1/29/2003 - CSP Inc. (Nasdaq:CSPI), a provider of eBusiness solutions, IT systems integration services and dense cluster computing systems, reported financial results for the first quarter of fiscal 2003.
For the first quarter of fiscal 2003 ended December 31, 2002, CSP Inc. reported a 25 percent increase in sales to $8.2 million compared with $6.5 million for the year-earlier quarter. The Company also narrowed its net loss to $395,000, or $(0.11) per share, compared with a net loss of $943,000, or $(0.27) per share, for the first quarter of fiscal 2002. The first-quarter fiscal 2002 net loss included a $118,000 charge related to severance.
Comments on the First-Quarter
"Improved performance by our MODCOMP subsidiary drove CSPís year-over-year increase in sales for the first quarter," said Alexander R. Lupinetti, CSP chairman, president and chief executive officer. "A 55 percent increase in MODCOMPís sales resulted primarily from several outsourcing projects with large European telecommunications providers to build their infrastructures and enhance the efficiencies of their IT systems. We expect to see more projects from time-to-time throughout the year as many service providers are beginning to invest in system upgrades that can no longer be postponed."
"During the quarter, we also saw increased interest in MODCOMPís network security solutions," said Lupinetti. "We have 18 customers in Germany who are using MODCOMP because of its experience and expertise in network management and its excellent relationships with key security software and hardware suppliers. These customers are putting their trust in MODCOMP to build their firewalls, virtual private networks and intrusion detection devices. We are optimistic that this business will result in a predictable, recurring revenue stream as customers turn to MODCOMP to manage their network security systems. During the next few quarters, we plan to expand our network security services to the U.S. and U.K. markets."
"CSPís Multicomputer division continued to be affected by certain U.S. Department of Defense program delays," said Lupinetti. "We are hopeful that the growing awareness of the benefits of open-source digital signal processing and customer interest in our Linux-based FastCluster MultiComputer Systems will result in long-term growth for this business."
"We expect certain defense program delays will affect the results of our Multicomputer business throughout fiscal 2003," continued Lupinetti. "While IT spending remains very constrained, our sales pipeline and a building customer interest for our wide range of IT outsourcing solutions give us reason for optimism for the fiscal year. We plan to continue to make strategic investments across our businesses in order to capitalize on opportunities when our markets rebound."
About CSP Inc.
Based in Billerica, Massachusetts and founded in 1968, CSP Inc. (NASDAQ:CSPI) and its subsidiaries develop and market Internet software for e-commerce solutions, image processing software, network management integration services, and high-performance computer systems. The MultiComputer Division supplies high-performance Linux cluster systems for a broad array of defense applications, including radar, sonar and surveillance signal processing. The Company's MODCOMP, Inc. subsidiary, founded in 1970, is a leading provider of Internet software solutions and systems integration. MODCOMP works with third parties to develop customized application solutions in the global e-commerce markets and has offices in the U.S., U.K., and Germany.
More information about CSP is available on the company's Web site at www.cspi.com
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