OSS - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and thank you for joining us today to discuss One Stop Systems' Financial Results for the First Quarter Ended March 31, 2022. With us today are the Company's President and Chief Executive Officer, David Raun, and Chief Financial Officer, John Morrison, as well as the Company's Chief Sales and Marketing Officer, Jim Ison.

Following their remarks, we will open the call for your questions. Then before we conclude today's call, I will provide some important cautions regarding the forward-looking statements made by management during the call. I would like to remind everyone that the call will be recorded and made available for replay in the Investors section of the Company's website.

to David call Raun. like President to would CEO, and I turn over the OSS' Now Please ahead, go sir.

David Raun

year-over-year, for Thank you, financial XX% strong continued to a Laura. In QX, progress. the Revenue million. at $XX.X QX Company make setting record grew

Their customer Bressner, in with revenue of X% included also $X.X see for For about years. minimized on we over increased their million, the greater QX while are compared well, This the in will now margins pre-COVID a prior to quarter the our mark. in strong performed row, seasonality the pushing the starts profit a top growth exceptionally XX%. impacted entertainment gross we growth QX expectation from to at record and from their first our success. $X.X than space the back our throughout in European gross gathering second that newer to back our large continued to drops virtual team, XX% year. significantly revenues growth year-over-year The environment product year as COVID top growth to media by the XX% with layer plus also an as business million

make EBITDA non-GAAP that's shipping our $XXX,XXX, missed only the additional increases, business color $X.X net lead of more quarterly the no million. been that supply and exception. plan income price to there is Long will the performance year, provide challenging. While by suppliers almost shipments operating and to expenses as revenue the on shortages, to we one disruption over chain, X%. no the last seems to higher increased continue million, our and shortly. industry the net are in by costs It critical All times, GAAP supply untouched just XX%, increased Execution adjusted and income John to significant outlined, improvements $X increased

and working been pursue team options engineering anticipate alternatives Our needs ensure teams we production procurement closely needed, have our to revenue to basis sales or with and objectives. our if constant find our our a meet other on

able products in we our debt flow support limited Fortunately, continued cash right bring the position growth. to strong been cash, to to and leverage our have positive

see importantly, have AI our multiple acceleration scalable in we More including implemented continued the transportable to within of standard development an introduction last further the and verticals year, strategy validating products. market, more

introduced recently flagship Our accelerator supercomputer have last a Centauri our introduced and Rigel product, and been storage compact rugged received. year, well

multiple help co-defined in transportable truck seven includes with for need Although was we partners only ago was fast-growing provided and in market. developing additional autonomous QX, this these truck color interest have storage confirmed markets, program in Centauri vertical. It multibillion-dollar products weeks multiple AI to generated total address in a this OSS four autonomous the opportunity. in Progress on to the five area platforms compute bringing the wins

performance superior hope is products currently are without We example Thomas AI of leverage demands compromise market excellent a three deployed we the shipping technology an as perfect progresses. where the year environments. market can expand and to that leaders, or in Trucking that and we harsh of our number to

wins John of call over the outlook get the provide our turn Morrison, transport of the pipeline. and provide Marketing color the Before and to Chief the financial the will Then, like year further quarter. who on Ison, building our Officer, new product rest Sales us introduction, I'd our through and details program into John? will additional insight I Jim into strategy, validation to for take additional of the CFO, AI

John Morrison

the XXXX. today, for results joining XX, ended section available for The our we everyone. of quarter the us today. onestopsystems.com. website press good in and a afternoon, financial at release first David, Relations our Thank issued you Earlier Investor release March you, is Thank with

David As prior up the period. $XX.X of XX% first which was revenue the quarter, from reported year million, we mentioned, for

XX% core Our $XX.X representing increased quarterly revenue. revenue OSS million, current to XX% of

