OSS Joins Two Key U.S. DoD Consortiums, SCEC and SOSSEC

Rhea-AI Summary

One Stop Systems, Inc. (Nasdaq: OSS) has been accepted as a member of two US Department of Defense (DoD) business consortiums, the System of Systems Consortium (SOSSEC) and the Sensors, Communications, and Electronics Consortium (SCEC). The consortiums have completed more than 330 projects with over 950 consortium members valued in excess of $1 billion. Joining these consortiums further demonstrates the company's commitment to providing high speed PCIe interconnect technology and scalable AI GPU compute systems for DoD partners, creating opportunities to work alongside DoD requirements and acquisition communities, and supporting major DoD initiatives such as Joint All-Domain Command & Control (JADC2).

Insights

Defense Technology Analyst

One Stop Systems, Inc.'s (OSS) acceptance into the System of Systems Consortium (SOSSEC) and the Sensors, Communications and Electronics Consortium (SCEC) signals a strategic move that could significantly influence its business trajectory, particularly in the defense sector. By aligning with these Department of Defense (DoD) affiliated consortiums, OSS positions itself at the forefront of technological advancements in rugged high performance compute (HPC) systems, essential for artificial intelligence (AI) and machine learning (ML) applications in the field.

These consortiums serve as a nexus for collaborative defense R&D, which can lead to the acceleration of innovation cycles and the potential for OSS to secure defense contracts. The membership may also provide OSS with insights into future DoD requirements, a critical advantage in a sector where understanding the client's needs is often as important as the technology itself. Furthermore, the focus on Joint All-Domain Command & Control (JADC2) within these consortiums aligns with the DoD's priority to modernize command and control systems, suggesting that OSS's expertise in AI processing and ruggedized equipment could see increased demand.

Given the consortia's track record of completing projects valued at over $1 billion, OSS's involvement could lead to significant revenue opportunities. However, the defense procurement process is complex and competitive and success will depend on OSS's ability to leverage consortium membership to deliver solutions that meet the stringent and specific requirements of the DoD.

Financial Analyst

OSS's announcement has potential implications for its financial performance and attractiveness to investors. Consortium membership typically facilitates access to federal R&D funds and can streamline the procurement process, potentially leading to an increase in the number and value of contracts awarded to OSS. This could improve revenue forecasts and enhance the company's overall financial stability.

Investors should monitor the company's ability to capitalize on these new opportunities. Successful integration into the consortiums' activities and subsequent contract wins would likely be viewed favorably by the market. However, investors must also consider the long-term investment OSS will need to make in product development and the time it may take to realize returns from these investments. The defense industry's lengthy sales cycles can delay revenue recognition, affecting short-term financial performance.

It will be essential to evaluate OSS's future financial statements for increased R&D expenditure, which could indicate active participation in consortium projects and any announcements regarding contract awards, which would directly impact the company's top-line growth.

Market Research Analyst

The strategic decision by OSS to join SOSSEC and SCEC could reshape its market positioning and competitive edge. The defense sector's reliance on cutting-edge technologies for AI and ML capabilities is growing and OSS's expertise in rugged HPC systems is increasingly relevant. Membership in these consortiums not only opens doors to DoD contracts but also places OSS within a network of industry leaders and innovators, potentially fostering partnerships that could lead to co-developed technologies or joint ventures.

From a market perspective, OSS's involvement in JADC2 initiatives through these consortiums could position the company as a key player in a niche yet expanding segment of the defense market. This could attract attention from larger defense contractors seeking specialized HPC capabilities, presenting opportunities for OSS to become a preferred supplier or even a target for acquisition.

It is critical to assess how OSS's market share and brand reputation within the defense industry evolve following this announcement. Success in this domain hinges on the company's ability to deliver on the technical and operational requirements of the DoD and to effectively manage the collaborative dynamics within the consortiums.

ESCONDIDO, Calif., Jan. 03, 2024 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. (Nasdaq: OSS), a leader in rugged high performance compute (HPC) for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, has been accepted as a member of two US Department of Defense (DoD) business consortiums, the System of Systems Consortium (SOSSEC) and the Sensors, Communications, and Electronics Consortium (SCEC).

