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Ouster Inc. director resigns, board shrinks to seven

EditorEmilio Ghigini
Published 12/03/2024, 02:40 AM
OUST
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SAN FRANCISCO - Ouster, Inc., a company specializing in general industrial machinery and equipment with a market capitalization of $481 million, announced the resignation of director Riaz Valani. The departure, effective November 26, 2024, was confirmed in a recent 8-K filing with the Securities and Exchange Commission (SEC).

According to InvestingPro data, the company maintains a strong financial position with more cash than debt and liquid assets exceeding short-term obligations.

According to the filing, Valani's decision to step down led the Board of Directors to reduce its size from eight to seven members. Ouster, which is incorporated in Delaware and headquartered in San Francisco, expressed gratitude for Valani's contributions during his tenure on the board.

The company, with common stock and warrants listed on the New York Stock Exchange (NYSE:OUST) and warrants expiring in 2025 on the NYSE American (NYSE:OUST WSA), did not provide a reason for Valani's resignation in the SEC filing. As is customary, the company's General Counsel and Secretary, Megan Chung, signed off on the filing, dated today.

This corporate governance update comes as Ouster continues to navigate the competitive landscape of the industrial machinery sector. The reduction in board size may prompt speculation about potential shifts in strategy or governance practices, but the company has not made any further statements regarding the implications of Valani's departure.

Investors and stakeholders in Ouster Inc (NYSE:OUST). will likely watch for any additional announcements that might shed light on the company's direction following this change in its board composition. The information in this article is based solely on the SEC filing and does not include speculation or subjective assessments.

In other recent news, Ouster Inc. has been upgraded from Neutral to Overweight by Cantor Fitzgerald, despite the firm lowering its price target to $10.00, reflecting a more conservative outlook on the company's near-term revenue. This change is based on revised delivery and revenue estimates.

In addition, the firm has adjusted its fiscal year 2026 operating expense projection to $149 million. These revisions account for Ouster's guidance and a more cautious approach to unit delivery expectations.

In terms of financial performance, Ouster reported a record revenue of $28 million in the third quarter of 2024, marking the company's seventh consecutive quarter of meeting or exceeding its financial guidance. This success was underscored by the largest purchase order in the company's history for REV7 sensors and the growing popularity of its BlueCity traffic management solution.

Looking forward, Ouster anticipates revenue for the fourth quarter to be between $29 million and $31 million, with a focus on increasing software sales and expanding its installed base. This strategy targets an annual revenue growth of 30% to 50%. These recent developments come despite a sequential decline in sensor shipments for the second consecutive quarter, as reported in the company's earnings call.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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