Latest news with #TSSI
Yahoo
10-08-2025
- Business
- Yahoo
Shareholders Would Enjoy A Repeat Of TSS' (NASDAQ:TSSI) Recent Growth In Returns
Explore TSS's Fair Values from the Community and select yours Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. And in light of that, the trends we're seeing at TSS' (NASDAQ:TSSI) look very promising so lets take a look. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Understanding Return On Capital Employed (ROCE) For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for TSS, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.25 = US$13m ÷ (US$139m - US$87m) (Based on the trailing twelve months to June 2025). Thus, TSS has an ROCE of 25%. That's a fantastic return and not only that, it outpaces the average of 9.6% earned by companies in a similar industry. Check out our latest analysis for TSS Historical performance is a great place to start when researching a stock so above you can see the gauge for TSS' ROCE against it's prior returns. If you're interested in investigating TSS' past further, check out this free graph covering TSS' past earnings, revenue and cash flow. What The Trend Of ROCE Can Tell Us The fact that TSS is now generating some pre-tax profits from its prior investments is very encouraging. About five years ago the company was generating losses but things have turned around because it's now earning 25% on its capital. And unsurprisingly, like most companies trying to break into the black, TSS is utilizing 992% more capital than it was five years ago. This can tell us that the company has plenty of reinvestment opportunities that are able to generate higher returns. Another thing to note, TSS has a high ratio of current liabilities to total assets of 63%. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. What We Can Learn From TSS' ROCE Overall, TSS gets a big tick from us thanks in most part to the fact that it is now profitable and is reinvesting in its business. Since the stock has returned a staggering 2,114% to shareholders over the last five years, it looks like investors are recognizing these changes. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. If you want to know some of the risks facing TSS we've found 2 warning signs (1 is a bit concerning!) that you should be aware of before investing here. TSS is not the only stock earning high returns. If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
28-03-2025
- Business
- Yahoo
TSS Inc (TSSI) Q4 2024 Earnings Call Highlights: Record Growth and Strategic Expansions
Release Date: March 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TSS Inc (NASDAQ:TSSI) achieved an impressive organic revenue growth of 172% for the full year 2024, highlighting strong demand for their services. The company reported a significant increase in diluted earnings per share, rising from just above break-even in 2023 to $0.24 in 2024. TSS Inc (NASDAQ:TSSI) signed a multi-year agreement with its largest customer, enhancing revenue visibility and reducing operational risk. The company expanded its operational capacity by signing a multi-year lease for a new 213,000 square foot facility in Georgetown, Texas. The systems integration business, including AI racks, experienced a 264% year-over-year growth in Q4 2024, driven by increasing demand for AI-enabled infrastructure. The company anticipates near-term impacts on GAAP net income due to increased facility costs, depreciation, and interest expenses related to the new facility. There are potential quarter-to-quarter fluctuations in revenue due to the large and variable nature of AI infrastructure orders. SG&A expenses increased to $4.2 million in Q4 2024, up from $2.5 million in the previous year, partly due to non-recurring severance expenses. The facilities management segment, while profitable, represents only a small portion of total revenue and has slower growth compared to other segments. The company faces challenges in adapting to rapidly changing technology requirements, such as power and cooling needs for AI infrastructure. Warning! GuruFocus has detected 3 Warning Signs with TSSI. Q: Can you expand on the expected growth in the facilities management division for 2025? A: Darryl Doha, President and CEO: We anticipate growth in our Modular Data Center (MDC) business due to technology changes and design improvements. We're working on shortening the sales cycle and improving component availability to make modular solutions more attractive compared to alternatives like colocation or expanding existing data centers. Q: Are the revenue expectations for facilities management included in your current projections, or would they be additional? A: Darryl Doha, President and CEO: Our projections are conservative, focusing on recurring revenue and service agreement enhancements. If we close deals sooner, it could positively impact our revenue towards the end of the year. Q: What are the margin expectations for the facilities management business compared to other segments? A: Danny Chisholm, CFO: The facilities management business typically has margins around 55%, which is higher than other segments. For the full year, margins were just under 62%, up from 57% last year. Q: What are the plans for the existing facility once the new one is operational? A: Darryl Doha, President and CEO: We have options to sublease the existing facility or expand a portion of our business there. We've enhanced the current facility to take advantage of new technology, and we have time to decide on its future use. Q: Is there room for further improvement in the rack integration business cycle time? A: Darryl Doha, President and CEO: Yes, there's always room for improvement. We've reduced cycle times from weeks to days and hours, and we're exploring technology enhancements to optimize further. Q: How has visibility on orders improved, and what is the outlook for 2025 and 2026? A: Darryl Doha, President and CEO: Visibility has improved to 90-120 days out, with ongoing conversations about upcoming opportunities. We have a minimum volume agreement with our key customer, providing some revenue protection. Q: Are there any design changes in the new facility that will benefit operations? A: Darryl Doha, President and CEO: Yes, the new facility offers increased chiller capacity, power, and square footage. It features a factory-within-a-factory design for better validation and throughput, and improvements in cooling and CDU technology. Q: Were there any one-time costs in Q4 that affected earnings? A: Danny Chisholm, CFO: There were some one-time severance costs included in SG&A, primarily related to the elimination of an executive position. These costs slightly impacted adjusted EPS. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Associated Press
20-03-2025
- Business
- Associated Press
TSS, Inc. to Host Fourth Quarter and Year-End Financial Results Conference Call on March 27, 2025
ROUND ROCK, TX / ACCESS Newswire / March 20, 2025 / TSS, Inc. (NASDAQ:TSSI), a leader in IT hardware and software integration for AI and high-performance computing, will report its 2024 fourth quarter and year-end financial results on March 27, 2025. The Company will conduct a conference call at 5:00 p.m. eastern time that day. To participate on the conference call, please dial 888-506-0062 toll free from the U.S. or Canada. Other international callers may access the call at 1-973-528-0011. The event ID number is 410860. A replay will be available until April 10, 2025. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 52156. Investors may also access a live audio webcast of this conference call and replay the call for one year following the webcast, at About TSS, Inc. TSS specializes in simplifying the complex. The TSS mission is to streamline the integration and deployment of high-performance computing infrastructure and software, ensuring that end users quickly receive and efficiently utilize the necessary technology. Known for flexibility, the company builds, integrates, and deploys custom, high-volume solutions that empower data centers and catalyze the digital transformation of generative AI and other leading-edge technologies essential for modern computing, data, and business needs. TSS's reputation is built on passion and experience, quality, and fast time to value. As trusted partners of the world's leading data center technology providers, the company manages and deploys billions of dollars in technology each year. For more information, visit Forward Looking Statements This press release may contain 'forward-looking statements' -- that is, statements related to future -- not past -- events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as 'guidance,' 'prospects,' 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' 'should,' or 'will.' Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect the Company's future results include: we may not have sufficient resources to fund our business and may need to issue debt or equity to obtain additional funding; our reliance on a significant portion of our revenues from a limited number of customers and our ability to diversify our customer base; risks relating to operating in a highly competitive industry; risks relating to supply chain challenges; risk related to changes in labor market conditions; risks related to the implementation of a new enterprise resource IT system; risks related to the development of our procurement services business; risks relating to rapid technological, structural, and competitive changes affecting the industries we serve; risks involved in properly managing complex projects; risks relating to the possible cancellation of customer contracts on short notice; risks relating to our ability to continue to implement our strategy, including having sufficient financial resources to carry out that strategy; and other risks and uncertainties disclosed in our filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2023. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. Contacts: Hayden IR James Carbonara (646-755-7412) TSS, Inc. Danny Chism, CFO (512) 310-4908
