- Record Q4 Revenues of $481 Million (17% growth
year-over-year)
- Record Fiscal Year Revenues of $1.54 billion (20% growth
year-over-year)
- Q4 Earnings Per Diluted Share
- GAAP Diluted EPS of $2.55
- Record Non-GAAP Diluted EPS of $2.84
- Fiscal Year Earnings Per Diluted Share
- GAAP Diluted EPS of $7.38
- Record Non-GAAP Diluted EPS of $8.13 (31% growth
year-over-year)
- Strong Bookings Lead to Q4-Ended Backlog of Approximately
$1.7 Billion
- Company Provides Fiscal 2025 Revenue and Non-GAAP EPS
Guidance
OSI Systems, Inc. (the “Company” or “OSI Systems”) (NASDAQ:
OSIS) today announced its financial results for the fourth quarter
and fiscal year ended June 30, 2024.
Deepak Chopra, OSI Systems’ Chairman and Chief Executive
Officer, stated, “We are pleased to report strong fourth quarter
financial results as outstanding performance in the Security
division led to record revenues and record adjusted earnings per
share. Fiscal 2024 was a great success for the Company. With a
backlog near all-time highs and visibility into a robust pipeline
of opportunities, we believe we are well positioned for a strong
fiscal 2025.”
For Q4 FY24, the Company reported revenues of $480.9 million, a
17% increase over the $411.9 million reported for the same quarter
of the prior year. Net income for Q4 FY24 was $44.7 million, or
$2.55 per diluted share, compared to net income of $42.4 million,
or $2.46 per diluted share, for the same quarter of the prior year.
Non-GAAP net income for Q4 FY24 was $49.7 million, or $2.84 per
diluted share, compared to non-GAAP net income for the same quarter
of the prior year of $45.8 million, or $2.66 per diluted share.
For the fiscal year ended June 30, 2024, revenues were $1.54
billion, a 20% increase over the $1.28 billion reported for the
prior fiscal year. Net income for the fiscal year ended June 30,
2024 was $128.2 million, or $7.38 per diluted share, compared to
$91.8 million, or $5.34 per diluted share, for the prior fiscal
year. Non-GAAP net income for the fiscal year ended June 30, 2024
was $141.2 million, or $8.13 per diluted share, compared to
non-GAAP net income of $106.7 million, or $6.21 per diluted share,
for the prior year.
As of June 30, 2024, the Company's backlog was approximately
$1.7 billion. Capital expenditures were $8.5 million and
depreciation and amortization was $11.7 million for Q4 FY24.
Mr. Chopra commented, “The Security division’s fourth quarter
and year end results highlight our momentum with robust demand for
our product and service offerings as well as our superior
competitive position in many markets in which we operate, including
in international markets representing substantial growth
opportunities. Security division revenues in the fourth quarter of
fiscal 2024 increased 27% year-over-year, leading to significant
growth in adjusted operating income. Bookings were again solid and,
importantly, even with a considerable conversion of backlog to
revenue during the fourth quarter, our quarter-end backlog remains
near all-time highs. This further bolsters our confidence for
continued strong Security division performance.”
Mr. Chopra continued, “As expected and consistent with our
guidance from last quarter, our Optoelectronics and Manufacturing
division bounced back to report record fourth quarter revenues. I
am proud of the Optoelectronics and Manufacturing team’s focus on
continuous improvement. This division is poised for solid
performance in fiscal 2025 with revenue growth expectations
weighted to the second half.”
Mr. Chopra also said, “We concluded fiscal 2024 with the
strongest quarter of the fiscal year for the Healthcare division.
Although the hospital spending environment continues to pose
challenges for the patient monitoring sector, we anticipate a
stronger fiscal 2025 as compared to fiscal 2024. We are focused on
new product development, principally in our patient monitoring
portfolio, which we believe will unlock new avenues of growth.”
