One Stop Systems reports Q4 EPS 1c, consensus (4c)

Reports Q4 revenue $13.2M, consensus $13.01M…”2023 was a transformative year for OSS, highlighted by a new management team, new board members, and a successful transition away from lower margin media revenues to our strategic plan focused on large and rapidly growing global markets driven by AI and ML,” stated OSS president and CEO, Mike Knowles. “Although revenue for 2023 reflects a $13.7 million year-over-year impact from reduced media revenue, our overall gross margin increased by 130 basis points for the year and 640 basis points for the fourth quarter. This gross margin improvement demonstrates the early success of our focus on higher margin sales supported by our AI Transportables growth strategy.” “During the second half of 2023, we began an extensive review of our go-to-market strategy and sales pipeline to align with our strategic focus on AI Transportables within the commercial and defense markets,” continued Knowles. “After a prudent review and qualification process, our five-year, unfactored pipeline has increased to over $1 billion as compared to $850 million just four months ago. This growth is being driven by increasing interest in AI/ML solutions, our enhanced sales and marketing platform, new collaborative relationships, and our expanding engagements with large prime contractors. As we convert our pipeline to orders, we believe we are well positioned to return to year-over-year sales growth in the second half of 2024, with improved gross margins.”