CSP INC /MA/ Segments Disclosure
17. Segment Information
We have two reporting segments, High Performance Products and Technology Solutions, discussed below. The Company’s country of domicile is the United States.
High Performance Products (HPP) – The HPP segment consists of primarily of the following product lines: ARIA, Multicomputer, and Myricom. Most of the revenue is from US customers for all product lines, but the segment has expanded into APAC and Africa regions with its ARIA product line. The segment’s operations are based in Lowell, Massachusetts.
Technology Solutions (TS) – The TS segment generates revenue by reselling third-party computer hardware, software, and related support/maintenance/warranty as a value-added reseller (“VAR”). The TS segment generates service revenues by the delivery of professional services for complex IT solutions, including advanced security; unified communications and collaboration; wireless and mobility; data center solutions; and network solutions as well as managed IT services that primarily serve the small and mid-sized business market. TS has two divisions – United Kingdom and U.S. which are displayed separately and in total below. The U.S. division, located in Boca Raton, Florida, primarily has U.S. customers and the United Kingdom division, located in Wokingham, Berkshire, primarily has U.K. customers as well as other European countries.
The factors used in identifying the Company’s reportable segments include geographical location of operations and the types of products and services. The accounting policies of the Company's segments are consistent with those described in Note 1 Basis of presentation and Summary of Significant Accounting Policies. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The Company's Chief Operating Decision Maker (“CODM”) , assesses segment performance and allocates resources based upon revenues and operating income before certain other nonroutine items, if any. Asset information utilized by the CODM for purposes of assessing performance and allocating resources includes Cash and cash equivalents, Accounts receivable, and Financing receivables. Cash and cash equivalents are utilized due to the HPP segment incurring losses and receiving cash from the TS-US division. Accounts and Financing receivables are regularly provided to the CODM to assess customer trends, credit policies, and operational efficiency.
The following table presents certain operating segment information. We have recast certain prior period amounts to conform to the way we internally manage and monitor our business, for details see Note 1 Basis of presentation and Summary of Significant Accounting Policies.
Technology Solutions Segment | |||||||||||||||
High | |||||||||||||||
Performance | |||||||||||||||
Products | United | Consolidated | |||||||||||||
Year ended September 30, | | Segment | | Kingdom | | U.S. | | Total | | Total | |||||
(Amounts in thousands) | |||||||||||||||
2025 | |||||||||||||||
Sales: | |||||||||||||||
Product | $ | 487 | $ | 822 | $ | 36,440 | $ | 37,262 | $ | 37,749 | |||||
Service |
| 1,435 |
| 276 |
| 19,270 |
| 19,546 |
| 20,981 | |||||
Total sales | 1,922 | 1,098 | 55,710 | 56,808 | 58,730 | ||||||||||
Cost of sales: | |||||||||||||||
Product | 264 | 750 | 30,449 | 31,199 | 31,463 | ||||||||||
Services |
| 782 |
| 88 |
| 7,886 |
| 7,974 |
| 8,756 | |||||
