LOWELL, Mass., Feb. 11, 2021 (GLOBE NEWSWIRE) -- CSP Inc. (NASDAQ: CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, reported financial and operating results for the 2021 fiscal first quarter and provided a business update.

First Quarter Operating Highlights and Recent Achievements

• Favorable revenue mix led to a gross margin improvement of 5.8 percentage points compared to the year-ago fiscal first quarter
• Recent large-scale cyber-attack and new Cloud offering creating new customer opportunities for ARIA’s Advanced Detection and Response solution
• ARIA microHSM solution gains traction with new customers
• Maintained strong balance sheet to execute growth strategies

“Our strategy to transition to higher margin products and services is reflected in this quarter’s operating performance as we delivered our fifth consecutive quarter of year-over-year gross margin improvement, despite the declining revenue due to COVID-19,” commented Victor Dellovo, Chief Executive Officer. “Further, our response to the recent and well-chronicled cyber-attack reinforces our commitment of becoming a leading cybersecurity company, as we are experiencing a heightened level of interest for the ARIA Advanced Detection and Response solution. In addition, we just launched ARIA CloudADR to help provide organizations with COVID-19 tightened budgets, a lower entry cost solution to help protect against cybersecurity threats. As such, we believe we have a substantial opportunity ahead of us as our fiscal year unfolds. Overall, we continue to weather the COVID-19 impacts, and with a solid balance sheet we believe we have the resources to manage the business and are positioned to execute our operating strategies when our target customers are able to introduce new solutions into their operations.”

Fiscal Year 2021 First Quarter Results

Revenue for the fiscal first quarter was $11.4 million, compared to $16.9 million in the year-ago fiscal first quarter, which was the last full quarter prior to the business disruption caused by the COVID-19 pandemic. Gross profit for the fiscal first quarter was $3.4 million, or 29.7% of sales, compared with $4.0 million, or 23.9% of sales, in the year-ago fiscal first quarter, reflecting improved product gross margin percentage plus a mix of higher margin services business. The Company reported a net income of $1.2 million in the first fiscal quarter, or $0.27 per share - basic, compared with a net loss of $(0.5) million or $(0.14) per share - basic, for the first quarter of fiscal 2020. The 2021 fiscal first quarter includes a gain on debt extinguishment of the Paycheck Protection Plan SBA Loans at the TS and HPP segment totaling $2.2 million, which was established as part of the CARES Act loan.

At December 31, 2020, the Company had cash and cash equivalents of $19.9 million.

About CSPi

CSPi (NASDAQ: CSPI) operates two divisions, each with unique expertise in designing and implementing technology solutions to help their customers use technology to success. The High Performance Product division, including ARIA Cybersecurity Solutions, originated from supporting initiatives for the Department of Defense and Western intelligence agencies related to network monitoring, data protection, and intelligence initiatives. This focused mindset now results in foolproof data protection, enterprise wide. Our ARIA Software Defined Security solutions set provides enhanced network security, as well as accelerating incident response capabilities, while our Myricom nVoy Series appliances provide automated breach identification and notification, enabled by the 10G drop less packet capture inherent in our Myricom intelligent adapters. CSPi’s Technology Solutions division helps clients achieve their business goals and accelerate time to market through innovative IT solutions and professional services by partnering with best-in-class technology providers. For organizations that want the benefits of an IT department without the cost, we offer a robust catalog of Managed IT Services providing 24×365 proactive support. Our team of engineers have expertise across major industries supporting five key technology areas: Advanced Security; Communication and Collaboration; Data Center; Networking; and Wireless & Mobility.