Financial Data and Key Metrics Changes - The company reported consolidated revenue of $14.1 million for Q2 2025, a 6.9% increase from $13.2 million in the same quarter last year [14][15] - Consolidated gross margin expanded to 31.3% in Q2 2025 from 25.2% in the prior year quarter, while the OSS segment margin improved to 41.3% from 24.9% [15][16] - The company expects full-year revenue of approximately $59 million to $61 million for 2025, representing over 20% year-over-year growth for the OSS segment [13][19] Business Line Data and Key Metrics Changes - The OSS segment generated bookings totaling $25.4 million in the first half of the year, with a book-to-bill ratio of 2.3 [4] - The Bresner segment is expected to achieve higher sales and profitability in 2025 compared to last year's results, with recent bookings aligning with targets [7] - The OSS segment's gross margin is expected to be in the 40% range for the full year 2025, up from prior guidance of mid to upper 30s [16][19] Market Data and Key Metrics Changes - The company is seeing signs of stabilization in European markets served by the Bresner operating unit, with recent bookings and revenue in line with targets [7] - The market for composable infrastructure is projected to grow significantly, from $5.87 billion in 2024 to $28.44 billion by 2031 [9] Company Strategy and Development Direction - The company is focused on leveraging high-performance edge compute solutions to meet growing demands in AI, machine learning, and sensor fusion [2] - A multi-year strategic plan has been launched to rebuild the go-to-market approach and expand the sales pipeline [2][3] - The introduction of the Ponto platform aims to address the growing composable infrastructure market and enhance the company's position in commercial data centers [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on multi-year growth opportunities driven by AI and machine learning [7] - The company anticipates further commercial and defense announcements in the coming months, supported by strong demand for enterprise-class compute solutions [6] - Management remains cautious about the Bresner segment's growth outlook while optimistic about the OSS segment's potential [25][26] Other Important Information - The company has recognized lifetime contracted revenue of over $50 million on the PA platform, with expectations of approximately $4 million in cumulative sales between 2026 and 2029 [5][6] - R&D investments have been increased in 2025 to capitalize on emerging opportunities [8] Q&A Session Summary Question: What is the outlook for the Bresner segment? - Management noted that the Bresner segment is expected to perform well, with market recovery in Europe providing opportunities for growth [24][25] Question: How does the company view the data center market and AI partnerships? - The company is adjusting product lines to meet the demand for higher wattage GPUs and is actively engaging with AI software vendors for partnerships [28][31] Question: What is the expected growth rate for OSS and Bresner segments in 2026? - The OSS segment is expected to grow at about 20% to 25% annually, while the Bresner segment is modeled for growth in the range of 7% to 9% [41] Question: How is the company managing supply chain challenges? - Management indicated that they are working closely with suppliers to mitigate lead time risks and ensure production ramp-up in the second half of the year [34] Question: What is the current status of government and commercial bookings? - The company reported a stronger mix of defense bookings in the first half of the year, with expectations for continued alignment with bid and proposal activities [53][54]

Ponto is the world's first PCIe Gen 5 GPU expansion system purpose-built for commercial datacenters demanding ultra-dense, high-throughput compute performance ESCONDIDO, Calif., July 22, 2025 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. (OSS or the Company) (Nasdaq: OSS), a leader in PCIe Expansion and rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, today announced the launch of Ponto, the world's first PCIe Gen 5 expansion platform su ...