TSS (TSSI) 17th Annual LD Micro Main Event Conference summary

Strategic priorities and operational improvements

• Focused on fixing factory operations, building demand generation, and strengthening key customer relationships.

• Enhanced leadership, processes, and technology to improve efficiency and execution speed.

• Expanded offerings include systems integration, procurement services, and modular data center solutions.

• Emphasized flexibility, quality, and rapid delivery as core strengths, enabling faster revenue recognition.

• Achieved ISO certification and recognized as Deployment Partner of the Year by a primary partner.

Growth initiatives and market opportunities

• On-site rack integration and data center equipment moves identified as new growth areas.

• Modular data center business expected to drive future revenue, with long lead times for containers.

• Investments in sales and demand generation aimed at capturing AI-driven market growth through 2025-2026.

• AI and edge computing markets seen as significant, with enterprise demand expected to increase.

• Positioned at the intersection of advanced computing and AI, focusing on on-premises and edge solutions.

Financial performance and capital strategy

• Achieved 78% year-over-year revenue growth, with similar gains in operating income and Adjusted EBITDA.

• Maintained a debt-free balance sheet, with plans to finance a new facility via $25M-$30M in bank debt.

• Net working capital improved by $1M despite a decrease in cash, reflecting efficient operations.

• New facility expected to be operational in early 2025, driven by the need for increased power and space.

• Preference for debt over equity financing to avoid shareholder dilution, citing undervalued stock.