OSS - One Stop Systems Inc. (OSS) - Steadily Improving Operating Environment
4Q20 Results. Fourth quarter revenue of $13.9 million, up 17% sequentially, down 24% y-o-y, and above guidance. Net income was $244,000, or $0.01 per share. On an adjusted EPS basis, 4Q20 diluted EPS was $0.04 versus diluted adjusted EPS of $0.07 for 4Q19. Although the top line exceeded our expectation, net income was below our projection. We were at $13.5 million of revenue and EPS of $0.05, while consensus was $13.2 million and $0.04, respectively.New Wins. OSS added four new $1+ million wins in the quarter, increasing the total to 16 for the year, the same as in 2019, a strong accomplishment in a COVID impacted year, in our view. The 32 program wins over the past two years contributed $18 million to 2020 revenue, including $12 million from new customers.Sharpening Focus. One Stop continues to sharpen its focus on areas with the highest growth rates and margins, and where its complete edge computing solutions are most valued. The Company has termed this AI Transportables, which includes anything that is not in a fixed location, but requires the very latest in high-performance computing for AI where responsive action needs to be taken immediately. We expect management to provide additional detail on the focus during 2021. Projections. The business environment continues to improve, although COVID still lingers. OSS's two largest customers are showing incremental improvement, something we expect to continue throughout the year. Nonetheless, we are taking a modest improvement approach to 2021. For the first quarter, we are estimating revenue to come in at $13 million, down from $13.4 million in 1Q20, which was a record 1Q high for the Company. We are forecasting a net loss of $0.03 per share for the quarter. For the full year, we are at revenue of $58 million and EPS of $0.04.Market Perform. We are maintaining our Market Perform rating on One Stop Systems. We continue to be big believers in the One Stop story and the vast potential of its position within the High Performance Computing and AI spaces.Read More >>