Subsequent to fiscal year end, in July 2024 the Company issued
$350 million of convertible senior notes at an interest rate of
2.25% due in fiscal 2030, the net proceeds of which were partially
used to reduce the outstanding balance under the Company’s
revolving credit facility.
Alan Edrick, Executive Vice President and Chief Financial
Officer, stated, “We were pleased to successfully complete our
convertible notes financing at attractive pricing. We expect this
financing to facilitate continued growth while simultaneously
reducing our weighted average cost of borrowing. This transaction
reflects the strength of our business and is expected to result in
significant interest savings.”
Fiscal Year 2025 Outlook
For fiscal year 2025, the Company anticipates revenues in the
range of $1.620 billion to $1.650 billion and non-GAAP adjusted
earnings per diluted share in the range of $8.80 to $9.15. Actual
revenues and adjusted diluted earnings per share could vary from
this guidance due to factors discussed under “Forward-Looking
Statements” or other factors.
The Company’s fiscal 2025 adjusted diluted earnings per share
guidance is provided on a non-GAAP basis only. The Company does not
provide a reconciliation of guidance for non-GAAP adjusted diluted
EPS to GAAP diluted EPS (the most directly comparable GAAP measure)
on a forward-looking basis because the Company is unable to provide
a meaningful or accurate compilation of reconciling items and
certain information is not available. This is due to the inherent
difficulty and complexity in accurately forecasting the timing and
amounts of various items included in the calculation of GAAP
diluted EPS but excluded in the calculation of non-GAAP adjusted
diluted EPS, such as acquisition costs and other non-recurring
items that have not yet occurred, are out of the Company’s control
or cannot otherwise reasonably be predicted. For the same reasons,
the Company is unable to address the significance of unavailable
information which may be material and therefore could result in
GAAP diluted EPS, the most directly comparable GAAP financial
measure, being materially different from projected non-GAAP
adjusted diluted EPS.
Presentation of Non-GAAP Financial Measures
This earnings release includes a presentation of non-GAAP net
income, non-GAAP adjusted diluted earnings per share, non-GAAP
operating income (loss) by segment and non-GAAP operating margin,
all of which are non-GAAP financial measures. The presentation of
these non-GAAP figures for all fiscal periods is provided to allow
for the comparison of the underlying performance of the Company,
net of impairment, restructuring and other charges (including
certain legal costs), amortization of intangible assets acquired
through business acquisitions, non-cash interest expense, and their
associated tax effects, and the impact of discrete income tax
items. Although we exclude amortization of acquired intangible
assets from our non-GAAP figures, revenue generated from such
intangibles is included within revenue in determining non-GAAP
financial performance of the Company. Management believes that the
non-GAAP financial measures presented in this earnings release
provide (i) enhanced insight into the ongoing operations of the
Company, (ii) meaningful information regarding the Company’s
financial results (excluding amounts management does not view as
reflective of ongoing operating results) for purposes of planning,
forecasting and assessing the performance of the Company’s
businesses, (iii) a meaningful comparison of financial results of
the current period against results of past periods and (iv)
financial results that are generally more comparable to financial
results of peer companies than are GAAP figures. Non-GAAP financial
measures should not be assessed in isolation or as a substitute for
measures of financial performance prepared in accordance with GAAP.
These non-GAAP measures may not be the same as measures used by
other companies due to possible differences in methods and in the
items or events for which adjustments are made.
Reconciliations of GAAP financial information to non-GAAP
financial information are provided in the accompanying tables. The
financial results calculated in accordance with GAAP and
reconciliations from those financial results should be carefully
evaluated.
Conference Call Information
The Company will host a conference call and simultaneous webcast
beginning at 9:00am PT (12:00pm ET) today to discuss its financial
results for the fourth quarter and fiscal year ended June 30, 2024.
To listen, please visit the Investor Relations section of the OSI
Systems website at http://investors.osi-systems.com/index.cfm and
follow the link that will be posted on the front page. A replay of
the webcast will be available beginning shortly after the
conclusion of the conference call until September 13, 2024. The
replay can be accessed through the Company’s website at
www.osi-systems.com.
