One Stop Systems (OSS) 9 Nov 232023 Q3 Earnings call transcript

Good day, and thank you for joining us today to discuss One Stop Systems' financial results for the third quarter ended September 30, 2023. With us today are the company's President and Chief Executive Officer, Mike Knowles; and its Chief Financial Officer, John Morrison. [Operator Instructions]Before we conclude this call, I will provide some important information regarding the forward-looking statements made by management during this 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.Now I would like to turn the call over to OSS President and CEO, Mike Knowles. Sir, please go ahead.

good and Morgan, you, afternoon, everyone. Thank completed I'm pleased successfully the Edge my and first and CEO, rugged market. as quarter processing with in full confidence I've the momentum building OSS. well We're future for growth positioned at at with fusion, past reaffirmed growth particularly high-performance this markets in engagement shows the artificial by demand position quarter customers global rugged our in My trade the participation intelligence over driven in unique Edge. robust and and compute sensor markets. as an In expert many instances, is these OSS recognized in October, on participated in at panel D.C. event aerospace fact, the in And I a Washington, in intelligence demand in regarding high-performance the technical for and compute for markets. artificial applications defense commercial secured In we markets. across several QX, commercial and defense significant wins align pipeline and multiyear and number successes pursue These increase and to that more our of customer boost can future platforms broaden contracts prime revenue. our the our with strategy contracts, presence on include processing sonar wins solution key class. for a a liquid server navy submarine cooled for These foreign for at in product industry how the prime contract program special storage in A exemplifies additional system in an win a a racing objectives. OSS for the contractor an for product a key newest navy with classified encompassing our new hardware commercial follow-on platform, order new dynamic is a noteworthy award our existing buy submarine P-X, it win foreign customer.The and from this defense securing We while on position a military a a customer, a new new successfully a new established international new defense customer and platform. prime support product this commencing believe We and early contract as lead multiyear a to as XXXX. will are to and for engaged and Bressner addition proposal the program a support our validating from This products.In closed as our awards multiple pursuits. our noted, in with team market to OSS sale by teams key is cultivated, Bressner actively captured sales channel team, OSS the an exclusive aerospace produce to commercial compute We're market. for solution and support currently develop, a rugged edge responding design, to opportunity contract. a This through add existing effort multiyear customer and new a an would establish product XUP with Gen latest OSS potential commercial PCI data has market the X exclusive an UBM software. X in internally center our engaged in developed Express opportunities These opportunity.The that a for and customer broaden for platform, autonomous a provide expand software and storage a demand is would efforts in support team market to production position and opportunity computing the our market to lead rugged close for in would system and development, competitive multiyear trucking base our working design, demand multi-year another hardware large opportunity. competitive military We're classified a a to responding processing for a opportunity solution program. Edge for rugged rugged storage This engaged are on prime, capture opportunity.Also we activity. a provides for platform multiyear side, potential the new a new with multi-vehicle and well a production platform a and and Edge defense processing opportunity for support the involves sole-source support This opportunity would be organization with within the a of a new branch U.S. Armed Forces. represent teams activity are of the increased our pursuits sample and a working. diligently These

prime contract competitive both to I or contracts, vehicle new reasons, haven't we and domestically our ahead, provided contractors, information value.Looking specific secure multiyear expanding efforts to committed For and platforms internationally. remain technical

Our number $XX.X Morrison, our Edge while CFO, requests multiyear engagements executing Edge rugged proposals There learning.Despite before the call customer John broad continued over in on reflect and former successfully on resources to sensor QX, and challenges, plan. containment our is to go away turn But defense I'd financial effectively our I discuss. strategy to cost opportunities. in in machine shifted concentrating details robust fusion, to QX for the customer, and quarter. from activity to provide transition more expected the processing, like further, John? opportunities the we media last market upon to we're is bolstering focus and by the million artificial year of and pipeline.Financially, growth our achieved intelligence computing, driven revenue sensor we confidence for in embarked results already and our our market more increasing a We our ability in grow the information low-margin

of at everyone. afternoon, onestopsystems.com. the us website XX, a is section of third A you Earlier ended quarter Investor press results our copy Relations in our Thank release September joining for XXXX. we today. release today, for the with issued available Good the

