One Stop Systems, Inc. (NASDAQ:OSS) Q4 2023 Earnings Call Transcript

Mike Knowles: Right. It is opening up our opportunity for placement right now. So, what it’s allowed us to do is on some existing programs where we’ve just been providing a product to fulfill a compute requirement. We’ve been able to go in now and have a broader discussion on the operational problem that the platform is trying to solve. And that provides us a greater understanding of what the architecture on the platform is doing. And then that allows us now to be able to recommend a broader implementation of OSS products that could help facilitate, if you were on a vehicle that was widely a sensor integrating vehicle, right, the ability to move our processing up to the sensor for rapid processing at the sensor, that data needs to come back and be fused together into a common picture.

Again, that’s another need for high-end processing. And if there’s any generative learning off of that or autonomy based off that, they get another level of compute. So, right now, it’s opened that up. In addition, as I mentioned, with a couple of classified programs we’ve delivered to, in the past, we would have just delivered to those set of requirements. Now we can actually figure out and understand as I said more broadly what’s going on in the program. And then a couple of prime contractors that we’ve spoken to in the last quarter have opened up access to us into their classified teams that are pursuing programs. So, now we’re starting to feel the initial forays into our capability and we’re able to respond to those now in a classified environment.

Joe Combs: Great. Thanks for that. Appreciate it.

Mike Knowles: Thanks, Joe.

John Morrison: Thank you.

Operator: Thank you. We have no more questions. I’d like to turn the conference back to our speakers for closing remarks.

Mike Knowles: Thank you, Ina. And we appreciate having enjoyed sharing our latest progress with everybody today. We believe the company’s strategy is solid and the future is bright. OSS management looks forward to speaking with you again in May, if not sooner. In the meantime, as always feel free to reach out to John or myself at any time. With that, let’s go ahead and wrap up the call. Ina?

Operator: Thank you. Now, before we conclude today’s call, I would like to provide the company’s safe harbor statement that includes important cautions regarding forward-looking statements made during today’s call. One Stop Systems cautions you that statements in the presentation that are not description of historical facts are forward-looking statements. These statements are based on company’s current beliefs and expectations. Such forward-looking statements include, for example, those regarding the company’s expectations for revenue growth generated by new products, penetration of the defense and AI transportable sectors, future changes to its business objectives, design wins, amongst other things. The inclusion of such forward-looking statements and others should not be regarded as a representation by OSS that any of its plans will be achieved.

Actual results may differ from those set forth in the presentation due to the risks and uncertainties inherent in our business, including, without limitation, that the market for our products is developing and may not develop as we expect. Military conflicts, global pandemics, or other disasters or public health concerns and economic instability in regions of the world where we have operations, customers or source material or sell products may affect such market. Our operating results could be negatively impacted by inflationary pressures, supply chain constraints, increased interest rates, U.S. Government, continuing resolution or other economic conditions. Our operating results may fluctuate significantly, which would make our future operating results difficult to predict and could cause operating results to fall below expectations or guidance.

If you are unable to offset loss of revenue in our prior media and entertainment space with other business, our operating financial results may be adversely affected. Our products are subject to competition, including competition from the customers to whom we may sell and competitive pressure from new and existing companies may harm our business sales, growth rates, and market share. Our future success depends on our abilities to develop and successfully introduce new and enhanced products that meet the needs of our customers. The likelihood of our design proposals becoming design wins is uncertain, and revenue may never be realized. Our products fulfill specialized needs and functions within the technology industry, and such needs or functions may become unnecessary or the characteristics of such needs and functions may shift in such a way as to cause our products to no longer fulfill such needs or functions.