Travis, can OSS challenge the big boys in the 5G race or provide special tech is the 5G roll out? Seems their revenue growth rate is increasing pretty good and has landed some long term defense contracts with Rayethon. Could you share some insight on this trade?
Thanks,
Tony
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
Looks like a small roll-up of companies that create specialized computer equipment (specialized high-performance servers, memory systems, etc.) for clients, including some defense clients. They have pretty good revenue growth (organic growth in mid-teens is expected this year) and have gotten some design “wins” from clients and some longer-term contracts (Raytheon and the live event tech firm Disguise Systems).
They don’t seem likely to become providers of any mainstream products or to become a major player in a huge investment area like 5G, but it might provide niche opportunities. They’ve been losing money for years, and raising funds by selling more shares as they acquire more small companies, so there is some indication that they might be able to reach break-even if they keep growing their top line without ramping up R&D spend further… but I certainly don’t know enough about them after a 10-minute look at the financials to be particularly confident. If they’re a 5G beneficiary, I would expect that the be many years into the future — they don’t look likely to be a 5G pioneer, they’re very small and will probably continue to focus on niche products.