Company Summary: TSS, Inc.

Business Overview

• Type of Business: TSS, Inc. provides comprehensive services related to the planning, design, deployment, maintenance, refresh, and take-back of end-user and enterprise IT systems and mission-critical facilities.
• Core Services:
  • Technology Consulting: advising on infrastructure and deployment strategies
  • Design & Engineering: designing data centers, modular data centers (MDCs), and related facilities
  • Project Management: overseeing deployment, installation, and construction projects
  • Systems Integration: assembling and configuring IT hardware, now including AI-enabled data center racks
  • Systems Installation: setting up hardware/configurations at client facilities
  • Facilities Management: ongoing maintenance, support, and operations of data centers and mission-critical facilities
  • IT Procurement Services: sourcing and purchasing third-party hardware, software, and services, including configuration and integration

Market & Customer Base

• Target Clients:
  • Enterprise organizations
  • Data center operators
  • Modular Data Centers (MDCs)
  • Colocation providers
  • Edge computing facilities
  • OEMs (original equipment manufacturers), with reliance on large relationships, particularly one US-based OEM that accounts for most of the business
• Customer Concentration: Over the last two years, approximately 99% (2024) and 96% (2023) of revenue came from a single OEM customer.

Employees

• Total Employees (As of Dec 31, 2024): 161 full-time employees
• Additional Temporary Workers: Approximately 43, mainly supporting rack integration services
• Employee Relationships: No collective bargaining agreements; relationship with employees is described as very satisfactory

Revenue & Income

• Total Revenue (2024): $148.1 million
  • Growth of 172% from 2023 ($54.4 million)
  • Major contributions:
    • Procurement services: $117.5 million (growth of 205%)
    • Systems integration: $22.6 million (growth of 157%)
    • Facilities management: $8.0 million (growth of 13%)
• Gross Profit (2024): $22.4 million (margin of 15%) compared to $11 million (20%) in 2023
• Net Income (2024): $6.0 million, a significant improvement from a net income of $0.1 million in 2023 and a net loss of $73,000 in 2022
• Profitability: The company has recently turned profitable, with operating income increasing 386% in 2024 and net income increasing nearly 79.8 times compared to 2023.

Recent Developments

• Signed a multi-year AI rack integration agreement with its largest customer in October 2024, supporting high minimum monthly volumes.
• Moving headquarters and production facilities to a new location in Georgetown, Texas in early 2025, with planned capital expenditures of $25-30 million primarily to increase electrical power and cooling capacity.
• Support services expanded to include AI-enabled data center racks, now a significant growth driver.
• The company’s integration and manufacturing capacity will be expanded to support the increased volume of AI rack deployments.
• Customer dependency: Business heavily relies on one OEM, which accounts for the majority of revenue, creating significant customer concentration risk.

Key Financial & Operational Highlights

• Employees (2024): 161 full-time, additional temporary workers (~43)
• Revenue (2024): $148.1 million, up from $54.4 million in 2023
• Net Income (2024): $6.0 million
• Total Assets (2024): $96.6 million
• Total Liabilities (2024): $89.4 million
• Significant investments in new facilities and capital expenditures to support AI rack integration growth
• Significant revenue growth driven by procurement and systems integration segments, especially related to AI data centers
• Profitable year after several years of operating losses, with management optimistic about ongoing profitability in 2025

This summary provides a detailed look at what TSS, Inc. does, its customer base, workforce, and recent financial and operational performance based solely on the provided 10-K filing.