One Stop Systems (OSS) 12 Aug 222022 Q2 Earnings call transcript

Good afternoon, and thank you for joining us today to discuss One Stop Systems' Financial Results for the Second Quarter ended June 30, 2022. With us today are the company's President and Chief Executive Officer, David Raun; and Chief Financial Officer, John Morrison, as well as the company's Chief Sales and Marketing Officer, Jim Ison.

Following their remarks, we will open the call to your questions. Then before we conclude today's call, I will provide some important cautions regarding the forward-looking statements made by management during the call. I would like to remind everyone that the call will be recorded and made available for replay in the Investors section of the company's website.

to David conference Raun. like President to would CEO, and I turn over the OSS' Now Please ahead, go sir.

as QX Thank attributable was you, to X% year-ago quarter Systems quarter. good continued revenue QX our sequentially to record customer and from with to continues was and and achieved Nash, investments, which increases and over European growth $X.X a to good X the market for up inventory driving afternoon, and our performed XXX% up The of One factors: million, $X.X strength exceptionally the also million, entertainment strong grew of leverage media largely $XX.X revenue Bressner, everyone. XX% another million. XX% strong we up revenue record same Stop QX of share space, Bressner unit well.

the If that noticed product quarter-to-quarter, based you on you've the margins a we have from X growth, following and from been in our given quarter. primarily top likely revenue customers within our variability mix

The year the which yielding of of first totaling markets. gross from million, by quarter resulted our XX% both up in XX.X%. marked current quarter, and That U.S. the was the products in volume gross lower-margin $X.X higher year profit percentage a ago is from of half a European margin

given Supply be profile namely dollars occasionally affecting businesses, entire margin markets investments the higher-margin team in industry board the making the down up orders of the management and our in constraints The and and availability, Transportables, by both this, sales fulfillment the only of constantly margin of our against reviews strategic a for quarter. our of the customer one was additions experts. to all to advisory revenue component availability out component of hundreds the long-term. percentage status short the commercial our within including the assembly to made in ensure team we context and impacting Compact enabled our risk So higher in increased takes hedge or aggregate a to a inventory items increases, and continue reducing military of a in buys new few inaccessible It and overall delay points. marketing of any both R&D ship product industry AI to cost challenge, business shipment. throughout world, chain

report levels associated expected higher I inventory. are chain Due inventory continue customer Bressner. OSS continue the business the to of still team, that able orders timing OSS many chain with by in are least have to are lead our invest we in we Transportables, the of in imposed the the for XX-week and and had XX.X% remain the the our a some designated the of we of about of am despite constraints $X.X to expect to mitigating second the constraints, the on work experiencing are been our cash end of on $XX.X of purchases. of this issues, to resourceful vast and majority firm last has our track. Being issues ago of We supply the versus chain we XX.X% operating Though positive, times key likely half supply overall spending. year AI remainder the end expenses glad year credit components. $XX.X through at have in At we through is to of cash core inventory to improving putting supply quarter. be million revenue strong the the cautious remained year. our challenges the resulted regarding per approximately growth quarter, strategic to has year. into we million greater these million percentage Yet, revenue which Though and flow of next with impacting first shipments to This as inventory,

AI I turn you on of who call quarter. CFO, wins introductions, the pipeline. and I'd Jim review through truck, our Then Sales additional update will before Marketing our like John? strategies, the will Now take outlook growing Chief for our Transportable the the Officer, year, new including details over rest to the to financial sales product Ison, into some provide program John autonomous the our of Morrison, insight and an

