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

Stocks in this article: CSPI

Net income for the fourth quarter of fiscal 2012 increased to $4.9 million, or $1.43 per diluted share, compared with a net loss of $92 thousand, or $0.03 per share, in the fourth quarter of fiscal 2011.  For the full year, net income grew to $6.6 million, or $1.91 per diluted share, from $369 thousand, or $0.10 per diluted share, in fiscal 2011. 

For the year ended September 30, 2012, the company realized a tax benefit of $1.7 million related to a reversal of its previously disclosed valuation allowance on deferred tax assets. This reversal reflected the company's belief that it will have sufficient future taxable income to utilize its existing deferred tax assets, based on its assessment of positive evidence in its U.S operations, as well as the likelihood of continued royalty income and expectation that its Service and Systems Integration segment will continue to be profitable in future years.

Cash and short-term investments increased to $20.5 million compared with $15.9 million at year end fiscal 2011. The increase was primarily due to strong cash from operations during the year. CSP's cash position may vary significantly from quarter to quarter due to the high working capital requirements needed to fund large projects at both its Systems and its Services and Systems Integration segments. 

Special Annual Dividend

On December 10, 2012, the Board of Directors approved a special dividend of $0.20 per share, payable on December 28, 2012 to shareholders of record as of December 20, 2012. The board carefully evaluated the company's current cash position, considered alternatives for deploying cash, and determined that paying another dividend was a prudent way to generate shareholder value. The Board intends to review CSP's financial performance, balance sheet and working capital requirements to determine any future dividends.

Conference Call Details

CSP Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W. Levine will host a conference call at 10:00 a.m. (ET) today to review CSP'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) 407-5790 or (201) 689-8328. For interested parties unable to participate in the live call, an archived version of the webcast will be available for approximately one year on CSP's website. 

About CSP Inc.

Based in Billerica, Massachusetts and founded in 1968, CSP Inc. and its subsidiaries develop and market IT integration solutions and high-performance computer systems to meet the diverse requirements of our industrial, commercial, and defense customers worldwide.

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