New York, August 15, 2024 - PRISM MarketView - TSS Inc. (TSSI) the data center services company that integrates AI and other high-performance computing infrastructure and software, reported Q2 results that posted 345% growth in net income ($1.4M from $0.3M in the prior year quarter) and 62% improvement in adjusted EBITDA ($2.0M from $1.2M in the prior year quarter). Revenues for the second quarter were $12.2M compared to $14.5M in same period of 2023 with gross profits totaling $4.5M, up 41% from the prior year quarter. The company leads the PRISM AI Datacenter and Infrastructure Index, trading up over ~25%.
In its second quarter the company made a significant investment in its production capacity, which came online at the beginning of June. This expansion, compounded with process improvements, has significantly increased their volume capacity for rack integration and decreased the cycle time to complete each rack within their existing facility. The expansion was driven primarily by the surge in demand for server rack builds related to generative AI, as the AI market expands as a whole.
The volume ramp they’ve been anticipating is now underway. Their OEM customers have robust pipelines and TSS is now seeing their deals beginning to close that includes a significant program that was started in Q2 and should dramatically impact Q3.
“Our performance in the first half of 2024 underscores our focus on execution. We delivered $28 million in total revenue – 33% year-over-year growth – and expanded profitability while simultaneously investing in the business. This is a robust turnaround from the loss in the first half of 2023. Important early AI-based customer programs began in the second quarter and have carried into the third quarter, setting the stage for a strong second half of the year. We remain optimistic about our future as we help shape the future of digital infrastructure.”
Darryll Dewan, CEO of TSS Inc.
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