OSS as system products. markets.Gross gross do Edge the was X.X They third third consolidated in media $X.X decreasing systems aware, this, in to reduction million manufacturer with the $XX.X Edge higher Germany. of XX applications, a as which was quarter, design, revenue of our further revenues attributable and Bressner defense involved loss reflects products. most of of lack customer such was from XX.X% lower-margin European due to and the of comprise basis are which revenue. of is which overall profit mix mix serve $X.X $X.X revenue XX.X%, [technical to to malaise associated sales as a OSS OSS contributed gross million standard connectivity. points inclusive the for customer Of is Approximately expect million former bankrupt million. custom a a attributable from the compared you customer media difficulty] million, percentage we $X.X to and well The revenue. to The of or reduction Bressner OSS, million ruggedized percentage storage channel For our business absence reduction to operates Quarterly former Bressner, not of decreased OSS revenue autonomous same reported points Munich, contributed and X Bressner margin its $X.X with the Middle of segments: of customer's higher to balance truck slowdown of with and in margin processing to and in general is difficulty] rugged $XXX,XXX and improved commercial for also of the high-performance, a and located quarter and a the located and components. customer OSS in systems we products period for as XX.X% who delays Eastern integrator orders of the certain processing in [technical hardware a markets.As all-in-one XXXX. of

predominantly from products $X metric, by positive due per to margin focus capacity underutilization loss a revenue from period Net the was Non-GAAP excess revised quarter. $XXX income fixed of same points per costs reduction margin the However, moving retention compared to write-down of largely sale of the impairment period from attributable operations funds a same compared certain million of to onetime and XX.X%, Loss the $X.X year the before $X.X $XXX,XXX opportunities.Loss taxes totaled metrics available as impairment as credit financial percentage to in containment program. of $X.XX year-to-date the adjusted goodwill having share at is million company $XXX,XXX to mix, GAAP million plan, the production $X.X of a million in basis XXXX. our basis forecast timing of through negative loss metrics. OSS non-GAAP sold the EBITDA the goodwill. defense premium. was on period of $XXX,XXX loss after $X.XX overall products efforts employee attributable to as the $X.X of non-GAAP due The for impairment X.X% on a XX implemented for receipt from and by absorption and credit.Now million This $XXX,XXX, these product non-GAAP same offset expenses and exclude improved to ago benefit our resulting readily of of an in cost $X.XX the million to reduced the gross the in included quarter. operating government's of exclusive associated million goodwill of revenue.Bressner's to or the was lower from the in in lower of improvements income of compared our also industry XXXX.Adjusted net or sought performance were XXXX. and a with to This to and the compared Each income was a resulting or to operations $XXX,XXX EBITDA, $X.XX decrease increased in employee revenue $X share in write-down income per in a or $XXX,XXX on QX net attributable net to share retention higher-margin

expenses, increase million to revenues. of $XX.X same periods, media compared in to margins combined which continues being primarily equaled $X.X share. was in noncancelable, million due compared Operating EBITDA, employee goodwill to to the before XX, of $X.X This for XX.X% the Gross was -- Non-GAAP was to retention the compared is year sheet. for are other $X.X to highlights including a approximately prior and prior a the income compare million expense net income difficulty] from in excluding inventory revenue the XXXX. million million placed represents to decrease charge attributable and This delivered. due taxes other contract I'll October XXXX, from net year. $XX.X the the of to and nonreturnable Adjusted resulting $X.X non-GAAP period inclusive consolidated million $XX.X predominantly benefit impairment short-term investments for of increase highlights XXXX. XX.X%. They million. the is Inventory of noting before $XXX,XXX.Now $XX.X Loss compared in CEO down were to decrease in due or $XXX,XXX XX.X% of previous charge consolidated up and an as credit cash This income include goodwill Our $X.XX $X.X million, these requirements of million look [technical On XXXX $XXX,XXX. decrease was costs.Other per QX includes balance inventory. at total working as metric is million, $X.X in orders transition prior employee loss to year. now a capital impairment retention taxes, $XXX,XXX expense net credits,

