One Stop Systems, Inc. · NASDAQ:OSS
One Stop Systems — Investor Presentation (January 2025)
38 slides from One Stop Systems's investor presentation, Jan 14, 2025
Slide 1: Bringing the POWER of the Datacenter to the Rugged EDGE
Corporate Presentation January 2025 Bringing the POWER of the Datacenter to the Rugged EDGE NASDAQ:OSS
Slide 2: Important Disclaimers & Cautions Regarding Forward-Looking Statements
Important Disclaimers & Cautions Regarding Forward-Looking Statements One Stop Systems cautions you that statements in this presentation that are not a description of historical facts are forward-looking statements. Forward-looking statements include statements regarding One Stop Systems’ expectatio
Slide 3: Investment Thesis: Forefront of the HPC, AI, ML, and Edge Computing Revolution
Investment Thesis: We are at the Forefront of the HPC, AI, ML, and Edge Computing Revolution Refocused strategy and new management team Strong financial position and growth focused outlook Established technology positioned for secular HPC, AI and ML trends Realigned strategy focused on pursuing fast
Slide 4: About OSS | Market Opportunity | Strategic Growth Priorities | Financial Results | Appendix
NASDAQ:OSS About OSS Market Opportunity Strategic Growth Priorities Financial Results Appendix
Slide 5: Our Hardware and Software Solutions Bring the Performance of the Datacenter to the Edge
Our Hardware and Software Solutions Bring the Performance of the Datacenter to the Edge Financial information as of September 30, 2024. Stock and valuation information as of October 31, 2024. $49 mil. Market cap $13 mil. Cash and equivalents $37 mil. Enterprise value $53 mil. Consolidated TTM annual
Slide 6: OSS Corporate Snapshot
OSS Corporate Snapshot Key Technology Partners OSS Nasdaq ESCONDIDO, CA Corporate HQ Market Leading, Ruggedized Enterprise Class Solutions for the Edge Consolidated Revenue by Market Consolidated Revenue by Geography Most Compact Supercomputer Most Powerful GPU Accelerator Lowest Latency Fabric/PCIe
Slide 7: Our Operating Segments
Our Operating Segments OSS Overview Bressner TTM Revenue Growth Drivers Select Customers $23.9 Million $28.8 Million Original Design Manufacturer of Enterprise Class ruggedized Edge processing, compute, storage and connectivity systems focused on low latency, high performance PCI Express technology
Slide 8: Leading Outcomes for Customers
Leading Outcomes for Customers We take the highest performance leading commercially available technologies only available in controlled environments like datacenters and “ruggedize” them for the most demanding commercial and defense applications Core Capabilities Solutions Drive Better Outcomes Rugg
Slide 9: Strengthened Leadership Team
Strengthened Leadership Team Proven management team with extensive experience bringing innovative technologies to scale within global defense and commercial markets Mike Knowles – President and CEO Jim Ison – Chief Product Officer Robert Kalebaugh – VP of Sales Daniel Gabel – Chief Financial Officer
Slide 10: Growth Oriented Transformation Strategy
Growth Oriented Transformation Strategy Pivot integrating Defense Opportunities Added proven defense industry Leaders and reprofiled Board of Directors Created new multi-year strategy Rebuilt sales pipeline to over $1 billion Reduced exposure to legacy, low margin, non-core markets 2023 2024 2025 20
Slide 11: OSS is Positioned to Serve the Future Battlefield
OSS is Positioned to Serve the Future Battlefield Enterprise class compute power and extremely low latency at the Edge is a requirement to run AI enabled, autonomous, and interconnected systems of the future battlefield accelerating JADC2 as we move beyond firepower to the power of information that
Slide 12: Supporting Industrial and Commercial Mega Trends
Supporting Industrial and Commercial Mega Trends OSS provides rugged and high-performance enterprise class compute solutions to power the next generation of intelligent industrial and commercial applications at the Edge HPC / Datacenter Industry 4.0 IoT / Smart Cities Autonomy
Slide 13: OSS Competitive Landscape