XX.X% business to XX.X%. Much from of rates these were and percentage large With predominance consistent costs. due Overall, $X.X of due our representing but X.X but the the in quarterly to to and year margins and to in improvement media attributable occurred XX.X%, timing a of a percentage QX profit customers. the of quarter, be from Bressner's our success increased and XXXX reduced these compared total first prior to of the Bressner, for has gross point prior for will gross to from Bressner gross year to entertainment from in XX%, and from increasing our continued of margin and but transportation for sequentially XX.X% shipping Historically, sequential schedule QX military core $XXX,XXX increases a decrease quarter XX.X% the XXXX OSS million, of in revenue to to exchange in year. European of our million. shipments in Gross prior revenue. decrease margin XX.X% percentage growth XX% year shipments X.X strength customer. were sequentially subsidiary, XX% points QX from improved QX the the primarily the the and and margins XXXX to improved with due the of in in our The business QX $X.X XXXX, material Media changes this XX.X%

there to were XXXX. XXXX deferred However, in from shipments QX prior shipments strong QX year, due in the

is percentage margin profitability higher. is the Although lower,

Operating operating quarter. compared The continuing to restrictions. to COVID-XX a million. on return XX% increased focus normal in as introduction pricing, a to action of environment management's standard with more to revenue expenses imperative. only expenses higher-value improved are ago to take increasing margins X% due the XX.X% and products, company increase to was $X.X XX.X% decreased same quarterly real-time operating primarily Quarterly in expenses business parts marginal fewer a overall year percentage to our efficiencies, revenues this through improve reflecting with price of increases, We quoting manufacturing capabilities

the income $X.XX or trade Company net participating or share. to in per certain diluted of hires. marketing and basic travel, per has and activities $XXX,XXX from such, adding returned and diluted totaled income shows, business share, GAAP $X.XX $XX,XXX increasing strategic employee As basic net

Now revenue million or were first profitable diluted year. on share. X.X% of quarterly quarter quarter, a EBITDA, net metric, $X.X of company the million share year. $X.X of metrics prior records income for per three or $XXX,XXX basis, was for or basic Adjusted of quarterly diluted these the was non-GAAP from revenue or per the $X.XX compared and to and as X% $XXX,XXX up a $X.XX basic non-GAAP All in the

March equivalents $X.X million and cash cash on sheet, of million for totaled short-term short-term totaling $XX.X $XX.X to investments XXXX. This balance combining equivalents our to million. XX, cash turning December on XX, investments cash and $XX.X XXXX, and compares with Now million,

Marketing and imposed our investments. review. While to OSS influences. carefully and is be Ison. changes inventory over sought global to in This Sales work And call out our cash economic flow our business to with positive, strong now position external purposely financial completes provides by stability putting to Chief Jim issues to like Jim? Officer, we turn be to I'd and cash our flexibility the us Cash are responsive to able

Jim Ison

brings major wins, generated In six Thank to four further market. we you, new in John, including good and QX, this program afternoon, value trucking, validating autonomous everyone. OSS the

the single ever pending We quarter, which also are trucks, new major a opportunities in largest military Six XX programs of during is programs added AI applications. the for increase aircraft and quarter. transportable maritime autonomous XX these

expectation closing. For or reference, XX% our greater pending major of programs have a

focused expanded to programs has current of transportable pipeline on efforts AI involving XX a of major our pending because Our XX market. with this record applications

to rugged at where pull to accelerator flagship AI only have trucking the the to at autonomous the Rigel performance recently turning the our high needs applications, end compute Rigel we both designed lockstep leader according complement of and our introduced our our to truck continues Centauri customers, the ability edge. opportunities Now in military To in autonomous survive products supercomputer and products, storage customers. adding AI with thought system, our our have edge provide

test advancements first through Gen bandwidth to remote-mounted current that canister the product of an the Gen possible. but can Rigel bring hot-swappable our product transfer truck the and social to truck the the the AI as is are Since Express to compact, truck known us chassis. be technology data look stores replaced products Centauri in or the XXXX of PCI truck accessible around throughout sensors mentioned successful LiDAR, an a in telemetry Express to OSS the the by our are for Express While Express into data. year. a over generated the such allows compromise. This posted and and is to X demonstrations X as bring from externally analyzed including products an vast storage road, and releases, vehicle, Centauri. quickly improve amounts connects Centauri are data designed PCI well canister radar, shipments on on without official video. Express recently copper and server SDS X data the the truck, providing systems will generation. deployed slides system rugged autonomous channels technology, the the Gen PCI information high X based doubles Gen keeping PSI of accelerator X in forward the this Centauri to cable to learn road compartment, PCI transported on and PCI numerous underway cab capacity as the removed, product accelerator depot, highest Gen core Express NVMe autonomous Gen to compute, X in while for that latest Gen industry's that uses the autonomous the capability. performance storage and leading-edge product self-driving rugged we leading-edge a We is memory its accelerator long-haul media technology edge saddle NVMe with be Rugged Centauri The next or driving much currently is X via X-meter previously system bag

