CSP Inc (CSPI) 2025 Q2 法說會逐字稿

Good morning, everyone, and welcome to the CSPi's Fiscal 2025 Second Quarter Results Conference Call. (Operator Instructions). Please note that this conference is being recorded.

大家早安，歡迎參加 CSPi 2025 財政年度第二季業績電話會議。（操作員指令）。請注意，本次會議正在錄製。

I will now turn the conference over to your host, Michael Polyviou.

現在我將會議交給主持人 Michael Polyviou。

Thank you, Jenny. Hello, everyone, and thank you for joining us to review CSPi's fiscal 2025 second quarter financial results as well as recent operating developments, the fiscal quarter ended March 31, 2025. Today, with me on the call is Victor Dellovo, CSPi's Chief Executive Officer; and Gary Levine, CSPi's Chief Financial Officer. After Victor and Gary conclude their opening remarks, we'll then open the call for questions. (Event Instructions)

謝謝你，珍妮。大家好，感謝您與我們一起回顧 CSPi 2025 財年第二季的財務業績以及近期的營運發展，該財季截至 2025 年 3 月 31 日。今天，與我一起參加電話會議的有 CSPi 執行長 Victor Dellovo；以及 CSPi 財務長 Gary Levine。在 Victor 和 Gary 結束開場白後，我們將開始提問。（活動須知）

Statements made by CSPi's management on today's call regarding the company's business that are not historical facts may be forward-looking statements as terms identified in federal securities laws. The words may, will, expect, believe, anticipate, project, plan, intend, estimate and continue as well as similar expressions are intended to identify forward-looking statements.

CSPi 管理階層在今天的電話會議上就公司業務所作的非歷史事實的陳述可能是聯邦證券法所確定的前瞻性陳述。可能、將要、預期、相信、預期、預計、計劃、打算、估計、繼續等詞語以及類似的表達旨在識別前瞻性陳述。

Forward-looking statements should not be meant as a guarantee of future performance or results. The company cautions you that these statements reflect current expectations about the company's future performance or events and are subject to several uncertainties, risks and other influences, many of which are beyond the company's control that may influence the accuracy of the statements and the projections upon which the segment and statements are based.

前瞻性陳述不應被視為對未來績效或結果的保證。本公司提醒您，這些聲明反映了對公司未來業績或事件的當前預期，並受到若干不確定性、風險和其他影響的影響，其中許多超出了公司的控制範圍，可能會影響聲明的準確性以及分部和聲明所依據的預測。

Factors that may affect the company's results include, but are not limited to, the risks and uncertainties discussed in the risk factors section of the annual report on Form 10-K and the quarterly report on Form 10-Q filed with the Securities and Exchange Commission.

可能影響公司績效的因素包括但不限於向美國證券交易委員會提交的10-K表年度報告和10-Q表季度報告的風險因素部分中討論的風險和不確定性。

Forward-looking statements are based on information available at the time those statements are made and management's good faith belief as of the time with respect to future events.

前瞻性陳述是基於做出這些陳述時可用的資訊以及管理階層對未來事件當時的誠信信念。

All forward-looking statements are qualified in entirety by this cautionary statement and CSPi undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date thereof. With that, I'll turn the call over to Victor Dellovo, Chief Executive Officer. Victor, please go ahead.

所有前瞻性陳述均受本警告聲明的完整限制，CSPi 不承擔公開修改或更新任何前瞻性陳述的義務，無論其是否因新資訊、未來事件或其他原因而發生。說完這些，我將把電話轉給執行長 Victor Dellovo。維克多，請繼續。

Thanks, Michael, and good morning, everyone. Despite an unusual operating environment, our fiscal second quarter revenue was $13.1 million, met our internal budget and expectations. The results reflected a slight increase in product sales and a decline in service revenue as compared to last year's period due to a single multimillion dollar deal that wasn't repeated this quarter.

