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Analogy 1: Digital Realty or Equinix, but focused on designing, building, and operating custom data centers for enterprises.

Analogy 2: Like a GE Healthcare for data centers, providing the mission-critical facilities and services that companies rely on.

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• Payment Processing Services: Provides authorization, clearing, and settlement for credit, debit, prepaid, and commercial card transactions.
• Issuer Processing Solutions: Offers comprehensive solutions for financial institutions to manage their credit, debit, and prepaid card portfolios.
• Merchant Acquiring Solutions: Delivers services that enable businesses to accept card payments, including point-of-sale and online payment processing.
• Analytics and Fraud Prevention: Supplies data analytics, reporting, and tools to detect and prevent fraudulent payment activities.

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The company TSS (symbol: TSSI) refers to Technical Solutions and Services, Inc.

Please note that Technical Solutions and Services, Inc. (TSSI) was acquired by On Assignment, Inc. (now ASGN Incorporated, NASDAQ: ASGN) in 2011 and no longer operates as an independent public company. Therefore, identifying its current major customers as an independent entity is not possible.

Prior to its acquisition, TSSI was an Information Technology (IT) staffing and consulting firm. It sold primarily to other companies (B2B model).

Due to the nature of the IT staffing and consulting business, and the company's acquisition over a decade ago, specific major customer companies were not typically disclosed publicly, nor are they readily available in historical records. Staffing firms often serve a broad and diverse client base across various industries rather than relying on a few dominant, publicly named customers.

However, TSSI served a wide range of enterprises and government entities seeking IT talent and project-based consulting. Its customer base generally included organizations within the following sectors:

• Financial Services Companies: Such as banks, investment firms, and insurance providers.
• Healthcare and Pharmaceutical Companies: Including hospitals, healthcare systems, and pharmaceutical manufacturers.
• Government Agencies: Covering federal, state, and local government departments requiring IT support and personnel.

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Darryll Dewan, Chief Executive Officer & President

Darryll Dewan has served as a Director, and as CEO and President of TSS since November 2022. Prior to joining TSS, Mr. Dewan was most recently the Vice President Global Sales and Field Marketing at DELL Technologies from 2012 to 2022, where he served as the global sales leader for all direct and indirect sales, field operations, and marketing of the Dell Endpoint Data Security business. He has extensive executive-level sales and service experiences as EVP Global Sales with Credant Technologies, Inc., as the Group President of VA Software Solutions, and was President of i2 Technologies. His early career was spent at IBM.

Danny Chism, Chief Financial Officer

Danny Chism was appointed Chief Financial Officer of TSS Inc. effective June 7, 2024. He brings over 30 years of leadership experience, guiding companies through periods of rapid organic and inorganic growth. Prior to joining TSS, Mr. Chism served in CFO positions at Goodwill Industries of Central Texas, EZCORP, Inc., Cash Solutions Centers, and Gatsby Investments. Before these roles, he was in the audit department of Ernst and Young.

Todd Marrott, Chief Operating Officer

Todd Marrott was recently promoted to Chief Operating Officer (COO) at TSS. He was hired as Senior Vice President – Operations in November 2022. From 2019 until 2022, he was the Vice President – Operations for Applied Technical Services, a privately held full turnkey electronics manufacturer. Prior to this, Mr. Marrott helped transform a number of business operations within many companies including Flex, Solectron, and Moduslink, and has run multiple operational sites globally.

Janet Morrison, Chief People Officer

Janet Morrison is a highly experienced Human Resources professional with over 20 years of expertise in employee relations, talent management, diversity, organizational development, and global HR strategies. She holds two prestigious HR certifications – Senior Professional in Human Resources (SPHR) and Global Professional in Human Resources (GPHR).

Kieran Brennan, Senior Vice President of Business Development

Kieran Brennan was hired as Senior Vice President of Sales & Marketing on January 22, 2018. Prior to joining TSS, from 2013 until January 2018, he was the Director of Sales – Technology for Neovia Logistics Services, LLC, a privately held global third-party logistics and distribution company. From 2010 until 2013, Mr. Brennan was the Director of North America Business Development for Syncreon, Inc., a global contract logistics company. He has also held several senior sales and business development leadership positions with companies including Stream Global Services, Solectron, Modus Media, and Cap Gemini Ernst & Young.

