CSP Inc. is like CDW for enterprise IT solutions and managed services, but also develops its own specialized high-performance cybersecurity and networking products.

CSP Inc. is like Insight Enterprises for IT consulting and managed services, combined with a developer of specialized high-performance security and networking hardware.

• IT Integration Solutions: Value-added reselling of third-party computer hardware and software.
• IT Consulting Services: Professional services covering planning, design, assessment, implementation, migration, optimization, and project management.
• Storage & Virtualization Solutions: Solutions for data storage, virtualization, and related infrastructure.
• Enterprise Security Solutions: Services including intrusion prevention, network access control, unified threat management, and IT security compliance.
• Network & Communication Solutions: Solutions for unified communications, wireless networking, and routing/switching infrastructure.
• Custom Software Development: Services for developing and supporting tailored software applications and solutions.
• Managed IT & Cloud Services: Proactive monitoring, remote management, hosted unified communication, security, and backup/replication services.
• ARIA Software-Defined Security: A proprietary cybersecurity software solution.
• Myricom Network Adapters: Specialized hardware products designed for high-performance networking.
• Multicomputer Products: Hardware systems for digital signal processing applications, primarily for defense customers.

Based on the provided information, CSP Inc. (CSPI) primarily sells its IT integration solutions, security products, managed IT services, purpose-built network adapters, and cluster computer systems to other companies and organizations, rather than to individuals.

The company's customer base spans various industries and markets globally. While the provided text does not list specific names of its major customer companies or their symbols, it identifies the following categories of organizations and sectors that it serves:

• Commercial Customers: Organizations within industries such as Web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing.
• Defense Customers: Entities within the defense markets, particularly for its high-performance computing and cybersecurity solutions.

• Dell Technologies (DELL)
• Microsoft (MSFT)
• Hewlett Packard Enterprise (HPE)
• Cisco Systems (CSCO)
• VMware (VMW)

Victor Dellovo, President and Chief Executive Officer

Victor Dellovo has served as President and Chief Executive Officer of CSPi since 2012, and is also Co-Chairman of the Board and Acting General Manager of CSPi Technology Solutions North America division. He co-founded TechniSource Hardware, Inc. in 1997, a company later acquired by Modcomp, a subsidiary of CSPi. Before his current role, he was President of Modcomp's worldwide operations from 2010 to 2012 and President of its U.S. operations from 2005 to 2010. Mr. Dellovo is an IT industry veteran with over 23 years of experience.

Gary Levine, Vice President, Finance, Chief Financial Officer, Treasurer and Secretary

Gary Levine joined CSP Inc. in May 1983 as Corporate Controller and was subsequently promoted to Vice President of Finance and Chief Financial Officer. He also serves as Treasurer and Secretary of the Corporation. Prior to joining CSP Inc., Mr. Levine was Controller and Chief Financial Officer of CPU Computer Corporation, a publicly held computer retailer and distributor, where he was instrumental in the company's IPO. He also held the position of Executive Vice President at The Image Maker Inc. Mr. Levine is a licensed certified public accountant.

Gary Southwell, Vice President and General Manager, High Performance Products Segment

Gary Southwell is the General Manager of CSPi's Cybersecurity Products group and Vice President and General Manager of the High Performance Products segment. He possesses over 25 years of experience in the security industry. Before joining CSPi, he co-founded Seceon Networks, a cybersecurity startup company. His prior roles also include Vice President of Product Development at Audinate and Chief Technology Officer for a leading provider of cloud and metro network infrastructure solutions.

Michael Newbanks, Vice President, Finance and Chief Accounting Officer

As Vice President of Finance and Chief Accounting Officer, Michael Newbanks oversees CSPi's day-to-day financial operations, including leading the controllership organization with a focus on fiscal reporting, controls, and accounting. Before his appointment to this role, he served as the controller for the U.S. division of Technology Solutions.

1. Intense Competition and Rapid Technological Change

CSP Inc. operates in a highly competitive and fast-evolving technology landscape. Its IT integration and value-added reseller (VAR) business faces significant pricing pressure from larger national providers and original equipment manufacturers (OEMs). Similarly, the cybersecurity segment, particularly with its ARIA Software-Defined Security, competes against well-funded global players who may offer more attractive pricing or have greater resources for innovation. The rapid pace of technological advancements constantly introduces new opportunities but also intensifies risks, requiring continuous adaptation and investment in research and development, where CSP Inc. may have limited resources compared to larger competitors.