謝謝，邁克爾，大家早安。儘管經營環境異常，但我們第二財季的收入仍達到 1,310 萬美元，達到了我們的內部預算和預期。業績反映，與去年同期相比，產品銷售額略有增加，但服務收入下降，原因是本季沒有重複數百萬美元的交易。

Excluding that deal, we achieved solid double-digit service revenue over the prior year period. However, a 6-figure 12-month customer support contract was signed during the second fiscal quarter relating to the multimillion dollar deal that occurred last year.

除該交易外，我們去年同期的服務收入實現了兩位數的穩定成長。然而，與去年達成的數百萬美元交易有關的、價值 6 位數的 12 個月客戶支援合約在第二財季簽署。

AZT PROTECT continues to gain traction in the OT marketplace. Through the successful execution of our go-to-market strategy, we signed six new customers during the quarter. Some of these deals were small in nature, but have the potential to follow-on sales, and we believe that some of these could eventually become installations of seven figure values over the upcoming quarters.

AZT PROTECT 在 OT 市場上繼續受到青睞。透過成功執行我們的市場進入策略，我們在本季度簽署了六位新客戶。其中一些交易規模較小，但具有後續銷售的潛力，我們相信其中一些交易最終可能在未來幾季內成為價值七位數的安裝。

By focusing on the initial project to implement AZT PROTECT within the organization, improving our solution, we position ourselves for expanding revenue relationships within the corporation. As a result of this approach, our pipeline for AZT continues to expand, and we believe our total opportunities have increased some fivefold over the past couple of quarters.

透過專注於在組織內實施 AZT PROTECT 的初始項目，改善我們的解決方案，我們為擴大公司內部的收入關係做好了準備。由於採取了這種方法，我們的 AZT 管道不斷擴大，我們相信，在過去的幾個季度中，我們的整體機會增加了約五倍。

We continue to build relationships with our AZT PROTECT resellers, especially with the largest Rockwell Automation distributor. During the quarter, we entered a new reseller partnership with Rexel USA, an industry leader in supplying industrial equipment throughout the United States.

我們繼續與 AZT PROTECT 經銷商建立關係，特別是與最大的羅克韋爾自動化經銷商。本季度，我們與美國工業設備供應行業的領導者 Rexel USA 建立了新的經銷商合作夥伴關係。

Rexel provides a variety of products to industrial customers across the US and is a premier Rockwell Automation distributor. Rexel continues the unique capabilities of ARIA -- recognizes the unique capabilities of ARIA AZT PROTECT to safeguard its customers against industrial cyber-attacks.

Rexel 為美國各地的工業客戶提供各種產品，並且是羅克韋爾自動化的頂級經銷商。Rexel 延續了 ARIA 的獨特功能——認可 ARIA AZT PROTECT 的獨特功能，可保護其客戶免受工業網路攻擊。

It is initially working with ARIA to deploy AZT at the facilities of a large building material manufacturer in need of protection from zero-day malware, ransomware and sophisticated cyber-attacks.

該公司最初與 ARIA 合作，在一家大型建築材料製造商的設施中部署 AZT，該製造商需要防範零時差惡意軟體、勒索軟體和複雜的網路攻擊。

At the end of April, we were featured in a Rockwell webinar with just over 100 of its customers signed up, and we are generating new business leads that will be worked with our distributors to come to fruition in the later quarters.

四月底，我們參加了羅克韋爾網路研討會，有超過 100 名客戶報名參加，我們正在開發新的業務線索，並將與我們的經銷商合作，在後期季度取得成果。

We continue to make prudent investments in marketing AZT PROTECT, which includes conference participation and attending regional events held by distributors to build off their existing customer relationships. All told in less than two years of the July 2023 launch, we are where we plan to be at this juncture.

我們持續對 AZT PROTECT 的行銷進行審慎的投資，包括參加會議和參加經銷商舉辦的地區活動，以建立他們現有的客戶關係。總而言之，從 2023 年 7 月啟動到現在不到兩年的時間，我們已經達到了計畫的目標。

And currently, we are always seeking to enhance our sales team as we scale up the business, ensuring we might have the right caliber people selling AZT PROTECT, while building brand recognitions for AZT PROTECT brand in the OT market. I strongly believe, based on the current pipeline, we are gaining traction with key prospects, while endearing ourselves to the current customers to grow the revenue opportunities.

