HAWTHORNE, Calif.--(BUSINESS WIRE)--
OSI Systems, Inc. (NASDAQ: OSIS), a vertically-integrated provider of
specialized electronics and services, today announced that its security
division, Rapiscan Systems, has been awarded a six-year authorization by
Servicio de Administración Tributaria (SAT), Mexico's tax and customs
authority, to provide inspection services by implementing a wide-ranging
program of cargo and vehicle security screening systems and services
throughout Mexico.
OSI was selected to carry out the program after a thorough and
competitive tender process. OSI is the sole provider for this agreement,
with an initial award size of approximately $400 million over the
six-year duration, and the total award value could increase depending on
finalization of program scope.
OSI Systems' CEO, Deepak Chopra, stated, "The combination of the
magnitude, scope, and duration of the SAT award is unprecedented not
only for us but for the entire security industry. SAT's decision to
select Rapiscan Systems reaffirms the value of our strategy to expand
our security offering beyond the manufacture and sale of screening and
detection equipment by providing comprehensive turnkey screening
services to our global customer base. This unique service model will
result in significant recurring revenue for OSI Systems for the duration
of the program."
Under the program, Rapiscan Systems will provide complete operations of
a comprehensive x-ray screening program, which will incorporate
technology, staffing, systems integration, and maintenance support at
sites networked throughout Mexico, including ports of entry as well as
inland checkpoints and airports. These operational capabilities will
significantly enhance the Mexican government authorities' capability to
interdict contraband and undeclared materials.
Mr. Chopra continued, "The SAT award is OSI's second significant win to
provide turnkey screening services; it follows the ten-year award from
the Puerto Rico Ports Authority (PRPA). Only a small percentage of the
world's cargo volume is currently inspected. There is a growing need and
trend to increase the level of cargo screening worldwide. We intend to
capitalize on our market position to compete for and win future programs
like this one. Our experience and capability to develop and integrate
leading edge inspection technologies coupled with our depth of
operational expertise is unmatched in the industry and makes us uniquely
qualified to secure and manage complex programs like SAT and PRPA."
Ajay Mehra, President of Rapiscan Systems, stated, "The Mexican
government's initiative to secure its borders and highways represents an
important step in the security inspection arena. We are proud to be
selected to execute this critical program and our selection reinforces
the attractiveness and compelling value of our unique turnkey service
model."
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 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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