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ESCONDIDO, Calif. - One Stop Systems, Inc. (NASDAQ:OSS), a $72 million market cap company known for its rugged high-performance computing systems, has secured two significant contract renewals with the U.S. Department of Defense, the company announced today. According to InvestingPro data, these contracts come at a crucial time as analysts anticipate a sales decline in the current year. The contracts, valued at approximately $6 million, are for the enhancement of radar and sonar sensor processing on the P-8A Poseidon aircraft and Virginia Class submarines, respectively.
The P-8A Poseidon contract, worth around $4 million, involves a follow-on production order and a tech refresh contract as part of a $36 million, 5-year sole-source supplier agreement. OSS will provide high-capacity flash storage systems designed for the reconnaissance aircraft and ground base stations, featuring hot-swappable NVMe flash storage canisters controlled by OSS’s exclusive Ion Accelerator™ storage software.
For the Virginia Class submarine, OSS has renewed a contract valued at about $2 million under a sole-source supplier agreement dating back to 2010. The deal includes the upgrade of PCIe accelerator systems with newer technology to support sonar sensor processing for at least another decade. Prototypes are expected to be delivered early this year, with production systems following later in 2025.
Mike Knowles (NYSE:KN), OSS President and CEO, stated that these renewals underscore the company’s incumbent positions on critical defense platforms and its capability to deliver high-performance edge computing solutions. He also hinted at potential future announcements related to additional platform opportunities. The company maintains a strong financial position with a healthy current ratio of 3.32 and more cash than debt on its balance sheet, as revealed by InvestingPro analysis.
One Stop Systems specializes in AI-enabled solutions for demanding edge applications, providing rugged compute and storage products for AI, sensor fusion, and autonomous capabilities in harsh environments. The Escondido-based company caters to various industries, including defense, where its products are utilized in aircraft, drones, ships, and vehicles. Despite recent contract wins, the stock has experienced a 15.6% decline over the past week, though maintaining a substantial 73% gain over the last six months. Discover more insights about OSS and access comprehensive analysis of 1,400+ stocks with InvestingPro’s detailed research reports.
The information in this article is based on a press release statement from One Stop Systems, Inc.
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