目前，我們在擴大業務規模的同時，也一直在尋求加強我們的銷售團隊，確保我們擁有合適素質的人員銷售 AZT PROTECT，同時在 OT 市場上為 AZT PROTECT 品牌建立品牌知名度。我堅信，基於目前的管道，我們正在獲得主要潛在客戶的青睞，同時贏得現有客戶的青睞，從而增加收入機會。

We are particularly excited about our new customers signed in April with our distributor Oryx Industries in South Africa. The contract calls for AZT PROTECT to protect small portions of the equipment owned and operated by one of the largest cell tower providers in the country. This agreement enables AZT PROTECT to be broadly deployed across the entire system over the next 18 months. This customer could generate sales in the seven figures for our company over the same period and open up new cell tower protection markets for us.

我們對四月份與南非經銷商 Oryx Industries 簽約的新客戶感到特別興奮。合約要求 AZT PROTECT 保護該國最大的手機訊號塔供應商之一擁有和營運的一小部分設備。該協議使得 AZT PROTECT 能夠在未來 18 個月內在整個系統中廣泛部署。該客戶可以為我們公司在同一時期創造七位數的銷售額，並為我們開闢新的手機訊號塔保護市場。

Our team is highly focused on this opportunity as well as several others with similar potential as we enter the second half of the fiscal year. Oryx, which we just partnered towards the end of the quarter, is a leading provider and fieldblazer of cybersecurity solutions in South Africa, and we look forward to working with them to attract other businesses that are in critical need of our services as the country is seeing an increase in cyber-attacks.

隨著財政年度進入下半年，我們的團隊高度關注這個機會以及其他幾個具有類似潛力的機會。我們在本季末剛與 Oryx 建立合作關係，該公司是南非領先的網路安全解決方案提供商和開拓者，我們期待與他們合作，吸引其他急需我們服務的企業，因為該國的網路攻擊正在增加。

Other parts of the business did well during the second quarter. The Technology Solution, or TS business, generated $12 million in revenue and continues to be profitable. We are executing contracts with cruise lines and ocean freighter liner market, and we continue to generate increased demand for our cloud-based services for companies wanting to outsource their critical needs to value-tested platform.

其他業務部分在第二季表現良好。技術解決方案（TS）業務創造了 1200 萬美元的收入，並持續獲利。我們正在與郵輪公司和遠洋貨輪市場簽訂合同，我們將繼續為希望將關鍵需求外包給經過價值測試的平台的公司創造對基於雲端的服務日益增長的需求。

Earlier this quarter, we were awarded a professional and cloud consumption service project to architect, implement and manage a Microsoft Azure migration for a Florida-based health care provider, which operates clinics across the state. Our mandate is to deliver the next-generation cloud solutions following Microsoft Azure well-architected framework, ensuring seamless support for the clients' enterprise workloads.

本季度早些時候，我們獲得了一個專業和雲端消費服務項目，為一家位於佛羅裡達州的醫療保健提供者設計、實施和管理 Microsoft Azure 遷移，該提供者在全州範圍內經營診所。我們的任務是按照 Microsoft Azure 精心建置的框架提供新一代雲端解決方案，確保無縫支援客戶的企業工作負載。

We finished the quarter with more than $29 million in cash and cash equivalents, while continuing to invest in our AZT product line. We repurchased 384,000 worth of common shares during the quarter, and the Board of Directors authorized another $0.03 per share quarterly cash dividend.

本季結束時，我們的現金和現金等價物超過 2,900 萬美元，同時繼續投資於我們的 AZT 產品線。我們在本季回購了價值 384,000 股普通股，董事會批准再派發每股 0.03 美元的季度現金股利。

In summary, we entered the second half of the fiscal year with some momentum, specifically the South African AZT PROTECT contract and the Technology Solution contract to deliver our critical Microsoft Azure Protect for the Florida-based health care providers.

