CSP Inc. (CSPI, Financial) filed Quarterly Report for the period ended 2011-06-30.
Csp Inc. has a market cap of $13.5 million; its shares were traded at around $3.69 with a P/E ratio of 27.7 and P/S ratio of 0.1.
Product revenues decreased by approximately $10.0 million, or 17%, for the nine months ended June 30, 2011 compared to the comparable period of fiscal 2010. This change in product revenues was made up of a decrease in product revenues in the Systems segment of approximately $1.3 million over the prior year nine months, and a decrease in product revenues in the Service and System Integration segment of approximately $8.7 million versus the prior year nine months.
The decrease in product revenues in the Systems segment of $1.3 million was due to having shipped a large order in the nine month period ended June 30, 2010, for approximately $3.6 million, consisting of two major systems, which was a follow on order for a major US defense program, that we began supplying to one of our customers in fiscal 2007. No sales of this nature were made in the nine month period ended June 30, 2011. Offsetting this decrease, we realized an increase of approximately $1.3 million in product sales in the current year nine month period versus the prior year nine month period, to an existing customer that supplies equipment to the Japanese defense market, and increases in product sales to two other customers that supply US defense programs, of $1.1 million.
The decrease in the Service and System Integration segment product sales of approximately $8.7 million was due to a decrease in product sales in the U.S. division of the segment of approximately $10.8 million, offset by an increase in this segment s German division of approximately $2.1 million.
In the US division, product sales to our two largest customers decreased by a total of approximately $10.9 million, consisting of a decrease in sales to our largest customer of approximately $8.0 million and a decrease in product sales to our second largest customer of approximately $2.9 million. These customers are both IT managed service providers, which did not require the level of expansion of capacity as in prior years due to lost customers and a general leveling off of the size of their infrastructure. In Germany, sales volume was up $1.9 million in constant dollars versus the prior year. This constant dollar increase in sales was due primarily to an increase in sales to one of our largest systems integration customers. The remainder of the increases in sales was due to the favorable impact of currency fluctuation of approximately $0.2 million affecting a weaker US dollar versus the Euro for the nine months ended June 30, 2011 versus 2010.
The increase in sales in Europe was primarily the result of the higher sales described above from the German division of the Service and System Integration segment which accounted for approximately $2.3 million in increased sales to Europe, offset by decreases in sales to European customers of approximately $0.5 million and $0.1 million from the US and UK divisions of the Service and System Integration segment, respectively. The increase in Asia sales was the result of the increase in sales described above to our existing customer which supplies a large Japanese defense program.
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Csp Inc. has a market cap of $13.5 million; its shares were traded at around $3.69 with a P/E ratio of 27.7 and P/S ratio of 0.1.
Highlight of Business Operations:
As shown above, total revenues decreased by approximately $10.2 million, or 14%, for the nine months ended June 30, 2011 compared to the same period of fiscal year 2010. Revenues in the Systems segment decreased for the current year nine month period versus the prior year nine month period by approximately $1.5 million, while revenues in the Service and System Integration segment decreased by approximately $8.7 million, resulting in the overall decrease of approximately $10.2 million.Product revenues decreased by approximately $10.0 million, or 17%, for the nine months ended June 30, 2011 compared to the comparable period of fiscal 2010. This change in product revenues was made up of a decrease in product revenues in the Systems segment of approximately $1.3 million over the prior year nine months, and a decrease in product revenues in the Service and System Integration segment of approximately $8.7 million versus the prior year nine months.
The decrease in product revenues in the Systems segment of $1.3 million was due to having shipped a large order in the nine month period ended June 30, 2010, for approximately $3.6 million, consisting of two major systems, which was a follow on order for a major US defense program, that we began supplying to one of our customers in fiscal 2007. No sales of this nature were made in the nine month period ended June 30, 2011. Offsetting this decrease, we realized an increase of approximately $1.3 million in product sales in the current year nine month period versus the prior year nine month period, to an existing customer that supplies equipment to the Japanese defense market, and increases in product sales to two other customers that supply US defense programs, of $1.1 million.
The decrease in the Service and System Integration segment product sales of approximately $8.7 million was due to a decrease in product sales in the U.S. division of the segment of approximately $10.8 million, offset by an increase in this segment s German division of approximately $2.1 million.
In the US division, product sales to our two largest customers decreased by a total of approximately $10.9 million, consisting of a decrease in sales to our largest customer of approximately $8.0 million and a decrease in product sales to our second largest customer of approximately $2.9 million. These customers are both IT managed service providers, which did not require the level of expansion of capacity as in prior years due to lost customers and a general leveling off of the size of their infrastructure. In Germany, sales volume was up $1.9 million in constant dollars versus the prior year. This constant dollar increase in sales was due primarily to an increase in sales to one of our largest systems integration customers. The remainder of the increases in sales was due to the favorable impact of currency fluctuation of approximately $0.2 million affecting a weaker US dollar versus the Euro for the nine months ended June 30, 2011 versus 2010.
The increase in sales in Europe was primarily the result of the higher sales described above from the German division of the Service and System Integration segment which accounted for approximately $2.3 million in increased sales to Europe, offset by decreases in sales to European customers of approximately $0.5 million and $0.1 million from the US and UK divisions of the Service and System Integration segment, respectively. The increase in Asia sales was the result of the increase in sales described above to our existing customer which supplies a large Japanese defense program.
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