One Stop Systems, Inc. (NASDAQ:OSS) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 05:00 pm ET
Good afternoon, and thank you for joining us today to discuss One Stop Systems' Financial Results for the Second Quarter Ended June 30, 2020.
With us today are the Company's President and Chief Executive Officer, David Raun; and Chief Financial Officer, also joining today is the Company's Chief Sales and Marketing Officer, Jim Ison. Following their remarks we will open the call to your questions.
Before we conclude today's call, I will provide some important cautions regarding the forward-looking statements made by management during this call. I would also like to remind everyone that today's call will be recorded and will be made available for replay via the instructions in today's press release in the Investors section of the Company's website.
Now I'd like to turn the call over to OSS President and CEO, David Raun. Please go ahead, sir.
Thank you, Scott, and good afternoon, everyone. Thank you for joining us today. I hope everyone is being safe and healthy.
First, I'd like to once again thank all our employees, partners and customers for their dedication, nimbleness and creativity during this pandemic. I would also like to thank the One Stop Systems shareholders for voting at the Annual Shareholder Meeting, especially with so much going on in the market.
At the beginning of July, we had three new independent Directors join our Board. They add valuable experience and knowledge in finance, M&A, marketing, risk management, senior-level leadership and serving on public boards. Our new Board now consists of four men and three women, and we're truly fortunate to have them now part of our team. I'm also glad to address you today as One Stop Systems' new President and CEO. The Board announced the appointment on June 24 after I'd been serving as Interim CEO since February.
While we've been challenged by the disruption of COVID-19 during most of this time, which has impacted OSS and its customers, our management team have made progress across several key areas. This has included keeping our products shipping with manufacturing continuity; a reorganization that put more focus on the development of an improved vision and value proposition, as well as executing on the full integration of CDI, which was completed in June; $2.5 million to $3 million in operating expense reductions with a focus on efficiency; and lastly, strengthening our balance sheet with an additional $4 million in working capital. While much more work remains to be done; we believe these initiatives have helped to offset the impact of the pandemic and set us up well for the future.
As expected, COVID-19 impacted One Stop Systems in the second quarter after a strong first quarter. We saw revenues down significantly from our top customer by $3.1 million compared to the same quarter last year. This customer serves large gathering events, like concerts and sporting events. Fortunately, the combination of a strong first quarter and contributions from some of our newer customers from the program wins over the past 18 months offset the overall