Csp Inc (CSPI) SEC Filing 10-Q Quarterly Report for the period ending Friday, December 31, 2021

Exhibit 99.1

CSP Inc. REPORTS IMPROVED FISCAL FIRST QUARTER FINANCIAL RESULTS

LOWELL, Mass., February 9, 2022

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First Quarter Operating Highlights and Recent Achievements

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“The business momentum we generated during fiscal 2021 Q4 propelled our fiscal 2022 Q1 performance,” commented Victor Dellovo, Chief Executive Officer. “We reported a 24% sequential increase in revenue comparing Q4 fiscal due in part to pent-up demand for our products and services, which increased 9% as we continue driving that element of our business to achieve our goals.”

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We again leaned heavily on the Technology Solutions (TS) business to lead the way, especially the Managed Services Practice (MSP) which is adding new customers at a brisk rate as the team is leveraging the talent drain at smaller companies to generate sales. Our Unified Communication-as-a -Service (UCaaS) continues to show further signs of progress, the supply chain issues which has delayed many customer’s orders, and with our backlog increasing to over $15 million, under a normal environment we would have seen a significant profit for the quarter. We have witnessed a higher level of activity in the cruise business, and currently, we have teams deployed on several ships and we’re optimistic of receiving additional ships in the second half of the year if current operating conditions remain the same.

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We are equally bullish on ARIA as we signed two new customers during the fiscal first quarter and believe ARIA is going to be a game changer for our High-Performance Products (HPP) business. Despite continuing to face supply chain issues that inhibit our ability to fulfill customer purchase orders, we have had a strong start to the year. Our team continues to manage the business, and our balance sheet, so that we can quickly execute on the opportunities that strengthen our long-term growth and profit ambitions.

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Fiscal Year 2022 First Quarter Results

Revenue for the fiscal 2022 first quarter was $12.4 million, a nine percent increase compared to $11.4 million in the year-ago fiscal first quarter as the Company continues to navigate the impact of COVID-19 and ongoing well-chronicled supply chain issues, which is extending timelines and impacting the Company’s ability to deliver customer orders.

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Gross profit for the fiscal first quarter was $3.6 million, or 29.2% of sales, compared with $3.4 million, or 29.7% of sales, in the year-ago fiscal first quarter. The Company reported a net loss of $(366,000) in the fiscal first quarter, or $(0.09) per diluted share, compared with a net income of $1.2 million, or $0.26 per diluted share for the fiscal first quarter of fiscal 2021. The 2021 fiscal first quarter included a gain on debt extinguishment of the Paycheck Protection Plan SBA Loans at the TS and HPP segments totaling $2.2 million, which was established as part of the CARES Act loan. Excluding the gain on debt extinguishment, the Company reported a net loss of $1 million or $(0.26) per diluted share for the first quarter of fiscal 2021.

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The Company had cash and cash equivalents of $19.3. million as of December 31, 2021. Due to the Company’s prudent expense management and emergence and continued acceptance of new products and services provided, management believes it has the resources to execute the multi-year growth strategy of transforming to a cybersecurity, wireless and managed services company

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