CSPI | Market Cap: $83.3M (07/13/26)
Industry:
IT Services Software

DESCRIPTION

CSP (CSPi) operates two distinct businesses. The dominant business, Technology Solutions (TS), is a value-added reseller (VAR) and IT services provider run through its Modcomp subsidiary in the U.S. and U.K. TS resells hardware and software from vendors like Cisco, HPE, Palo Alto Networks, and Microsoft, and wraps those products with professional IT services — design, implementation, and ongoing support. TS also provides managed IT (MSP) and cloud services, helping SMBs and larger enterprises outsource IT operations and cloud migrations, primarily on Microsoft Azure. TS serves industries including maritime, healthcare, education, and financial services, and sells through a direct sales force. TS generates revenue from product resale (lower margin) and services (higher margin, increasingly recurring). Management is actively shifting the mix toward services, as MSP and managed cloud contracts are sticky and expand margins. The second business, High Performance Products (HPP), is anchored by AZT PROTECT, a cybersecurity software product targeting operational technology (OT) environments like factories, utilities, and critical infrastructure — settings where traditional IT-focused security tools are poorly suited due to legacy systems and limited compute resources. HPP is a startup-stage business, currently unprofitable and funded by TS profits. AZT PROTECT uses a land-and-expand model, entering customers at a single site and expanding plant-by-plant. Distribution runs through Rockwell Automation's distributor network. TS accounts for roughly 97% of revenue; HPP the remainder.

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