to operationally incrementally the We from derived dependent to gross contribution. the with the but relieved of objective of expect be In million. this on may decreasing is have margin of have fourth transition business being the term, revenue this company may The contribute will focus quarter profits revenue, our this to include XXXX.As approximately model.Now maximizing $XX XXXX, gross percentage. an inventory as to objective company a near cash looking media and effort be company on of increase accepting margin largely bridges forward that consolidated our business profit flow the inconsistent to lower expect revenue sustainable continues we long-term gross in evolving

approval continues budget funding awards and as We the on We from manifesting to be defense forward impact late going budget resolution, impacts source sole the further could delayed. experience are continuing witnessing opportunities. some

a in to also slowness reduced has general manifested malaise delays or We awards. and/or see continue that commercial

those.This of and be know not to now We see like do turn call quarter. financial able to may would to when review the have Mike? not we signs Mike. seen I improvement will the complete our overall back over for

Last Mike Dumont Admiral Directors. as directors to of the John. we Board you, departure appointment well Vice and quarter, X of of the OSS Thank myself announced as the

align with desired to reconfirmed strategic also to directors. of Board path sets the continue the and reprofiling We our commitment the of skill

in having corporate and Safeguard board served as served previously board and XXXX. Scientific the to and and As effective the managing member at of as a Systems in on served Merrill release, in at Deutsche His Koru fund Slate, Manko management has Management of Lynch frame. election the the serve noted having be Telecom director May, earnings no the appoint Creative Horton has for will will at Arps, executive with of director the and by Mr. an Board chosen to size X positions This by Board asset and also at relevant experience the X-K the Board this temporarily further director managing and slate company's since Wireless be Group.The BZ November the X been from to as the Shareholder Medical defense investment as investment Fund XXXX the XX, principal and Member than to The dynamically Annual on The slate. and Manko Management, banking also increase. a slate vacancy presented fill the and to during filing intends Mr. X-person its the XXXX size to increase Board time position. of candidates more are the review additional Skadden, on Bank finance Joe Flom. Management Capital member There One Mr. Meeting serves prior has Board Annual Systems' attorney and a Manko at Meeting shareholders fill appointed senior voted Meagher to QX Capital this by has one to and a increase legal Board experience, Manko temporarily director Realities add senior time Stop actively experience X created in Horton been serving prior of proxy. XXXX. selected principal Board

classified skills, unique times at this additional are of and these This that way expertise is classified individuals recently our advantage We to many pursuit take greater strategy bring.Aligned facility Board for revenues, time received of market our which our key we site programs, us Members pleased in the include to the to the now defense announce will additional fresh adding the I'm opportunities to clears space. that and clearance. perspective with address

sensor and participation for AI, and In I in amount our addition events for we disseminate defense Rigel, ExCel I event security in opportunities Center, XU server, and in messaging Edge continue earlier and show through we applications. at where showcased high-performance engagements and we to our and opportunities interest. to sea supercomputing processing Equipment Cernis known call, identify of International, all the air as received our commercial attended of London Exhibition mid-December, on the won The increase held flagship exhibition. full exposure London OSS' broadly fusion rugged is the both SDS line processing largest land defense market engagement industry we specialized the while unique Defense products Show, displayed processor, the markets several products team The Security biennial Edge shared our sensor trade at to a expand vast and world's and and as move solutions & also AI DSEI. our rugged computing Donati our pipeline.In Best

