OSS Initiates $3 Million Reorganization and Expense Reduction Program to Support Long-term Sustainability and Future Growth

ESCONDIDO, Calif., April 13, 2020 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. (Nasdaq: OSS), a leader in specialized high-performance edge computing, has initiated a structural change and expense reduction designed to align the company’s operations and goals with current market uncertainty while positioning OSS for future growth.   The company expects the program to be substantially complete in the current quarter and realize savings of $2.5 million to $3 million on an annual basis.

This initiative involves immediate selective workforce and expense reductions companywide, including at the senior management level. Other key changes include consolidating acquired operations and realignment of managerial responsibilities.   

Earlier this year, the company’s board of directors implemented a change in senior leadership to deploy a different skill set for taking OSS to its next level of growth and development. This reorganization and expense reduction program reflects the combination of changes planned under the new leadership and the company’s response to current market conditions resulting from the COVID-19 pandemic.

OSS director and interim CEO, David Raun, has been working closely with the entire management team, with the near-term goal of cash preservation and sustainability, and long-term objectives of improved margins, profitability and shareholder value.

“Looking beyond the short-term goal of ensuring sustainability during these uncertain times, we are laying a stronger foundation for the future,” commented Raun. “While our sales team remains optimistic given the current level of customer activity, we realize we must plan for the possibility of an extended period of business retraction. I believe that with our diligent team effort we will get through these challenging times and come out stronger.”

Concept Development, Inc. (CDI), which OSS acquired last year, has been now fully integrated, with its operations being relocated to OSS headquarters in Escondido. The operational synergies have created instant cost savings and supports stronger collaboration and innovation.

To better capitalize on market opportunities and create greater shareholder value over time, the company has intensified its focus on product marketing ownership. The product marketing team is now the hub for cross functional coordination with sales, engineering, operations and finance.

The product marketing team will be responsible for creating additional checks and balances within the company in terms of key decisions that impact revenue, margins, profitability, product road map, type of customer and market focus. They will be responsible for creating additional value and customer “stickiness,” as well as discipline while leveraging the company’s expertise and capabilities in a more coordinated way. The team will also be focused on improving margins by reducing cost of goods sold, and reallocating resources internally to help drive forward this important part of the plan.