June good release Relations today, ended Thank issued joining website section Thank you us in the our today. XXXX. results second everyone. a we for afternoon, and available release The our of is at for financial you, Earlier press Investor XX, quarter onestopsystems.com. David, with the

million, our the mentioned, was $XX.X from ago David up same which period. second quarter XX% revenue was year As

by year second the was transportation increased media This our percentage Our subsidiary quarter XX% from record revenue. and margin from gross of percentage lower compared was European our increased strength quarter quarter possible core representing sales margin to entertainment the largely Overall, same inventory core to $XX.X to second same to OSS gross points attributable to compared our the Bressner margin XX.X% quarter which to year the buys. made in ago of due the quarter, our $X.X profit second material ago $X.X slightly to for was same decreased XX%. strong revenue. decreased strategic the The to and XX% in was million. OSS costs. million and increased business Revenue XX.X% primarily XX.X% revenue share, year XX.X% ago the gross in Bressner's increased total increase revenue, second XX% also $XXX,XXX of million, Gross margin. which XX% represented market total quarter from quarter, second due in efforts in to Bressner, business the increased quarter. to X.X

revenue. and quarter mentioned David due primarily increasing our entertainment margins standard our Bressner It are value-added to year previously, X.X revenue content. improve to OSS lower-margin prior more strong addition from decrease note providing with sales, to unique through point that revenue on important we higher-margin products is our the to working and focusing aggregate from product As media in increased percentage was customer from

prices. increasing are We

our quarterly same selling, are enhancing interest in excluded adjusted parts to Our ago ago a EBITDA $X.X improved XX% same as real-time diluted $X.XX AI We manufacturing year non-GAAP or was the overall revenue related XX.X% PPP This the metric, expense in share year year totaled from million, $XXX,XXX of income $X.X compared ago and that of share, Both Adjusted to due increased expenses and resulting $XXX,XXX net X.X% of quarter, in XX.X% in year quarter. net R&D interest. to -- $XXX,XXX $XXX,XXX quarter pricing was quoting percentage decreasing million a quarterly loan the included increases capabilities of per in and efficiencies compared per ago diluted the market, quarterly was while PP same greater onetime diluted and of the a as On the up our $X.XX pursuing X.X% and same in in or diluted $X.X or our share benefit or $X.XX marketing period. $X.XX to share and ago non-GAAP G&A. increase basis, period in year to income that the for income investments $X.X forgiveness operating from GAAP $X.XX operating share operating of or forgiveness. $XXX,XXX per $XXX,XXX $X.X primarily of reflect in million expenses same in revenue or our or per net of loan EBITDA, million non-GAAP million quarter. for revenue income net diluted per a Transportable

the first for of record to of to the Now increased half as million. compared to a results turning XXXX. first Revenue the half XXXX XX% $XX.X

Bressner $XX.X increased total million, an revenue XX%, million and OSS core contributing XX%. increase $XX.X Our business of contributing of

XX% profit million in revenue. compares material XX.X%. margin million or improved Gross compared to $XX.X costs Bressner's gross first the overall a and decreased to OSS XXXX. XX.X% due media is entertainment ago. XX.X% of XX.X% revenue our as XX.X% million to margin business or for Our to half largely higher core to $X.X to XX.X% from revenue as compared increase the $X.X year-over-year and transportation to our customer. This This to gross decreased year of of due

XXXX, be substantially first above, half half. slightly consistent the but the we to of expect margins For with second

or ago of loan benefit $X.XX the per $X.X This marketing development in $XXX,XXX to benefit R&D the AI revenue net expense due giving of basis and half expenses forgiveness operating to PPP in million to X.X% non-GAAP primarily or is Net compared per offset which onetime and first And XX% operations included this trade year pro increase compared resulting million containment $X.X revenue of market. EBITDA were $X.X or Transportable or increase After of Non-GAAP of partially expense standard share basis, share, in diluted selling for $XXX,XXX expenses. on expense total EBITDA revenue to and Our income income the to $X.X the $X.XX million. was forgiveness. a due products million in effect forma of efforts. XX.X%, or related G&A travel of diluted Both as loan $X.X increase a adjusted period. to $XXX,XXX from to compared million $X.XX a per year-over-year a shows these from compared million $XXX,XXX X.X% XXXX. an to a to PPP increased or percentage per interest for new results of in decreased $X.X by first GAAP $X.X as marketing, the an $XXX,XXX Adjusted in or $XXX,XXX diluted of $X.X our expenses increase and one-time and a of totaled income share per net million $X.XX half increased share Operating diluted compared $X.XX totaled excluded share on reflecting diluted to million of ongoing to cost XX.X% Income and this in XXXX. decrease interest. the of same $XXX,XXX.

