TSS, Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. Total revenues surged to $70.1 million, a remarkable increase of 689% compared to $8.9 million in the same quarter of 2023. For the nine-month period, revenues reached $98.1 million, up 227% from $30.0 million in the prior year. This growth was primarily driven by a substantial rise in procurement revenues, which increased by 1,016% to $60.5 million, and systems integration revenues, which rose by 361% to $7.6 million.

The company achieved a gross profit of $7.9 million for the three months ended September 30, 2024, compared to $2.8 million in the prior year. Operating income also saw a significant increase, reaching $3.8 million, up from $0.7 million. Net income for the quarter was $2.6 million, or $0.10 per diluted share, compared to $0.2 million, or $0.01 per diluted share, in the same period last year. For the nine-month period, net income improved to $4.1 million from a loss of $0.3 million in the previous year.

The company’s total assets increased to $67.3 million as of September 30, 2024, up from $25.6 million at the end of 2023. Current assets also rose significantly to $59.9 million, driven by an increase in cash and cash equivalents, which reached $46.4 million, compared to $11.8 million at the end of 2023. Total liabilities increased to $59.6 million, up from $22.1 million, primarily due to higher accounts payable and accrued expenses.

TSS, Inc. has also made strategic enhancements, including the integration of AI-enabled data center server racks into its systems integration services. The company signed a multi-year agreement with its largest customer for these AI-enabled computer racks, which is expected to stabilize revenue streams and support profitability moving forward.

Despite the positive financial performance, TSS, Inc. continues to face challenges, including an accumulated deficit of $62.2 million as of September 30, 2024. The company has a history of operating losses, largely attributed to the impacts of the COVID-19 pandemic and supply chain constraints. However, management remains optimistic about future profitability, supported by strong operational cash flow of $36.9 million for the nine-month period, up from $8.6 million in the prior year.

Overall, TSS, Inc. is positioned for continued growth, with plans for capital expenditures of approximately $25 million to $30 million for relocating its headquarters and production facility to meet increased demand.