OSS Receives Order for Rugged Enterprise Class Servers to Support U.S. Army

Rhea-AI Summary

One Stop Systems (OSS) has received a $500,000 initial purchase order from the U.S. Army, marking a new customer and platform win. This order is part of a potential multi-year opportunity to support the Army's efforts in testing threat detection systems and aircraft survivability for rotary-winged aircraft. OSS will supply rugged 3U Short Depth Servers (SDS) for high-speed airborne data recording, chosen for their proven performance in various rugged deployments. The company's VP of Sales, Robert Kalebaugh, highlighted this as an example of OSS's strategy to support rigorous military and aerospace demands with enterprise-class, standards-based platforms across multiple applications and airframes.

Positive

• Secured a new $500,000 initial purchase order from the U.S. Army
• Potential for a multi-year opportunity based on current program requirements
• Expansion into a new customer base and platform
• Leveraging integrated hardware and storage software capabilities
• Proven performance of SDS in various rugged deployments

Negative

• None.

Insights

Financial Analyst

This $500,000 initial order from the U.S. Army represents a significant win for OSS, potentially opening doors to a multi-year revenue stream. The contract's value, while modest, signals market validation for OSS's rugged enterprise-class servers in military applications.

The expansion into rotary-winged aircraft diversifies OSS's portfolio, reducing dependence on existing platforms. This new customer acquisition in a high-barrier-to-entry market like defense could lead to follow-on orders and enhance OSS's competitive position.

Investors should note the potential for margin expansion as OSS leverages its existing technology for new applications, potentially improving profitability in the long term.

Defense Technology Specialist

The U.S. Army's selection of OSS's Short Depth Servers (SDS) for aircraft survivability systems testing is a strategic win. It demonstrates the versatility and robustness of OSS's technology in meeting rigorous military standards across various platforms.

The application in threat detection and countermeasures for rotary-wing aircraft is crucial, as these systems are vital for mission success and crew safety. OSS's ability to provide high-speed airborne data recording in rugged environments positions them well in the competitive defense tech landscape.

This contract could pave the way for broader adoption within the U.S. military's modernization efforts, potentially leading to larger, more lucrative opportunities in the future.

Market Research Analyst

This contract signifies OSS's successful market penetration into a new segment of the defense sector. The company's expansion from naval and ground applications to rotary-wing aircraft demonstrates its ability to adapt and scale its technology across various military platforms.

The multi-year potential of this program aligns with the trend of long-term, stable contracts in the defense industry, which can provide predictable revenue streams. This could positively impact OSS's valuation multiples, as the market often rewards companies with visible, recurring revenue.

Investors should monitor OSS's ability to leverage this win for further expansion within the U.S. Army and other branches of the military, as success here could lead to a significant increase in market share within the defense technology sector.

Multi-year opportunity represents new customer and new platform win

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 based on current program requirements.

The initial order will leverage the Company’s integrated hardware and storage software capabilities to support the U.S. Army’s efforts to test threat detection systems, countermeasures, and other aircraft survivability systems for the U.S. Army’s rotary-winged aircraft. Under the terms of the program, OSS will supply rugged 3U Short Depth Servers (SDS) for high-speed airborne data recording. The SDS was chosen by the U.S. Army for its proven performance in rugged land, sea, and air deployments including previously announced program wins in trucks, mobile command centers, undersea vehicles, and airborne platforms.

“Our long-term success on Department of Defense Ground, Shipboard and Air platforms such as the U.S. Navy’s P-8 maritime patrol and reconnaissance aircraft, provides us with proven capabilities to extend our SDS products to support the U.S. Army’s rotary aircraft platforms. Today’s announcement reflects our success in building sustaining capabilities on a new platform with multi-year funding. It also exemplifies OSS’s strategy to support the most rigorous demands of the Military and Aerospace industries with enterprise class, standards-based platforms across multiple applications and airframes,” commented Robert Kalebaugh, OSS VP of Sales.  

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, fitness of the SDS for the rotary aircraft, actual revenue derived from the initial and follow on orders, timing of the revenue for the U.S. Army 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 the initial purchase order OSS received from the U.S. Army?

OSS received an initial purchase order valued at over $500,000 from the U.S. Army.

What product will OSS supply to the U.S. Army under this order?

OSS will supply rugged 3U Short Depth Servers (SDS) for high-speed airborne data recording.

What is the purpose of the OSS servers for the U.S. Army's rotary-winged aircraft?

The servers will support the U.S. Army's efforts to test threat detection systems, countermeasures, and other aircraft survivability systems for rotary-winged aircraft.

Is this a one-time order or part of a larger opportunity for OSS (Nasdaq: OSS)?

This initial order is believed to be part of a multi-year opportunity based on current program requirements.