$X.X short-term Now of our on cash totaled March sheet. to turning a million investments This with XX, million, total million cash for to combined XXXX, XXXX. and $XX.X compares $XX.X million. of equivalents On XX, balance $XX.X June

we an During the $X have inventory. quarter, million additional second invested in

our position provides and be Federal pressures imposed and investments by our to first global inventory, influences responsive inflationary like completes our such Officer, changes business the This us with Marketing would Jim? issues Chief rate the turn in the chain for of and stability flexibility the call over and Sales increases. quarter supply cash in to Our to half I economic as now review financial external Jim issues the Ison. interest year. and Reserve's to

commercial in John, program other imaging the and The AI for and you, afternoon, major one everyone. good program. we and aerospace wins, wins, autonomous shelter added an remaining X wins new Transportable including ship application mobile X for X program In Thank were medical markets. QX, a surface

We are telecommunications also the X quarter, X storage new major these pending of and programs programs military for during added Transportable units. opportunities AI data

our generate closing. expect X pending greater a over to million we expectation $X more reference, of revenues or XX% programs For of years or major with

Our efforts current these our to pipeline of due applications with Transportable market. X/X pending this XX involving programs of totals major AI focused in

we our vast standard strategy capturing announced Centauri to is focused During OSS quarters. expected Vehicle in products product California canister, in Expo autonomous Express X announced also data and compact, and in key coming includes to Systems X front, capacity the next that high AI Gen our Autonomous for shipped we generated innovative autonomous applications on vehicles. X in participated This at X the of technology solution, technology be Gen of deployed and are the our first is the aerospace. military Express industry leadership of and additional one customers. bring Transportable Also that more in is ideal on ADAS rugged to one events with September. This performance NVMe Technology PCI we in in to proprietary to the AI developers products PCI commercial Express the Transportable storage advancement transporting quarter, hot-swappable in AI truck market, Centauri trucks a Aligned April multiple the and offering to be amounts doubles technology the to and Jose, of Transportable our a PCI Gen over ship San we autonomous strategy.

entitled autonomous applications. On high-performance featured and Transportable included the for released leadership their AI we for expert acceleration Topics article and design, articles Express the white magazine, papers aerospace high-performance AI defense June edge industry QX. several Transportable, rugged in Transportable X front, in AI In thought issue. driving technology our PCI in systems Designing

Now I'd the turn back to like to call over Dave.

Jim. you, Thank John and

applications. and results solid customer teams generating execute, from base Our OSS our traditional to at primarily continue

Although not proposition that businesses income years. future margin the in margin entertainment like, the may we seek generate OSS. These of positive and our in generate value media some in percentages and Bressner and the established for dollars Europe,

this the Transportables, helps part positive, AI not while This are that in for AI continues domestic business year, We of and Transportables. the our for taking validated pleased we on remaining opportunity profitable and to investments flow cash grow multibillion debt. pay dollar

this done sales our to cash allowed to in history, and an and has personnel levels, time higher ensure have us OSS. in additional and leaders growth We invest advisory industry on new our board during unprecedented prosperity for inventory position

clear: fast-growing Level and/or Transportable -- to in and storage solutions long-haul and storage AI market. OSS of market. the X Our in autonomous is the is supplying leaders objective leadership X the truck X hub-to-hub Currently, compute

embedded store radar vehicle, process We being end be that believe of to largest sensors could our software our around customers with accounts. cameras. from data list of and in customer could XXXX conjunction the these up in work products all and LiDAR, top some XX time, multiple gather, over including Our and/or X our