OSS Competitive Landscape In the Realm of Rugged Performance At The Edge, OSS Stands Above Performance Ruggedized Size Weight Power Management Low Noise High Performance, Datacenter, & Clean Environments Rugged, Lower/Mid Performance, & Embedded Rugged Assemblers & Limited Engineering Rugged
Slide 14: About OSS | Market Opportunity | Strategic Growth Priorities | Financial Results | Appendix
NASDAQ:OSS About OSS Market Opportunity Strategic Growth Priorities Financial Results Appendix
Slide 15: Compelling Position Within Rapidly Evolving Industry
Compelling Position Within Rapidly Evolving Industry The transition from current embedded computing to enterprise class will grow in demand and fuel OSS’s long-term growth opportunity $17B global market for rugged Edge compute for AI/ML, sensor fusion, and autonomy applications Demand on number of A
Slide 16: OSS Segment is Aligned with DoD and Commercial Market Priorities
OSS Segment is Aligned with DoD and Commercial Market Priorities for High Performance Compute Joint All-Domain Command and Control Priorities Sensor processing, sensor fusion, autonomy and AI/ML are becoming critical to JADC2 implementation. This requires more AI processing power in the field, at th
Slide 17: Bressner Segment Revenue: Strong Markets and Partners
Bressner Segment Revenue ($ in millions) Strong Markets and Partners Annual Revenue & Gross Margin (Revenue in millions) Bressner Growth Drivers Long-term customer relationships and expanding daily business with expected ~10% annual revenue growth 2024 – 2025 revenue expected to be impacted by slugg
Slide 18: Leveraging Bressner as a Channel for OSS Segment Sales
Leveraging Bressner as a Channel for OSS Segment Sales Leverage Bressner’s salesforce and existing customer relationships to expand OSS Segment revenue across international markets Target OSS segment products sold through Bressner to have ~40% gross margins Estimated OSS Segment Sales Through Bressn
Slide 19: About OSS | Market Opportunity | Strategic Growth Priorities | Financial Results | Appendix
NASDAQ:OSS About OSS Market Opportunity Strategic Growth Priorities Financial Results Appendix
Slide 20: Financial Priorities
Financial Priorities Pipeline conversion to drive organic revenue growth Develop more predictable revenue streams and diversify revenues by customers, applications, and geographies Control operating expenses, while pursuing strategic growth investments in sales/marketing and R&D, to drive higher ret
Slide 21: Growth Strategies Focused on Expanding the High-Growth, High-Margin OSS Segment
Growth Strategies Focused on Expanding the Company’s High-Growth, High-Margin OSS Segment Pursue Multi-Year Platform Based, Integrated Solutions Build Sustainable Customer Funded Development Revenue Lead with Best-In-Class Rugged Products Expand International Sales Opportunities Standard product lin
Slide 22: Support Best-in-Class Product Line
Support Best-in-Class Product Line Servers Storage Fabric/PCIe Product Development R&D Priorities Aligned with Emerging Markets Market Focus R&D Priorities Scale Out Software Air C5ISR Ground C5ISR Maritime C5ISR Autonomy Composable MGX Form Factor Blackwell™ GPU E1.S NVMe Ion Accelerator™ PCIe Gen
Slide 23: Grow and Convert OSS Segment Pipeline
Grow and Convert OSS Segment Pipeline Unfactored Pipeline Growth Current Pipeline Application Current Pipeline Characterization $850M $+1B $+2B
Slide 24: Expand Customer Funded Development Revenue
Expand Customer Funded Development Revenue Establish incumbent position and opportunity to expand within platform architecture Transition to multi-year contract for production, support, and tech refresh at high margin with predictable backlog and revenue Create 10+ year total lifecycle annuity at pr
Slide 25: Legacy Platform Case Study: P-8
Legacy Platform Case Study: P-8 Customer Requirement High-performance, high-capacity data storage Storage, media, mobility and expandability Airborne & ground station compatibility Mil-spec design optimized for Size, Weight, & Power (SWaP) Ruggedized: mechanical, thermal, and secure OSS Solution Des
Slide 26: Growing Platform Case Study: Composable Infrastructure for Datacenters
