One Stop Systems(OSS)

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One Stop Systems, Inc. (OSS) Reports Q2 Loss, Tops Revenue Estimates
ZACKS· 2024-08-08 23:45
One Stop Systems, Inc. (OSS) came out with a quarterly loss of $0.09 per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -80%. A quarter ago, it was expected that this company would post a loss of $0.05 per share when it actually produced a loss of $0.04, delivering a surprise of 20%. Over the last four quarters, the company has ...
One Stop Systems(OSS) - 2024 Q2 - Quarterly Results
2024-08-08 20:06
One Stop Systems Reports Q2 2024 Results Q2 2024 revenues of $13.2 million, sequential increase and in line with plan OSS segment orders of $7.5 million, outpacing quarterly revenue for the second consecutive quarter Management expects continued sequential growth with consolidated Q3 2024 revenue of $13.3 million, and OSS segment revenue expected to increase 15% year-over-year to $6.3 million ESCONDIDO, Calif. – August 8, 2024 – – One Stop Systems, Inc. ("OSS" or the "Company") (Nasdaq: OSS), a leader in ru ...
One Stop Systems(OSS) - 2024 Q2 - Quarterly Report
2024-08-08 20:04
Financial Performance - For the three months ended June 30, 2024, total revenue was $17,211,532, a decrease from $33,993,426 for the same period in 2023, representing a decline of approximately 49.3%[98]. - Total revenue for the three months ended June 30, 2024, decreased by $4,010,202, or 23.3%, compared to the same period in 2023[102]. - For the six months ended June 30, 2024, total revenue decreased by $8,140,310, or 23.9%, with OSS down by $5,852,776, or 34.6%[103]. - The net loss for the three months ended June 30, 2024, was $(2,399,496), compared to a net loss of $(2,800,008) for the same period in 2023, showing a reduction in losses[99]. - Management reported a net loss of $3,684,167 for the six months ended June 30, 2024, an increase of $884,159 from a net loss of $2,800,008 in the prior year[132]. - The company reported a net loss of $2,344,545 for the three months ended June 30, 2024, compared to a net loss of $2,399,496 for the same period in 2023[157]. - Adjusted EBITDA for the six months ended June 30, 2024, was $(1,751,783), a decrease from $1,152,192 for the same period in 2023[157]. - Free cash flow for the six months ended June 30, 2024, was $1,022,648, down from $1,749,043 for the same period in 2023[162]. Revenue Composition - Product revenue accounted for 89.0% of total revenue in Q2 2024, down from 97.7% in Q2 2023, indicating a shift in revenue composition[100]. - OSS revenue decreased by $2,756,062, or 33.3%, primarily due to the discontinuation of sales to a former customer, while Bressner's revenue decreased by $1,254,140, or 14.0%[102]. - The company recognizes revenue primarily from the sale of computer hardware and engineering services, with a minor contribution from software sales and maintenance contracts[92]. Cost Management - Operating expenses totaled $8,211,495 for Q2 2024, which is 42.3% of total revenue, a decrease from 47.7% in Q2 2023, reflecting improved cost management[100]. - Cost of revenue for the three months ended June 30, 2024, decreased by $2,545,527, or 20.5%, with OSS seeing a decrease of $1,718,005, or 29.3%[104]. - General and administrative expenses decreased by $665,482, or 21.7%, for the three months ended June 30, 2024, but increased as a percentage of revenue to 18.2%[108]. - Marketing and selling expenses increased by $771,163, or 52.0%, for the three months ended June 30, 2024, raising the percentage of revenue to 17.1%[111]. - Research and development expenses decreased by $29,048, or 3.0%, for the three months ended June 30, 2024, but increased as a percentage of revenue to 7.0%[113]. Cash and Investments - As of June 30, 2024, total cash and cash equivalents were $6,751,771, with short-term investments of $5,019,230[122]. - The company generated $1,226,742 in cash from operating activities for the six months ended June 30, 2024, a decrease of $822,192 compared to $2,048,934 in the same period of 2023[132]. - Cash generated from investing activities increased to $2,541,086 in the six months ended June 30, 2024, compared to $503,054 in the prior year, reflecting a net increase of $2,038,032[134]. - The company used $1,014,840 in cash for financing activities during the six months ended June 30, 2024, compared to generating $413,575 in the same period of 2023, resulting in a difference of $1,428,415[135]. - The company has a revolving line of credit of $2,000,000, which was renewed in June 2024 and will expire in September 2026, with no outstanding