Although we products. next-generation continue learn our and we lead varies, supply the as relationship market and define to we what

including seen we've interest other with and trucks, also ships. autonomous buses activity shuttles, Beyond and vehicles,

and we commented to significant theater. military forces other revenue, technology embedded These to application, very highest from multiple to in that to armed future the in environmentally form bringing lower provide takes past it's We in look which the and the engaged applications take we sharing perfect drones, we this Transportable the programs, time the as where this become performance but the disruptive significant the rugged aircraft, wins. and highest high-profile will or the to the the Transportables data the compact AI opportunity in military truck AI factors. are expect have rugged normally now forward in even generate without more This We are for edge. solutions and Whether with out protected to performance land found close OSS, on time performance more of to theater, for throughout compromise is These these ships a front OSS vehicles. space. approach contrast center common solutions be autonomous applications include

vehicles, the access well product advisory and in forces. armed create during Advisory high-performance and technology in accelerate are demanding of end, and environments members in Board in corporate and us there to military the most unmanned Although AI the especially The and a high-ranking include insight earlier many advisers with Transportables. and AI high officers OSS are autonomous this space, multibillion-dollar providing applications into performance computing, Strategic of with experience is the the complexity The executives unique as AI past decades in of us now within armed technology, To strategy, at cooling compromise M&A. some solutions and the AI market retired Transportable bringing high-performance help we and harsh the the the progress navigate forces, mentioned formed as relationships gain computing, valuable targeted helping that quarter. without we organizations within

changes strong I my contribution us revenue our Now OSS extend million. quarter of be enables represents driven to third stability looking affording to balance strength and and growth outlook for by flexibility outlook. and like thank the be -- I stockholders unwavering would platforms commitment for ago. $XX.X a to in The for while new customers members our to responsive continued to performance. product This of of our the high-performance We of financial to believe AI secure like in future over year applications. XX% to our sheet also focus The XXXX would AI climate. the all for quarter appreciation the growth business we their productivity military team and same continue will industrial opportunity. as large their support development on focus commercial, the to and this transportable of OSS business the quality, our us on is invest to

with open to Nash? up address call Now to questions. I'd like the that, your

Noble take from We'll question the Gomes, Instructions]. Joe Capital. first [Operator

off one, first I want to inventory. the is on the So lead here

You I availability to think of performance mentioned last of Bressner's because middle year, the since the inventory.

speak, not square the get circle, to but -- to Just why there or that, different so your products get the some some give us the that Bressner have inventory versus availability, other other maybe just you're be Bressner into all for products? inventory, the to a able you detail that of other the getting -- strong for seems able that color I and that can chain some you to you're inventory for of for core please? And the of mean, little OSS? will more supply maybe is could of type

question. is for Yes, Thanks Dave. this the

first in value-added to Bressner in I think to do is what more is of OSS, since share. a pick that able thing the reseller to in they keep addition market up mind us for they're

When helpful. Systems, In to what's distributors an Stop we of there the put phone be products or can they're might investment, that's buying whatever. else's product they're entirely. our other case So that sell able buying we make either One

like it's else. product buy So somebody if not go build from you we a can that

the So that's one dynamic.

at to the hit that we've share everything. us enough part, We to door gives to end by the had we've But guidance, know think the stealing get day, case, grow most an able And I going good into market basically been the the of sure. and good that a for sales. ship That's numbers. because of place. inventory the for in don't that's quarter. we we grow We've the So beaten our In ability really every and to business quarter. continue

this looks been much be you you do much half expect year the Okay. seeing customers And in sales And of we the to on Is military that a second that bit, doing haven't could way little accurate? of maybe event? the year. talk it like a

Yes.

had military of And out all, that, time. we've second in which seen, we large the very as normally some large military on but revenue just some So today, than paying military we have first going our as revenue the of bills customers of the stronger design the year, is the into type very is more profile. half. normal had ever gone we has kind strong, first programs have we today, year, But of proceeding forecast of activity a on. very that a in These far are we're on front, half exciting. What

haven't we margins But of the to the expect it's we've comments months, reflects in first year. X year, the and and the be rest lost about military we being going had rest Fortunately, the very year. the a business rest to year for next like strong similar of be what this of more of the John's kind that

you last And mentioned efficiencies. Okay. quarter production and talked line about you John, it

are What Just where to wondering efficiencies help you you what there? line? implementing of talking stand those on production exactly being able do you the drive are and do about to kind on those

doing the we're to doing in basically be subassemblies of going manufacturing So Mexico. some

is reasons One transportation, in constraints will shipping air are high doing and be that delivered are and travel of cost these subassemblies we concerned Mexico. the opportunities gets and sure elsewhere, but there that of other the for the with it of making on restrict we