2. Challenges with Revenue Growth and Sustained Profitability

The company has faced challenges in achieving consistent revenue growth and maintaining profitability. Recent reports indicate declining revenue, particularly in the High Performance Products (HPP) segment where legacy Myricom products are reaching end-of-life cycles, and low margins in the Technology Solutions (TS) segment, which relies heavily on reselling third-party IT infrastructure and managed services. CSP Inc. has reported operating and net losses in recent fiscal periods, and despite strategic shifts towards higher-margin services and expanding its ARIA product line, maintaining profitability remains a significant hurdle due to increased operational costs and a business model that is heavily reliant on lower-margin activities.

3. Macroeconomic and Geopolitical Uncertainties

CSP Inc. is susceptible to broader macroeconomic and geopolitical uncertainties. Ongoing global conflicts, such as those in Russia and Ukraine, and Israel and Hamas, pose risks of supply chain disruptions and potential cyberattacks that could impact the company's operations. Additionally, shifting trade policies, new U.S. tech tariffs, currency fluctuations, and general supply-chain volatility introduce complexity and can adversely affect financial results. These external factors are difficult to predict and manage, adding a layer of instability to the company's business environment.

The increasing adoption and comprehensive offerings of hyperscale public cloud providers (e.g., AWS, Microsoft Azure, Google Cloud), which disintermediate CSP's traditional role as a value-added reseller and integrator of on-premise hardware and software, and directly compete with many of CSP's managed IT, security, and consulting services by offering cloud-native alternatives.

Expected Drivers of Future Revenue Growth for CSP Inc. (CSPI)

• Growth in Service Revenue and Managed Services: CSP Inc. is strategically focused on expanding its service revenue and growing its monthly recurring revenue (MRR) base. The Technology Solutions (TS) segment, which encompasses professional IT consulting, managed IT services, and cloud solutions, is a primary driver of this growth. In fiscal Q1 2026, service revenue increased by 14.6%, fueled by momentum in the Technology Solutions and Managed Services practice. The company expects continued positive developments and an upward swing in client activity within its managed services, particularly Unified Communications as a Service (UCaaS), which has become a profitable business. Demand for cloud-based services, especially for outsourcing critical needs, remains strong.
• Expansion and Adoption of AZT PROTECT Cybersecurity Solution: The AZT PROTECT cybersecurity solution is a key area for future revenue growth. CSP Inc. is actively pursuing opportunities for AZT PROTECT in the Operational Technology (OT) markets, recognizing the critical need for advanced cybersecurity in this sector. Recent periods have seen new customer acquisitions and multi-site expansions with existing clients for AZT PROTECT. The company has also reported a significant increase in the total opportunity pipeline for AZT PROTECT and is gaining traction with large resellers, including working with the three largest Rockwell resellers. Management is actively investing in the growth strategy of AZT PROTECT.
• Customer Acquisition and Retention in Key Verticals: The company's Technology Solutions business continues to drive success through increasing customer utilization of its implementation, installation, and training capabilities. High customer retention rates, coupled with new managed services engagements, are contributing to service revenue growth. CSP Inc. has secured and is executing contracts with major cruise lines and in the ocean freighter market, indicating ongoing demand. Additionally, the company has landed significant contracts, such as a multi-million dollar opportunity with a global pharmaceutical company for AZT PROTECT and a contract to deliver Microsoft Azure Protect for a Florida-based healthcare provider.
• Strategic Partnerships: Forming and leveraging strategic partnerships is a driver for future growth. CSP Inc.'s platinum partnership with Microsoft Azure and its integration with Acronis are expected to capitalize on the increasing demand for cloud migration and advanced cybersecurity solutions. These partnerships position CSP Inc. to enhance its offerings and market reach.

• CSP Inc. repurchased 19,500 shares of its common stock for $234,000 during the fourth quarter of fiscal year 2025.
• The company repurchased 23,800 shares for a total cost of $384,000 during the fiscal second quarter of 2025.
• As of the fiscal third quarter of 2025, approximately 0.3 million shares remained available under a share repurchase authorization approved by the Board of Directors in 2021.

• The number of shares outstanding for CSP Inc. increased by 1.59% in the last year.
• A two-for-one stock split in the form of a 100% stock dividend was announced on February 21, 2024, with new shares distributed on March 20, 2024.
• Upon completion of the stock split, the company expected to have approximately 9,753,900 shares outstanding.

• As of March 5, 2026, CSPi had not made any investments or acquisitions.
• No reports of mergers or acquisitions were mentioned for the first quarter of fiscal year 2026.

• CSP Inc.'s capital expenditures for the latest twelve months ending December 31, 2025, were $406,000.
• From fiscal years ending September 2021 to 2025, the company's capital expenditures averaged $220,400.
• Capital expenditures are focused on supporting innovation in product offerings, particularly in the cybersecurity sector, and continued investments in managed services.