Movers and SHAKERS
One Stop Systems Inc. (OSS)
3Q Results Exceed Expectations
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.
3Q20 Results. One Stop Systems reported third quarter revenue of $13 million, up 12% sequentially, down 13% y-o-y, and above guidance. Net income was up 57% to $858,000, or $0.05 per share. On an adjusted EPS basis, 3Q20 diluted EPS was $0.07 versus diluted adjusted EPS of $0.05 for 3Q19. Results exceed our and consensus expectations. We were at $12.5 million of revenue and EPS of $0.01, while consensus was $12.3 million and breakeven, respectively.
COVID Impacts. Management attempted to quantify the impact COVID has had on the top line. Year to date, revenues are running nearly $10 million below what management had projected at the beginning of the year. Nearly half of the shortfall is from OSS' largest customer. On the positive side, most of this revenue should be recouped once the pandemic passes ...
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.