總而言之，我們進入了財政年度的下半年，並取得了一些進展，特別是南非 AZT PROTECT 合約和技術解決方案合同，為佛羅裡達州的醫療保健提供者提供關鍵的 Microsoft Azure Protect。

The second half of the fiscal year is off to a promising start. We may face challenging operating conditions, namely price increases on the products that TS purchases for resale as well as customers may reduce spending through reduced headcount in project postponement as they realign their teams. The flexibility of our organization and the prospects for AZT PROTECT growth positions us to maximize our opportunities, and that is our dedicated focus.

本財年下半年開局良好。我們可能面臨嚴峻的經營情勢，例如，TS 購買用於轉售的產品價格上漲，以及客戶在重新調整團隊時可能透過減少員工人數、推遲專案來減少開支。我們組織的靈活性和 AZT PROTECT 的成長前景使我們能夠最大限度地利用我們的機會，這是我們專注的重點。

Now I will ask Gary to provide a brief overview of the fiscal second quarter and 6 months financial performance. Gary?

現在我請加里簡單介紹一下第二財季和六個月的財務表現。加里？

Thanks, Victor. For the second quarter ended March 31, 2024, we reported $13.1 million as compared to $13.7 million for the prior year. Service revenue represented $4.6 million of overall sales compared to $5.2 million of overall sales during the year ago period.

謝謝，維克多。截至 2024 年 3 月 31 日的第二季度，我們報告的利潤為 1,310 萬美元，而去年同期為 1,370 萬美元。服務收入佔總銷售額的 460 萬美元，而去年同期的總銷售額為 520 萬美元。

Gross profit for the three months ended March 31, 2025, was $4.2 million or 32% of sales compared to gross profit of $6.2 million or 45.3% of sales for the quarter ended March 31, 2025, reflecting higher component costs in the product side of the business, and there was a single multimillion-dollar sales contract at a high margin recognized in the fiscal 2024 second quarter.

截至 2025 年 3 月 31 日的三個月的毛利潤為 420 萬美元，佔銷售額的 32%，而截至 2025 年 3 月 31 日的季度的毛利潤為 620 萬美元，佔銷售額的 45.3%，這反映了業務產品方面的零部件成本較高，並且在 2024 財年銷售了數百萬美元的資本價值數百萬美元。

Our overall operating expenses were essentially flat with the prior period. We had a tax benefit of $683,000 due to excess tax benefit of restricted stock awards that vested in the quarter and tax credits, which we expect to be utilized against our federal and state taxes. We had a loss for the quarter of $108,000 or $0.01 per diluted share for the fiscal second quarter.

我們的整體營運費用與上一期基本持平。由於本季歸屬的限制性股票獎勵的超額稅收優惠和稅收抵免，我們獲得了 683,000 美元的稅收優惠，我們預計這些優惠可用於抵消聯邦稅和州稅。我們第二財季虧損 108,000 美元，即每股虧損 0.01 美元。

For the six months, our revenue was $28.5 million versus $29.1 million for the first six months of fiscal 2024. We had a net profit of $341,000 or $0.04 per diluted share of common. The company continues to maintain a robust balance sheet as of March 31, 2025, and had cash and cash equivalents of over $29 million. The higher cash balance relative to our liabilities enhances the company's resource to pay a quarterly cash dividend while executing growth, which includes the continued rollout and market awareness of the AZT product offering.

六個月內，我們的收入為 2,850 萬美元，而 2024 財年上半年的收入為 2,910 萬美元。我們的淨利潤為 341,000 美元，即每股攤薄利潤 0.04 美元。截至 2025 年 3 月 31 日，該公司繼續保持強勁的資產負債表，現金和現金等價物超過 2,900 萬美元。相對於我們的負債，更高的現金餘額增強了公司的資源，可以在實現成長的同時支付季度現金股息，其中包括繼續推出 AZT 產品並提高市場知名度。

We spent $380,000 during the quarter purchasing 23,800 shares of common. Lastly, as Victor mentioned, the Board of Directors approved a $0.03 cash dividend for shareholders of record on May 28, 2025, payable on June 11, 2025.