ability landscape. one that distinguishes differentiating the Gen PCI lead with our of competitive like highly us Express from Our to is X capabilities technology fragmented

management, is applications. advancements technologies, system in progressing liquid our SDS and allowing talented Our line engineering product be our such in AI team disruptive products multiple cooling more Rigel and transportable deployed power as to on

an the of we autonomous panel Sea panel. have Navy Show at moderated the expert watercraft, challenges ROI. verticals, addressed and market including dynamics customers our in Vehicle AI generate markets AI quarter our strong an breakthroughs truck successes, help activity marketing Many transportable Autonomous mining, exist The this the all, about and In Conference Exponential and where truck of transportable. the also same the the I'm front, exhibited excited drones AUVSI increasing in where we OSS growing market. Airspace On challenges immediate can and other these in and

Dave. to I'd like over to the Now turn call back

David Raun

Jim. and John you, Thank

demonstrated, providing we execute, have from base and traditional our As we continued results, have customer to applications. primarily solid

Although some in value our positive seek as we like in income media Europe, as margin percentages they margin not proposition historic OSS. the businesses, may Bressner and that of generate for and the generate years, future dollars in well entertainment these

are to this continues help transportable that part taking positive, grow investments. flow debt. identified, validate business our more pleased put for remaining and on profitable been together plan the while AI have new of not and and We to We multibillion-dollar strategic opportunity cash this recently pay able a

We higher for to position has us done OSS. invest and time cash crazy in prosperity this have in ensure and growth to our during history, a levels inventory allowed

with trucks many most thoughts call have when journey. the in shipments just foundation beginning of on rewarding landscape participate. This truck develops fast-growing market. on personally to is made. Our forward market early you market opposite, What the autonomous a crash be Like of this autonomous enabling to things progress looking the not these NDA money fragmented that to market to look without sleeping. but Like air, double new just supplier or return to the of every includes implemented on immersing to found exciting front may clear, being Level Inn is compromise automobile, not where automobile lay has capability. we're competitive the airline, and pure it its stumble. investment. starting challenging makes your high-volume the for will performance pull its autonomous when in is find in Unlike we if the front. sitting the futuristic the future ever be possible, fundamental reason, develop to only an enabled in when fully a even environments economics one autonomous surely prior also to most the trucks, on assume as road, the is as sharing leadership The at that truck objective not my strong economics this verticals some where the AI solutions makes the it these some in not struggles soon intention, is truck new as may its transportable and of autonomous expected the the enablement money and autonomous This our X are on stage, myself I with develops. the create and is for potential I after in story course autonomous have driver market Ramada autonomous they commercial be been are a wording only truck

thousands vehicles highways enabled by is on miles Many hub-to-hub same several autonomous likely the passed you may one being surprised logged of the on. have learn highway. hundreds these road. model XX-ton of that to autonomous travel For our you capabilities the the deployed are example, tackles of only have on on customers that It

Although until of these too this we trucks. traveled in the have elected much not information over miles earnings some seven as our ago, compute to and/or OSS call functions also storage weeks on XXX,XXX provide front products

hardware the needed our with autonomous conjunction the storage compute and provide products AI customers' perform in working software. Our to

of While driver a our the today a without in is are to the enable road these truck enormous in to extremely the trucks solutions coast-to-coast of human down companies hitting innovative road make the production. right bringing demand these when focus market on and seat, software sure the million to go are we the hardware to a mission

OSS' compute platforms. Our technology, amounts and storage software vehicle, data OSS multiple LiDAR, of directly from the sensors with solutions analyzed or embedded be to data can the around When such and telemetry including with storage on trucking is autonomous sensors, gather processed, combined vast captured the stored work radar, cameras. from compute software

of Torque, like wealthiest Although for TuSimple have billion reason. and can by these benefit innovative are that companies deployment. Kodiak may or with in the not invested they names Well backed Embark, $XX this market familiar some been you, market be leaders may this to this from largest over

pressures as offer very these and with drive per Although system the eventual $XX will compute range cost Even billion between like types these market these a price in today size market $X.X trucks down competitive for and we with any the overall of volume, the products price lower for high, expect storage of normal is will and time solution market year. this. points, a the billion over dynamics

earlier, market. As plan this I be said it our to is to supplier the our intent and leading

