San Diego’s One Stop Systems Inc. (NASDAQ:OSS) came in big at the world’s leading defense innovation conference, showcasing its latest tech in edge computing modules and systems for AI Transportable applications.
CEO
One Stop Systems Inc.
“While we highlighted Rigel, likely the world’s most powerful ruggedized edge supercomputer, it was our ability to bring ruggedized datacenter level [high performance computing] and low latency switch fabrics across a broad scale – from soldier-worn to large-vehicle platforms – that was received as the strongest message,” One Stop Systems Inc. CEO Michael Knowles said. “The reaction we observed was very positive and I believe it validated our strategy and product approach.”
The September Defense and Security Equipment International (DSEI) conference in London featured more than 2,800 land, sea and air biennial defense and security suppliers.
“Additionally, we were able to show that we can deliver open system solutions that exceed today’s requirements with the capacity to meet the exponentially growing processing and low latency demands driven by AI, sensor processing and sensor fusion. What was probably even more exciting and encouraging was seeing our story and products gain momentum across the show with the represented armed services and defense companies,” Knowles added.
With a current enterprise value of $22.22 million, the Escondido-based company manufactures and markets rugged, high-performance compute and storage hardware, software and systems for AI Transportable edge computing, sensor processing and fusion. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.
Growing Opportunities
The business had $72 million revenue last year, up from $62 million in 2021. Knowles said its pipeline is poised to hit more than $800 million worth of opportunities. This July, the company announced the appointment of industry veteran and seasoned sales executive Robert Kalebaugh to the new position of vice president of sales.
“We are excited that Robert Kalebaugh joined our team bringing with him 35-plus years of experience in the defense market,” Knowles said. “We have been leveraging that every day since he has arrived. With his help and his team’s execution we have been diligently working on building a multi-year pipeline aligned to our products, capabilities, and strategies.”
In May, the company scored a $3.5 million deal with a military prime contractor for specialized servers to be used by a U.S. Air Force’s anti-electronic warfare system. It follows February’s $1.3million U.S. Army contract for the design, development and prototypes for a vehicle mounted 360-degree situational awareness system.
In January, the company brokered a $3 million order from a prime military contractor to upgrade a radar simulation system operated by the U.S. Department of Defense’s Missile Defense Agency. “Like most companies our size and in our market, we see contract values in the hundreds of thousands to tens of millions. As we continue to grow and innovate along our core strengths and strategies, we will be able to address large opportunities that would exceed $100 million,” Knowles added.
Knowles, 56, assumed the role of CEO in June. “I am coming up on the end of my fourth month with OSS and I have to say it has been one of the most fun and exciting four months in my career,” he shared. “One thing I was especially impressed with learning… was the product agility to readily provide effective, available, and affordable solutions to meet our customers’ toughest demands. We still have work to do and challenges to meet but I like the trajectory we are on and I’m proud of the work we do for our investors and our most important customer – the warfighter.”
One Stop Systems Inc
FOUNDED: 1998
CEO: Michael Knowles
HEADQUARTERS: Escondido
BUSINESS: Designer, manufacturer and marketer of rugged high-performance compute and storage hardware, software and systems for edge computing, sensor processing and fusion.
STOCK: OSS (NASDAQ)
EMPLOYEES: 98 full-time, 7 part-time
WEBSITE: onestopsystems.com
CONTACT: 760-745-9883
SOCIAL IMPACT: Two of the seven company board members are women
