OSS - One Stop Systems reports record revenue and EBITDA for 2022

2023-03-24 10:58:31 ET

• One Stop Systems ( NASDAQ: OSS ) saw Q4 revenue growth of 2.7% to $18.2M; core OSS revenue, represents 62% of total quarterly revenue, declined 1.8% to $11.3M for the quarter.
• Excluding the lower margin media and entertainment business, core OSS revenue increased 16.8% for the quarter; revenue from OSS Europe increased 10.8% to $6.9M, which represented 38% of total quarterly revenue.
• "Gross margin (28.2% vs. 31.7% in prior year) for the year was lower than normal due to strong sales of lower margin products combined with a temporary delay in sales to our largest military customer during a recertification period. Going forward, we expect our low margin media and entertainment business to be increasingly replaced by higher margin military sales," president and CEO, David Raun commented.
• Operating expenses improved as a percentage of revenue from 28.7% to 25.3%.
• Net loss on a GAAP basis stood at $3.3M or -$0.16/share compared to a net loss of $386K or -$0.2/share in same year ago quarter.
• Adj. EBITDA stood at $1.6M or 8.9% of quarterly revenue, an increase from $996K in the same year-ago quarter.
• With three new major program wins across three market segments, the company's total new major program wins stood at 19 for full year, including 13 for AI Transportables.
• Revenue increased 16.8% to a record $72.4M in 2022 led by growth in sales of AI Transportables and autonomous applications, as well as media and entertainment products while adj. EBITDA stood at $5.2M or 7.1% of revenue compared to $4.9M or 7.9% of revenue in 2021.
• As of Dec. 31, 2022, cash and cash equivalents totaled $3.1M with short-term investments of $10.1M for a combined total of $13.2M; this represents an increase of $0.5M compared to cash and cash equivalents and short-term investments as of Sept 30, 2022.
• For Q1 2023, the company expects revenue of ~$16.6M which is in-line with analysts consensus estimates.

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