Total cost of sales | 1,046 | 838 | 38,335 | 39,173 | 40,219 | ||||||||||
Gross profit | 876 | 260 | 17,375 | 17,635 | 18,511 | ||||||||||
Research and development | 3,250 | — | — | — | 3,250 | ||||||||||
Selling, general and administrative | 4,584 | 423 | 13,363 | 13,786 | 18,370 | ||||||||||
Total operating expenses | 7,834 | 423 | 13,363 | 13,786 | 21,620 | ||||||||||
Operating (loss) income | $ | (6,958) | $ | (163) | $ | 4,012 | $ | 3,849 | $ | (3,109) | |||||
Interest expense | $ | (12) | $ | — | $ | (345) | $ | (345) | $ | (357) | |||||
Interest income | $ | 12 | $ | 173 | $ | 1,669 | $ | 1,842 | $ | 1,854 | |||||
Depreciation and amortization | $ | (75) | $ | — | $ | (169) | $ | (169) | $ | (244) | |||||
Cash and cash equivalents | $ | 200 | $ | 4,872 | $ | 22,346 | $ | 27,218 | $ | 27,418 | |||||
Accounts receivable, net of allowance | $ | 215 | $ | 356 | $ | 11,429 | $ | 11,785 | $ | 12,000 | |||||
Financing receivables, net of allowance | $ | — | $ | — | $ | 14,904 | $ | 14,904 | $ | 14,904 | |||||
Total assets | $ | 11,664 | $ | 5,446 | $ | 54,053 | $ | 59,499 | $ | 71,163 | |||||
Capital expenditures | $ | (47) | $ | — | $ | (301) | $ | (301) | $ | (348) | |||||
2024 |
| |
| |
| |
| |
| | |||||
Sales: |
| |
| |
| |
| |
| | |||||
Product | $ | 2,599 | $ | 594 | $ | 33,600 | $ | 34,194 | $ | 36,793 | |||||
Service |
| 1,555 |
| 260 |
| 16,611 |
| 16,871 |
| 18,426 | |||||
Total sales | 4,154 | 854 | 50,211 | 51,065 | 55,219 | ||||||||||
Cost of sales: | |||||||||||||||
Product | 736 | 507 | 27,557 | 28,064 | 28,800 | ||||||||||
Services |
| 716 |
| 104 |
| 6,744 |
| 6,848 |
| 7,564 | |||||
Total cost of sales | 1,452 | 611 | 34,301 | 34,912 | 36,364 | ||||||||||
Gross profit | 2,702 | 243 | 15,910 | 16,153 | 18,855 | ||||||||||
Research and development | 2,956 | — | — | — | 2,956 | ||||||||||
Selling, general and administrative | 4,591 | 517 | 12,663 | 13,180 | 17,771 | ||||||||||
Total operating expenses | 7,547 | 517 | 12,663 | 13,180 | 20,727 | ||||||||||
Operating (loss) income | $ | (4,845) | $ | (274) | $ | 3,247 | $ | 2,973 | $ | (1,872) | |||||
Interest expense | $ | (16) | $ | — | $ | (219) | $ | (219) | $ | (235) | |||||
Interest income | $ | 38 | $ | 218 | $ | 1,791 | $ | 2,009 | $ | 2,047 | |||||
Depreciation and amortization | $ | (99) | $ | — | $ | (199) | $ | (199) | $ | (298) | |||||
Cash and cash equivalents | $ | 65 | $ | 5,442 | $ | 25,078 | $ | 30,520 | $ | 30,585 | |||||
Accounts receivable, net of allowance | $ | 260 | $ | 158 | $ | 14,076 | $ | 14,234 | $ | 14,494 | |||||
Financing receivables, net of allowance | $ | — | $ | — | $ | 7,306 | $ | 7,306 | $ | 7,306 | |||||
Total assets | $ | 9,554 | $ | 7,880 | $ | 52,002 | $ | 59,882 | $ | 69,436 | |||||
Capital expenditures | $ | (137) | $ | — | $ | (59) | $ | (59) | $ | (196) |
Depreciation and amortization are included in Selling, general, and administrative expenses. Operating (loss) income is not affected by either non-operating charges/income or by income taxes. Non-operating charges/income consists principally of foreign exchange gain (loss), interest income, and interest expense. Our long-lived assets are located in the United States.
See details of timing of revenue recognition and whether CSPi acted as the principal or agent below. Also see geographic areas based on where the products were shipped or services rendered.