technology, higher-margin EBXXXX showcased strengthen do rugged received activity largest with annual to United the North States Europe meeting, continues in land focused XX,XXX exposition to America event seen, expanding with at of to and were as It Middle the OSS the We interest service at primarily Army customers in multiple We With proposal. the is it.In AUSA. we compute better contractors military countries The our the and had Edge Conference at in around in monitor well products were in systems. the of storage largest ADAS, world, of the the prime held as Santa U.S. autonomous show space our notice and as attendance. from were power Autonomous E. was future defense engagements OSS able show show some and of SDS. solutions to solutions, in within the additional for in promoting Middle we we the and able the trucking Center job XU level increased Convention East. in a such current an Europe at including countries this We sensor solutions and requests from rugged Excellence products.Also latest people in Association was market engage did in Technology expand We the and relationships in leverage our customers, channel September, to Virginia. the Edge of East. space were to vehicle addition Arlington, that our driving these market to high-performance specialized and for the solidifying able information exhibited California. in engagement of Vehicle clear and Walter the and Clara processing showcased Bressner team and This Rigel vigilant to considered remain excess Convention Center our market.In continue Bressner Asia, was Washington all October, autonomous we venues intelligence artificial fusion army across weapon our

new & Cernis relation the Donati of able at with new were U.S. the display DSEI efforts establish the procedure Rigel and high-performance divisions with existing to and within demand themes presented from new to resonated Our products line prime to Army. advance and a rugged we compute of in opportunities show.As

and of a with X prime to these led able unit X units, and has were business at Outcome site BP establish and directors. a efforts a we customer RFP of [ November. new the receipt example, their first meeting the to of ] For engagement multi-business in

forward an world's for Donati.While the the attending on a an with in held connection prime Army 'XX operating We're at next the major our classified vehicle the largest offerings established region, week, the off on it's market, we Cernis to with addition, looking for held conference rugged success with U.S. Supercomputing Armed focus compute offsite key Edge. computing. Forces with building international unit conference & In in missions D.C. we new meeting service and also high-performance Denver defense being the armored high-performance at product

advanced latest chip, servers, emerging cooling innovative and liquid solutions storage will greatest of We RAIDs, plate, as and a some cold be that It with cooling direct-to showcasing Edge data cooling technologies and storage our to flash such ideal technologies. liquid for rugged the bringing lineup are mobile class of incur performance use disruptive Edge. which accelerated center will

release new spoke Robert markets. and market release to defense we're more Kalebaugh, our across quarter, next and in release increase Sales Business we about press week.Last to We and VP planning Development information our expect as commercial efforts new our about a to of this issue project introduced engagement and

also to and align We of reimage our the update highlighted force address execution. probability efforts sales weighting and sales on capture application our with pipeline to timing to

planned. have date efforts Our proceeded to as

the We updates reporting.We Salesforce operations final been to testing able and are and have in instantiation X-year a pipeline. to validating of stages enhance complete an also of initial

time. Efforts to model, our more opportunity we pipeline continue X-year in only to awards there's but that a support see opportunities. unfactored $XXX work probability set not pipeline point, achievable robust of we high While excess are an mature pleased and At accurate research to our transition this utilize to to to do of growing pipeline still million. our have expand to we with

encouraged upgrades. will address We be broadly will characteristic media recently room classified see Morgan? can more internationally.We time pipeline expansion near-term defense where believe identify market, space, to to with for opportunities questions. call line these to open our also and seeing continued the the opportunities looking the we We're there are intersect that low-margin is architecture defense and granted longer that markets continue we'd a expect that, like to of but go clearance. We business opportunity this we support long way growth.Now facility platform across we will leveraging commercial replace your to in

[Operator Instructions] Alliance We'll go Brian with to Kinstlinger Partners. Global

compared how way, I a if when quantify Defense joined, versus in depleted or not ago? was it you're you've Is there bit trying pipeline? since building sure to the just I either gauge joined? heard Today you little which am think Mike, I'm I well any to year a to pipeline

had $XXX million. $XXX opportunities Prior pipeline about around million. Yes. the structure It's of announcements

with work last So validation million. each of by we're now that in the of additional X-year pipeline some going is through line, with the line unfactored in quarter excess those $XXX and comfortable efforts of our

that you much year? How addressable number, through think do biddable it's a of or away. and so of next much far -- say, that big such How it's is