本季我們花了 38 萬美元購買了 23,800 股普通股。最後，正如 Victor 所提到的，董事會批准向 2025 年 5 月 28 日登記在冊的股東派發 0.03 美元的現金股息，並於 2025 年 6 月 11 日支付。

With that, I will turn it over to the operator for your questions.

說完這些，我將把問題交給接線員來回答您的問題。

(Operator Instructions)

（操作員指示）

Joseph Nerges, Segren Investments.

約瑟夫‧內格斯 (Joseph Nerges)，塞格倫投資公司。

Thank you. Good morning, guys. Now I got to lead this -- I've got two people I got Brent call -- Brett called me -- Brett Davidson called me. He's got a dental appointment, emergency dental appointment. So I've got to ask questions for Brett, too. Well -- and I think you've covered much of what he wanted to know in your remarks, Victor.

謝謝。大家早安。現在我必須領導這個——我有兩個人，我讓布倫特打電話給我——布雷特打電話給我——布雷特戴維森打電話給我。他有一個牙科預約，緊急牙科預約。所以我也必須向布雷特提問。好吧——我想你的評論已經涵蓋了他想知道的大部分內容，維克多。

He was asking for some more color on the backlog for AZT, and I'm guessing that he was looking for something in the neighborhood of, numbers back on the backlog as well as the potential size of some of these contracts. Do you want to elaborate any more than what you said?

他要求提供有關 AZT 積壓訂單的更多詳細信息，我猜他正在尋找積壓訂單的數字以及其中一些合約的潛在規模。您是否想進一步詳細說明您所說的話？

No, no, no. Like I said, the pipeline is growing. We continue to talk to new customers and the pipeline is -- the total pipeline is in different stages. We cut it out to four different stages, and we have different deals and they're all at different levels of the sales process. So I'd rather just not comment on that.

不，不，不。正如我所說，管道正在不斷增長。我們繼續與新客戶交談，整個管道處於不同的階段。我們將其分為四個不同的階段，我們有不同的交易，它們都處於銷售過程的不同層次。所以我寧願不對此發表評論。

And tell Brett, he can call me if he had any other questions.

告訴布雷特，如果他還有其他問題可以打電話給我。

Okay. And the other question he had was on the cruise ship business. And of course, you mentioned that, too, i.e., is it continuing? Do we see more -- and you said not only the cruise ships, but also the freighters, right, you were doing, and so -- and that's increasing or is it pretty steady or?

好的。他的另一個問題是關於遊輪業務的。當然，您也提到了這一點，也就是說，它還在繼續嗎？我們是否看到了更多——您說的不僅是遊輪，還有貨輪，對吧，您就是這樣做的——而且數量在增加還是相當穩定？

Yeah, it's been steady. As we continue to modify the ships, we get another one or another two, it's on their schedule. So we actually never know what's coming. It's just depending when the ships are going to be on land, drydock, as they call it, yes.

是的，一直很穩定。隨著我們繼續改造船隻，我們會得到另外一艘或兩艘，這是他們的計劃。所以我們實際上永遠不知道接下來會發生什麼。是的，這取決於船隻何時登陸，也就是所謂的乾船塢。

Okay. Well, I'll go to my quick question here. This is on a cell tower contract. And I'm particularly interested in Gary Southwell's comment in the contract. He said other solutions were considered less effective and too complex to operate.

好的。好吧，我在這裡回答一個簡短的問題。這是一份手機訊號塔合約。我對加里·索斯韋爾 (Gary Southwell) 在合約中的評論特別感興趣。他說，其他解決方案被認為效率較低且操作過於複雜。

I guess my question is, do we have something unique here where we can go -- or is the cell tower thing unique in itself? Is this company unique, where we can go after more cell tower companies that have the same structure, if you want to call it, the same endpoint needs?

我想我的問題是，我們這裡有沒有什麼獨特的地方可以去——或者手機訊號塔本身是否很獨特？這家公司是否獨一無二，我們可以去尋找更多具有相同結構（如果你願意這麼稱呼的話）的手機訊號塔公司？

We were unique because the amount of space we take up on the cell tower because they don't -- it's not like they have a huge computer sitting there, right? The amount of space and the amount of CPU power was very attractive to them because like I said, those cell towers there, they have limited CPU and storage on each cell tower.