balance as of June 30, 2024[126]. - The company filed a registration statement allowing it to offer and sell up to $100,000,000 of various securities, which may be utilized for additional financing if needed[127]. Market and Strategic Focus - The edge computing market is driven by the global increase in load on cloud infrastructure and the rise in AI applications, positioning the company favorably in a growing sector[88]. - The company expects to increase its research and development expenses as it continues to invest in new and existing products, indicating a focus on innovation[95]. - The company has made strategic acquisitions, including Bressner Technology GmbH, to enhance its product offerings and market reach in Europe, the Middle East, and Africa[90][91]. - The company is focusing on acquiring new customer orders to replace lost revenue and is committed to controlling costs and conserving cash for liquidity over the next twelve months[125]. - The company is increasing efforts to penetrate the military and defense sectors, which involves significant contracting requirements and protracted sales cycles[138]. Economic and Risk Factors - The company anticipates continued economic uncertainty and volatility in capital markets, particularly due to inflation and potential recessions in the U.S. and Germany[124]. - The company is subject to foreign currency risk due to operations in Germany, with transactions primarily in Euros, impacting financial results due to exchange rate fluctuations[151][152]. - The company employs derivatives to manage market risks but is currently not a party to any foreign exchange contracts[153]. - The effective tax rate for the six months ended June 30, 2024, was 29.1%, compared to 28.9% in the prior period in 2023[121]. Stock-Based Compensation - The company incurred stock-based compensation expenses of $557,198 for the three months ended June 30, 2024, compared to $898,008 for the same period in 2023[157]. - The company has not experienced any losses in accounts exceeding insurance limits and believes the financial institutions are stable[149].
One Stop Systems to Report Second Quarter 2024 Financial Results
Newsfilter· 2024-07-25 12:31
ESCONDIDO, Calif., July 25, 2024 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. ("OSS" or the "Company") (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, announced today that the Company will release its second quarter 2024 financial results after the market closes on Thursday, August 8, 2024. A webcast and conference call will be held that same day at 5:00 p.m. ET to review the Company's results. Conference Cal ...
One Stop Systems to Report Second Quarter 2024 Financial Results
GlobeNewswire News Room· 2024-07-25 12:31
ESCONDIDO, Calif., July 25, 2024 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. ("OSS" or the "Company") (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, announced today that the Company will release its second quarter 2024 financial results after the market closes on Thursday, August 8, 2024. A webcast and conference call will be held that same day at 5:00 p.m. ET to review the Company's results. Conference Cal ...
One Stop Systems(OSS) - 2024 Q1 - Earnings Call Transcript
2024-05-10 02:28
One Stop Systems, Inc. (NASDAQ:OSS) Q1 2024 Earnings Conference Call May 9, 2024 5:00 PM ET Company Participants Mike Knowles - President & Chief Executive Officer John Morrison - Chief Financial Officer Conference Call Participants Max Michaelis - Lake Street Capital Markets, LLC Joe Gomes - Noble Capital Operator Good day everyone, and welcome to today's One Stop Systems 2024, Quarter One Conference Call and Webcast. At this time, all participants are in a listen-only mode. Later, you will have the opport ...
One Stop Systems(OSS) - 2024 Q1 - Quarterly Report
2024-05-09 20:04
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 (I.R.S. Employer Identification No.) 2235 Enterprise Street #110 Escondido, California 92029 (Address of principal executive offices including Zip Code OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ ...
One Stop Systems Announces Annual Meeting of Shareholders
Newsfilter· 2024-05-01 12:31
ESCONDIDO, Calif., May 01, 2024 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. ("OSS" or the "Company") (NASDAQ:OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, today announced that it will host its Annual Meeting of Shareholders, virtually on May 15, 2024, at 11:00 AM PT. Shareholders who owned the Company's stock as of the close of business on March 22, 2024, can register, vote electronically, and submit questions by u ...
