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CSP Inc. Reports Second-Quarter Fiscal 2013 Financial Results

Stocks in this article: CSPI

BILLERICA, Mass., May 8, 2013 (GLOBE NEWSWIRE) -- CSP Inc. (Nasdaq:CSPI), a provider of IT solutions, systems integration services and dense cluster computing systems, today reported financial results for the second quarter of fiscal 2013 ended March 31, 2013.

The Company also announced that its board of directors has voted to increase its quarterly dividend to $0.10 per share from $0.03 per share beginning with the third-quarter dividend payment. The dividend is payable June 3, 2013 to shareholders of record May 24, 2013.

Management Comments

"We performed well in the second quarter with revenues increasing 36% and net income up 67%," said Victor Dellovo, CSP Inc. president and chief executive officer. "All of our top and bottom-line growth came from the Service and Systems Integration segment as our Systems segment continues to experience significant market headwinds."

"At our Systems segment, revenue was up from the year-ago quarter, also up from the sequential first fiscal quarter due to strong sales to international customers," said Dellovo. "Gross margin in the quarter was significantly lower year over year as we received $2.0 million in royalty revenue from Lockheed Martin related to the E-2D aircraft a year ago and recorded no royalty revenue this year. The sequester and continuing resolution is having a negative effect on our Systems segment performance and we expect that to continue in the near term. Multicomputer parts for Lot 1 of full-rate production for the E-2D are on order and we expect to ship them during the current fiscal year."

"Our Service and Systems Integration segment turned in another excellent quarter, with revenues increasing 39% year over year," added Dellovo. "Sales were driven by strong demand at our U.S. subsidiary as well as by solid growth in Germany. During the past several quarters we have been enhancing our marketing efforts, working with manufacturers to obtain sales leads, and adding to our sales force. As a result, a significant portion of our growth this quarter came from new customers."

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