CSP Inc. Files 2024 10-K with Financial Data

TL;DR

CSP Inc. 2024 10-K is in. Check financials for FY23/24.

AI Summary

CSP Inc. filed its 10-K for the fiscal year ending September 30, 2024. The company, headquartered in Lowell, MA, reported its financial performance and business operations. Key financial data points such as trading revenue and retained earnings for the fiscal years 2023 and 2024 are detailed within the filing.

Why It Matters

This filing provides investors and analysts with a comprehensive overview of CSP Inc.'s financial health and strategic direction for the past fiscal year, influencing investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not contain immediate red flags or significant positive news.

Key Numbers

• 9456000 — Accounts Payable and Accrued Liabilities Current (As of September 30, 2024)
• 9776000 — Operating Lease Liability Noncurrent (As of September 30, 2024)

Key Players & Entities

• CSP Inc. (company) — Filer of the 10-K
• Lowell, MA (location) — Company headquarters
• September 30, 2024 (date) — Fiscal year end
• 2023 (date) — Fiscal year
• 2024 (date) — Fiscal year

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share CSPI Nasdaq Global Market
• $18.46 — 08 , based on the closing sale price of $18.46 as reported on the Nasdaq Global Market
• $4.9 million — ts for the TS segment was approximately $4.9 million as of September 30, 2024, as compared t
• $7.5 million — s of September 30, 2024, as compared to $7.5 million as of September 30, 2023. Our backlog c
• $3.0 million — our expenses for R&D were approximately $3.0 million compared to approximately $3.1 million
• $3.1 million — $3.0 million compared to approximately $3.1 million for the year ended September 30, 2023.
• $0.8 million — rs and contracts in the HPP segment was $0.8 million as of September 30, 2024 as compared to
• $1.8 million — as of September 30, 2024 as compared to $1.8 million as of September 30, 2023. Our backlog c

Filing Documents

• cspi-20240930x10k.htm (10-K) — 3762KB
• cspi-20240930xex19d1.htm (EX-19.1) — 98KB
• cspi-20240930xex21d1.htm (EX-21.1) — 9KB
• cspi-20240930xex23d1.htm (EX-23.1) — 2KB
• cspi-20240930xex31d1.htm (EX-31.1) — 9KB
• cspi-20240930xex31d2.htm (EX-31.2) — 9KB
• cspi-20240930xex32d1.htm (EX-32.1) — 9KB
• cspi-20240930xex4d1.htm (EX-4.1) — 19KB
• 0000356037-24-000070.txt ( ) — 18765KB
• cspi-20240930.xsd (EX-101.SCH) — 89KB
• cspi-20240930_cal.xml (EX-101.CAL) — 130KB
• cspi-20240930_def.xml (EX-101.DEF) — 348KB
• cspi-20240930_lab.xml (EX-101.LAB) — 847KB
• cspi-20240930_pre.xml (EX-101.PRE) — 673KB
• cspi-20240930x10k_htm.xml (XML) — 4717KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 16 Item 1C. Cybersecurity 17 Item 2.

Properties

Properties 18 Item 3.

Legal Proceedings

Legal Proceedings 18 Item 4. Mine Safety Disclosures 18 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 18 Item 6. [Reserved] 19 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 30 Item 9. Change in and Disagreements with Accountants on Accounting and Financial Disclosures 31 Item 9A.

Controls and Procedures

Controls and Procedures 31 Item 9B. Other Information 34 Item 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections 34 PART III. Item 10. Directors, Executive Officers and Corporate Governance 34 Item 11.

Executive Compensation

Executive Compensation 34 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 34 Item 13. Certain Relationships and Related Transactions and Director Independence 35 Item 14. Principal Accountant Fees and Services 35 PART IV. Item 15. Exhibits and Financial Statement Schedules 35 Item 16. Form 10-K Summary 37 Note: Items 1B and 7A are not required for Smaller Reporting Companies and therefore are not furnished. i Table of Contents Special Note Regarding Forward-Looking Statements This annual report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This information may involve known and unknown risks, uncertainties and other factors that are difficult to predict and may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. The discussion below contains certain forward-looking statements related but not limited to, among others, statements concerning future revenues and future business plans. Forward-looking statements include statements in which we use words such as "expect," "believe," "anticipate," "intend," "estimate," "should," "could," "may," "plan," "potential," "predict," "project," "will," "would" and similar expressions. Although we believe the expectations reflected in such forward-looking statements are based on reasonable assumptions, the forward-looking statements are subject to significant risks and uncertainties, and thus we cannot assure you that these expectations will prove to be correct, and actual results may vary from those contained in such forward-looking statements. We discuss many of these risks and uncertainties in Item 1A under the heading "Risk Factors" in this Annual Report. Factors that may cause such variances include

Business

Item 1. Business CSP Inc. ("CSPi" or "CSPI" or "the Company" or "we" or "our") was incorporated in 1968 and is based in Lowell, Massachusetts. To meet the diverse requirements of our commercial and defense customers worldwide, CSPi and its subsidiaries develop and market IT integration solutions, advanced security products, managed IT services, cloud services, purpose built network adapters, and high-performance cluster computer systems. Segments CSPI operates in two segments: Technology Solutions ("TS") and High Performance Products ("HPP"). TS Segment The TS segment consists of our wholly-owned Modcomp, Inc. subsidiary, which operates in the United States and the United Kingdom. The TS segment generates product revenues by reselling third-party computer hardware and software as a value added reseller ("VAR"). The TS segment generates service revenues by the delivery of professional services for complex IT solutions, including advanced security; unified communications and collaboration; wireless and mobility; data center solutions; and network solutions as well as managed IT services ("MSP") that primarily serve the small and mid-sized business market ("SMB"). Third party products and professional services are marketed and sold through the Company's direct sales force into a variety of vertical markets, including automotive, defense, healthcare, education, federal, state and local government, and maritime. HPP Segment The HPP segment revenue comes from three distinct product lines: (i) a cybersecurity solution marketed as ARIA Software-Defined Security ("SDS"), which is offered to commercial, original equipment manufacturers ("OEM") and government customers; (ii) the Myricom network adapters and related software for commercial, government and OEM customers; and (iii) the legacy Multicomputer product portfolio for digital signal processing ("DSP") applications within the defense markets. The ARIA SDS solution is a software portfolio comprised of 3 produ

Risk Factors

Item 1A. Risk Factors If any of the risks and uncertainties set forth below actually materialize, our business, financial condition and/or results of operations could be materially and adversely affected, the trading price of our common stock could decline and a stockholder could lose all or part of its, his or her investment. The risks and uncertainties set forth below are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently consider immaterial may also impair our business operations. Economic, Industry, and Operational Risks We depend on a small number of customers for a significant portion of our revenue and the loss of any customer could significantly affect our business. Both the HPP and TS segments are reliant upon a small number of significant customers, and the loss of or significant reduction in sales to any one of which could have a material adverse effect on our business. For the fiscal year ended September 30, 2024 and 2023 no one customer accounted for 10% or more of our total revenues for the fiscal year. Our revenues are largely dependent upon the ability of our customers to continue to grow or need services or to develop and sell products that incorporate our products. No assurance can be given that our customers will not experience financial or other difficulties that could adversely affect their operations and, in turn, our results of operations. We depend on key personnel and skilled employees and face competition in hiring and retaining qualified employees. We are largely dependent upon the skills and efforts of our senior management, managerial, sales and technical employees. None of our senior management personnel or other key employees are subject to any employment contracts except V

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View this 10-K filing on SEC EDGAR