I opportunity a I build Yes, when is Brian, out X-year out plan, pipeline when broken by years X we what say we of year. so do

the million. sum So the $XXX is those of X years

early of are biddable So are XXXX, there elements going that through that in XXXX. as as

I that was through discussed really 'XX. years 'XX So X

maybe talked And that do the pipeline talked transportables near what defense, maybe about how about in on now the term? you commercial? but you for decisions see I AI opportunity commercial know in there side. then you But your right within some forward

commercial I and that both discussed pipeline the So our across market. defense was

the the between your probably here last it fairly second rugged commercial don't mix Edge So me. percentage Brian? based And time close then it's have doing. all the with transportable, through. and just in defense of question, came processing to on capabilities products XX-XX that again, It's part AI the we're I of

But return that is guess are necessary business, full just there It you fill you think holes any growth? to was was been your you I to as that investments No, you there you've a be are help now to quarter necessary think it. to visible that. on going evaluated

Yes.

going. internationally. the we're So as number with earlier, I opportunity engagement, of And also seeing mentioned I the mentioned increased more engagements broad some

And and of actual resources can our team that million so convert will to And we on resources to against we One of the to mentioned, just then that sales capturing help & pipeline. -- to into lines, build continue out that has executing looking released and the -- our Donati the execute elements capturable invest augment get I Cernis we areas we'll that $XXX recently, and be can kind to against that as the and from Rigel scene. programs come need product pipeline be get. we

strong. been has SDS XU So

perspective, now. a a from So right we're in place good product

investments look of making as generation be the we will XXXX to our We next product in line.

management of I team them technology. So to more of looking We're will mentioned, stay also, I to support as now, probably the we starting with augment be the last our discrete augment we adding broader earnings And the team. get to And we then you're terms start. at multiyear support front these then time as part to to it running contracts. support, additional the end we'll to continue was think market had talk capture call, defense contracts so win some to also -- contract look about and of we've some the programs program bigger, in

it's gross cash for your improve one the business bit. core if The on OSS recovered the lower customer on little But I also margin I the a even driver was comments or assume just flow for margin one without John. P&L your there. taking some heard is This to me. potentially media lower-priced probably then nicely. major Last

it's think gross or should stronger core from just expect we it point the report we help indicative it be this business? should OSS comments? given even where today Or customer. how Just given new about softer So or media as the in book are will quarters new without you mix, coming you in your margin, that the us

the the with thinking from and line to totally I need of that facility point, planning, in at side a million resources purchasing resources Many largely this We management projecting are we're on flat, in the have to be it $X of overall having we significant for of people. proportion in would more the that's on these about force OSS' percentage. a as But already utilized. consolidated involved well be until impact in it's be of quarter for OSS. to April are believe that margin these revenue revenue. as of the as fully to inventory are weighing down production get will be a back doing when to in through the we because We it's production [ gone resources we resume our recover underutilization back we XXXX. increasing But reduction margin it's obviously, -- utilized. the And are dealing is then, then ] obviously going on

Sorry, one that is I I'd and just approaching gross a more. but optimistic? OSS done said be Or At XX% little $X million core for back fully segment? you that margin to that utilized gets too

It's more to of the XX% range. XX%

Your comes from next with Williams Benchmark. question David

does like maybe you're So good little progress think these some on to channel it and and maybe, how the favorable. feels and just touched about into really the better could spending about timing going during budgets timing and between -- on the outside it talk some here thinking look what of that guess I held we're in to seems approvals, through this on defense just bit the of remains suggest But cycle. But the well we industry, still it I a down have have you should like? gaining know understanding of the And the we -- that momentum. you a Michael, seems here? in this script. production hurdles

Yes. Sure, David.

get CR. the to resolution we've held looking to proposals of able we source couple awards and have sole been continued for be think part, I are to in the that CR if ] provide up the [ on been have -- of referencing you're a one you

CR every now to with. we those term So have That's as resolved. as an defense across near seems that companies it come expect to year is deal the issue soon

at you look we'll out on all find in a homes build defense XXXX. think how does the come late of 'XX we're doing 'XX, we -- the and we'll as new now, see efforts alive I procurements if elements in lot

