Friday, January 08, 2021
One Stop Systems Inc. (OSS)
Another Contract Win; Raising Price Target
One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
New Contract. One Stop Systems has expanded its engagement at a major military prime contractor with its fourth major program win with this customer. Named “Orange Gear,” the most recent award involves building an AI system consisting of a cluster of three OSS custom GPU-accelerated rugged servers, designed to meet the unique power and ruggedization requirements of an airborne application. The latest award continues to build on OSS’s “data center in the sky” strategy, in our view. Although, OSS did not provide any financial details of the latest contract, we do expect these four awards to be significant revenue contributors going forward.
Other Programs. OSS’s other programs with this customer include ground-based missile defense radar simulation, data storage units for radar data in flight, and a single server of AI “data center in the sky.” These awards provide validation of OSS’s technology for mission critical U.S. Navy applications, in our view, and could be a springboard to get a seat at the table for other military programs …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