Now looking QX. forward to

shareholder Daylight Stockholders the $XX.X Wednesday, Our May Pacific the vote in for you over would year. represents on XX revenue the our proxy outlook for Time. A.M. second our upcoming XX:XX to quarter, investors the is I We at Notice remind encourage which QX Meeting outlined of proposals of proxy state. million like meeting of of to last Annual by XX% growth and

versions. IR your standard more our my or and to just voice released two tomorrow earnings has will cover MPX information page latest over A with an view these it link the and topics our be on also two corporate to after presentations you be to we will in release. One encourage can There the PDF be today. visit found presentation on press today's file. also website other call color We this

the page clicking go can menu you presentations. section then alternative, to by web of the at an the As page Investors on our onestopsystems.com followed top and selecting standard at in the

your questions. call Now I'd open with the to Laura? to that, like address

Operator

Capital. go Thank Noble first Joe Gomes you. We'll to [Operator Instructions] with

Joe Gomes

your of John start with off to quarter. quarter. wanted kind Jim, nice nice David, and I

the up more pre-pandemic of levels, Kind Maybe of that Bressner does holding a fourth rest about defense how skies clients, nicely. very be Are of quarters? appreciated. the of waiting growth businesses now and the talked business the there? for little some the mean what the Bressner, in up parts seeing organic the of for terms running of third are you on other would Is and those, the just business color there? of rest the its outside at entertainment You revenues

David Raun

and the thoughts. backlog good military business And AI we that's we you margins what money on bottom we're the can we're a there strong Our really, That's business making and that, to segment this it's touched and It's said, matter decreasing. that timing no I and our validating. of primarily funding we of were feel then higher, things and is really time like Those the but as stress and business are going. I of the AI that just want really transport my transportable that it's strategy think they there's wish is the very line. getting bottom is line automotive

Joe Gomes

in of on of anything Just the can contracts update of that Or military, side the again, kind or there? you us on any give terms new awards aisle?

David Raun

Yes.

premature a and first of all, up. that's doing but anything like seeing on lot open some on disruptive things focus we're to to I'd of little number that? stuff. that AI It's is to of And a add to we're different Let give you where vertical me then, do want but personally, Jim, details, transportable you -- things that exciting front. we're to a And the what on there, working start

Jim Ison

Raytheon, had Raytheon We of to go. do contract, funded but just five-year that a fall programs I'd that, things some say not these under additional get GPU-based like have they under that shipments diverse as systems, still are

David Raun

participate the We're deliver that multiple markets to and ability not on market little did getting presence execute to now to that continue But in. that very in, get need we one on multiple feeling our it's door. like because, color about we job in well-known add opportunities people about a And is are and let we and to before, the have again, talk the the inside couldn't autonomous not things, Rigel large and capabilities the that done and front. a my been is good Yes, just there roadmap to comment the us of noticed. truck me the we're able have the really verticals we our we've

Joe Gomes

you on is truck sale differences for Any the systems I think On system you're timing to with today? standard color will what speaking you're you're any clients? much there to autonomous begin a kind are And between the some And to side? front, to Or ones now the that of think when various the that on major of make shipping said all there pretty they three. is that go you orders? shipping price as

David Raun

Yes.

focused them see with customers to for we have three able It's but five a So ones. products, we're all five first products those multiple one for waiting and compute two clarity, our guys of But use to like we And shipping next the a just be all, one we're storage. the similarity products here, of them to. three and talking said lot a shipping we're even of this be might not same and one the of five in revenue orders. or to we wins. That's is hope we're among to, on. additional it's three And other kind between year And ones there's little working later and customers, we're is then that it different. wins of not maybe of total of these that two or

Joe Gomes

in clarity here. there. the for one get if I just Maybe more Thanks could

see customer, in-person see and you and you're being and the still we're return upon a again, that growth them, that's how giving here? continued thinking you will confidence you maybe entertainment other What's or at can about rest about products, customer? outdoor continue talk should growth maybe you a events talk layered let's the the to call some entertainment of events we And about big to are through seeing the You growth talking that year. the of

David Raun

newsroom comfortable. that, the virtual that well vectors gathering potential a virtual the the with we're I'd they're to back, gives anything range large bottom like video, we'll why whatever, continues all, at anything music that say like the for do virtual of First really to to some looks doing extremely rest from doing filming but have growth. creating or that's well. or triple And that It's which line. of fact like driving two very or then not a coming the it It growth, product double lot of year. And like it's the lines, steady us and

looks us, that so attractive about it. And and to good feel we

Joe Gomes

forward queue. Look Thank Great in will Great. I you. forward going get quarter. here, what's to seeing back and