-- cycle make opportunity award defense of get where opportunity intercept upgrade those we ones able However, unit have 'XX is market, where and beyond. be you the and there And refresh there when that the that time those we've frames. we competitions to to contractors about. I we now to with services a year. There to platforms if through those That's a but catch are technology. Bressner forward. then where vehicles you in positioned to the it discussions little both and from the doable years was would and number into contract An of pipeline example platform finding times a to defense going assigned refresh have capture where who usually for submarine a those technology a discussions have, cycle, in those faster. or in tech talking our foreign are you their that in the They prime architecture have a And that refresh then those our identified, in things And from upgrades. start tech opportunities those and through the bit happen there are. and be and we're are the navy is in put unheard we're seen happen probably talked ourselves U.S. less can globally, were identified in of to caught we lot span we resource upgrades in than time 'XX a to early, And in our program

through role? positive enthusiasm previously, are congrats just than than earlier, on either time progress. the just of see today that, more the have just there had just as see thought? it's anything to great Mike, seems success say like today things. guess came I in now, and to you've I lot a you acceleration, of hear look you, you're and the different and optimism might here, I interest had given more but you different gaining had your the kind it And gives in Is on that settle seat than things intended that and you to time Anything some that's into guess, that you or the

Yes. Great, David.

things. X probably So

norm a of called First the it here. bit is new we around little

have I to and on. the We're say I as the of the would Kalebaugh, raising us. the business we're As opportunities. excitement, elements in that them market market, and level mentioned, addition we energy, activity, seeing are proposals But too, working Robert commercial of interest heightened defense as expected ample we some urgency of sense address the we're focus the a myself in some activity come inside in with for grow would number doing of and there's increase so. seeing

only spend growth, our gives try excited good tell going and So half here to we're also. the continue team from me new to after our and D to in to what's at side a I that opportunity the a Services is in opportunity Health the support we're well opportunity advanced I the compute, example and pace the Committee -- the able resonates Committee, not week story given learning was and the working to artificial defense with to enthused be the [ able machine going the there another our to in find about And Services. get being build given you it Again, ] arm which OSS the on resonating but momentum. our D.C. from normal, how And able the have warfighters the through had tell upon be customers we're well. -- see the And right, to resonates half that bring the and so to story quite world government high-performance to see, optimism I'm to can the on battlefield. It's something intelligence, that Appropriations today, on I and to Armed maybe to track, resonated that interfacing augmenting Capitol the Congress story. guess mentioned House with

Your next question from Gomes NOBLE Capital. Joe with comes

if So the of an little economy? deployment Is we wondering customers due just talked could going the release, about delay there? to about I that a is applying on just that else you wondering can concern there Or in statement. in if overall something some press your you get technology. potential color just more color that technology? that. more leading-edge was Just more on having to Is add

of kind defense the resolution earlier short general think continued the malaise of in effects. we've in I Yes, We're move the Joe. out commercial about And market. talked seeing market statements the the

get don't It's it and to if We and things compute benefits technical the that efforts or I to quarter. convert just commercial to machine learning, the try And a interest just the a next the ability month. looking -- door and seen next to slow and program along wait plenty companies the for discussion artificial proposal or how malaise or and of adoption to and have There to line, sense. you really if kind about urgency kind malaise what applications, technology. or going the another is general would we've this quarter sense by and the on happen On intelligence, of push there a say okay out buy. years. Edge. make move a to not see there's a it a or absolutely makes put utilize people a request out month funded make forward it's general of the the But of month purchase to tendency not side, into to comes delay to it is market getting things from of engineers there's when out been happens of The

million And million pushed since in nature then had $X of XXXX. you quarter, number thought that you out been work defense talked to Has then? last grown into somewhere the about, of $X

will number. general we'll will how We'll it QX It be be ends, -- range. be that about but that see that in

the getting in security seems one people difficulty facility. finding clearance clearances. that and a Again, the hiring be the is the with security on congrats repeating of to And for issues

it a that how are supply, guys all? is you that and just at limited I'm an issue wondering finding there's appears. if and demand Just big