heard ag X or then And the here, mining update of the the today. you if about give kind it quarter us mentioned you Didn't really one I AI mention had space and those anything also mentioned Can Transportables, Okay. verticals. last verticals? more, on an may was on

to verticals the one, resources mining really on that we're learning on future the In it mean I would actually, with as I truck and case things we're what engage them with of the think, I They progressed focused them, meeting we last really we're starting space. of of the that that we to today. any comment nor be on. focusing that's number have don't we've are happening but leverage commented being really could much, on have, haven't since it, in much autonomous potential in Yes. early, the

big last XX, programs. is big that is military in the XXX think the blossoming I the days of thing these

So that's excited we're where right now. really

back queue. the get for in Thanks I'll questions. Great. taking

[Operator Instructions].

the take next Partners. Global Brian will from We Kinstlinger, question Alliance

in you sorry, X is Sorry think, vehicle Level in customers, if late. I X and am months, repeating heard, a a next the some and to are moreover, the you talk talk I right second how has testing? XX how XX First you how to I as revenue generating X many And much of maybe think see be terms similar that of next that bit the can autonomous and goal I I space over do Level about line XX on heard think pilot I been Level sight the those? to about customers Level quarter maybe it then forward that And in form, or or space? have you months points? from revenue little in X over will can of joined progress X, all, you move generated

Yes.

I elected of all, revenue first business, not that it's say the will of to the from but quarter-over-quarter. So we've increased specify exact that part

means that it top And believe continue maybe that we have to maybe when we we volumes. first second the We'll expect than I -- do maybe have back And our to up to end these more that higher list in of in approximately, X go potential did X, the top We list. more. the means them go XX possibly That they half XX in all half. million $X X, all statement could my the too.

today. could low than these ones it an whether where they there our on in So be accounts in company are bigger could largest very point later those we talk or become somewhere 'XX dollars, inflection generating volumes the about be the time, 'XX,

ones, ongoing ones but than with as others. X this some. will we other believe we're ones And definitely know have. how there's we pursue pursuing, add additional to discussion far don't the many, I having additional As I

of margin over a conversations And who your your Okay. lower think, little and then top bit I revenue. some generate lot you time of a one customers, about -- had of I

then are you price how increase pricing with when material the up? have costs able second, renegotiating about And them? about think that over to And as going might think you to customer, with are time? do First, you opportunity

of with all, decreases. price do it. The as has dynamics have increases a There's first lag far a and So price contract we contract. as effect

taking done so where just any and business other to that engineering we And showed their the is that to up. have do at done good our In very when able And strategic if a on we we the one wanted our we've large of is are things are try of more Transportable product. customer, that, it. we stop AI to to most implement of strategy profitability want be that business case to stress passing solid. overall, requirements I this and and is efficient strategies the future, was of building low, we not revenue this the course, And are just R&D

probably that AI high come not an value eventually, it to will them solution. as up. will an we to much So what contract be degree. There's is But we're to complete Transportable as our opportunity some probably where selling more to push

We have layering up number bring to things over value our in time. of a software

material Great. theme such year as government. question to a pickup is be I to possible theme the few based get the on causing the last continuing resolution? second delays of there what just half to understand a related My a won't better why delayed, that's projects Is there? like a

Yes.

one will significant the to reasons. a or customers do we due budget So economic first that up make clear key of that What is part it's of the all, of XXX% business. it's know not

contract. the contract, contract the orders to coming multiyear The and it still close Air somewhere didn't Navy a that. initial buy the the their ever everything news their year. have in between shipped to The new we've from getting remaining this have process but we they customer is all of is We to end expected good the was everything plan contract. is to are doubling within multiyear business like they that like And But Force. looks

result, as up this year kicking coming extend one. talking a this place new So a that we're And will next catching they'll off about be in and contract year. from also

there And that, like right that year year about of military I the customer. a position activity space, of of in next and be expected, be them a where that where particular they're you as units million from top us, really those number but they order go good for are of in So as now, might looks things it in a us labs. $X their a on with could a if putting the buy couple then could told here

So even us yet, very in could margin good though not be that production they're sizable also. for and

