As a result, the Company reported net income of $2.5 million in the fiscal 2023 third quarter, or $0.52 per diluted common share compared to net income of $0.7 million, or $0.15 per diluted common share for the fiscal third quarter of 2022.
Fiscal Year 2023 Nine Month Results
Revenue for the nine months ended June 30, 2023 was $49.3 million, a 31% increase compared to revenue of $37.7 million in the same prior year period. Gross profit for the fiscal nine months ended June 30, 2023 was $16.7 million, or 34% of sales, compared to $12.8 million, or 34% of sales. The Company reported net income of $3.8 million, or $0.80 per diluted common share in the nine months ended June 30, 2023, compared to net income of $0.5 million, or $0.11 per diluted common share for the fiscal nine months ended June 30, 2022. A tax benefit of $1.5 million contributed to net income due to the release of the valuation allowance against the Company’s deferred tax assets.
The Company had cash and cash equivalents of $13.8 million as of June 30, 2023, compared to cash and cash equivalents of $24.0 million as of September 30, 2022. The lower amount is primarily due to a large financing customer sale recognized in the fourth quarter of fiscal year 2022 but the cost was paid for in the first quarter of fiscal year 2023. Additionally, in fiscal year 2023 the Company moved cash into investments classified as held-to-maturity and as of June 30, 2023 held $2.4 million, which are not included in cash and cash equivalents. Subsequent to June 30,2023, significant cash flow has been generated through the payment of receivables including payments from financing sales provided to customers prior to fiscal year 2023.
Conference Call Details
CSPi Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W. Levine will host a conference call at 10:00 a.m. (ET) today, August 9, 2023, to review CSPi’s financial results and provide a business update. To listen to a live webcast of the call, the event link is https://www.webcaster4.com/Webcast/Page/2912/48899. Individuals may also listen to the call via telephone, by dialing 888-506-0062 or 973-528-0011 and use the Participant Access Code: 251330 when greeted by the live operator. For interested parties unable to participate in the live call, an archived version of the webcast will be available for approximately one year on CSPi’s website.
About CSPi
CSPi (NASDAQ: CSPI) operates two divisions, each with unique expertise in designing and implementing technology solutions to help their customers use technology to success. The High Performance Product division, including ARIA Cybersecurity Solutions, originated from supporting initiatives for the Department of Defense and Western intelligence agencies related to network monitoring, data protection, and intelligence initiatives. This focused mindset now results in foolproof data protection, enterprise wide. Our ARIA Software Defined Security solutions set provides enhanced network security, as well as accelerating incident response capabilities, while our Myricom nVoy Series appliances provide automated breach identification and notification, enabled by the 10G dropless packet capture inherent in our Myricom intelligent adapters. CSPi’s Technology Solutions division helps clients achieve their business goals and accelerate time to market through innovative IT solutions and professional services by partnering with best-in-class technology providers. For organizations that want the benefits of an IT department without the cost, we offer a robust catalog of Managed IT Services providing 24×365 proactive support. Our team of engineers have expertise across major industries supporting five key technology areas: Advanced Security; Communication and Collaboration; Data Center; Networking; and Wireless & Mobility.
Safe Harbor
The Company wishes to take advantage of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking under the Act. Such forward-looking statements may include but are not limited to, we also believe our newest product launch, ARIA Zero Trust Protect, will be a growth driver for the High Performance Product (HPP) business in the coming