CSP Inc. (NASDAQ: CSPI) had a successful F3Q2016 in which topline and bottom-line figures improved from the year-ago period. In light of the positive performance, the board of CSPI approved a dividend distribution of $0.11 per share.
CSPI generated revenue of $26.9 million, which rose 21% YoY. EPS of $0.32 compared with $0.07 in the same quarter last year. Gross margin improved to 26.8% in the latest quarter from 23.6% in the year-ago quarter.
What about liquidity position for CSP Inc. (NASDAQ: CSPI)?
CSP Inc. (NASDAQ: CSPI) finished the latest quarter with cash and short-term investments totaling $11.6 million, which improved from $10 million in the prior quarter and $11.2 million at the end of fiscal 2015. The company’s balance sheet didn’t show any debt at the end of the latest quarter.
CSPI’s CEO Victor Dellovo noted that the strong performance that the company posted in the latest quarter was as a result of excellent progress the team is making in executing against operational and strategic initiatives.
The CEO highlighted key areas of remarkable progress during the quarter. He talked about royalty payments coming from three E-2D planes and additional revenue coming from the shipment of parts for future E-2D planes.
Before the end of the current quarter, CSPI expects to receive royalty payment in connection with at least one E-2D plane.
There is one particular product that the management of CSP Inc. (NASDAQ: CSPI) feels excited about. That product is Myricom ARC Series C-Class, which CEO Dellovo continues to see strong demand. He added that CSPI took the opportunity in F3Q to launch a modern generation FPGA network adapter called ARC Series E-Class. In the balance of fiscal 2016, CSPI wants to focus on increasing the adoption of its ARC Series network adapters.
In the technology division, Dellovo said they will focus on boosting sales of their managed services with the hope of boosting profits in the division. As CSP Inc. (NASDAQ: CSPI) embarks on the journey of increasing managed services revenue, the management talked about increasing recurring revenue in the division and ability to close deals frequently.
CSP Inc. (NASDAQ: CSPI) will distribute to its shareholders of record as of August 31 dividend of $0.11 per share. The dividend will be paid out on September 9.