Operator

Thank with David you. next Company. Williams to We'll The go to Benchmark

David Williams

and the remarks, about and the here, might snapback the thinking not the about know margin, this And a but about seemed just business the after confident XQ. I'm XXX-basis prepared good this correctly, you to that I the little understand guess trying the more -- recall if last Congrats point in beat quarter. of here. very side, margin. quarter, the to just maybe your ground kind I into in talked media of off on last strong margin you takes thinking a but was impact level some to the puts business I

recovered opportunity the about have profile forward? through should improve entertainment How an media about then just your And maybe that value we going do margin forth move and to the we you think progress business products, given forward? brought perhaps kind in that of XXX. as You

David Raun

some We've being efficient we done do basically on production that. more place opportunities have things we line, putting work to and are the and by some in that, in

it's can't That's it business radically But off it's line. is, to But drive a Company for not good is mean going what sick sorry, significantly. missed So us. you I it to that's got degree. other up I a I that have will question. That the than bottom said, help we the of business don't know, like when change. and the I've -- this, I some part got I'm little I've put But COVID. some a really next mark to percent number. I'm don't I today. something,

David Williams

No, you're understandable. good,

John Morrison

entertainment customer of becomes downward proportion media put that pressure. is revenue, there portion it one our a obviously and as The margin greater does our Yes.

we I basically the that shared of three past in think segments have as our we business.

X/X. that Bressner represents about have We typically

entertainment have XX%, and military-type AI X/X, it those transportable, We But has margins X/X at effective on looking media an basis of that X/X. more have represents reducing our that are that your more that operating an our XX% margin business lower business when an represents overall to you're and aggregate of in then of basis. or XX% we on

X/X that business that. where of However, portion on, so margin the focusing have we we look is really they have and we're expansion, like where

thing business you military that is other and The significantly we're until in portion QX you kicking margin QX. until see Those consistent purchase QX see coming with hand, of our that The in QX. and revenue historical the performance. are really improvement are not the is orders into won't but

David Raun

Yes, military there, that, there and on. I have that to thought it going But level, that. we I fall head-on we that. which did assumption in that's in think snap kind did said our was back we of of part Yes, to of a earlier we above mean the we question, XX.X%, I your on was level the and fumbled little line. annual last bottom hit so we'd which be year short wrong were annual

David Williams

value or platforms a just to an of with autonomous work some help I sensor vehicles, the really with And that. the either together then Great opportunity codevelop deeper some thinking the drive kind think drive to maybe of of you platforms your the integration there's platforms other about of products? and work, the appreciate certainly maybe on color. maybe little do

Jim Ison

partners targets. thought we're at market. one fronts different just We're and offer conversations that's and serious already looking leader at still. trying like lot down also, sitting not already different that We're can about and looking be be We're things the having where very this and on that, We're and the a said. potential with headed value many engaged many road, M&A and of to do maybe you

David Williams

something think replacement do this maybe maybe these years? of the longer three is then years the you the the in term you about And of potential? vehicle, on would maybe think in cycle units the require Or every replacement this you the replacing about would life How or just life think kind two as of cycle Fantastic. vehicle? be once maybe

Jim Ison

on a it's it's depends not you're in a things Most That fuel -- doing driving. there's several when also the economy things, vehicle, doing like the advancements. system just I that. time putting of and mean

a the technology more see As need forward just of three-year as lifecycle adding the refreshes it technology drives larger, the the where those of applications get cycle of and capabilities you'd and and those in you system. maybe moves inside GPUs Plus, can there. NVMe

David Raun

the things extend do lot what that we it to is than so focus area. that understand trying more we're lives else. of we I in One doing to that a can mean be those anyone and of better at have

David Williams

you the mind. if more, one just about to little bit development And cycle. you just I don't want see if maybe could talk a

three different to move receiving that mentioned product discussion customers. revenue? from can early you're You conversations How in quickly shipping with that earlier and had

David Raun

about you the autonomous Are talking truck space?

David Williams

Yes.