我們之所以獨特，是因為我們佔用了手機訊號塔上的大量空間，因為他們沒有——他們又沒有在那裡放一台巨大的計算機，對吧？空間大小和 CPU 能力對他們來說非常有吸引力，因為就像我說的，那裡的手機訊號塔，每個訊號塔上的 CPU 和儲存空間都是有限的。

So that was a big, plus we work in Linux where some other companies don't. In some of the versions of the software were a little dated also. So that was one of the perfect customers. I think that's kind of why it might have moved as fast as it did just because we had a lot of check boxes right out of the bat on that particular one.

所以這是一個很大的優勢，我們在 Linux 上工作，而其他一些公司卻沒有。某些軟體的版本也有些過時了。所以這是完美的客戶之一。我認為這就是為什麼它能夠如此快速地發展，因為我們一開始就針對這個特定的問題設定了很多複選框。

So a follow-up there would be, do the other cells -- do we know of other cell companies have limitations on their towers, let's say, storage?

那麼接下來的問題是，其他蜂窩——我們是否知道其他蜂窩公司對其塔有限制，例如儲存？

We're reaching out to those different companies. Some of them are not calling back right at this second, but we will continue to reach out to various companies that we did some research on that is similar to the company in South Africa.

我們正在聯繫這些不同的公司。其中一些公司目前沒有回電，但我們會繼續聯繫我們研究過的與南非公司類似的各家公司。

Okay. And just one other quick thing from -- I'm going back to your letter, the December letter where you talked about the cloud-based projects you had, I guess, at the time, 14 at the end of the year. Is that still -- do we still have a pretty sizable backlog of cloud-based projects at the end --

好的。還有一件簡單的事情——我回到你的信，12 月份的信，你在其中談到了你當時擁有的基於雲端的項目，我猜，到年底有 14 個。那我們最後是否還有相當多的基於雲端的項目積壓--

Yeah. It's definitely more than 14. It's probably in the 20s right now. I don't know the exact number. Yeah.

是的。絕對超過14。現在大概是20度以上。我不知道確切的數字。是的。

Okay. Well, I'll drop back and let somebody else ask a question. Thank you, guys.

好的。好吧，我先退後一步，讓其他人問問題。謝謝你們。

Thanks Joe.

謝謝喬。

(Operator Instructions)

（操作員指示）

Okay, I'm not seeing anyone else in the queue for questions, so I will now hand back over to Victor for any closing comments.

好的，我沒有看到隊列中還有其他人提問，因此現在我將把時間交還給 Victor，請他發表結束語。

Thank you, Jenny. I want to thank our shareholders for their continued interest and support. We have some momentum heading into the second half of fiscal year due to some recent contracts, and I believe the increased activity we are experiencing is encouraging. With each passing quarter, the AZT PROTECT name is becoming more widely known and the relationship with Rockwell ensures this will continue.

謝謝你，珍妮。我要感謝我們的股東一直以來的關注與支持。由於最近簽訂的一些合同，我們在進入下半年財政年度時獲得了一些動力，我相信我們所經歷的活動的增加是令人鼓舞的。隨著每個季度的過去，AZT PROTECT 的名字變得越來越廣為人知，與羅克韋爾的合作關係確保了這種勢頭將持續下去。

Our goal is to go out there with the maximum effort, close deals and once installed, grow the base. We're fortunate to have the TS business that generates the profit to fund the ARIA business, and we look forward to updating you on our next progress during the fiscal third quarter call in August; until then, stay safe. Thank you.

我們的目標是盡最大努力，達成交易，並在建立之後擴大基礎。我們很幸運能夠透過 TS 業務創造利潤來資助 ARIA 業務，我們期待在 8 月的第三財季電話會議上向您通報我們的下一步進展；在那之前，請保持安全。謝謝。

Thank you very much. That does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation.

非常感謝。今天的電話會議到此結束。現在您可以斷開電話線，並享受美好的一天。我們感謝您的參與。