OSIS OSI Systems Inc

OSI Systems, Inc. (NASDAQ: OSIS) today announced financial results for the quarter ended September 30, 2011.

Deepak Chopra, OSI Systems’ Chairman and CEO, stated, “We had an exceptional first quarter of bookings leading to a record backlog of $413 million at quarter-end, which positions the Company well for continued outstanding sales and earnings growth. Our strong first quarter sales led to solid earnings growth.”

The Company reported revenues of $161.3 million for the first quarter of fiscal 2012, an increase of $32.8 million, or 26%, from the $128.5 million reported for the first quarter of fiscal 2011. Net income for the first quarter of fiscal 2012 was $4.8 million, or $0.24 per diluted share, compared to net income of $3.4 million, or $0.18 per diluted share, for the first quarter of fiscal 2011.

As of September 30, 2011, the Company’s backlog was $413 million compared to $304 million as of June 30, 2011, an increase of 36%. During the three months ended September 30, 2011, the Company generated cash flow from operations of $10 million.

Mr. Chopra continued, “Our Security division began fiscal 2012 with a tremendous first quarter and is well-positioned for significant growth. With outstanding first quarter bookings of $185 million, our Security backlog grew to a record $319 million by quarter-end, which is a 59% increase since the beginning of the fiscal year. We had a number of important wins across our diversified product portfolio and customer base. Leading the way was a $98 million contract with the U.S. Army as part of a $248 million Indefinite Delivery, Indefinite Quantity (IDIQ) contract.”

Mr. Chopra added, “We are also pleased with the very strong performance in our Optoelectronics and Manufacturing division, as sales jumped 34% over the prior year and operating income grew to $4.9 million, a 44% increase over prior year.”

Mr. Chopra concluded, “The environment for our Healthcare division continues to be challenging. However, despite the difficult economic environment impacting medical equipment sales, we reported sales of $46.5 million during the quarter, a 1% improvement over the prior year. Going forward, with recent product launches, increasing order activity, and newly established long-term contracts with major healthcare Group Purchasing Organizations (GPO’s), we anticipate an acceleration of top line growth in this division.”

Fiscal Year 2012 Outlook

Subject to the risk factors detailed in the Safe Harbor section of this press release, the Company announced that it is raising its fiscal 2012 sales guidance to be between $740 million and $760 million, representing a 13% to 16% increase over fiscal 2011. In addition, the Company is raising its earnings guidance and expects diluted earnings per share to increase at a rate of 23% to 30% to between $2.27 to $2.40, excluding the impact of restructuring and other charges.

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 first quarter of fiscal 2012. To listen, please log on to www.fulldisclosure.com or www.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 November 8, 2011. 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 ‘79400775’ 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. News Filter: OSIS-E

Safe Harbor Statement

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)

  Three Months Ended

September 30,

2010                 2011 Revenue $ 128,453 $ 161,317 Cost of goods sold   81,555     108,460   Gross profit 46,898 52,857   Operating expenses: Selling, general and administrative 31,976 34,367 Research and development 9,231 10,880 Restructuring and other charges   256     —   Total operating expenses   41,463     45,247   Income from operations 5,435 7,610 Interest and other expense, net   (590 )   (799 ) Income before income taxes 4,845 6,811 Income tax expense   1,453     2,050   Net income $ 3,392   $ 4,761     Diluted income per share $ 0.18   $ 0.24   Weighted average shares outstanding – diluted   19,078     20,089      

                               

Consolidated Balance Sheets

(in thousands)

(Unaudited)

  June 30, September 30, 2011 2011 Assets Cash and cash equivalents $ 55,619 $ 58,363 Accounts receivable, net 136,716 130,607 Inventories 169,634 187,957 Other current assets   43,317   41,149 Total current assets 405,286 418,076 Non-current assets   179,630   180,196 Total assets $ 584,916 $ 598,272   Liabilities and Stockholders' Equity Accounts payable and accrued expenses 80,666 88,106 Other current liabilities   80,315   73,984 Total current liabilities 160,981 162,090 Long-term debt 2,756 2,641 Other long-term liabilities   36,379   44,350   Total liabilities 200,116 209,081   Total stockholders’ equity   384,800   389,191   Total liabilities and equity $ 584,916 $ 598,272    

               

Segment Information

(in thousands)

(Unaudited)

  Three Months Ended

September 30,

2010                 2011 Revenues – by Segment: Security division $ 51,097 $ 72,597 Healthcare division 45,924 46,520 Optoelectronics and Manufacturing division, including intersegment revenues 41,911 53,091 Intersegment revenues elimination   (10,479 )   (10,891 )   Total $ 128,453   $ 161,317     Operating income (loss) – by Segment: Security division $ 2,111 $ 3,845 Healthcare division 2,598 2,398 Optoelectronics and Manufacturing division 3,421 4,938 Corporate (2,176 ) (3,307 ) Eliminations   (519 )   (264 )   Total $ 5,435   $ 7,610