Core Insights - One Stop Systems, Inc. (OSS) has received a new purchase order valued at $200,000 from a leading defense contractor in Asia, with deliveries expected in Q4 2024 and additional orders anticipated in 2025 and 2026 [1][2]. Group 1: Company Overview - OSS specializes in rugged Enterprise Class compute solutions for AI, machine learning, and sensor processing at the edge, catering to demanding environments [4][6]. - The company designs and manufactures products that enable AI, sensor fusion, and autonomous capabilities, ensuring high performance in challenging applications across various sectors, including defense [4][5]. Group 2: Product and Application Details - The new order supports the contractor's modular system aimed at converting manned vessels into unmanned surface vessels (USV) for autonomous missions, integrating mission controls and payloads for diverse applications [2][3]. - OSS will provide 8U of hardware for each USV, including two rugged 3U Short Depth Servers and two redundant ethernet switches, designed to operate reliably in temperatures exceeding 40°C [2][3]. Group 3: Market Position and Future Outlook - OSS's rugged computing solutions are positioned to meet the needs of USVs operating in harsh environments, requiring high levels of compute power for autonomous operations [3][6]. - The company is part of the rapidly growing edge computing market, particularly in AI-enabled solutions, which demand high performance in challenging conditions [6].

Core Insights - One Stop Systems, Inc. (OSS) has received a $2 million initial order from an established AI infrastructure company, with shipments expected to begin in Q1 2025 [1][2] - The order includes 100 units, comprising 50 OSS Ponto Reef compute accelerators and 50 OSS Gen5 4UPro Accelerator Systems, with expectations for follow-on orders in the coming years [2][3] - OSS's PCIe 5.0 expansion system, Ponto Reef, supports up to 32 PCIe Accelerator Devices in a single chassis, catering to the growing demands of the Composable Disaggregated Infrastructure (CDI) and datacenter market [3] Company Overview - OSS specializes in rugged Enterprise Class compute solutions for AI, machine learning, and sensor processing at the edge, providing high-performance products for various industries [4][5] - The company’s offerings include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software, utilized in sectors such as autonomous trucking, defense, and aerospace [5][6] - OSS addresses the entire AI workflow, from data acquisition to deep learning and inference, positioning itself as a leader in the rapidly growing edge computing market [6]

Financial Data and Key Metrics Changes - For Q3 2024, the company reported consolidated revenue of $13.7 million, exceeding guidance of $13.3 million, with a slight year-over-year decrease due to a $1 million reduction in Bressner revenue, offset by a $1 million increase in OSS segment revenue [33] - The gross margin percentage was negative 12.5%, compared to 26.6% in the prior year quarter, while gross margin excluding a $6.1 million inventory charge was 32%, up from 26.6% [34] - The company reported a GAAP net loss of $6.8 million or $0.32 per share, compared to a net loss of $3.6 million or $0.18 per share in the prior year [37] Business Line Data and Key Metrics Changes - OSS segment revenue grew year-over-year by 17.5%, with gross margin of 43.2% excluding the inventory charge, a 10.8 percentage point increase from the same period last year [8][35] - Bressner segment had a gross margin percentage of 22%, a 0.6 percentage point decrease from the same period last year, driven by a less profitable mix of revenue [36] Market Data and Key Metrics Changes - The company’s five-year unfactored pipeline at the end of Q3 remained over $1 billion, with approximately 70% comprised of platform and multiyear opportunities [17] - Orders outpaced revenue by 25% for the third quarter in a row, driven by existing customers in the air and maritime C5ISR defense markets [20] Company Strategy and Development Direction - The company is focused on converting its $1 billion pipeline to sales and pursuing customer-funded development projects to establish itself as an incumbent on platforms driving future multiyear production contracts [7][12] - The strategic focus is on higher-margin revenue opportunities in commercial and defense markets, particularly in response to emerging requirements for AI, machine learning, and autonomy [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustainable revenue growth, with expectations for consolidated revenue of approximately $15 million in Q4 2024 and OSS segment revenue of $7 million, representing over 9% year-over-year growth [41][42] - The company anticipates a rebound in the Bressner segment in 2025, likely to see growth around Q2, contingent on improvements in the European economy [61][64] Other Important Information - The company announced the retirement of CFO John Morrison and welcomed Daniel Gabel as the new CFO, emphasizing the importance of leadership in executing growth strategies [28][29] - The company has expanded its product development efforts, currently working on five product initiatives focused on edge computing for both defense and commercial applications [27] Q&A Session Summary Question: What is driving the strengthening trends in bookings? - Management noted that the growth in bookings is driven by both defense and commercial markets, with a broader outreach and application of products since the new VP of Sales joined [44] Question: What is the percentage of government versus commercial bookings? - Management estimated that approximately 55% to 60% of bookings are from defense [46] Question: What are the expectations for the Bressner segment in 2025? - Management anticipates a potential rebound in the Bressner segment around Q2 2025, depending on the European economic recovery [64] Question: What is the expected gross margin for the OSS segment in the next 18 months? - Management expects to drive gross margins up to 35% or better as the mix of products and customer-funded development grows in volume [50] Question: How does the customer-funded development translate into future revenue? - Management indicated that customer-funded development typically represents 10% to 20% of a whole program, with potential for significant revenue during production phases [58]

Core Insights - One Stop Systems, Inc. (OSS) reported a quarterly loss of $0.30 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -650% [1] - The company generated revenues of $13.7 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 3.02%, but slightly down from $13.75 million a year ago [2] - The stock has underperformed the market, gaining about 7.1% year-to-date compared to the S&P 500's gain of 21.2% [3] Financial Performance - Over the last four quarters, One Stop Systems has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $17.5 million, while for the current fiscal year, it is -$0.14 on revenues of $56.6 million [7] Industry Context - The Electronics - Miscellaneous Products industry, to which One Stop Systems belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact One Stop Systems' stock performance [5] Future Outlook - The company's earnings outlook will be influenced by management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current Zacks Rank for One Stop Systems is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]

