OSS - Research - One Stop Systems (OSS) - Removes Interim CEO Tag from David Raun

Its Official. Yesterday, One Stop Systems named David Raun as President and CEO. Mr. Raun had been serving as interim CEO since February. Mr. Raun originally joined OSS's Board in 2016 and served as audit committee chair. As we mentioned upon his interim appointment, Mr. Raun is a seasoned leader with extensive experience in the technology space. He has a track record of driving increased revenue and profits and is intimately familiar with the PCIe switch technology. Mr. Raun is a good fit for OSS, in our view.New Directors. Earlier this month, OSS announced the appointment of three independent board members, Sita Lowman, Gioia Messinger, and Greg Matz, effective July 1. In addition to increasing the Board to seven members, the new directors bring a wide range of relevant experience to the Company's Board. PCIe Product Expansion. Monday, OSS introduced the world’s first PCIe Gen 4 expansion system that fully supports NVIDIA A100 Tensor Core GPUs, which can boost computing performance up to 20X over the previous generation. The OSS 4UV allows system developers to scale out almost any Gen 4 server by adding up to eight NVIDIA A100 GPUs. The system is ideal for boosting the performance of compute-intensive applications like AI training, AI inference, video analytics and XR rendering.Former Directors Selling Shares. Over the past week former insiders Steve Cooper, ex-CEO, and James Reardon, have sold some of their extensive holdings. While we do not believe the sales provide any insight into the Company's prospects, given their large holdings, 18.8% for Mr. Cooper and 7.4% for Mr. Reardon, such sales can have an out-sized impact on the shares. Maintaining rating. We rate OSS shares Outperform with a 12-month $4 price target. Our target represents an EV/S sales multiple of 1.2x projected 2020 revenue, a 50% discount to acquisitions in the space.Read More >>