Technology Solutions Segment | |||||||||||||||
High | |||||||||||||||
Performance | |||||||||||||||
Products | United | Consolidated | |||||||||||||
Year ended September 30, | | Segment | | Kingdom | | U.S. | | Total | | Total | |||||
(Amounts in thousands) | |||||||||||||||
2025 | |||||||||||||||
Timing of Revenue Recognition | |||||||||||||||
Transferred at a point in time where CSPi is principal | $ | 487 | $ | 831 | $ | 37,220 | $ | 38,051 | $ | 38,538 | |||||
Transferred at a point in time where CSPi is agent |
| — |
| 79 |
| 8,057 |
| 8,136 |
| 8,136 | |||||
Transferred over time where CSPi is principal | 1,435 | 188 | 10,433 | 10,621 | 12,056 | ||||||||||
Total Revenue | $ | 1,922 | $ | 1,098 | $ | 55,710 | $ | 56,808 | $ | 58,730 | |||||
Geography | |||||||||||||||
United States | $ | 1,673 | $ | 218 | $ | 50,692 | $ | 50,910 | $ | 52,583 | |||||
Americas (excluding United States) | 3 | — | 4,525 | 4,525 | 4,528 | ||||||||||
Europe | 1 | 875 | 486 | 1,361 | 1,362 | ||||||||||
APAC and Africa | 245 | 5 | 7 | 12 | 257 | ||||||||||
Total Revenue | $ | 1,922 | $ | 1,098 | $ | 55,710 | $ | 56,808 | $ | 58,730 | |||||
2024 |
| |
| |
| |
| |
| | |||||
Timing of Revenue Recognition | |||||||||||||||
Transferred at a point in time where CSPi is principal | $ | 3,098 | $ | 603 | $ | 33,921 | $ | 34,524 | $ | 37,622 | |||||
Transferred at a point in time where CSPi is agent |
| — |
| 37 |
| 7,070 |
| 7,107 |
| 7,107 | |||||
Transferred over time where CSPi is principal | 1,056 | 214 | 9,220 | 9,434 | 10,490 | ||||||||||
Total Revenue | $ | 4,154 | $ | 854 | $ | 50,211 | $ | 51,065 | $ | 55,219 | |||||
Geography | |||||||||||||||
United States | $ | 3,098 | $ | 75 | $ | 45,611 | $ | 45,686 | $ | 48,784 | |||||
Americas (excluding United States) | 714 | — | 3,810 | 3,810 |
| 4,524 | |||||||||
Europe | 6 | 775 | 344 | 1,119 | 1,125 | ||||||||||
APAC and Africa | 336 | 4 | 446 | 450 | 786 | ||||||||||
Total Revenue | $ | 4,154 | $ | 854 | $ | 50,211 | $ | 51,065 | $ | 55,219 | |||||
In the TS-US division financing of goods and services is offered to certain customers. This involves amounts due reflecting sales whose payment terms exceed one year. Revenue from these agreements in fiscal year 2025 was $2.5
million, which consisted of $0.8 million with CSPi acting as the principal and $1.7 million with CSPi acting as the agent. Revenue from these agreements in fiscal year 2024 was $2.0 million, which consisted of $1.5 million with CSPi acting as the principal and $0.5 million with CSPi acting as the agent.
Concentrations of Credit Risk
There were no customers with 10% or more of accounts receivable as of September 30, 2025 or 2024.
Below are customers with 10% or more of financing receivables as of September 30, 2025 or 2024. All financing receivables are in the TS-US division.
As of September 30, 2025 | As of September 30, 2024 | |||||||||||
(Amounts in millions) | ||||||||||||
% of Total | % of Total | |||||||||||
Financing Receivables | | Financing Receivables | Financing Receivables | | Financing Receivables | |||||||
Customer A | $ | 0.7 | 5 | % | $ | 3.0 | 41 | % | ||||
Customer B | $ | 1.6 | 11 | % | $ | 1.9 | 25 | % | ||||
Customer C | $ | 2.8 | 19 | % | $ | — | - | % | ||||
Customer E | $ | 5.9 | 40 | % | $ | 1.3 | 18 | % | ||||
The were no customers from which the Company derived revenues of 10% or more of total revenues year ended September 30, 2025 or 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 16, 2025 | Showing above |
| 2024 | Dec 20, 2024 | |
| 2023 | Dec 13, 2023 | |
| 2022 | Dec 8, 2022 | |
| 2021 | Dec 8, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.