About OSI Systems
OSI Systems is a vertically integrated designer and manufacturer
of specialized electronic systems and components for critical
applications in the homeland security, healthcare, defense and
aerospace industries. The Company combines more than 40 years of
electronics engineering and manufacturing experience with offices
and production facilities in more than a dozen countries to
implement a strategy of expansion into selective end-product
markets. For more information on OSI Systems and its subsidiary
companies, visit www.osi-systems.com. News Filter: OSIS-E
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements relate to the Company's current
expectations, beliefs, and projections concerning matters that are
not historical facts. Forward-looking statements are not guarantees
of future performance and involve uncertainties, risks,
assumptions, and contingencies, many of which are outside the
Company's control and which may cause actual results to differ
materially from those described in or implied by any
forward-looking statement. Forward-looking statements include, but
are not limited to, information provided regarding expected
revenues, earnings, growth, and operational performance in fiscal
2025 and beyond. The Company could be exposed to a variety of
negative consequences as a result of delays related to the award of
domestic and international contracts; failure to secure the renewal
of key customer contracts; delays in customer programs; delays in
revenue recognition related to the timing of customer acceptance;
the impact of potential information technology, cybersecurity or
data security breaches; changes in domestic and foreign government
spending and budgetary, procurement and trade policies adverse to
the Company's businesses; the impact of the Russia-Ukraine conflict
or conflicts in the Middle East, including the potential for broad
economic disruption; global economic uncertainty; material delays
and cancellations of orders or deliveries thereon, supply chain
disruptions, plant closures, or other adverse impacts on the
Company’s ability to execute business plans; unfavorable currency
exchange rate fluctuations; unfavorable interest rate fluctuations;
effect of changes in tax legislation; market acceptance of the
Company's new and existing technologies, products, and services;
the Company's ability to win new business and convert orders
received to sales within the current fiscal year; contract and
regulatory compliance matters, and actions which, if brought, could
result in judgments, settlements, fines, injunctions, debarment, or
penalties; and other risks and uncertainties, including, but not
limited to, those detailed herein and from time to time in the
Company's Securities and Exchange Commission filings, which could
have a material and adverse impact on the Company's business,
financial condition, and results of operations. For additional
information on these and other factors that could cause the
Company's future results to differ materially from those in any
forward-looking statements, see the section titled "Risk Factors"
in the Company's most recently filed Annual Report on Form 10-K and
other risks described therein and in documents subsequently filed
by the Company from time to time with the Securities and Exchange
Commission. Undue reliance should not be placed on forward-looking
statements, which are based on currently available information and
speak only as of the date on which they are made. The Company
assumes no obligation to update any forward-looking statement made
in this press release that becomes untrue because of subsequent
events, new information, or otherwise, except to the extent
required to do so under federal securities laws.
