CSP Inc Q4 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Joseph Nerges - Seagen Inc. - Analyst : Good morning, guys. How are you today?

Question: Joseph Nerges - Seagen Inc. - Analyst : Okay. See you must have shook up the market today because the market the stock is down like three points. So as announced in your press release in London, let me explain what I think is going on. You would see a big drop in the backlog people think that debt is that obviously your sales aren't there going forward. That's the constant had in your press release you issued you said that you thought there was technology solutions, which questions the bulk of our sales right now is expecting a major contribution this year in '24. You're looking for good business with new customers and expanded existing customers is that is that what you're trying to convey that you expect expanding technical service, the Technology Solutions business segment?

Question: Joseph Nerges - Seagen Inc. - Analyst : So in effect, the drop in the backlog from last year to this year is not really going to cause a problem as far as what you were expecting for '24, growth, at least in that segment of the unmanned division going forward, that will direct the backlog in effect. Now, granted it's down. What was it 20? I forget what was last year was $20 million or something like that that we had because of the we couldn't get the a lot of the orders through the chain, the supply chain and I'll say that that's number one.

Question: Joseph Nerges - Seagen Inc. - Analyst : And the point, I guess I'm asking you the EBITDA, it's back to pre-pandemic levels. It has no effect on what to think what we think is going to be business. And 24, we think it is sufficient with the growth to grow the business in at least in TSS division?

Question: Joseph Nerges - Seagen Inc. - Analyst : Okay. Second point on the question, AZT product, that that's that dynamic product and I don't think people realize how much and contribute to the future of this of this company. You said you added salespeople and are responsible for bringing in new business. Are we talking about new business beyond the two press releases that were issued one on the chemical company, one on the intelligent Western intelligent agency business. Do we have all your questions beyond that? What is the pipeline? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2023 / 3:00PM, CSPI.OQ - Q4 2023 CSP Inc Earnings Call

Question: Joseph Nerges - Seagen Inc. - Analyst : Okay. So we have a lot in there. And when we're talking about the pipeline, are we talking about customers that are testing the product at their facilities.

Question: Joseph Nerges - Seagen Inc. - Analyst : Okay, great. Well, and that's understandable time of year. We're at right now in a talking about existing a question in the two press releases issued in Amit talked about the size of the contract, and I assume that and most of these people are going to be paying on a monthly basis. That's the type of and over a period a number of years to date contracted out, is that correctly you were talking about not upfront payment for your software, mostly monthly basis asthma.

Question: Joseph Nerges - Seagen Inc. - Analyst : So in both cases, they're rolling out the software in that way. You said one case, you take 170 plants? Well, you can write our own?

Question: Joseph Nerges - Seagen Inc. - Analyst : So just going back and from an idea from a charge standpoint, I'm assuming we bill on the basis of how many items are being and how many devices are being protected or in the case, will you call end points, the more endpoints we protect the higher the bills.

Question: Joseph Nerges - Seagen Inc. - Analyst : Okay. So as we roll it out little by little, they supposedly the bill increasing little by little, let's put it that way as the it's expanding within their divisions.

Question: Joseph Nerges - Seagen Inc. - Analyst : And they signed a three-year deal and paid it each and every year when it comes into the segments and the powder departments decide some cases, it's how the departments will make the decision, whether they want to buy or willing to lease basically?

Question: Joseph Nerges - Seagen Inc. - Analyst : Okay. On the cash, I assume the cash a lot of the cash that we have is short-term treasury bills or how do we have that going very good. Is that you have a fair amount and you're rolling over short-term treasuries?

Question: Joseph Nerges - Seagen Inc. - Analyst : Okay. And Logitech, how are they doing on it now? And I realize that you just that PR on that that are kind of the Australian partner hadn't yet been able to run at the same, let's say, initial success that we're having. As far as the interest in Australia. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2023 / 3:00PM, CSPI.OQ - Q4 2023 CSP Inc Earnings Call

Question: Joseph Nerges - Seagen Inc. - Analyst : Okay. All right. That's all I've got right now. It sounds like it was great. It priced and across ADP product has changed a TPP dramatically from where I HDSL.

Question: Joseph Nerges - Seagen Inc. - Analyst : And if I could just one more question that Australia is an example, but there should be there's just going to be additional countries out there that are demanding the same kind of reporting requirements that are being required by USA and Australia. So is there an opportunity now to establish how can I say, similar operations from managed security service price in these other countries like UK for example, of course, Germany?

Question: Joseph Nerges - Seagen Inc. - Analyst : 50 opportunities?

Question: Joseph Nerges - Seagen Inc. - Analyst : At what point do we how many people do we have in the UK? I know, we have a very, very small sales force over this. We still have a couple of people over there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2023 / 3:00PM, CSPI.OQ - Q4 2023 CSP Inc Earnings Call

Question: Joseph Nerges - Seagen Inc. - Analyst : And yes, are they up to snuff from if you will, that they were new kind of technology solution type salespeople that are correct as opposed to the HPP. salespeople.

Question: Joseph Nerges - Seagen Inc. - Analyst : Yes, I'm sure it will. Thanks a lot, guys. Just real exciting going forward. And I appreciate the time.