David Raun

to Well, of clear, are misinterpreting shipping may I them. just be your be three we question, today to but

early already and them, seriously, reached revenue discussion XX forth, we'll pretty We of And with saying handful. multiple in I'm meaning likely most be are multiple engaged with What XXXX. autonomous list we're in three is, two back more out top in good we our dialogue. another truck meetings, proposals have with in people and

Jim Ison

Yes.

usually -- of win it think to from about a to takes add standard kind military XX that, the side. on the months production XX I to to

more On six to commercial it's side, the nine months. like

six probably with but really its to as get preproduction, commercial to happening to these of of this some are months nine And stays market their market. compared steady fast that to rest our

David Raun

in could, like and that the the business now in they're expecting we've would do market, we when then at, XXX,XXX right, something Those be explosive production looked there's but all is looks this thing. if dynamic But autonomous and the one between we normal But the volumes. could we truck done then, very more of right, attractive modeling growth. the have But that's million are XXXX, type -- and the XXXX. a trucks

Operator

Brian We'll go Kinstlinger with Partners. [Operator next Global Instructions] to Alliance

Brian Kinstlinger

thank and Kinstlinger Brian questions. you for in calling Sorrell Laura for is this our taking Hello,

may trucking companies timing. the within already also of many vehicles please may And you regarding autonomous sales how that, agriculture please bit are cycle the already the pipeline, companies the Regarding autonomous in insight quantify on you just those your actually the markets? both within provide a estimate of plus

David Raun

Yes.

all, see of developed kind we could think repeat it them, view as autonomy quite would Wo you in but level particular both mining is just we those out What and we that further seeing the First want we markets. future we and would that, not ready have. out. of in agriculture verticals of we're not that autonomous with time. sophistication say are to going That what I else that see trucks, type doesn't of On but engaged of Jim? for they're a we're mean say to

Jim Ison

Yes.

I current wins. any nothing the to on has of contributed agriculture think the

a more it's yes, target. So of XXXX type

Brian Kinstlinger

Got touched it. you the phase and are now revenue phase? on previously autonomous with past the of it are the or this testing follow-up, many relates a presently questions, moving past and towards as production technology in And also, instead the or as your bit companies how but to a are vehicle currently generating

Jim Ison

in you draw twenties we're doing production fleets. is trucks the for testing, how on-the-road space. Yes, It's We're thousands of testing, on-the-road that. you called you're driving would wherever you of want in It's not what production of looking when the line. autonomous or to type the I tens define we're actually say within say -- doing thousands

David Raun

partners XX they're might start plan database several of next to kind Yes. continue months and they're to idea, contracts it primarily technology. potential they do and with and is more To to thing, deploying it negotiating their their XX And month what from use now. trucks doing understand give you an build be

Operator

finally, with Capital. Thank go ROTH you. we'll to And Scott

Scott Searle

the all a on relates the get to call I'll transportables. it as here appreciate bat I and cleanup of color AI just clarifications. couple

is that if of terms correct? to cannibalization much front. Or did In I live and would Dave, returning sounds to clarify it on normal events kind like, not you're levels? seeing that versus virtual. Just be any media And a with it the Is customer, but correctly, them? I'm sounds if heard of for it you year not it record entertainment say sure like

David Raun

don't different each so question. -- We cannibalize they really Yes. I've They're any just markets, and other. that see don't asked exact

say it's it's maybe not that. think than obviously That's greater something. I anything a or they but a X% number, overlap would wild

the I As on they track. far as mean year, are

any with year. will more do previous than We them

Scott Searle

margin and how are Or kind the Bressner couple Great. difficult I if John, revenue clarify, with gross with was you I overall about margin relates as a for think out could issues. last thinking the despite I left there's was you on year? profile chain some the in the gross actually was a like And of you from netting headwinds. skies. that that. a able of to OSS, know the still to even just Very supply on doing good just to line quarter quarter core that of Is environment. near-term if Because table front, wonder if the years? want are And it it seems it this I in you the it? increase good know I you're result the there impact on helpful. quantified then comment as don't it contribution

John Morrison

Okay.

we we are first having had, one strongest available. in on On have where I we've revenue, are the the will when probably to push consistent you, are these pull order or out on and backlogs the ever we and with things question tell of supplies

something issues times availability of something But those. resolving chain but where we where are the supply we having are based are there -- out pull in or to have upon parts. We push

provide we revenue an if but availability, in those look we see availability consideration revenue. on replace into daily look and have we next that our can pull to when We management surprised, product. do a taking that on know based quarter. get We to have at to We for are parts our a surprises come. that we we those backlog do expectations do in do It's upon at that active basis, things weekly basis, of the on