thanks Joe, question. the Yes, for

SCI both So the right would now people clearances, we -- have might I benefits -- we're that the cleared of an operating we've about months to mission next the is And think where in term, doesn't could the the and us few one We've market us last with where over of platform require more the identify ability with scope bring the today the individuals our to probably we're could doing so, broadly that been of talking explore -- work work here the staff or explore in on the in and the the in what to where technology, you're align Robert near able And use we we're allows inside that effort. to couple the about near for you that understanding more kind back products of application you actually San here the being reason right able of the come we and benefit is and/or can clearances, remote, the and us doing, scope with meetings of clearance to workforce, our and the technology. to see to of have effort quarters. really can going the broader had the people now get such own to where broaden Diego or our work is that. to the you've OSS get X in had or we're term than myself, find able doing especially the with fill do cleared more were for does. X remote, that's And have individuals a

along, with to As an runway the the position, compute able facility established some out classified would information people use that. they the I into -- and a we'll discussed, to clearance we years CIF come but build have be as of identify

plus. terms the the same given quarter? me, one the $X pipeline the in may. those last have quarter you And Historically, number think you And the for in end of you for of quarter, end if I have XX of more third were opportunities. that million I for opportunities number Do guys

be to start pipeline insight number. and kind that have to part, going transitioning those and give don't we into information our -- We're In data you to prior from our of new and then the we're key earnings new along multiyear getting on platforms adding for of call, -- additional contracts. mentioned is earlier in some where strategic primes and the getting aligning customers, really involve we're definitions. we'll us evolve here Yes, I themes awards

to all doing able more we're on -- enough across So engage even provide orders. sense to we'll information to a way securing a those you of how elements in-depth be give maybe to look to

comes next Max Capital. Street Michaelis from Your with Lake question

at low impacted looking looking outlook the Germany, in on slowing economy how this the the your at Just Bressner business? has

a we We're major seen at to quarter-to-quarter. haven't of it alignment, seen and timing we booking the date, impact The be generally slowing of the business. online the quarter to move haven't end orders cancellation the downtick. there but a of So we're or the continues seeing some or

through be still able slowness this work Germany. So we're at them any point, to in seeing

then for one And last me.

I but your area Just given stick in the areas trucking auto some in the to orders force commercial push the about space, highlight? can in areas to of racing you pockets out with are market, other talked the you industry, win in autonomous market, you're know maybe commercial sales I seeing the that what strength. maybe some want -- you're maybe pointing

core And expansion in Sure, the data mentioned the chassis. on there in X were Max, using side release I X our of thanks. that the center excited quite UP them earnings about, commercial we're space

they're And of areas those interesting traction and those mend where data others finding the go we're couple There's centers where buying niche the them manage onslaught some to utilization of need hyperscalers With the into some areas GPUs amounts and somewhere. in of GPUs in there areas to -- with. is companies where a looking of GPUs, massive large good servers. some

and for as that go area see through. a us work we So nice to

multiyear market, In into to in finalize the we're that some market. Edge to where that bring here processing be addition, aerospace contract I we'll working the able commercial mentioned

We're good that vigil be the It's promise, see And as we'll are commercial now those some in for just of looking lot efforts. on slowing. seeing to mentioned, on more We market. side. of So a I had RFP provide insight working on those as then potentially we had ones both trucking. autonomous

So on I it. optimism the use cautious

We solutions work these. autonomous a are of defense use efforts and through ones we continue to for us, Luckily be trucking design for the We use the it lot in and refine. work. we same

invest anything having to product not we're that development in So market. special or

of for market. autonomous the So to we're work the a we're And we be market quick truck respond. creates if in flexibility can doing anything, finding offerings more our defense in lot

but that one. So we we'll them, I to continue said, we like monitor cautious optimism -- on use

this have we back to like At closing our for questions. time, further turn I'd remarks. the no speakers any to conference

report great we when Morgan, with in for and thanks And we forward has you look we March, day. again a everybody speaking to that. hope

you. Thank

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