CSP Inc. (NASDAQ:CSPI) Q4 2023 Earnings Call Transcript

Unidentified Analyst: So you guys don’t even have to be physically present to walk them through.

Victor Dellovo: Correct.

Unidentified Analyst: Got it. So then all of the time sucked up in this process is all going to be in the sales cycle.

Victor Dellovo: On the sales cycle.

Unidentified Analyst: So once you get the dotted line, you’re ready to go and it can roll this out.

Victor Dellovo: As fast as they rolled out we can help them.

Unidentified Analyst: So, I mean the press release is the past few weeks have been great. With 50 of these things in the cycle, I mean, is this something we can anticipate at maybe a more frequent basis that these things are going to be rolling out announcing these new relationships?

Victor Dellovo: The significant ones, I’m going to say, we’re evangelizing as much as we can. We’re trying to get people to see the announcements, some of these larger ones that we’re working on, I’m definitely be announcing those as soon as they hit.

Unidentified Analyst: Got it. And the last thing I just want to touch on, I know that the cruise ship thing was still winding back up. Is that — has there been any headway making getting that — getting those jobs started back up?

Victor Dellovo: Yes. We started doing — we started doing some cruise line work, again, in a little different aspect. They’re doing a NAC solution. So we’re starting to roll out at different locations the network access control. So yes, that business started picking up again, and we have people in Japan this week on some boats and so yes, it’s not — they gave us a nice schedule in the past, and that schedule hasn’t come up. It’s more like, hey, I need you here in two weeks or three weeks. It’s sporadic where the other ones were like, here is the next 12 ships, here’s the next 12 days, this is when we need you. It was easy to plan for, and that’s not happening. So we’re doing business with them. It’s just not as organized as it was once wise?

Unidentified Analyst: And maybe one more follow-up question. So the AZT thing, I saw the Western intelligence and we’re talking about manufacturing and you also mentioned health care. Are there any other areas that kind of jump out where this would be a really good fit?

Victor Dellovo: It’s really anywhere, right? Because when we first rolled out the announcement, it was — we focus because we worked with — I told you some large manufacturing companies. So we on the OT space, zero downtime when we rolled that out, we rolled it out into the Windows world there first, and then we rolled it out into the Linux world. So we have both different type of operating systems that we can support. And one of our key factors compared to anybody who thinks they play in the space is that we go all the way back to XP in the early versions of Linux, right? Most companies are only doing one or two versions back, we’re supporting all the way back. like I said, to XP. So that’s definitely a game changer for us, especially in the OT space because a lot of these manufacturings don’t upgrade their systems because, again, I mentioned zero downtime.

And now the latest version that we’re rolling out right now is for the IT environment. to where it allows patching, we can schedule things. So we’re rolling that out as we speak. You probably see and I’m not saying now, but you’ll see an announcement that we’re also rolling out a full product line version of AZT.

Unidentified Analyst: And that would be for like data centers and

Victor Dellovo: Correct. Yes.

Unidentified Analyst: So that’s going to be a significant number of points that you guys could hit.

Victor Dellovo: Correct, correct. We’re talking to some financial institutions right now. We’re also going to talk to our managed service customers that we’re supporting right now about potentially increasing their monthly spend by rolling out AZT on their IT servers to protect their application at the core level.

Unidentified Analyst: That’s quite a few endpoints.

Victor Dellovo: Yes, quite a few endpoints. Yes, we’re going to talk to everyone of our managed service customers. Some of them will say, yes, someone will say no. Just depends on budgets, but that’s what’s going on right now with these conversations happening as we speak with some of our larger MSP customers.

Unidentified Analyst: Well, and look forward to the continued success here.

Victor Dellovo: Thanks. Have a good one. Happy holidays.

Operator: [Operator Instructions] We have a question from Paul Scolardi [ph] who is a private investor.

Unidentified Analyst: I have several questions. The first one is you have a revolutionary unique product in this AZT. You’re a smaller unknown company. And why not go partner with Dragos or even like a Palo Alto or one of the big cybersecurity companies that have the relationships that can get this revolutionary product out there quicker than you can on your own? That’s my first question.

Victor Dellovo: That’s I think I mentioned it earlier. We are talking to all types of the manufacturers, right, people who are in that space. I can’t mention who we’re talking to now, but there’s quite a few conversations going on with companies that are in the security space that we would complement. We would go side by side with we don’t compete with, and we would enhance the overall security performance in every potential environment. So yes, those conversations are going on right now.

Unidentified Analyst: Okay. And I assume if something happens, we’re going to hear about it, correct?

Victor Dellovo: You will hear about every exciting news that comes across the board, I hope you guys see that I’m trying to share all the information as it comes across as soon as possible.