There is point on that. another just

We on sole provider that are contract. the source

Correct. Yes.

a that's be say, conservative of And a that's other with you in will position our It's thing. it we risk I to losing out. moved and unfortunate not we're the year, like implement our it's objective. gone plan But guys. whatever. have we They something really trying it still programs military in all there's looks want aircraft. that So or pursuing that we're to timing to hasn't it's It turn away. these for

[Operator Instructions].

from We David from Benchmark. will question take Williams next the

maybe long do how top about think line? down revenue do of for of trim you that that how me, that that, in your entertainment and I next remain bit bit customer in that see just space. a we progress media the but just a QX? or late, your bit contract the kind little just kind just on to little And big think excuse big -- the me, year? Should strength on forgive Congrats I And revenue a of wanted ask growth. about you And in terms jumped will will the

this They're of And dynamics market, the which on normally had doing large selling They the very it last but false year, purposely quarter an gathering to We of virtual but be it we was quarter. we don't it different strongest numbers well. this as pretty good, with to some exceptionally to past products, them but the all the doing help expect is products seen I good, Russia, quarter the pretty shared much it, and revenue we explain we continues dynamics market not will quarters the year, kind color the U.S. give started Europe without of quarter driving more because which the pretty the growth. in little to we're is of you still is say the before go had starts of like their but back rest good year, they've -- things understand Japan places probably remain good. more world. an we've we'd that.There been as anomaly China, a The but that in strong the -- that. large have

heard there particular a color, just I little earlier for that inventory share just then And to is that's the the Anything think you investments that end any I just and business that? around growth the But there driving know expansion. Okay. maybe in color and Bressner market bit Bressner? about

we say talented put to buys these a do of to in. term. in want market name. strategic to leader, well group hopefully, And John? positions there, these Well, we've long got marketplace, continue good else that over a thing. you can very time that, one this lot very spent the I'll share And positioned add and is the Anything good the a a team working We've with

XXXX. we're strategic which There large takes investment that contract long-term we sure was that one make them fund fulfill to XXXX, order able through made to through

[indiscernible] require they right something the Because or same product

products of the is on about some rest a it least Great. going of of right. kind better how then a the the -- see market consumer where dynamics like that's out the to demand and maybe we've availability little just market to All us play slowing end give at year of maybe are just think you. you perspective, starting from seen And the how you for side, maybe seems

interesting an Yes. it's I mean question.

that to to the be the GPUs, need. a tend but in doesn't tend of products products DRAM PCI about type and read You other be read like big semiconductor -- the stuff, Express papers of are those the number of a running we And day our in the I products some seen they're of space. the has things, career long Most haven't those on times. And change that the we my been lead front. and still front switches,

seen we've cycles. So

very that closely, We So though. We're I Yes. we yet. much it keep really watching. all it really And haven't -- say but in of can watching process. that's seen

the areas you biggest, good. seeing the right. are All Or are And I Very hurdles? guess, primary area? what GPUs other

us one almost product are ours. biggest switches the a have because think of of in switch the we I Well, for every

and think much and strength PC technologies. and you be and very at from lead they're and a we the about at sitting time. NVIDIA our demand is switch on products ship a If fragmented what these are type linked XX-week ASP, high competitors as those core it, Express has above result, And product pretty of good high our we're every

one big asked ones other ones. So that's the Any about. of you

big that Is one?

Yes.

[Operator Instructions].

Max Michaelis from Market. take the will Street Lake next from We Capital question

Nice job on outlook. nice the questions quarter, the few on A here. job

you your on that where that just opportunities that and share of major Can is to one is autonomous trucking First mix expect are pending. of which you the trend?

in So XX include in trucking That autonomous we Those that doesn't have of right X not now, the that that the that are ones are did. there's outstanding ones projects the pipeline. closed. have

pipeline so So now. everything right AI about is of our XX-XX the half from about Transportables,

I guys can on of seeing, deeper could just are the areas go of some deeper, of the the guys highlight go a wondering a kind you you just the little seeing, Board. Okay. that some industries. then accomplish? are some different just And strengths know you Advisory and you're of into into to you kind Advisory maybe going I'm maybe the you're just things if Board. layer strength hoping I'm And then wondering

