OSS Announces $2 Million Follow-On Production Order from Innovative Medical Imaging OEM
Rhea-AI Summary
One Stop Systems (NASDAQ: OSS) has secured a $2 million production contract from a medical imaging OEM for non-invasive breast cancer screening technology. The contract involves supplying 65 next-generation liquid-cooled 3U-SDS systems for breast scanning devices, with revenue recognition expected over the next 6-12 months.
This order follows a successful $500,000 development-phase pilot in March 2025 and marks the transition to volume production. The total program value is projected to exceed $25 million over five years. The 3U-SDS platform features proprietary liquid cooling technology that reduces system noise by up to 20 decibels compared to traditional air-cooled servers, making it suitable for patient care settings.
Positive
- None.
Negative
- Revenue recognition spread over 6-12 months rather than immediate
- High dependence on single OEM customer for projected future revenue
Insights
OSS secures $2M contract with $25M potential over 5 years, showing successful commercial market expansion beyond defense.
OSS has secured a
The revenue recognition timeline spans the next 6-12 months, providing near-term financial visibility. What's particularly notable about this deal is how it demonstrates OSS's strategic expansion from its traditional defense market focus into high-growth commercial sectors like healthcare. The company is effectively leveraging its core technological strengths in rugged, high-performance computing solutions to penetrate adjacent markets with similar technical requirements but different use cases.
This contract follows OSS's proven business model: starting with development engagements that convert into multi-year production relationships. The strategic approach resembles their success pattern in defense contracts but applied to the commercial sector. By targeting specialized niches requiring enterprise-class computing at the edge, OSS is positioning itself in markets where competition is limited and technical barriers to entry are high.
The medical imaging application showcases OSS's competitive advantage in solving complex technical challenges - delivering datacenter-level performance in compact, ruggedized form factors with specialized cooling solutions that reduce noise by up to 20 decibels compared to traditional systems, critical for patient-care environments where quiet operation matters alongside computational power.
Follow-on orders expected to exceed an aggregate
ESCONDIDO, Calif., July 10, 2025 (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 a new
Under the terms of the contract, OSS will provide 65 next-generation liquid-cooled 3U-SDS that have become standard on all the OEM’s Breast Scanning devices. OSS expects to recognize revenue from this contract over the next six to twelve months. This order represents a transition from successful pilot to volume production, following an initial
“We are excited to deepen our relationship with this leading medical OEM customer and support their expanding production,” stated OSS President and CEO, Mike Knowles. “Their advanced imaging system relies on machine learning algorithms running in real-time. Meeting their demanding requirements including rugged reliability, GPU performance, small form factor, and minimal noise, highlights the unmatched capability of our Enterprise Class, edge-computing platforms.”
“This engagement demonstrates how OSS’s high-performance PCIe/Switch Fabric rugged compute solutions are extending into fast-growing commercial markets like healthcare. As next-gen medical and industrial devices demand more localized AI processing, OSS is uniquely positioned to win based on our ability to deliver high-density compute at the rugged edge,” concluded Mr. Knowles.
At the heart of this platform is OSS’s 3U-SDS system, the Company’s most flexible, rugged solution for AI at the edge. Designed for deployments in anything that moves, from autonomous vehicles and unmanned aerial systems (UAS) to naval platforms and mobile medical devices, the 3U-SDS delivers datacenter-class compute performance in compact, ruggedized form factors.
This is made possible by OSS’s design capabilities, best-in-class PCIe technologies, and proprietary liquid cooling solution, which reduces system noise by up to 20 decibels compared to traditional air-cooled servers and makes it ideal for acoustically sensitive environments like patient care settings. The 3U-SDS supports direct-to-chip and immersion cooling techniques, approaches historically confined to datacenters and gaming systems that operate in climate-controlled spaces. OSS has brought these innovations to the rugged edge, allowing AI workloads to run in frontline medical environments, quietly and effectively.
Today’s announcement underscores OSS’s strategy to expand into commercial edge AI markets by applying the same disciplined, platform-based approach that has driven its success in the defense market. Similar to other platforms, this medical imaging system began with a development engagement and is now transitioning into a multi-year production, sustainment, and support relationship. The Company continues to target large, high-growth verticals where rugged, Enterprise-Class computing is essential.
About One Stop Systems
One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI enabled solutions for the demanding 'edge'. OSS designs and manufactures Enterprise Class compute and storage products that enable rugged AI, sensor fusion and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to harsh and challenging applications, whether they are on land, sea or in the air.
OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.
OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.
As the fastest growing segment of the multi-billion-dollar edge computing market, AI enabled solutions require-and OSS delivers-the highest level of performance in the most challenging environments without compromise.
OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com. You can also follow OSS on X, YouTube, and LinkedIn.
Forward-Looking Statements
One Stop Systems cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. Words such as, but not limited to, "anticipate," "aim," "believe," "contemplate," "continue," "could," "design," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "seek," "should," "suggest," "strategy," "target," "will," "would," and similar expressions or phrases, or the negative of those expressions or phrases, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based on the Company's current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of our plans or expectations will be achieved. Factors that may contribute to our plans or expectations not being achieved include but not limited to the potential and/or the results of this commercial program contract and order, any actual revenue or cumulative sales derived from the contract, the future adoption of technologies or applications, for this and other clients, and the expansion of the Company’s offerings in the healthcare industry and/or relationship with commercial customers. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our latest Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Media Contacts:
Robert Kalebaugh
One Stop Systems, Inc.
Tel (858) 518-6154
Email contact
Investor Relations:
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
Email contact
FAQ
What is the value of OSS's new medical imaging contract?
How many 3U-SDS systems will OSS deliver under the new contract?
When will OSS recognize revenue from the $2 million medical imaging contract?
What advantages does OSS's liquid cooling technology offer for medical settings?
How does this contract fit into OSS's business strategy?
