OSI Systems, Inc. (NASDAQ: OSIS-E), a vertically integrated
provider of solutions in Security, Healthcare, and specialized
electronics, today announced financial results for the second
quarter ended December 31, 2011.
Deepak Chopra, OSI Systems’ Chairman and CEO, stated, “We are
very pleased to announce outstanding financial results for our
second quarter. Our success was evident throughout all of OSI as
each of our divisions reported both sales and earnings growth
leading to record sales and earnings in our second quarter. In
addition to the impressive financial performance during the
quarter, perhaps our bigger news is the $400 million, six-year
security agreement with the Servicio de Administración Tributaria
(“SAT”), Mexico’s tax and customs authority, awarded shortly after
the quarter ended. This turnkey screening services agreement will
have a profound impact on our business and our ability to enhance
shareholder value.”
The Company reported revenues of $188 million for the second
quarter of fiscal 2012, an increase of 11% as compared to the same
period a year ago. Net income for the second quarter of fiscal 2012
was $12.3 million, or $0.61 per diluted share, compared to net
income of $9.2 million, or $0.47 per diluted share, for the second
quarter of fiscal 2011.
For the six months ended December 31, 2011, the Company reported
revenues of $349.3 million, an increase of 17% as compared to the
same period a year ago. Net income for the six months ended
December 31, 2011 was $17.1 million, or $0.85 per diluted share,
compared to net income of $12.6 million, or $0.65 per diluted
share, for the six months ended December 31, 2010.
As of December 31, 2011, the Company’s backlog was $377 million
compared to $304 million as of June 30, 2011, an increase of
24%.
Mr. Chopra continued, “During the second quarter our Security
division continued to see excellent growth as revenues increased
16% to a record $89 million. The Security division has now had
growth of at least 15% in four of the past five quarters. Our
strong backlog at quarter end, which does not include the $400
million turnkey award, and a robust opportunity pipeline, provide
excellent visibility into continued strong performance in this
division.”
Mr. Chopra added, “Our Healthcare division generated record
profits during the quarter as operating income increased 47% on
revenue growth of 6%. We saw an improved U.S. market with a
positive response to our recent new product offerings. This growth
in our most profitable region coupled with the impact of our cost
reduction initiatives implemented over the past several years led
to second quarter operating income of $8.3 million and an operating
margin of 14%, both of which are records for our Healthcare
division. In addition, newly established long-term contracts with
major healthcare Group Purchasing Organizations (GPO’s) are
expected to contribute to continued growth in the U.S. market.”
Alan Edrick, OSI System’s Executive Vice President and CFO,
stated, “Our second quarter results continue the strong momentum
demonstrated consistently over the past few years. The significant
increase in profit in our Healthcare division highlights the
substantial leverage of this business. In addition, we are very
excited by the prospects of the Mexico turnkey screening solutions
award which is expected to provide a substantial recurring revenue
and profit stream to OSI.”
Fiscal Year 2012 Outlook
Subject to the risk factors detailed in the Safe Harbor section
of this press release, the Company is raising its annual revenue
guidance from $740 million - $760 million to a range of $750
million - $770 million. In addition, the Company is raising its
fiscal 2012 earnings guidance and expects earnings per diluted
share to increase at a rate of 25% - 32% to a range of $2.30 to
$2.42, excluding the impact of restructuring and other
non-recurring charges. In addition, the impact of the security
agreement with SAT is not considered in the Company’s guidance
pending further clarity on expected timing.
Conference Call Information
OSI Systems, Inc. will host a conference call and simultaneous
webcast over the Internet beginning at 9:00am PT (12:00pm ET),
today to discuss its results for the second quarter of fiscal 2012.
To listen, please log on to osi-systems.com and follow the link
that will be posted on the front page. A replay of the webcast will
be available shortly after the conclusion of the conference call at
12:00pm PT (3:00pm ET) until February 6, 2012. The replay can
either be accessed through the Company’s website,
www.osi-systems.com, or via telephonic replay by calling
1-888-286-8010 and entering the conference call identification
number ‘42408250’ when prompted for the replay code.
About OSI Systems, Inc.
