During the first quarter, CSP Inc. (CSPI, Financial) reported revenue of $13.2 million, a slight decrease from the $13.7 million recorded in the same period last year. This decline was influenced by the absence of a significant multi-million-dollar deal that benefited last year's results. Excluding this deal, CSPI experienced a notable increase in sales for its second fiscal quarter compared to the previous year.
The company highlighted the success of its past large-scale sale, which led to a customer renewing their support with a six-figure contract for the fiscal second quarter. Despite operating in challenging conditions, CSPI praised the performance of its Technology Solutions segment, particularly the AZT PROTECT product line, which has expanded its market presence.
CSPI's strategy prioritizes resellers and distribution, resulting in a rise in new AZT PROTECT clients and business opportunities. With substantial investment in innovation, the company noted that nearly two years post-launch, the brand's recognition and traction among manufacturers and resellers are progressing as expected. A recent contract in South Africa represents a potential for significant future expansion into larger contracts over the next two years.