David Raun

and quarter, the have Yes, supply Scott, think supply, see three That's out said going visibility what's all I good months. it say, blue, show you're a really I is up, had would on we before, like to looks we it extremely add to -- doesn't the we good of I on it have like into getting The issue. companies but in that, something us backlog. that going then visibility the they of sudden

guys, this it responsible We the do guidance. going communicate to come other assume have love I say we we're so going all at thing you like discussion We but quarter, this we we'd every provide to And guys. we a think time. what look, we're in to before way, surprises, that's to heart-to-heart get that to that bake into

Scott Searle

components, that you the not and do Or to terms deep from but customer get recertification in then to redesigns into Dave, base? able try the does mitigate existing impact with problematic those your product have problems too that? been of to create minutia,

David Raun

been than is they're of there's a not $X.XX but shipment always about know It that's in get can flexible holding a right? get just too many can't customer history does, if of crazy system, more the in this connector it. ever that industry. don't, to base years What's they times Because going my a up on it it, they they've But it. $XX,XXX be where you the

One it, from when things month connector, we this us start from or start months identify lot that now to the deal, either put on what And four now, it to we'll do, in working want get look, get can let know we customer you you say, cooperation. a it a perspective, more do. and the is ship to engineering that of talking the

John Morrison

aggregate be calculation grew an year. an for rate about record a media and with having percentage a question will that at entertainment at And this that the two and is XX%. on components What's that business shared today you with actually your impact. an business We second Bressner margin, is basis happening these you on we shared margin is, exponential and growing

the on because look on I margins that anticipate different margins, growing our more you were XX% and consistently they you proportion an were not prior but don't on into coming to you significantly than left see XX% be going If volume that seeing to to as of are Company. static, there's the in if aggregate a -- this volume would business years. an more annual are basis basis you

the media business. and of and entertainment because Bressner Just

David Raun

so Scott, many dynamics. there's

things For get it ship, go somewhere cost the don't of lot in that we portion detail through of every a our air hit was on some go of else. and that it here, but different has the of all Where dynamics dynamics example, of so Ukraine in because the there's goods to ship normally day. little fly one we of many the things to shipping in rather costs by way go or can't Ukraine, than product the things can't they China. over, because get we that with it Those on, one in the maybe tripled those bring by deal there's only

Scott Searle

Got outcomes indicated occupy trucking both I could, but That's this and autonomous know Dave, largely multiple and companies contribution ultimately color, that to appreciate going the of the on That's expectation sounds Centauri so to of autonomous wins? ramp. David, I that wins pretty helpful. slots? and design design the storage and be a the lower AI you. compute in And a 'XX? of lastly, I trucking to those edge much. just XX% customers could to in of of thinking And if magnitude wondering, out, most have early the Very engagements, is in came at then, had was the of to or you least potential big pretty at what's year. what expect end plus you XXXX, you're Thanks I customers you be number. impressive range it's really trucking. maybe expect going -- expectation ruggedized guess both all these front, of the the the transportables Jim, on like of clarify, It I terms autonomous you're

David Raun

that. don't to you'll just I'm others, a they're they'll say -- someone And you on of give going Yes. question. to 'XX. trying of study around I'd else to these I It's number part talk arms it it's my got 'XX. to some volume that I've into higher your more. still guys and -- be really in want then get

other -- The part

Jim Ison

just different truck. storage there's when that a the the show also Whether we least at compute trucking, have an to take the go compute this removable that and autonomous compute canister, once other the up military and compute so but you have five But There's the two inside acceleration. if Centauri we Inside vehicles I autonomous be the places removability. you it the driving, truck elements, part. the -- same, two wind of that that, you to connects elements. things like now sensors, the also the can does There's that's can be that you can autonomous the depot. need server the into leaves, that

around can to into we're truck there where and opportunities the have places truck five of the autonomous that putting a in alone. in the that systems different could also country truck We server. full go XX be we getting about Centauri the storage depots. need XX, And put the that XX, depots There's

Operator

from our take now Capital. Lake Max We'll question with Street last

Max Michaelis

guess I Nice quarter, ones. I've been of have answered. guide. my got Most questions nice just two quick

a of To contribution for You just on the wins guess top are your couple expected I had these you during major the quarter. had I nice line. guys wins forward. a question looked like what going

David Raun

autonomous much guys. the we ones, in as a revenue And some the late Jim, so into I guess the it pretty pop what got which said see size wins, is will top right, a explosive from from growth those point, good size so those we've revenue is seeing quarter, that 'XX already from be, of I larger than 'XX. market much that planned to year. everything which we're all are even. truck because Well, guy, XX we our to some 'XX And other to last and goes then the larger wins we company already happens leave somewhere They would of expect is this some those we're I be leading at before, assuming as could should this