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1. Customer Concentration: TSS (TSSI) is highly dependent on a single OEM customer, widely understood to be Dell, which accounted for 99% and 96% of its total revenues in 2024 and 2023, respectively. This presents a significant risk as a reduction in business or termination of the relationship with this primary customer could severely impact the company's financial performance. The company's business model is described as "highly dependent" on this partnership, offering limited long-term visibility and exposing TSSI to Dell's strategic decisions and cost controls.
2. Margin Pressure and Profitability Challenges: Despite experiencing explosive revenue growth, particularly driven by AI infrastructure demand, TSS has faced persistent margin pressure and lagging profitability. The lower-margin nature of its Procurement segment, which constitutes a large portion of its sales, has been noted to drag down consolidated gross margins, leading to flat earnings per share even with significant top-line growth. Sustaining growth without compromising margins remains an unproven challenge for the company.
3. Competition and Vertical Integration: TSS operates in a competitive landscape where larger players, such as Dell and HP, could vertically integrate their AI infrastructure offerings. Such a move by major hardware providers could diminish TSSI's role as an intermediary, thereby threatening its business model and market position.

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The accelerating trend of enterprises migrating their IT infrastructure and applications to hyperscale public cloud providers (e.g., Amazon Web Services, Microsoft Azure, Google Cloud Platform) reduces the overall demand for new on-premise or co-located physical data center infrastructure, which is TSS's core business. While hybrid cloud models exist and some workloads remain on-premises, the long-term trajectory for many organizations is to minimize owned physical infrastructure, thereby shrinking the market for modular data center solutions.

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Expected Drivers of Future Revenue Growth for TSS (TSSI)

Over the next 2-3 years, TSS, Inc. (TSSI) is expected to experience revenue growth driven by several key factors:

1. Surging Demand for AI and High-Performance Computing (HPC) Infrastructure: TSS specializes in providing data center services, particularly for artificial intelligence (AI) and high-performance computing (HPC) infrastructure. The accelerating demand for complex high-performance computing systems, especially those enabling AI applications, is a significant tailwind for the company. This ongoing global investment in AI and high-performance data centers directly contributes to TSSI's revenue surge.
2. Growth in Procurement and Systems Integration Services: The company's two largest service offerings, procurement and systems integration, are identified as primary drivers of its exceptional performance and growth. Procurement services have shown dramatic increases in revenue, with one quarter reporting a 676% rise, driven by a surge in AI hardware sourcing. Systems integration, including AI rack integration, has also seen substantial growth, such as a 253% increase in Q1 2025, supported by expanding demand for high-performance infrastructure.
3. Expansion of Production Capacity with New Georgetown Facility: The new 213,000 square-foot facility in Georgetown, Texas, which became fully operational in mid-2025, is a crucial enabler for rapid scaling and increased efficiency. This expanded production capacity is essential for meeting the growing demand for increasingly dense AI computing solutions and supporting rapid business scaling.
4. Strategic Partnerships with Original Equipment Manufacturers (OEMs): Strong relationships and strategic partnerships with major OEMs are key to TSSI's operational momentum. These partnerships allow TSS to capitalize on expanded AI investments by enterprise clients and increased infrastructure spending from OEM partners. The company notably won a Dell Technologies 2023 First Choice Partner Award.
5. Increasing Complexity in AI Rack Integration: The growing complexity of AI rack integration, including demands for direct liquid cooling and power testing, enhances TSS's value proposition as a strategic integrator. This specialized expertise and ability to handle intricate AI infrastructure requirements drive demand for their integration business.

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Share Repurchases

• TSS Inc. repurchased approximately $4.48 million of its shares in 2024.
• In 2023, the company executed share repurchases totaling approximately $39,920.
• For 2022, share repurchases amounted to approximately $134,000.

Share Issuance

• In August 2025, TSS, Inc. completed a public offering of 3,000,000 shares of common stock at $17.00 per share, including the full exercise of an over-allotment option, resulting in a total of $58.7 million in proceeds.
• The net proceeds from this offering are intended for general corporate purposes, including working capital and growth capital initiatives, particularly in AI and high-performance computing infrastructure and software integration services.

Inbound Investments

• On September 17, 2025, VTC, L.L.C., a wholly-owned subsidiary of TSS, Inc., amended its credit agreement with Susser Bank, securing an incremental US$5,000,000 term loan.
• This additional loan was used to replenish cash reserves previously allocated for capital expenditures and to support capacity expansion and AI-related projects.

Outbound Investments

• There is no information available regarding significant outbound investments made by TSS (TSSI) in other companies over the last 3-5 years.

Capital Expenditures

• TSS invested approximately $14.9 million in capital expenditures during the first quarter of 2025, primarily for a new facility, which was partially funded by drawing down an $11.3 million construction loan.
• The company's Georgetown facility is now fully operational, enhancing its capacity to integrate advanced AI technologies and shorten delivery timelines.
• Capital expenditures were $257,000 in 2023 and $536,000 in 2022.