Tss Inc (OTC:TSSI)

Tss Inc (OOTC:TSSI) ($0.44, $9.7M market cap) - We feel it is worth noting that DELL is up strong on the heels of excellent Q4 2023 results which were fueled by demand in its AI servers.

As we have mentioned in prior notes, although the company has not disclosed this information, we believe Dell Technologies Inc. (NYSE:DELL) is its biggest customer, possibly representing up to 90% of its revenue.

From the DELL release:

“Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "We've just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements."

At some point DELL’s growth in AI servers/initiatives could spill over to TSSI if it can prove that it can build and deploy modular data centers quickly. To be clear, we still need more information on how much of Dell server demand is related to modular data centers.

Tss Inc (OOTC:TSSI) ($0.56, $11.0M market cap), a data center facilities and technology services company announced Q1 2021 results:

• Sales of $5.2 million vs $10.6 million in the prior year; Reseller revenues were $2.2 million vs $6.8 million in the prior year
• Net loss of $0.04 vs net loss of $0.02 in the prior year

“We continue to see fluctuations in our revenue and profitability quarter to quarter. These fluctuations are primarily due to the timing of delivery of new projects. We anticipate these quarterly fluctuations to continue throughout the year,” said Anthony Angelini, President and Chief Executive Officer of TSS. “We are seeing a significant number of large opportunities within all of our business units. Our expectation is the delivery of these opportunities will result in significant positive results in the second half of the year and into next year.”

Tss Inc (OOTC:TSSI) ($1.00, $18.4M market cap),  a data center facilities and technology services company, announced Q1 2020 results:

• Q1 2020 sales of $10.5 million vs $4.6 million in the prior year
• Net loss of $0.02 vs $0.00 in the prior year

TSSI will host its Q1 2020 conference call at 4:30 Pm EST today. Only the 10-Q is currently available. Management tends to offer an outlook on the next quarter during the associated call. According to the 10-Q, the company experienced minor impacts from Covid thus far:

“Revenues in our facilities segment decreased by $0.8 million or 27% compared to the first quarter of 2019 due to lower levels of modular data center deployments, caused by customer deferrals of projects and other restrictions on travel and site access primarily as a result of the COVID-19 pandemic. A significant customer of this segment restricted access to its data center sites, which prevented us from deploying new modular data centers and performing other activities for this customer.”

Third Quarter 2019 Results

• Sales of $4.2 million vs $6.4 million in the prior year
• Loss of $0.01 vs EPS of $0.04

“Our revenues and adjusted EBITDA have been relatively consistent the first three quarters of this year. However, with the launch of our reseller program, we expect revenue in the fourth quarter to be higher than the first three quarters combined. In addition, we expect Adjusted EBITDA in the fourth quarter to be nearly double the first three quarters of 2019 combined.” said Anthony Angelini, President and Chief Executive Officer of TSS. “We are excited to have started to deliver on this program in the last week of September, and we believe this program will drive substantial growth, not only in the fourth quarter of 2019, but well into the future. Our expectations are that this will also assist us in expanding relationships with other third parties. We believe this program is a significant opportunity to substantially grow our top and bottom lines well into the future.”

Key commentary takeaways:New reseller business started later than expected; mgmt calling for strong Q4 2019 with revenues surpassing the first 3 quarters combined; adj EBITDA to nearly double the first 3 quarters combined; believe new business path will lead to substantial growth in top and bottom lines well into the future; It should be noted that the conference call suggest fluctuations in reseller activity which could lead to lumpiness in quarterly financials. 

Tss Inc (OTCQB:TSSI) ($0.50; $7.7M market cap), a data center and mission critical facilities and technology services company, announced Q1 2018results:

• Sales of $4.8 million vs $4.4 million in the prior year

• EPS of $0.01 vs $0.02 in the prior year

Quotes from management:

“We have started 2018 off well and we expect strong performance with solid profitability throughout the year,” said Anthony Angelini, President and Chief Executive Officer of TSS. “The foundational steps we have taken the last several years have positioned our data center lifecycle services well for continued growth and profitability into the future.”

The conference call reiterated its 2018 guidance of revenues north of $20 million and profitability to be better than 2017.

Our history of operating losses, continuing use of cash to fund operations, declining revenue, and declining current ratio may cause uncertainty about our ability to continue to operate our business as a going concern. We have reviewed our current and prospective sources of liquidity, significant conditions and events as well as our forecasted financial results and concluded that we have adequate resources to continue to operate as a going concern. We recently extended the term of our bank credit facility to ensure availability of this resource through May 2016. In October 2014 we entered into a customer financing program with our largest customer that allows us to accelerate the receipt of cash from receivables owed by that customer that resulted in the accelerated receipt of $3.1 million from outstanding receivables. In September 2014 we also restructured the repayment terms of our notes payable held by Mr. Gallagher, a director and our Chief Technical Officer, to defer payments of a large portion of this obligation to 2016, further reducing short term liquidity requirements on our business. These steps taken have collectively improved our liquidity position since June, 2014. During the third quarter we also considered various sources of additional debt, convertible debt and equity financing that may be available and so we continue to negotiate with various third parties to see if such financing can be obtained in amounts and on terms acceptable to us.

Fortress International Group, Inc. (PINKSHEETS: FIGI), a provider of consulting and engineering, construction management and 24/7/365 site services for mission-critical facilities, today announced that it has been awarded contracts for $27.0 million in new business through the first week of April 2010.