Core Insights - One Stop Systems, Inc. (OSS) has appointed Daniel Gabel as CFO, Treasurer, and Secretary, effective November 11, 2024, succeeding John Morrison, who is retiring after serving since September 2017 [1][2][3] Leadership Transition - John Morrison will remain with OSS as a non-executive employee until November 30, 2024, to ensure a smooth transition [1] - Daniel Gabel brings over 14 years of experience in accounting and financial leadership within the defense industry, having previously served as CFO of CAES' Defense System Division and held various roles at RTX Corporation [3] Company Overview - OSS specializes in rugged Enterprise Class compute solutions for AI, machine learning, and sensor processing at the edge, focusing on high-performance products for demanding environments [4][6] - The company’s product offerings include ruggedized servers, compute accelerators, and flash storage arrays, utilized across industries such as autonomous trucking, farming, and defense [5][6] Market Position - OSS operates in the rapidly growing multi-billion-dollar edge computing market, particularly in AI Transportables, which require high performance in challenging conditions [6]

ESCONDIDO, Calif., Oct. 23, 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 third quarter 2024 financial results before the market opens on Wednesday, November 6, 2024. A webcast and conference call will be held that same day at 10:00 a.m. ET to review the Company’s results. Conference ...

Core Insights - One Stop Systems, Inc. (OSS) has entered into a Cooperative Research and Development Agreement (CRADA) with U.S. Special Operations Command to develop rugged edge AI/ML computing solutions aimed at enhancing the capabilities of the Hyper-Enabled Force mission [1][2][3] Group 1: Partnership and Objectives - The collaboration focuses on creating advanced, durable high-performance computing solutions that can efficiently process large amounts of data in extreme environments [2] - The initiative aims to improve situational awareness, decision-making, and operational capabilities of U.S. Special Operations Forces (SOF) by leveraging AI and ML technologies [2][3] Group 2: Strategic Importance - This partnership is part of OSS's multi-year strategy to expand its offerings and establish relationships across all branches of the U.S. Armed Forces, representing a significant component of its $1+ billion sales pipeline [3] - The agreement is expected to accelerate the adoption of enterprise-class architecture for AI/ML, sensor fusion, and autonomy applications within the U.S. Department of Defense [3] Group 3: Company Overview - OSS specializes in rugged Enterprise Class compute and storage products designed for demanding edge environments, enabling AI, sensor fusion, and autonomous capabilities [4][5] - The company's products include ruggedized servers, compute accelerators, and storage solutions, utilized across various industries including defense, autonomous trucking, and agriculture [5][6]

Core Insights - One Stop Systems, Inc. (OSS) is participating in the Lake Street Capital Markets' Best Ideas Growth "Big8" Conference on September 12, 2024, in New York City, with CEO Mike Knowles and CFO John Morrison attending [1][8] - The company specializes in rugged Enterprise Class compute solutions for AI, machine learning, and sensor processing at the Edge, catering to demanding environments [3][5] Company Overview - OSS designs and manufactures AI-enabled solutions that provide high-performance computing and storage products for harsh applications across various industries, including defense, autonomous trucking, and farming [3][4] - The product lineup includes ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software, addressing the entire AI workflow from data acquisition to deep learning [4][5] Market Position - OSS operates in the rapidly growing multi-billion-dollar edge computing market, focusing on delivering high-performance AI solutions that meet the challenges of extreme environments [5] - The company has achieved several industry firsts for its industrial OEM and government customers, highlighting its innovative capabilities in the sector [5]

Core Insights - One Stop Systems, Inc. has received an initial purchase order exceeding $500,000 from the U.S. Army, expected to be recognized in 2024, marking a new customer and platform win for the company [1][2]. Group 1: Purchase Order Details - The order will utilize the company's integrated hardware and storage software to support the U.S. Army's testing of threat detection systems and aircraft survivability systems for rotary-winged aircraft [2]. - OSS will provide rugged 3U Short Depth Servers (SDS) for high-speed airborne data recording, chosen for their proven performance in various deployments [2]. Group 2: Strategic Importance - The announcement reflects OSS's long-term success with Department of Defense platforms, indicating a multi-year funding opportunity based on current program requirements [3]. - The company aims to meet the rigorous demands of the Military and Aerospace industries with enterprise-class, standards-based platforms across multiple applications [3]. Group 3: Company Overview - One Stop Systems specializes in AI-enabled solutions for edge computing, designing and manufacturing rugged compute and storage products for challenging environments [4][6]. - The company's product offerings include ruggedized servers, compute accelerators, and storage solutions, utilized across various industries, including defense [5].

Core Insights - One Stop Systems, Inc. reported a quarterly loss of $0.09 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, marking an earnings surprise of -80% [1] - The company generated revenues of $13.2 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 1.55%, but down from $17.21 million in the same quarter last year [2] - The stock has underperformed the S&P 500, gaining about 0.5% year-to-date compared to the S&P 500's 9% increase [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $15.2 million, and for the current fiscal year, it is -$0.08 on revenues of $60.7 million [7] - The estimate revisions trend for One Stop Systems is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Electronics - Miscellaneous Products industry, to which One Stop Systems belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Greenland Technologies Holding Corporation, is expected to report a quarterly earnings of $0.03 per share, reflecting a year-over-year decline of 83.3% [9]