One Stop Systems Reports 28% Revenue Growth to $17.1 Million in Q1 2022

One Stop Systems, Inc. (OSS) reported a significant increase in financial performance for the first quarter of 2022, with total revenue reaching $17.1 million, a 28% increase from $13.3 million in the same period of 2021. The company's net income also saw a substantial rise, amounting to $579,234 compared to $41,198 in the prior year, resulting in a net income per share of $0.03 for both basic and diluted shares. The gross profit for the quarter was $5.1 million, reflecting a gross margin of 30.1%, down from 33.3% in the previous year, primarily due to increased costs associated with product sales.

In terms of operational changes, OSS experienced a notable increase in accounts receivable, which rose to $9.1 million from $5.1 million, attributed to the timing of shipments. The company also reported a significant increase in inventory levels, which reached $16.4 million, up from $12.3 million, as it sought to ensure product availability amid ongoing supply chain challenges. The total current assets increased to $42.3 million, compared to $37.6 million at the end of 2021, while total liabilities rose to $11.7 million from $9.6 million.

Strategically, OSS has been navigating the impacts of the COVID-19 pandemic and geopolitical instability, which have contributed to global supply chain disruptions. The company has been proactive in managing costs and inventory levels to mitigate these challenges. Additionally, OSS has continued to invest in research and development, with expenses in this area increasing by nearly 50% to $1.2 million, reflecting a commitment to enhancing its product offerings and technological capabilities.

Looking ahead, OSS management has expressed cautious optimism regarding future performance, emphasizing the importance of controlling costs and conserving cash. The company plans to continue its focus on improving operational execution and exploring potential acquisitions to drive growth. However, management acknowledged the uncertainty surrounding market conditions and the potential impact of ongoing global issues on revenue forecasts. As of March 31, 2022, OSS had cash and cash equivalents of $2.2 million and short-term investments of $13.5 million, positioning it to navigate the current economic landscape.