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]

One Stop Systems, Inc. (OSS) came out with a quarterly loss of $0.30 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -650%. 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 $0.09, delivering a surprise of -80%.Over the last four quarters, the company has surpa ...

ESCONDIDO, Calif., Nov. 06, 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 Daniel Gabel has been appointed CFO, Treasurer, and Secretary, effective November 11, 2024. Gabel will succeed John Morrison, who has announced his retirement from OSS. Morrison has served as the Company’s CFO, Treasurer, and Secretary since Septem ...

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 ...

Partnership to enhance cognitive dominance in support of Hyper Enabled Force mission objectives through development efforts of rugged edge AI/ML compute solutions Agreement aligns with OSS' strategy to expand offerings and establish embedded relationships across the U.S. Department of Defense ESCONDIDO, Calif., Sept. 12, 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 s ...

ESCONDIDO, Calif., Sept. 05, 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 Mike Knowles, President and CEO, and John Morrison, CFO will participate in the Lake Street Capital Markets' Best Ideas Growth "Big8" Conference on September 12, 2024, at The Yale Club in New York City. Management is scheduled to host one- ...

ESCONDIDO, Calif., Aug. 22, 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 an initial purchase order valued at over $500,000 from The U.S. Army that is expected to be recognized in 2024. The order represents a new customer, and a new platform win for OSS, which the Company believes supports a multi-year opportunity bas ...

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 ...

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 ...

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 ...