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CSPi
True PII Breach Detection
Gary Southwell, General Manager, Cybersecurity DivisionWhy does detecting a PII breach present such a challenge? Daily the average organization, according to industry reports, is faced with over 5,000 cyber threat incidents, making the task of identifying actual breach incidents daunting. Quickly understanding and pinpointing the aftermath of an identified PII data breach is especially important, as companies that have lost valuable customer records must pay fines if they don’t report the incident to the relevant authorities within strict deadlines, including naming the citizens whose records were exposed.
CSPi takes a different approach to diagnosing a breach— “we actively record all data going to and from databases and file shares storing PII data. If those systems have been breached, organizations can search the conversations and locate the exact exposed records. To automate the process, CSPi works with Fortinet’s FortiGate ingesting the firewalls and IPS’s threat alerts. We actively utilize the Fortinet API, allowing our system to access FortiManager to pull relevant alerts into our solution and run automated searches of bad actors communicating with the monitored and recorded assets,” states Gary Southwell, GM at CSPi.
We actively utilize the Fortinet API, which allows our system to identify breached PII records in our client systems
In the event of a verified breach, CSPi automatically extracts a file, or detailed report, from the recording, presenting the entire conversation the bad actor is having with the database, and identifies the actual records that were exposed. This provides the vital forensic evidence required to properly report the breach. Another benefit is the recoded data can be replayed through the application to prove if the records were effectively protected by encryption. If so, breach notification is not required, but the extraction files must be saved as evidence.
Here is a real-life use case, a metro healthcare center with 19 clinics was breached. They brought in a third-party incident response company who couldn’t narrow down the actual records exposed, after billing $180,000. CPS, however, instructed that by adding a FortiGate IPS coupled with CSPi’s Myricom appliance, would provide an effective means to detect the details of a breach, for under $90,000 and pays for itself on the first breach. In this case—recreating the breach circumstances with the Fortigate and CSPi solution—took a total of ten hours to get the extraction files, review it all, and pinpoint which records were exposed, all while the customer was shown how to use the system.
CSPi has subsequently introduced the ARIA Software Define Security (SDS) platform, which automatically encrypts data at the application level. CSPi inserts an agent inside the application making it easy to add encryption during the development process. Addressing another prevalent issue, CSPi has invented an intelligent network adapter with the processing power to run encryption functions within the NIC, this offloads these intensive process from running on server cores thereby allowing encryption to be effectively deployed on any installed legacy system.
CSPi News
CSP Inc. Reports Fiscal Second Quarter 2024 Operating Results; 23% Growth in Services Revenue Drives Gross Margin Percentage Expansion to 47% and Nearly Five-Fold Increase in Net Income
LOWELL - CSP Inc. (NASDAQ:CSPI), an award-winning provider of cybersecurity AI-driven solutions (AZT), security and packet capture products, managed IT and professional / cloud services and technology solutions, today announced results for the fiscal second quarter ended March 31, 2024. The Company also announced that the Board of Directors declared a quarterly dividend of $0.03 per share payable June 12, 2024, to shareholders of record on the close of business on May 24, 2024.
Recent Achievements and Operating Highlights
• Services revenue and high margin AZT sale contributes to the expanded gross margin and net income of $1.6 million for the fiscal second quarter
• Recently published case study of AZT PROTECT™ in The Journal, an award-winning publication from Rockwell Automation and Our PartnerNetwork™, reached a subscriber base of over 50,000. The Journal educates the industrial automation market on leading-edge methods, trends, and technologies
• CRN®, a brand of The Channel Company, named CSPi Technology Solutions to its Managed Service Provider (MSP) 500 list in the Security 100 category for 2024.