These consortiums were formed to address the technology procurement requirements of the DoD, including facilitating research and development, technology demonstrations and prototype projects.

SOSSEC and SCEC have completed more than 330 projects with over 950 consortium members valued in excess of $1 billion. The consortiums are affiliated with nine Other Transaction Authorities (OTAs) that provide the authorization of federal agencies to procure research and development, including prototypes.

“Our membership in these consortiums demonstrates OSS’s commitment to bring ruggedized data center class compute and storage solutions to meet emerging AI/ML requirements for next generation platforms,” commented OSS VP of sales, Robert Kalebaugh. “This membership provides access to U.S. DoD research and development agencies such as Air Force Research Lab (AFRL), U.S. Army Engineer Research Center (ERDC), National Geospatial Intelligence Agency (NGIA), Air Force Life Cycle Management (AFLCMC) and others.

“Joining these consortiums further demonstrates our commitment to providing high speed PCIe interconnect technology and scalable AI GPU compute systems for our DoD partners. This includes the opportunity to collaborate with consortium members to define technology roadmaps, set requirements and provide AI hardware/software capabilities and solutions that are directly relevant to enhancing the mission effectiveness of the next generation of military air, land, and sea platforms.”

OSS membership in SOSSEC and SCEC also creates opportunities for the company to work alongside DoD requirements and acquisition communities, supporting major DoD initiatives such as Joint All-Domain Command & Control (JADC2). JADC2 is a distributed and decentralized command and control strategy designed to enable a tactical advantage in the battlefield.

JADC2 requires datacenter-level AI processing power in the field, where multiple sensor data processing must endure exceptionally harsh and variable battlefield environments at the very Edge. OSS addresses this need with a full range of data center level compute and storage solutions uniquely designed for the rugged Edge and which deliver ‘performance without compromise.’

OSS plans to participate in a number of SOSSEC events this year, where it will showcase its leadership in high speed PCIe interconnect technology and scalable AI GPU compute systems that have been winning long-term commercial and defense contracts.

OSS is also a member of other consortiums, including the Sensor Open Systems Architecture™ (SOSA) consortium, which enables the achievement of business objectives through technology standards, and PCI-SIG, a consortium that owns and manages PCI specifications as open industry standards.

About One Stop Systems
One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI Transportable solutions for the demanding ‘edge.’ OSS designs and manufactures the highest performance compute and storage products that enable rugged AI, sensor fusion and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to the harsh and challenging applications, whether they are on land, sea or in the air.

OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. 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.

OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.

As the fastest growing segment of the multi-billion-dollar edge computing market, AI Transportables require—and OSS delivers—the highest level of performance in the most challenging environments without compromise.

OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com. You can also follow OSS on Twitter, YouTube, and LinkedIn.

Forward-Looking Statements
One Stop Systems cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company's current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of our plans or expectations will be achieved, including but not limited to, management’s expectation for new opportunities in the AI transportable solutions and other spaces, the company’s penetration of the Defense and AI Transportable sectors, future changes to our business objectives, OSS’s participation in consortium events and activities, and other future financial projections. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including 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 latest 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 the company undertakes 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.

Media Contacts:
Katie Rivera
One Stop Systems, Inc.
Tel (760) 745-9883
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Tim Randall
CMA Media Relations
Tel (949) 432-7572
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Investor Relations:
Ronald Both or Grant Stude
CMA Investor Relations
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FAQ

What is the company name and ticker symbol of the business mentioned in the press release?

The company mentioned in the press release is One Stop Systems, Inc. and its ticker symbol is OSS.

What are the consortiums that One Stop Systems, Inc. has been accepted into?

One Stop Systems, Inc. has been accepted as a member of the System of Systems Consortium (SOSSEC) and the Sensors, Communications, and Electronics Consortium (SCEC).

What is the value of the projects completed by the consortiums?

The consortiums have completed more than 330 projects with over 950 consortium members valued in excess of $1 billion.

What major DoD initiative is the company supporting?

The company is supporting major DoD initiatives such as Joint All-Domain Command & Control (JADC2).

What type of technology is the company providing to its DoD partners?

The company is providing high speed PCIe interconnect technology and scalable AI GPU compute systems to its DoD partners.