OSI SYSTEMS, INC. AND
SUBSIDIARIES
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per
share data)
Three Months Ended June
30,
Fiscal Year Ended June
30,
2023
2024
2023
2024
Revenues:
Products
$
321,264
$
390,342
$
958,827
$
1,207,590
Services
90,606
90,565
319,600
331,168
Total net revenues
411,870
480,907
1,278,427
1,538,758
Cost of goods sold:
Products
218,575
274,408
676,772
822,346
Services
50,275
52,182
171,145
185,954
Total cost of goods sold
268,850
326,590
847,917
1,008,300
Gross profit
143,020
154,317
430,510
530,458
Operating expenses:
Selling, general and administrative
67,165
71,745
228,313
269,731
Research and development
15,504
15,859
59,352
65,275
Restructuring and other charges, net
3,200
3,895
7,566
6,391
Total operating expenses
85,869
91,499
295,231
341,397
Income from operations
57,151
62,818
135,279
189,061
Interest and other expense, net
(5,702
)
(8,158
)
(20,041
)
(27,847
)
Income before income taxes
51,449
54,660
115,238
161,214
Provision for income taxes
(9,068
)
(9,981
)
(23,460
)
(33,060
)
Net income
$
42,381
$
44,679
$
91,778
$
128,154
Diluted earnings per share
$
2.46
$
2.55
$
5.34
$
7.38
Weighted average shares outstanding –
diluted
17,249
17,504
17,190
17,354
UNAUDITED SEGMENT
INFORMATION
(in thousands)
Three Months Ended June
30,
Fiscal Year Ended June
30,
2023
2024
2023
2024
Revenues – by Segment:
Security division
$
269,103
$
342,509
$
760,291
$
1,043,073
Optoelectronics and Manufacturing
division, including intersegment revenues
100,918
102,069
387,431
384,268
Healthcare division
59,494
50,305
190,488
171,435
Intersegment eliminations
(17,645
)
(13,976
)
(59,783
)
(60,018
)
Total
$
411,870
$
480,907
$
1,278,427
$
1,538,758
Operating income (loss) – by
Segment:
Security division
$
49,009
$
60,678
$
115,023
$
183,270
Optoelectronics and Manufacturing
division
10,717
10,321
46,680
42,814
Healthcare division
6,546
3,856
11,365
6,013
Corporate
(9,503
)
(10,081
)
(39,075
)
(40,913
)
Intersegment eliminations
382
(1,956
)
1,286
(2,123
)
Total
$
57,151
$
62,818
$
135,279
$
189,061
OSI SYSTEMS, INC. AND
SUBSIDIARIES
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2023
June 30, 2024
Assets
Cash and cash equivalents
$
76,750
$
95,353
Accounts receivable, net
380,845
648,155
Inventories
338,008
397,939
Prepaid expenses and other current
assets
44,300
74,077
Total current assets
839,903
1,215,524
Property and equipment, net
108,933
113,967
Goodwill
349,505
351,480
Intangible assets, net
140,857
139,529
Other non-current assets
116,488
115,508
Total Assets
$
1,555,686
$
1,936,008
Liabilities and Stockholders'
Equity
Bank lines of credit
$
215,000
$
384,000
Current portion of long-term debt
8,076
8,167
Accounts payable and accrued expenses
208,786
248,427
Other current liabilities
139,832
174,043
Total current liabilities
571,694
814,637
Long-term debt
136,491
129,383
Other long-term liabilities
121,336
128,505
Total liabilities
829,521
1,072,525
Total stockholders’ equity
726,165
863,483
Total Liabilities and Stockholders’
Equity
$
1,555,686
$
1,936,008
RECONCILIATION OF GAAP TO
NON-GAAP
NET INCOME AND EARNINGS PER
SHARE
(in thousands, except earnings
per share data)
Three Months Ended June
30,
Fiscal Year Ended June
30,
2023
2024
2023
2024
Net income
EPS
Net income
EPS
Net income
EPS
Net income
EPS
GAAP basis
$
42,381
$
2.46
$
44,679
$
2.55
$
91,778
$
5.34
$
128,154
$
7.38
