CSP Inc has grown its AZT PROTECT cybersecurity solution to 46 unique customers, leveraging a land-and-expand approach. Initial single-site deployments are converting into multi-site rollouts, establishing deeper, recurring contracts and enhancing the recurring revenue base as clients adopt the platform across additional locations.

The company is embedding AZT PROTECT into Acronis’ platform under an OEM arrangement, opening a scalable third-party distribution channel. This partnership is expected to accelerate recurring, higher-margin cybersecurity revenues by extending reach beyond direct sales and tapping into Acronis’ established customer network.

CSP Inc’s High-Performance Products segment posted a 98% year-on-year sales surge in the latest quarter, driven by Multicomputer software licenses and Myricom hardware. The segment’s gross margin expanded to 73% from 50%, providing an earnings buffer that offsets reinvestment costs in cybersecurity growth initiatives.

With $24.9 million in cash, CSP Inc maintains financial flexibility to fund product development and strategic expansion without straining the balance sheet. The stock trades at a 1.96X forward price-to-book ratio, significantly below the 5.43X industry average, offering a margin of safety relative to peers.