Jim Ison

have and we seeing in revenue We're orders. millions

John Morrison

like and One point clarify are in space. to the test now, prototype I'd that think we right is I

also are have, points production We that to price that in capability ensuring we and the have the our phase. products the be

stream. of into option be We're when revenues that the look and to to in we production just prototyping testing. be looking here that long-term and to we phase choice the aren't share able can We for revenue at go

Max Michaelis

just is expectations headcount in your what was I quarter. to after looking and then were one, invest last are know And my guys your you year. current I headcount wondering the what for last

David Raun

Well, planning on kind three we adjust added that We're will a thing. two of people. or adding we lot a haven't But of quarter accordingly.

upside won't For example, accelerate opportunity crazy down. and without if hesitate to hiring would throwing see I the the stuff we people some P&L on, where do that, working we're an going

Operator

more Raun no for David With questions, you. I'd Thank the conference turn to closing remarks. like to back

David Raun

Thank everyone, and joining today. you, you, thank Laura, us for

week my to myself the go you going stumbling. free anytime. to reach out we're wrap please tell my and about the it And best and successes and look Meanwhile, nap. Jim the for again feel with And come with stay sure. you it's to seeing. to Meeting we believe continue to to up. you John, and a meeting again in safe for and go Stockholder many guys to next continue Annual yet healthy ahead take that Laura, the and fun reporting apologies opportunities to forward progress I'm for as is We August we can chat pursue our you and

Operator

you. Thank

Systems have may of results that a Now, business, the statement One caution statements Global made are its Stop conclude our world others These including a products would where based or description growth call, include Company's wins regions on facts, new will material of develop statements of The company's in of and expectations. other expect. without today's not is market. inclusion limitation, uncertainties any OSS concerns, expectations differ Such source includes plans during the the to inherent are products that statements COVID-XX be forward-looking before are or that provide as activity. in may should our or the in like that products, operations, harbor risks presentation health Actual public by developing those beliefs the customers we not and forward-looking not we in I revenue forward-looking or or sell the design as M&A those important current statements affect call. achieved. representation presentation forward-looking and for generated cautions may safe regarding by such pandemics Company's such statements. historical forth the regarding to from for we you statements today's be set due market regarded including and disasters

guidance. Our operating below significantly, operating predict to results fluctuate fall difficult results would which our cause expectations future may or and could operating make results to

ability offerings adversely affect to systems, successfully our prove product and operation with the technologies, Our integrate and personnel companies financial may results. difficult acquired

to including may competition, sell may existing competition new subject harm share. companies, Our and market sales, from pressure products the are and from competitive to customers we our and whom rates business growth

abilities depends may and on realized. is Our and needs design the products new wins successfully to never uncertain our becoming future proposals enhanced success and develop that be of design customers. introduce likelihood revenue meet our our The of

or may functions functions fulfill such and as products and Our industry functions and shift such needs such to products to needs or in unnecessary the way or longer no a such functions. fulfill our cause technology become may the within needs needs of characteristics specialized

if process. our protect risks fail reporting. report weaknesses to our press and And We design may of on including competitive our we in suppliers support filings results our financial and And entrants the We our property limited cannot our financial intellectual can and and affect any number rights, New rights harm annual internal sales Factors Securities other Exchange able and remedy and general to incur markets the or our prior report under controls proprietary described adversely our on position. condition, a in SEC, operating design not manufacturer material may SEC. could subsequent in could in operations rights, filings the be with we our we heading in the that and to competitive position to objectives harmed international results. be financial Form to significant expenses Risk with enforce release XX-K or Commission, our accurately our additional risks rely

forward-looking which are no update the undertake call, statements, reflect Litigation undue place made is this of as to provision to not we statements events information by or the only of or cautioned forward-looking date and this hereof. which are reliance safe on entirety conference the statement, Private date the their circumstances revise speak these You Reform of in this obligation XXXX. Act Securities under cautionary harbor All of after qualified to

would conference, via remind and Company's our starting conference. the will I for Before today. that we replay joining available website Thank us for press XX, like XXXX. everyone you May replay at release this this concludes instructions be This end for later to call ir.onestopsystems.com. Please to today's dial-in today's available refer through evening

disconnect. may You now

One Stop Systems (OSS) 13 May 222022 Q1 Earnings call transcript