Aug 13, 2026 earnings call — Shift to higher-margin systems integration, Vera Rubin buildout
Systems Integration revenue increased 46% year-over-year and represented 39% of total revenue.
Revenue $0.0B (est $0.0B) · EPS $0.05 (est $0.06) · Next-quarter revenue outlook $0.0B–$0.0B
Key quotes
"Our higher-margin Systems Integration business delivered strong growth during the quarter, increasing 46% year-over-year and representing 39% of total revenue compared with just 22% of the total in the second quarter of last year."
"We are in the midst of investing approximately $17 million to build the capacity to support NVIDIA's new Vera Rubin platform. We began this latest round of investment in Q2, and we should be completed in mid-September."
"Revenue from Procurement Services was $18.2 million, a decrease of 45% compared to the prior year quarter."
Analyst Q&A 2
AI rack revenue and power build-out
Q (Matthew Calitri · Needham): He asked why Systems Integration revenue dipped slightly and whether GB200 racks slower to test caused it, and whether the $17 million is for AI readiness and enhanced testing. He also asked what remains on the power and cooling build-out, timing of benefits, and about Dell order volumes and the weekly minimum commitment.
A: The $17 million is for additional power infrastructure and cooling to be ready for NVIDIA's Vera Rubin configuration, and that should drive incremental revenues in future periods. They had completed $7 million to $8 million of the buildout as of quarter end, plan to finish by September, and expect some benefit in Q3 but primarily in Q4 with revenue recognized ratably over the multiyear agreement. Systems Integration revenue was about $13.9 million this quarter (in the same recent range), AI racks were up quarter-over-quarter while mainstream was down a bit, and on Dell they cannot give pipeline detail; they've gone over the weekly minimum once or twice year-to-date and the second-half outlook is strong.
"The $17 million is really investment in additional power infrastructure and cooling capability." — Daniel Chism (CFO)
Long-term growth and constraints for integration
Q (Alex Fuhrman · Lucid): He asked what the long-term growth potential is for Systems Integration if AI server demand stays strong, and what limits how fast and how much revenue that business can generate.
A: They said growth depends on being stellar at operational efficiency and staying ahead of the technology curve, and that constraints include how much power and space are available. They stated they believe they have 2x to 3x capability over the bare minimum in the contract, and that supply-chain issues (for example memory or certain cables) can be a gating item. They also noted increasing interest in modular data center offerings and are considering partnerships and investments in engineering and sales skills to pursue that.
"I have gone public, and I said I think we've got 2x to 3x capability over the bare minimum in the contract." — Darryll Dewan (CEO)