0000356037-26-000008
SEC filingCSP Inc. (CSPI) reported total sales of $12.0M for the first quarter of fiscal year 2026, resulting in a gross profit of $4.7M. The company faced operational challenges, recording an operating loss of $112K, though strong interest income of $601K helped offset this, leading to a modest net income of $91K. The bottom line was significantly impacted by a substantial income tax expense of $280K, which contrasted sharply with the pre-tax loss of $371K. On the balance sheet, the company maintains a robust liquidity position with $24.9M in cash and cash equivalents and total shareholders' equity of $44.8M. However, operating cash flow showed a significant usage of $2.9M, primarily driven by a $5.2M decrease in accounts payable and accrued expenses, alongside a $533K draw on the line of credit. The company declared a dividend of $299K during the period. Comparisons to prior periods were not available in the provided data.
For the fiscal first quarter ended December 31, 2025, CSP Inc. generated total sales of $12.0M against a cost of sales of $7.3M, yielding a gross profit of $4.7M. Operating expenses totaled $4.8M, comprised of $858K in research and development and $4.0M in selling, general, and administrative costs. This resulted in an operating loss of $112K. However, total other income, net, reached $483K, driven primarily by $601K in interest income which offset interest expenses of $128K. Consequently, the loss before income taxes was $371K. A significant income tax expense of $280K reduced the final net income to $91K. The company reported basic and diluted earnings per share of $0.00.
The filing did not provide a breakdown of revenue by specific product segments or geographic regions. Total sales of $12.0M represent the aggregate figure for the period. Without comparative prior period data, growth trends or specific segment performance cannot be determined from the provided XBRL data. Revenue generation appears to be supported by both product sales and service offerings, though specific contributions are not detailed in the financial statements provided.
The company achieved a gross margin of approximately 39.2% ($4.7M / $12.0M). However, high SG&A expenses relative to revenue resulted in a negative operating margin of -0.9%. Profitability was salvaged primarily through non-operating income, specifically interest income of $601K derived from the company's cash and investment holdings. The effective tax rate appeared elevated relative to the pre-tax loss, with a $280K expense recorded against a $371K pre-tax loss, suggesting potential non-deductible expenses or valuation adjustments.
CSP Inc. used $2.9M in cash for operating activities during the quarter. This usage was driven largely by a $5.2M decrease in accounts payable and accrued expenses, partially offset by a $924K decrease in inventories and a $2.2M increase in other noncurrent liabilities. Free cash flow approximated -$3.0M (Operating Cash Flow -$2.9M minus CapEx $105K). The company borrowed $533K under its line of credit. The balance sheet shows total assets of $69.2M, supported by $24.9M in cash and $44.8M in shareholders' equity, indicating a solid liquidity position despite the quarter's cash burn.
The provided document text and XBRL data do not contain specific forward-looking statements, management guidance, or strategic priorities regarding future operations. Investors should refer to the complete 10-Q filing's Management's Discussion and Analysis (MD&A) section for detailed outlook information, risk factors, and strategic initiatives not captured in the financial data tables.