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ESCONDIDO, Calif. - One Stop Systems, Inc. (Nasdaq:OSS), a technology company with a market capitalization of $86.14 million, announced Thursday it has secured a $2 million production contract to provide computing systems for a medical imaging company developing non-invasive breast cancer screening technology. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet.
The contract calls for OSS to deliver 65 next-generation liquid-cooled computing systems that will be installed in the customer’s breast scanning devices. The company expects to recognize revenue from this agreement over the next six to twelve months.
This order represents a transition from pilot phase to volume production, following an initial $500,000 development order in March 2025. OSS projects the total program value could reach at least $25 million over the next five years.
"Their advanced imaging system relies on machine learning algorithms running in real-time," said Mike Knowles, OSS President and CEO, in a press release statement.
The systems being provided are OSS’s 3U-SDS platforms, which the company describes as rugged computing solutions designed for deployments in mobile environments. These systems feature proprietary liquid cooling technology that reduces noise by up to 20 decibels compared to traditional air-cooled servers, making them suitable for healthcare settings.
OSS specializes in high-performance computing solutions for edge applications where traditional data center equipment cannot operate effectively due to environmental constraints or space limitations.
The company indicated this contract aligns with its strategy to expand beyond its defense industry base into commercial markets requiring rugged, high-performance computing capabilities at the edge. The company’s stock has shown strong momentum, delivering a 77.33% return over the past year. Discover more insights about OSS’s growth potential and 10+ additional ProTips with a subscription to InvestingPro, with the next earnings announcement expected on August 7, 2025.
In other recent news, One Stop Systems reported its first-quarter 2025 earnings, revealing a net loss and revenue figures that missed analyst expectations. The company posted an earnings per share (EPS) of -$0.07, compared to the forecasted -$0.0267, and revenue came in at $12.26 million, below the anticipated $13.51 million. Despite the disappointing financial results, One Stop Systems has secured a $5 million contract with the U.S. Navy to provide data storage units for the P-8A Poseidon aircraft. This contract is expected to bolster the company’s revenue through 2025.
Additionally, One Stop Systems announced the appointment of retired Lieutenant General David Bassett to its Board of Directors, bringing significant defense expertise to the company. The appointment aligns with the company’s strategic initiatives to enhance its offerings in the defense sector. Moreover, the company has set its 2025 annual revenue guidance at $59-61 million, with expectations of achieving breakeven EBITDA. Analysts from firms like Alliance Global Partners have noted concerns over the company’s financial performance, yet One Stop Systems remains optimistic about future growth opportunities, particularly in defense contracts and AI solutions.
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