OSS Announces Follow-On Order and Design Win from a Leading Defense Contractor in Asia for an Autonomous Maritime Application

Rhea-AI Summary

One Stop Systems (OSS) has secured a new $200,000 order from a leading Asian defense contractor for rugged enterprise-class servers. The hardware will be used in unmanned surface vessels (USV) for autonomous maritime operations. The delivery is scheduled for Q4 2024, with additional similar or larger orders expected in 2025-2026.

The system includes two 3U Short Depth Servers and ethernet switches, designed to process data from over 30 cameras in harsh maritime conditions with ambient temperatures exceeding 40°C. The technology will enable vessels to operate autonomously for defense, public safety, and security missions.

Positive

• Secured new $200,000 order for Q4 2024 delivery
• Additional orders expected in 2025-2026
• Strategic expansion into autonomous maritime defense sector
• Product demonstrates capability to operate in harsh environments

Negative

• None.

Insights

Defense Technology Analyst

This $200,000 contract with potential follow-on orders represents a strategic entry into the growing autonomous maritime defense sector. The deployment of OSS's rugged enterprise servers in Unmanned Surface Vessels (USVs) demonstrates the company's capability to address specialized military requirements in harsh environments. The system's ability to process data from 30+ cameras while operating in high-temperature conditions (>40°C) showcases advanced technical specifications that could lead to broader military applications.

The Asian defense market presents significant growth opportunities, particularly in maritime autonomous systems. While the initial order is modest, the potential for multi-year follow-on orders in 2025 and 2026 suggests a longer-term revenue stream. The contract validates OSS's competitive position in the military-grade computing market, though investors should note that defense contracts can be subject to geopolitical risks and procurement delays.

Market Research Analyst

The maritime autonomous systems market is experiencing rapid growth, with the global USV market expected to expand significantly. This contract positions OSS to capture market share in a specialized niche requiring high-performance computing in challenging environments. The modular nature of the system, designed to convert existing manned vessels to autonomous operation, presents a scalable opportunity as military forces worldwide modernize their fleets.

For a company with a market cap of $50.67M, securing contracts with major defense contractors enhances credibility and could lead to additional opportunities in the defense sector. The recurring revenue potential from follow-on orders adds stability to the company's future revenue projections, though investors should consider the relatively small initial order size in context of OSS's overall revenue.

OSS will supply rugged enterprise class servers for sensor fusion and autonomous navigation applications

ESCONDIDO, Calif., Dec. 03, 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 a new order from a leading defense contractor in Asia. The initial amount of the new purchase order is valued at $200,000, with deliveries expected in the fourth quarter of 2024. OSS expects several additional orders from this customer in 2025 and 2026 of similar or greater amounts.

OSS is supporting the defense contractor’s all-in-one modular system designed to convert manned vessels into unmanned surface vessels (USV) for autonomous missions. The application integrates various mission controls and payloads for a wide range of applications to support defense, public safety, and security operations, allowing vessels to maneuver autonomously, intelligently and safely at sea. OSS will initially provide 8U of hardware for each USV, which includes two rugged 3U Short Depth Servers (SDS) and two redundant ethernet switches for high-speed data ingest and interpretation of data from over 30 cameras. The rugged system from OSS is designed to perform reliably in an ambient temperature of over 40°C, and delivers the necessary computing power to support the USV’s computer vision and navigation system.

“We believe that our rugged Enterprise Class compute solutions and experience are uniquely positioned to support this application. USVs are operating in harsh environments with high levels of ambient temperature, moisture, and corrosion, while requiring Enterprise Class compute power to operate autonomously, intelligently and safely. We look forward to supporting this program and future programs as this major Asian defense contractor further deploys unmanned solutions for maritime and other applications,” stated OSS CEO, Mike Knowles. 

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. 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, including but not limited to, the fitness of OSS’ products for unmanned maritime applications, the volume of future orders (if any) from this defense contractor, actual revenue derived from current and expected orders, timing of shipments and revenue and technical specifications of the final solution. 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 defense contract in Asia?

The initial purchase order is valued at $200,000, with deliveries expected in Q4 2024.

What type of hardware will OSS supply for the unmanned surface vessels?

OSS will supply 8U of hardware including two rugged 3U Short Depth Servers and two redundant ethernet switches per vessel.

What are the operating conditions for OSS's maritime defense systems?

The systems are designed to operate reliably in ambient temperatures over 40°C, handling harsh maritime conditions including moisture and corrosion.

When will OSS deliver the maritime defense systems?

The initial order is scheduled for delivery in the fourth quarter of 2024, with additional orders expected in 2025 and 2026.