OSS Initiates $3 Million Reorganization and Expense Reduction Program to Support Long-term Sustainability and Future Growth
ESCONDIDO, Calif., April 13, 2020 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. (Nasdaq: OSS), a leader in specialized high-performance edge computing, has initiated a structural change and expense reduction designed to align the company’s operations and goals with current market uncertainty while positioning OSS for future growth. The company expects the program to be substantially complete in the current quarter and realize savings of $2.5 million to $3 million on an annual basis.
This initiative involves immediate selective workforce and expense reductions companywide, including at the senior management level. Other key changes include consolidating acquired operations and realignment of managerial responsibilities.
Earlier this year, the company’s board of directors implemented a change in senior leadership to deploy a different skill set for taking OSS to its next level of growth and development. This reorganization and expense reduction program reflects the combination of changes planned under the new leadership and the company’s response to current market conditions resulting from the COVID-19 pandemic.
OSS director and interim CEO, David Raun, has been working closely with the entire management team, with the near-term goal of cash preservation and sustainability, and long-term objectives of improved margins, profitability and shareholder value.
“Looking beyond the short-term goal of ensuring sustainability during these uncertain times, we are laying a stronger foundation for the future,” commented Raun. “While our sales team remains optimistic given the current level of customer activity, we realize we must plan for the possibility of an extended period of business retraction. I believe that with our diligent team effort we will get through these challenging times and come out stronger.”
Concept Development, Inc. (CDI), which OSS acquired last year, has been now fully integrated, with its operations being relocated to OSS headquarters in Escondido. The operational synergies have created instant cost savings and supports stronger collaboration and innovation.
To better capitalize on market opportunities and create greater shareholder value over time, the company has intensified its focus on product marketing ownership. The product marketing team is now the hub for cross functional coordination with sales, engineering, operations and finance.
The product marketing team will be responsible for creating additional checks and balances within the company in terms of key decisions that impact revenue, margins, profitability, product road map, type of customer and market focus. They will be responsible for creating additional value and customer “stickiness,” as well as discipline while leveraging the company’s expertise and capabilities in a more coordinated way. The team will also be focused on improving margins by reducing cost of goods sold, and reallocating resources internally to help drive forward this important part of the plan.
“As the result of these changes, I believe we have become more operationally efficient and integrated with a ‘lean and mean’ team leading the way,” said Raun. “Over time, we expect to add fresh talent who will bring new ideas and skill sets to help fuel our growth.”
“With these improvements in place, we will remain focused on three key objectives for 2020,” added Raun. “First, we will continue to invest in and improve our industry-leading product roadmap. Second, we will expand our customer base and reduce customer concentration risks by focusing more on targeted growth markets where we have competitive advantages. And third, we will improve how we deploy our financial assets and increase efficiencies.”
In combination with its efforts to reduce spending and conserve cash, the company is pursuing opportunities to further strengthen its balance sheet with the combination of government and private financing sources. Any funding will be designed to support the company’s sustainability during these times of uncertainty and support its pursuit of new opportunities.
About One Stop Systems
One Stop Systems, Inc. (OSS) designs and manufactures innovative specialized high-performance computing modules and systems, including customized servers, compute accelerators, expansion systems, flash storage arrays and Ion Accelerator storage software. These products are used for deep learning, AI, defense, finance and entertainment applications, and empower scientists, engineers, creators and other professionals to push the boundaries of their industries.
OSS utilizes the power of PCI Express, the latest GPU accelerators and NVMe storage to build award-winning systems, including many industry firsts, for OEMs and government customers. The company enables AI on the Fly® by bringing AI datacenter performance to ‘the edge’ and on mobile platforms, and by addressing the entire AI workflow, from high speed data acquisition to deep learning, training and inference. OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com.
Important Cautions Regarding Forward-Looking Statements
One Stop Systems cautions you that statements in this press release that are not descriptions of historical facts are forward-looking statements. These statements are based on the company's current beliefs and expectations. These forward-looking statements include statements regarding the performance of OSS-products and industry trends regarding deployment of computing power in the field, and regarding the company's expectations for revenue growth generated by new products and design wins. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems that any of our plans will be achieved.
Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including, without limitation: location of customer deployments, timing of shipments by OSS and that our ability to close future production business may not develop as we expect; global pandemics or other disasters or public health concerns in regions of the world where we have operations or source material or sell products, and other risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
One Stop Systems, Inc.
Tel (760) 745-9883
Ronald Both or Grant Stude
Tel (949) 432-7557
Released April 13, 2020