One Stop Systems, Inc. (Nasdaq: OSS), a leader in AI Transportable
compute and storage solutions at the edge, today announced that
Michael Knowles has been appointed as its new President and CEO,
effective June 5, 2023.
Knowles has held executive leadership positions at several
defense contractors, including Cubic Corporation, Rockwell Collins,
Lockheed Martin, and Curtiss Wright Defense Solutions. Over his
career he has effectively developed and launched market-changing
technologies and products in both defense and commercial markets.
As President and GM of Cubic Corporation’s Mission and Performance
Solutions business, Knowles led a $700 million global business unit
with 2,000 employees. He directed the development and
implementation of strategies and organizational transformations
that drove significant increases in sales and margin percentage,
and achieved year-over-year growth in bookings, sales, and EBITDA.
His hardware, software and solutions portfolios included rugged
networking/computing at the edge, secure and expeditionary
communications, intelligence processing, assessment distribution
from enterprise-to-edge, high frequency/low SWAP (size, weight, and
power) RF components for electronic warfare, space, 5G
applications, and LVC (live, virtual, and constructive)
multi-domain training systems.
Knowles has more than 30 years of leadership experience in
global aerospace and defense markets, having led successful
business captures resulting in billion-dollar program and product
portfolios. Leveraging 20 years of military experience and 20+
years as a senior executive in business operations, program
management, business capture, and product development, Knowles is a
recognized and inspiring leader whose teams have exceeded financial
and customer expectations, resulting in successful global
businesses with enviable consistent growth and shareholder
value.
“Management and the Board of OSS have been working on a refined
defense-focused strategic plan to spur growth, enhance margins, and
deliver greater shareholder value,” remarked Ken Potashner, OSS
Board Chairman. “Bringing on Michael to lead the team is the
culmination of this planning, which we believe will enable us to
accelerate and scale our defense sector opportunities. We believe
that Michael’s extensive defense experience and proven leadership
will enable us to realize significant gains from the opportunities
before us, in both the defense and commercial sectors.”
“OSS is at a unique and promising inflection point with superior
AI Transportable technology that has the ability to make a dramatic
impact for warfighters globally, ensuring that it is ‘Never a Fair
Fight,” Knowles replied. “I’m excited to build on the inspiring AI
product suite, driving growth in both defense and commercial
markets and creating a powerful business model. OSS has the
foundations for a team, products, and innovation mindset to succeed
in the global marketplace and accelerate greater pipeline and
business growth.”
Michael Knowles was most recently the VP/GM of C5ISR Systems at
Curtiss Wright. Prior to his role at Curtiss Wright, he served as
President of Cubic’s Mission and Performance Solutions, where he
oversaw a broad and diverse C4ISR product and defense training
business. Knowles is a retired Navy officer and Naval Test Pilot
School graduate. He has an MBA from George Mason University, an MS
in Aerospace Engineering from the Naval Postgraduate School, and a
BS in Aerospace Engineering from the US Naval Academy. Knowles is
also a member of the National Defense Industrial Association and
the National Training & Simulation Association, and he has
strong connections in the DOD, commercial, and international
markets.
Consistent with previous announcements, David Raun’s last day as
the company’s President and CEO will be June 5, 2023, the same day
on which Knowles will begin serving in such roles.
“We thank David Raun for his leadership in spearheading our AI
Transportable vision and associated cutting-edge products, enabling
us to establish footholds in new markets and preparing for our
strategic initiatives in defense and AI,” said Potashner. “We are
grateful for his many contributions.”
Inducement Grants under Nasdaq Listing Rule
5635(c)(4)
In connection with, and as a material inducement to, the hiring
and appointment of Knowles as President and CEO of the company, the
company agreed to grant Knowles (i) 400,000 restricted stock units
(RSUs), which shall vest over four years, with one fourth vesting
on the one-year anniversary of the date of grant and the remaining
RSUs vesting in six equal installments, commencing six months after
the one-year anniversary of the grant date and every six months
thereafter until fully vested; and (ii) non-qualified stock options
to purchase 400,000 shares of company common stock, which shall
vest over four years, with one fourth vesting on the one-year
anniversary of the date of grant and the remaining stock options
vesting in six equal installments, commencing six months after the
one-year anniversary of the grant date and every six months
thereafter until fully vested. The stock options will have an
exercise price equal to the closing price of the company’s common
stock on June 5, 2023 (the grant date). The vesting of shares of
common stock underlying the RSUs and non-qualified stock options
will be subject to Knowles’ continuous service with the company
through each applicable vesting date.
The foregoing equity grants were unanimously approved by the
company’s board of directors, and such grants were inducements
material to Knowles entering into employment with the company, in
accordance with Nasdaq Listing Rule 5635(c)(4). The foregoing
equity grants will be made outside of the company’s 2017 Equity
Incentive Plan, as amended, or any other equity incentive plan of
the company.
About One Stop Systems
One Stop Systems, Inc. (Nasdaq: OSS) is a global leader in AI
Transportable solutions for the demanding ‘Edge.’ It designs and
manufactures the highest performance compute and storage products
that enable rugged autonomous and AI capabilities without
compromise. These hardware and software platforms bring the latest
data center performance to the harsh and challenging applications,
whether they are on land, sea or in the air.
OSS products include ruggedized servers, compute accelerators,
flash storage arrays, and storage acceleration software. These
specialized compact products are used across multiple industries
and applications, including autonomous trucking and farming, as
well as aircraft, drones, ships and vehicles within the defense
industry.
OSS solutions address the entire AI workflow, from high-speed
data acquisition to deep learning, training and large-scale
inference, and have delivered many industry firsts for industrial
OEM and government customers.
As the fastest growing segment of the multi-billion-dollar edge
computing market, AI Transportables require—and OSS delivers—the
highest level of performance in the most challenging
environments without compromise.
OSS products are available directly or through global
distributors. For more information, go
to www.onestopsystems.com. You can also follow OSS
on Twitter, YouTube, and LinkedIn.
Forward-Looking Statements
One Stop Systems cautions you that statements in this press
release that are not a description of historical facts are
forward-looking statements. These statements are based on the
company’s current beliefs and expectations. The inclusion of
forward-looking statements should not be regarded as a
representation by One Stop Systems or its partners that any of our
plans or expectations will be achieved, including but not limited
to, the successful transition of the CEO and President roles to
Knowles and the effectiveness and/or success of the company’s
business strategy. Actual results may differ from those set forth
in this press release due to the risk and uncertainties inherent in
our business, including risks described in our prior press releases
and in our filings with the Securities and Exchange Commission
(SEC), including under the heading “Risk Factors” in our Annual
Report on Form 10-K and any subsequent filings with the
SEC. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof,
and the company undertakes no obligation to revise or update this
press release to reflect events or circumstances after the date
hereof. All forward-looking statements are qualified in their
entirety by this cautionary statement, which is made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995.
Media Contacts:Katie RiveraOne Stop Systems,
Inc.Tel (760) 745-9883Email contact
Tim RandallCMA Media RelationsTel (949) 432-7572Email
Contact
Investor Relations:Ronald Both or Grant
StudeCMA Investor RelationsTel (949) 432-7557Email contact
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