OSI Systems, Inc. is a vertically integrated designer and
manufacturer of specialized electronic systems and components for
critical applications. The Company sells its products in
diversified markets, including homeland security, healthcare,
defense and aerospace. The Company has more than 30 years of
experience in electronics engineering and manufacturing and
maintains offices and production facilities located in more than a
dozen countries. It implements a strategy of expansion by
leveraging its electronics and contract manufacturing capabilities
into selective end product markets through organic growth and
acquisitions. For more information on OSI Systems Inc. or any of
its subsidiary companies, visit www.osi-systems.com.
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements include information regarding the
Company’s expectations, goals or intentions about the future,
including, the Company’s predictions about future sales and
earnings. The actual results may differ materially from those
described in or implied by any forward-looking statement. In
particular, there can be no assurance that the Company will
continue to generate cash or that strong sales by its Security
division will continue to occur in the future. Other important
factors are set forth in our Securities and Exchange Commission
filings. All forward-looking statements speak only as of the date
made, and we undertake no obligation to update these
forward-looking statements.
OSI SYSTEMS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share
data)
(Unaudited)
For the Three Months
EndedDecember 31,
For the Six Months EndedDecember
31,
2010 2011 2010 2011
Revenues $ 169,287 $ 187,993 $ 297,740 $ 349,310
Cost of goods sold
109,264 122,169 190,819
230,629 Gross profit 60,023 65,824 106,921
118,681 Operating expenses: Selling, general and
administrative expenses 33,958 35,979 65,934 70,346
Research and development
11,842 11,546 21,073 22,426 Restructuring, and other charges
903 - 1,159 -
Total operating expenses 46,703 47,525
88,166 92,722 Income from
operations 13,320 18,299 18,755 25,909 Interest expense and other,
net (506 ) (721 ) (1,096 ) (1,520 )
Income before income taxes 12,814 17,578 17,659 24,389
Provision for income taxes 3,596 5,277
5,049 7,327 Net income $ 9,218
$ 12,301 $ 12,610 $ 17,062
Diluted earnings per share $ 0.47 $ 0.61 $ 0.65
$ 0.85 Weighted average shares outstanding -
diluted 19,475 20,237 19,289
20,161
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
June 30, December 31, 2011 2011
Assets Cash and cash equivalents $ 55,619 $ 52,868 Accounts
receivable, net 136,716 145,314 Inventories 169,634 205,789 Other
current assets 43,317 36,429 Total current assets 405,286 440,400
Non-current assets 179,630 184,837 Total Assets $
584,916 $ 625,237
Liabilities and Stockholders'
Equity Accounts payable and accrued expenses $ 80,887 $ 102,621
Other current liabilities 80,094 75,230 Total current liabilities
160,981 177,851 Long-term debt 2,756 2,554 Other long-term
liabilities 36,379 44,467 Total liabilities 200,116
224,872 Total shareholders’ equity 384,800
400,365 Total Liabilities and Equity $ 584,916 $ 625,237
Segment Information
(in thousands)
(unaudited)
Three Months EndedDecember
31,
Six Months EndedDecember
31,
2010 2011 2010 2011
Revenues – by Segment Group: Security Group $ 76,703 $
88,977 $ 127,800 $ 161,574 Healthcare Group 55,799 59,193 101,723
105,713
Optoelectronics and Manufacturing Group
includingintersegment revenues
47,682 51,359 89,593 104,450 Intersegment revenues elimination
(10,897 ) (11,536 ) (21,376 ) (22,427 )
Total $ 169,287 $ 187,993 $ 297,740 $ 349,310
Operating income (loss) – by Segment Group:
Security Group $ 7,004 $ 8,001 $ 9,115 $ 11,846 Healthcare Group
5,664 8,325 8,262 10,723 Optoelectronics and Manufacturing Group
4,270 4,451 7,691 9,389 Corporate (3,072 ) (2,599 ) (5,248 ) (5,906
) Eliminations (546 ) 121 (1,065 )
(143 ) Total $ 13,320 $ 18,299 $ 18,755
$ 25,909
OSI Systems (NASDAQ:OSIS)
Historical Stock Chart
From Jun 2024 to Jul 2024
OSI Systems (NASDAQ:OSIS)
Historical Stock Chart
From Jul 2023 to Jul 2024