-
Record Q2 Revenue - 11% increase over prior year
-
Record Q2 Earnings Per Share - 30% increase over prior year
-
Security Division wins $400 million turnkey agreement after quarter
end
-
Company raises FY 2012 Revenue guidance to $750 - $770 million (14%
- 17% growth)
-
Company raises FY 2012 Earnings guidance to $2.30 - $2.42 per share
(25% - 32% growth)
HAWTHORNE, Calif.--(BUSINESS WIRE)--
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 Ended
December 31,
|
|
|
For the Six Months Ended
December 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 Ended
December 31,
|
|
|
|
Six Months Ended
December 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 including
intersegment
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, Inc.
Ajay Vashishat
Vice President,
Business Development
310-349-2237
avashishat@osi-systems.com
Source: OSI Systems, Inc.
News Provided by Acquire Media
