CSP Inc. (NASDAQ:CSPI) is a company that specializes in providing IT solutions, including cybersecurity services and cloud-based offerings. The company has been making strides in the industry, particularly with its ARIA Zero Trust Protect (AZT PROTECT\u2122) solution, which has attracted new customers in high-growth sectors like utilities and wastewater treatment. CSPI competes with other tech firms in the cybersecurity and IT services space.
On February 14, 2025, Joseph R. Nerges, a significant shareholder of CSPI, purchased 200 shares of the company's common stock at approximately $18.61 per share. This transaction increased his total holdings to 1,380,859 shares. This move comes amid CSPI's positive financial performance in the first quarter of fiscal 2025, where the company reported a turnaround in earnings per share to 5 cents from a loss of 1 cent in the previous year.
CSPI's total quarterly revenues increased by 2% to $15.7 million, driven by a robust 17% growth in service revenues, which reached $4.7 million. This growth was offset by a slight decline in product sales, which fell to $11 million from $11.4 million. The company's strong performance was further supported by higher gross margins, increased interest income, and gains from foreign exchange, as highlighted by Zacks.
The company's stock has been performing well, with a 1.4% increase since the earnings announcement, outperforming the S&P 500 index's 0.7% growth. Over the past month, CSPI's stock has surged by 27.1%, significantly outpacing the S&P 500's 3.9% growth. The current stock price of CSPI is $19.33, reflecting an increase of 2.11% with a change of $0.40. The company's market capitalization stands at approximately $191 million.
CSPI's Board of Directors has declared a quarterly dividend of $0.03 per share, payable on March 10, 2025, to shareholders of record as of February 24, 2025. The company maintains a strong financial position with approximately $30.7 million in cash and cash equivalents, which will support its strategic initiatives in both the near and long term.
