Business
CSP Inc. Reports Fiscal Year 2020 Third Quarter Results
New Business Pipeline for Cybersecurity Solutions Continues to Grow LOWELL, Mass., Aug. 11, 2020 (GLOBE NEWSWIRE) -- CSP Inc. (NASDAQ: CSPI), a provider of
About this update from Csp Inc.
[{"type":"text","content":"New Business Pipeline for Cybersecurity Solutions Continues to Grow\nLOWELL, Mass., Aug. 11, 2020 (GLOBE NEWSWIRE) -- CSP Inc. (NASDAQ: CSPI), a provider of security and packet capture products, managed IT and professional services and technology solutions, reported financial and operating results for the 2020 fiscal third quarter ended June 30, 2020 and provided a business update.\n Fiscal Third Quarter Highlights and Recent Developments Improved gross margin percentage by 9% compared to the year-ago fiscal third quarter, driven by primarily higher margin products.The ARIA Cybersecurity Solutions product pipeline has grown and Unified-Communications-as-a-Service (UCaaS) added several customers, highlighting the continued interest and demand for its feature-rich functionality.Expanded in our managed service practice, including cloud, Office 365 and other Microsoft offerings.In early April when it became evident that COVID-19 would have a severe impact on the economy we took three actions to improve our cash flow: we suspended our quarterly dividend; stopped our stock buyback program; and applied for and received a PPP loan at each segment. These actions improved our cash position by approximately three million dollars at the end of June. “As we continue to adjust our business to meet our customers’ needs during this challenging COVID-19 period, I believe our team performed admirably during the fiscal third quarter,” commented Victor Dellovo, Chief Executive Officer. “Notwithstanding the business impact in certain sectors, the breadth and financial strength of our customers and our focus on generating recurring revenue allowed us to achieve a 9% gross margin percentage improvement, despite the decline in revenue from a few large low margin deals. We remain encouraged by the rising interest and demand we are experiencing in our newest offerings, which enabled us to deploy ARIA for an international customer while customers continue to sign up for our UCaaS offering. This continues to demonstrate the successful execution of transitioning to a cybersecurity, wireless and managed service markets company. Despite the limitation on our operations due to COVID-19, especially in the sales area, we are continuing to build the revenue pipeline during the fiscal quarter which we believe will fuel our growth in the coming years. We followed a...