HAWTHORNE, Calif.--(BUSINESS WIRE)--
OSI Systems, Inc. (NASDAQ: OSIS), a vertically-integrated provider of
specialized electronics and services, today announced that Mexico's tax
and customs authority, Servicio de Administración Tributaria (SAT) has
exercised contractual options under the six-year turnkey screening
services agreement with OSI's security division, Rapiscan Systems. The
total value of the SAT agreement is currently approximately $900
million, which is at the upper end of the original maximum scope for
this program. The Company had previously announced the minimum obligated
value of $400 million for this program. The duration of the turnkey
services agreement remains at six years.
OSI Systems' CEO, Deepak Chopra, stated, "We are delighted to work with
SAT to support this critical program. Our extensive experience in
implementing leading edge inspection solutions and our operations
expertise make us highly qualified to manage comprehensive programs with
rigorous requirements. We stand to benefit from adding significant
recurring revenues as we will manage the daily operations under this
agreement."
Under the program, Rapiscan Systems will provide complete operations of
inspection sites utilizing x-ray screening technology. Rapiscan will
incorporate staffing, systems integration, data management, and
maintenance support at these sites networked throughout Mexico,
including ports of entry as well as inland checkpoints and airports,
enhancing the Mexican government authorities' capability to interdict
contraband, undeclared, and illegal materials.
Ajay Mehra, President of Rapiscan Systems, stated, "We are gratified by
SAT's confidence in us for this important program, and we look forward
to moving rapidly to the implementation phase."
About OSI Systems, Inc.
OSI Systems, Inc. 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. We combine more than 30 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 Inc.
or any of its subsidiary companies, visit www.osi-systems.com.
News Filter: OSIS-G
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
fulfillment of the above-described authorization, actual revenues from
the authorization, customary termination clauses or future demand for
similar services. The Company provides no assurances that any or all of
customer's rights would or would not be exercised. The actual results
may differ materially from those described in or implied by any
forward-looking statement.
OSI Systems Inc
Ajay Vashishat
Vice President, Business
Development
310-349-2237
avashishat@osi-systems.com
Source: OSI Systems, Inc.
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