Platform Benefits Secured standard product design-wins with 3 customers and created standard products for commercial OEMs U-BMC SW license sales and multi-year production Opportunity with Cloud Service Providers (CSPs) for dense datacenter solutions Establishes lead customers for next generation pro
Slide 27: Future Platform Case Study: U.S. Army Situational Awareness
Future Platform Case Study: U.S. Army 360 Situational Awareness Customer Requirement High performance low latency video processing for 360° Situational Awareness System Multi-format sensor processing and distribution Mil-spec fanless system optimized for ground vehicle SWAP and logistics, and compat
Slide 28: OSS Segment Opportunities Supported by Established Market Position
OSS Segment Opportunities Supported by Established Market Position Established Enterprise Class Expertise Enhanced Go-to-Market Strategy Leverageable Operating Platform Pioneers at bringing enterprise class capabilities to the most challenging environments (compute, storage, fabric) Track record of
Slide 29: Well Positioned to Capitalize on Market Tailwinds
Well Positioned to Capitalize on Market Tailwinds Resilient Global Markets Differentiated Products & Capabilities Established and Growing Platforms Compelling Growth Opportunities & Financial Model Technology drivers associated with AI/ML, Sensor Fusion and Autonomy are supporting secular demand Est
Slide 30: Capital Allocation Priorities
Capital Allocation Priorities Maintain asset light business model Sustain balance sheet strength Strategic investments to drive ROI Pursue accretive acquisition opportunities Limited capital requirements needed to support growth Can more than double sales within current operating footprint Biggest u
Slide 31: About OSS | Market Opportunity | Strategic Growth Priorities | Financial Results | Appendix
NASDAQ:OSS About OSS Market Opportunity Strategic Growth Priorities Financial Results Appendix
Slide 32: Consolidated Revenue Impacted by Transformation and Continued Weakness in European Market
Consolidated Revenue Impacted by Transformation and Continued Weakness in European Market QoQ Consolidated Revenue (in 000) YoY Consolidated Revenue (in 000) While consolidated revenue on a YTD basis has declined by 17% year-over-year, revenue on a sequential basis has stabilized and is starting to
Slide 33: OSS Segment Revenue Reflects Transformation
OSS Segment Revenue Reflects Transformation Revenue Mix Shift Aligned with Strategic Plan OSS Segment Core Revenue Up YoY For the third quarter of 2024, OSS Segment revenue grew year-over-year by 17.5%, as the Company successfully executes its multi-year growth plan Q3 2023 Q3 2024
Slide 34: Revenue Transformation Supports Strategies to Expand Gross Margin
Despite the recent impact of under absorption in its OSS segment, gross margin has benefitted from product mix, the transition away from the legacy media business, and a strategic focus on expanding gross margin Revenue Transformation Supports Strategies to Expand Gross Margin OSS Segment Gross Marg
Slide 35: Key Takeaways
Key Takeaways Operating in a resilient global market for rugged Edge compute for AI/ML, sensor fusion, and autonomy applications $1B+ pipeline with $450M+ of platform opportunities to achieve long term incumbent positions New Executive and business development leadership team with a track record of
Slide 36: Appendix
NASDAQ:OSS About OSS Market Opportunity Strategic Growth Priorities Financial Results Appendix
Slide 37: Glossary of Terms
Glossary of Terms Term Definition AI Artificial intelligence Bressner Segment Operates in Europe and is a system integrator with standard and custom all-in-one hardware systems and components. C5ISR Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance Com
Slide 38: Company Contacts
Company Contacts Daniel Gabel Chief Financial Officer One Stop Systems, Inc. Escondido, California T 760.745.9883 ir@onestopsystems.com Investor & Media Relations SM Berger & Company T 216.464.6400 andrew@smberger.com Contact Us One Stop Systems HQ 2235 Enterprise Street #110 Escondido, CA 92029 Tel
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