilant focus on cost control. To implement this strategy and position CSP for its next stage of growth, we are making the necessary investments in sales and engineering talent."

"Looking ahead, we expect that the recording of royalties for nine E-2D planes in 2012 versus only five that we had expected for fiscal 2012 will create a difficult year-over-year comparison in fiscal 2013," said Dellovo. "While we anticipate continued growth from our Service and Systems Integration segment, the timing of programs will most likely result in a loss at our Systems segment. Fiscal 2013 will mark an important transition year for us as we execute on our new strategy that we expect will reduce the year-to-year volatility in our sales, and position the company for sustained, long-term growth and profitability."

Financial Results

For the fourth quarter of fiscal 2012, total sales increased 35% to $22.3 million from $16.6 million for the fourth quarter of fiscal 2011. For the full year, sales grew 15% to $84.8 million from $73.6 million in the prior year.

Gross margin for the fourth quarter of fiscal 2012 increased to 25% compared with 24% in the fourth quarter a year ago. The increase in margin during the quarter was the result of higher sales volume as well as royalty revenue that did not occur in the prior-year period. For the full year, gross margin increased to 24% from 22% in fiscal 2011. 

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