CSPi Surpasses Expectations in Q3 2026 Despite Supply Chain Hiccups
CSPi, a leading provider of technology solutions, has reported near-expectation results for its fiscal third quarter 2026. Despite some setbacks due to supply chain issues and longer sales cycles, the company's Technology Solutions business showed solid growth in cloud and managed services.
According to Victor Dellovo, CSPi's Chief Executive Officer, the company's financial performance was impacted by two relatively short-term factors. Firstly, hardware vendor delivery times have extended beyond 200 days, leading to a backlog of orders that has increased by 65% compared to last year.
"While we're pleased with the growth in our Technology Solutions business," said Dellovo, "we recognize that there are areas for improvement. We've made meaningful progress during the quarter, but I believe we can and will do better."
The company has taken steps to adapt to each customer's unique deployment timelines and procurement process for rolling out additional protected sites after the initial installation of its AZT PROTECT business.
"We continue to add new land and expand customers while expanding relationships with existing customers as our customer base grows," said Dellovo. "Our ability to execute within this environment continues to improve, and we're optimistic about converting several large six-figure opportunities into contracts."
CSPi has also seen growing opportunities for AZT PROTECT to become part of an OEM customer solution, with the integration of its technology into several OEM products already completed.
"While OEM sales cycles are lengthy," said Dellovo, "they create attractive long-term recurring revenue opportunities once integrated. We're beginning to see a growing pipeline from this market segment, and we're confident that it will contribute to our future growth."
The company's partnership with Acronis software is a prime example of the potential for AZT PROTECT in OEM solutions. With marketing materials and SKUs on track for a fall launch, CSPi is poised to capitalize on this opportunity.
Overall, while CSPi faced some challenges in Q3 2026, its Technology Solutions business showed resilience and adaptability in the face of supply chain disruptions and longer sales cycles."