One Stop Systems(OSS) - 2023 Q4 - Earnings Call Transcript
2024-03-22 00:14
Financial Data and Key Metrics - Consolidated revenue decreased by $11.5 million or 15.9% from $72.4 million to $60.9 million, primarily due to a $13.7 million decrease in media revenue [7] - OSS revenue decreased by $14.5 million or 33.4%, while Bressner revenue increased by $2.9 million or 10.1% [7] - Consolidated gross profit in Q4 decreased by $544,000 to $4.4 million, with gross margins improving to 33.7% from 27.3% [3] - OSS gross margin improved by 14.5 percentage points to 45.9%, while Bressner's gross margin improved by 1.6 percentage points to 22.2% [3] - Net loss on a GAAP basis was $278,000 or $0.01 per share, compared to a net loss of $3.3 million or $0.16 per share in the same period in 2022 [5] - Adjusted EBITDA, a non-GAAP metric, was $353,000, a decrease from $1.6 million in the prior year [6] Business Line Performance - OSS contributed $28.8 million or 47% of total revenue, while Bressner contributed $32.1 million or 53% [7] - OSS experienced a significant decrease in media revenue, offset by higher-margin rugged edge processing products [3] - Bressner improved both margins and profitability despite a challenging economy in Germany and Europe [23] Market Performance - OSS revenue was fairly evenly balanced between commercial and defense applications in 2023 [7] - The company expects revenue of approximately $12.5 million in Q1 2024, representing a 5% sequential decrease from Q4 2023 and a 25% year-over-year decrease [13] Company Strategy and Industry Competition - The company is transitioning away from lower-margin media revenue and focusing on higher-margin AI transportable products [22] - OSS is leveraging its expertise in high-performance ruggedized edge processing, compute, storage, and connectivity systems, while Bressner operates as a systems integrator in Europe [24] - The company is pursuing opportunities in both commercial and military segments, focusing on AI-centered high-performance computing at the edge [42][44] Management Commentary on Operating Environment and Future Outlook - Management highlighted the impact of U.S. Government continuing resolutions on revenue, particularly in the defense market [1] - The company expects increased spending in autonomy, artificial intelligence, and machine learning in the defense sector [48] - Management is optimistic about the growing pipeline of opportunities and the potential for long-term value creation [19][46] Other Important Information - The company has a five-year unfactored pipeline exceeding $1 billion, reflecting growth in both commercial and defense markets for AI and ML solutions [69] - Recent wins include a multi-million-dollar program with Leidos' Dynetics and a contract with the U.S. Army Ground Vehicle Systems Center [49][50] - The company has added new talent to its management team and Board of Directors to support its growth strategy [16][17] Q&A Session Summary Question: Gross margins in Q4 and outlook for 2024 - Gross margins in Q4 were heavily weighted towards AI transportable products, particularly in the defense industry, with higher-margin data storage units contributing significantly [34] - The company expects gross margins to continue growing, with a target of 30% to 40%, driven by the shift away from lower-margin media revenue [100] Question: Sales cycles and growth expectations in the defense market - The company expects growth to pick up in the second half of 2024, driven by pipeline conversion and defense market opportunities [38][76] - The defense market has long sales cycles, but the company is leveraging its high technology readiness level products to compete effectively [88] Question: Inventory levels and working capital - The company has significant inventory due to past commitments but expects to free up $2 million in working capital this year by selling down inventory [84][110] Question: Impact of NVIDIA's new Blackwell chip on product design - The company can move from product availability to shipping within a year, leveraging its engineering capabilities to work with customers on GPU lead times [102][117] Question: Pipeline conversion and qualification process - The company uses a two-probability model to assess opportunities, focusing on the likelihood of an opportunity emerging and the probability of winning [108] - The company is actively engaging with customers to convert its growing pipeline into multi-year, multi-million-dollar orders [109]
One Stop Systems(OSS) - 2023 Q4 - Annual Results
2024-03-21 20:08
Exhibit 99.1 One Stop Systems Reports Q4 2023 Results Company to Hold a Conference Call Today at 5:00 p.m. Eastern Time ESCONDIDO, Calif. – March 21, 2024 – – One Stop Systems, Inc. (Nasdaq: OSS), a leader in rugged high- performance compute (HPC) for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, reported results for the fourth quarter and twelve months ended December 31, 2023. All quarterly and twelve-month comparisons are to the same year-ago period unless otherwis ...