Restructuring and other charges, net
3,200
0.19
3,895
0.22
7,566
0.44
6,391
0.37
Amortization of acquired intangible
assets
3,706
0.21
4,498
0.26
14,932
0.87
16,766
0.97
Non-cash interest expense
159
0.01
-
-
577
0.03
-
-
Tax benefit of above adjustments
(1,425
)
(0.08
)
(1,796
)
(0.10
)
(5,267
)
(0.30
)
(5,428
)
(0.32
)
Discrete tax expense (benefit)
(2,198
)
(0.13
)
(1,596
)
(0.09
)
(2,844
)
(0.17
)
(4,729
)
(0.27
)
Non-GAAP basis
$
45,823
$
2.66
$
49,680
$
2.84
$
106,742
$
6.21
$
141,154
$
8.13
RECONCILIATION OF GAAP TO
NON-GAAP
OPERATING INCOME (LOSS) AND
OPERATING MARGIN BY SEGMENT
(in thousands, except
percentages)
Three Months Ended June 30,
2023
Security Division
Optoelectronics and Manufacturing
Division
Healthcare Division
Corporate / Elimination
Total
% of
Sales
% of
Sales
% of
Sales
% of
Sales
GAAP basis – operating income (loss)
$
49,009
18.2
%
$
10,717
10.6
%
$
6,546
11.0
%
$
(9,121
)
$
57,151
13.9
%
Restructuring and other charges, net
357
0.1
%
2,460
2.4
%
324
0.6
%
59
3,200
0.8
%
Amortization of acquired intangible
assets
2,627
1.0
%
777
0.8
%
302
0.5
%
-
3,706
0.9
%
Non-GAAP basis– operating income
(loss)
$
51,993
19.3
%
$
13,954
13.8
%
$
7,172
12.1
%
$
(9,062
)
$
64,057
15.6
%
Three Months Ended June 30,
2024
Security Division
Optoelectronics and Manufacturing
Division
Healthcare Division
Corporate / Elimination
Total
% of
Sales
% of
Sales
% of
Sales
% of
Sales
GAAP basis – operating income (loss)
$
60,678
17.7
%
$
10,321
10.1
%
$
3,856
7.7
%
$
(12,037
)
$
62,818
13.1
%
Restructuring and other charges, net
54
0.0
%
2,468
2.4
%
499
1.0
%
874
3,895
0.8
%
Amortization of acquired intangible
assets
2,801
0.8
%
1,396
1.4
%
301
0.6
%
-
4,498
0.9
%
Non-GAAP basis– operating income
(loss)
$
63,533
18.5
%
$
14,185
13.9
%
$
4,656
9.3
%
$
(11,163
)
$
71,211
14.8
%
Fiscal Year Ended June 30,
2023
Security Division
Optoelectronics and Manufacturing
Division
Healthcare Division
Corporate / Elimination
Total
% of
Sales
% of
Sales
% of
Sales
% of
Sales
GAAP basis – operating income (loss)
$
115,023
15.1
%
$
46,680
12.0
%
$
11,365
6.0
%
$
(37,789
)
$
135,279
10.6
%
Restructuring and other charges, net
1,715
0.2
%
2,507
0.7
%
3,077
1.6
%
267
7,566
0.5
%
Amortization of acquired intangible
assets
11,114
1.5
%
2,845
0.7
%
973
0.5
%
-
14,932
1.2
%
Non-GAAP basis– operating income
(loss)
$
127,852
16.8
%
$
52,032
13.4
%
$
15,415
8.1
%
$
(37,522
)
$
157,777
12.3
%
Fiscal Year Ended June 30,
2024
Security Division
Optoelectronics and Manufacturing
Division
Healthcare Division
Corporate / Elimination
Total
% of
Sales
% of
Sales
% of
Sales
% of
Sales
GAAP basis – operating income (loss)
$
183,270
17.6
%
$
42,814
11.1
%
$
6,013
3.5
%
$
(43,036
)
$
189,061
12.3
%
Restructuring and other charges, net
675
0.1
%
3,548
1.0
%
810
0.5
%
1,358
6,391
0.4
%
Amortization of acquired intangible
assets
11,567
1.0
%
3,994
1.0
%
1,205
0.7
%
-
16,766
1.1
%
Non-GAAP basis– operating income
(loss)
$
195,512
18.7
%
$
50,356
13.1
%
$
8,028
4.7
%
$
(41,678
)
$
212,218
13.8
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240822161482/en/
For Additional Information,
Contact: OSI Systems, Inc. Ajay Vashishat Vice
President, Business Development Tel: (310) 349-2237
avashishat@osi-systems.com
OSI Systems (NASDAQ:OSIS)
Historical Stock Chart
From Oct 2024 to Nov 2024
OSI Systems (NASDAQ:OSIS)
Historical Stock Chart
From Nov 2023 to Nov 2024