Yes.

the So people with some #X this was the when I we highly armed ranked on background. there and navigation why of very put the together, forces. brought people And priority that's

of So some tank making from to us that areas front. like we anything of think X identifying decisions are that that aware military places And the in that X are looking I ranges at were not think we're advanced in know helping but of the Air influencing are that have backgrounds selling who know talking we It Force, getting to, to the maybe technologies these to. we're people maybe that some were a Raytheon, to guys they selling to that. some something of the -- actually is didn't

it just then of making out. things like connecting general saying going on, it's And check So introductions, of type go navigation, I'm this aware you should that thing.

passionate group, you things a technology them are to into of extremely military. just One a about is the number interesting but that little the about this of getting give color,

wasn't technology that in X using XXX available commented of military of one didn't it fact he them that fact, because segment. In marines, come oversaw commercial the back was the the

see which have we recognize, need. motivation product, a performance also lot the this So to our they these boy, high of is guys

on truck, side just have sales And somebody miss then also. with, have the myself, course, team, experience it's space on we calls Do in helping don't anybody I a group else? oil so great to refreshing the been the it's that us. been marketing military mining and a And work when we they and I and definitely that good on a take guide thing. on anybody from It's group but the from great the helping area mean that's of autonomous us. team, a anything have been I

is then outperformance just misheard I know to And but one, don't going the I driving Okay. last for quarter? my QX, you, that next outlook what if

was it so XX.X%. Outperformance, driving the

pricing I will strong. mean XX.X% that is remains

entertainment -- is and level the of currently, the the for guy customer good media but base large we're at rest Our not quarter. strong, looks the but pretty

light where of rest issues. a were of base little was supply that some of a in to So tied customer the number some we in QX, the of

segments, got and So it's key number quarter of issues of into outside those media supply will quarter. those because the customers a some in X entertainment, the but pushed and our ship of Bressner the of

back I'd to the speakers conference have It questions. to our closing like we that turn appears remarks. for no more

of you, our reporting believe meeting please again many Sorry, pursue you, you. or stay with and best any November time. ahead. as forward these continue We the Nash. all joining And thank today. Thank is healthy, and you I to to to and look everyone, we reach yet we opportunities safe for on out misunderstood come, Meanwhile, progress myself please to Jim, John at and in us

up So Nash, call? you the why don't wrap

Thank sir. you,

growth beliefs that where you cautions cautions design that statements our operations, statements a we achieved. regarded conflicts, and during activity. in that develop Systems others statements and is inclusion products, our company's forward-looking regarding conclude uncertainties statements. will business, are be as of I may such One M&A military before company's generated market. a products Stop not harbor pandemics made call, on company's market safe forward-looking as by world include its not source the and representation those These expectations. should are like of including forth or health to revenue the or new historical call. The facts important sell by concerns, today's from regarding Such today's statements may forward-looking customers or risks includes be provide OSS statement products wins public developing description would including, for due but of any the without not statements to Now current are the and expectations inherent and forward-looking Actual based for set differ of COVID-XX such may the other in those expect; material results presentation the in we global the have we limitation, regions or disasters plans presentation affect in that

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filings our the SEC, we results with financial Our reporting. other Exchange our our condition, press Factors our the SEC. additional financial risks and under and can in remedy and the prior Commission, XX-K material financial results risks and not and our in report described including to accurately may able in or adversely to operating our in controls Form operations international Report to release on subsequent Securities with sales subject us and Annual filings Risk be We fail that and heading any weaknesses affect internal

as to safe Private of events hereof. cautionary or the statements, the circumstances to update Litigation undue of All date of after XXXX. place undertake conference Securities You reliance forward-looking are harbor the revise forward-looking to these are the statement, reflect obligation is which only we speak date provision cautioned this of information on this and or statements not of no entirety in which qualified call, Act the made this under Reform

for replay conference. instructions our joining and press Before website us would Thank today. for starting I we Please refer this company's replay today's like concludes at to everyone you via end release be remind that dial-in the through available XX, conference, available call will ir.onestopsystems.com. later XXXX. today's This for to this August evening

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