Aug 14, 2026 earnings call — AZT Protect ramp and vendor delivery delays
CSPi reported quarterly revenue of $14.4 million, and management said hardware vendor delays raised their Technology Solutions backlog 65% year-over-year.
Revenue $0.0B · EPS $-0.09
Key quotes
"During the quarter, we completed the integration of our AZT Protect into several OEM products and are beginning to see a growing pipeline from this market segment."
"In many cases, vendor deliveries that historically took 30 to 60 days are now extending well beyond 200 days."
"During the quarter, we entered the professional sports market with the signing of a 6-year, 7-figure managed service agreement with a nationally recognized sports team."
Analyst Q&A 5
Hardware makers partnerships and government tests
Q (Joseph Nerges · Segren Investments): Analyst asked which OEMs they are working with (including IoT and US OEMs), whether embedding will take as long as the Acronis deal, and whether their large government partner or resellers (UFT, SITCO) have reacted to recent utility attacks.
A: Management said they are working with a couple OEMs that make boxes and are trying to get embedded on their platforms, and there are 3 other US OEMs at different stages. They said embedding timing is driven by the large OEMs and mostly out of CSPI's control; they hold standard calls with the large, government-linked partner every 2 weeks. They also said the UFT relationship is long-term, SITCO is new, the UFT process has taken about 9 months, and they expect to announce some joint items in the next 2 or 3 weeks.
"And so that has taken probably, we are in about 9 months now." — Victor J. Dellovo (CEO)
Sales team changes and sales cycles
Q (William Lauber · Visionary Wealth Advisors): Asked why the salesforce changed, whether new reps are commission or salary based, and what drives the 18–24 month sales cycle; also asked about interest from Acronis webinars.
A: Management said they replaced salespeople with reps experienced in longer sales cycles and have already brought new hires on board (one is up and running, others starting now). They remain focused on OEMs and resellers while also engaging customers directly; long sales cycles come from contract timing, Windows migrations and politics between OT and IT. They said Acronis must finish integration and SKUs before its sales and renewal teams can fully sell the product worldwide, with a target integration date of October 1.
"1 of them is already up and running." — Victor J. Dellovo (CEO)
Acronis rollout and financed receivables
Q (Mike Price): Asked what completed Acronis integration will mean for revenue, how much receivables are financed short- and long-term, whether financed receivables convert to cash, shares repurchased last quarter, and if they will continue buybacks; also asked if partners could move big deals faster.
A: Victor said he does not yet know the revenue impact from full Acronis integration. Gary said the receivables mix is broken out with probably about 30 or 40% longer term, and that the over-one-year balance is 8.3; management agreed cash plus financed receivables amount to about $40 million. They repurchased 13 thousand shares last quarter and said they absolutely intend to keep buying shares; Victor added they are leveraging large resellers to build trust with big customers and that the OT sales process requires lengthy lab testing and approvals.
"The probably well, it broken out on the--it is probably about 30 or 40% longer term." — Gary W. Levine (CFO)
Supply delays and margins
Q (Brett Davidson · Investletter): Asked whether the U.S. router ban affects delivery, how long supply delays might last, and whether inventory holdbacks hit gross margin.
A: Management said the router ban does not affect them, but overall AI hardware demand has extended lead times from roughly 30 to 60 days to about 200 days. They expect the shortage to last at least a year and said the delayed shipments raised backlog (about a 65% increase) and prevented recognition of revenue, which reduced gross profit for the quarter.
"I would say it is probably at least a year of this." — Victor J. Dellovo (CEO)
UK pension buyout cost
Q (Joseph Nerges · Segren Investments): Asked whether they exited the UK pension and how much that cost the quarter.
A: Gary said they sold the UK pension to an insurance company and the related actuarial and legal costs hit the quarter. Those costs "came through" and were a couple hundred thousand; he added that company pensions are funded indirectly through life insurance cash surrender value on the balance sheet.
"Came through, and now it was a couple hundred thousand." — Gary W. Levine (CFO)