• Continued strong balance sheet allows the company to rapidly invest in AZT PROTECT™ market development initiatives
• ARIA Cybersecurity Wins Global Infosec Cybersecurity Product Award for AZT PROTECT at RSA
• ARIA Cybersecurity Wins Prestigious Globee Cybersecurity Product Award for AZT PROTECT
"Our business continued to operate at a high level during the quarter, and across the board we are building a pipeline that is in line with, or well above our internal plans. As a result, we continue to execute a strategy designed to generate sustained long-term growth and profitability," commented Victor Dellovo, Chief Executive Officer. "The consistent performance of our Technology Solutions (TS) business and robust balance sheet is enabling investment in certain sales and marketing initiatives to generate the desired growth outcomes for the High Performance Products (HPP) business, mainly with the AZT offering."
"We believe our multi-pronged market awareness strategy for the AZT offering is demonstrating the need and attractiveness to large Fortune 500 global brands. The effort has resulted in landing a major AZT customer - a global pharmaceutical company. With a dedicated sales team focused on this enterprise segment, we recently added three sales representatives to target mid-market companies while we build partnerships with organizations addressing both markets. Earlier this month, we also achieved another significant milestone with our partner Rockwell, and the publication of an AZT PROTECT™ deployment case study within a Fortune 500 company. This article published in The Journal is distributed to over 50,000 subscribers - readers that heavily rely on knowing the latest and best solutions to meet today's cybersecurity threats and challenges.
As we move forward, we believe the focus of our direct sales team and leveraging our new and expanding partnerships is going to significantly raise the profile of the AZT offering. Despite being less than a year removed from the launch, we are building traction in the market and the level of enthusiasm remains high, as does the new business lead pipeline. We are optimistic about the opportunities we have with AZT and look forward to the second half of our fiscal year."
Fiscal 2024 Second Quarter Results
Revenue for the fiscal second quarter ended March 31, 2024, was up slightly to $13.7 million compared to revenue of $13.3 million for the fiscal second quarter ended March 31, 2023. Services revenue constituted $5.2 million of overall sales, an increase of 23% compared to services revenue of $4.3 million in the year-ago fiscal second quarter. Gross profit for the three months ended March 31, 2024, was $6.5 million, or 47% of sales, compared to $5.0 million, or 38% of sales, representing a 9% improvement as higher margin services revenue along with the high margin AZT sale fueled the growth. The Company reported net income of $1.6 million, or $0.16 per diluted common share for the fiscal second quarter ended March 31, 2024, compared to net income of $0.3 million, or $0.03 per diluted common share for the fiscal second quarter ended March 31, 2023. Earnings per diluted common share are retroactively adjusted for the effects of a stock split effected in the form of a 100% stock dividend which occurred during the second fiscal quarter of 2024.
The Company had cash and cash equivalents of $27.1 million as of March 31, 2024, providing it with the resources to invest in market awareness and growth initiatives for its products and services, including the transformative AZT offering.
Fiscal Year 2024 Six Month Results
Revenue for the fiscal six months ended March 31, 2024, was $29.1 million compared with revenue of $31.6 million in same prior year period. Gross profit for the fiscal six months ended March 31, 2023, was $10.6 million, or 36% of sales compared with $10.8 million, or 34% of sales, reflecting a more favorable product mix and benefiting from the higher margin services revenue in the 2024 fiscal second quarter. The Company reported net income of $1.5 million, or $0.16 per diluted common share in the fiscal six months ended March 31, 2024 compared with net income of $1.3 million, or $0.14 per diluted common share for the fiscal six months ended March 31, 2023.
Conference Call Details
CSPi Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W. Levine will host a conference call at 10:00 a.m. (ET) today, May 8, 2024, to review CSPi's financial results and provide a business update. To listen to a live webcast of the call, the event link is https://www.webcaster4.com/Webcast/Page/2912/50580. Individuals also may listen to the call via telephone, by dialing 77-545-0523 or 973-528-0016 and use the Participant Access Code: 533105 when greeted by the live operator. For interested parties unable to participate in the live call, an archived version of the webcast will be available for approximately one year on CSPi's website.