OSIS OSI Systems Inc

In the SEGMENT INFORMATION table, Revenues – by Segment, Security division line, Three Months Ended December 31, 2014 should read $137,005 (instead of $37,005) and Six Months Ended December 31, 2015 should read $190,130 (instead of $90,130).

The corrected release reads:

OSI SYSTEMS REPORTS SECOND QUARTER FISCAL 2016 FINANCIAL RESULTS

OSI Systems, Inc. (NASDAQ: OSIS) today announced financial results for the fiscal quarter ended December 31, 2015.

“We entered fiscal 2016 with expectations of a challenging first half followed by a stronger second half. Though this is turning out to be true, the challenges associated with the global economy proved to be greater than anticipated leading to disappointing first half financial results. Despite this, we are encouraged by our strong first half bookings, which we believe positions us to rebound nicely in the second half of fiscal 2016,” said Deepak Chopra, OSI Systems’ Chairman and CEO.

The Company reported revenues of $197 million for the second quarter of fiscal 2016, a decrease of 23% as compared to the same period a year ago. Net income for the second quarter of fiscal 2016 was $0.1 million, or $0.01 per diluted share, compared to net income of $18.2 million, or $0.89 per diluted share, for the second quarter of fiscal 2015. Excluding the impact of impairment, restructuring and other charges, net income for the second quarter of fiscal 2016 would have been $8.1 million, or $0.40 per diluted share, compared to net income of $19.7 million, or $0.96 per diluted share, for the comparable quarter of the prior year.

For the six months ended December 31, 2015, the Company reported revenues of $397 million, a decrease of 17% as compared to the same period a year ago. Net income in this period was $10.9 million, or $0.53 per diluted share, compared to net income of $29.5 million, or $1.44 per diluted share, in the same period a year ago. Excluding the impact of impairment, restructuring and other charges, net income for the six months ended December 31, 2015 would have been $19.0 million, or $0.93 per diluted share, compared to net income of $31.5 million, or $1.54 per diluted share, for the comparable period in the prior year.

As of December 31, 2015, the Company’s backlog was approximately $695 million. During the second fiscal quarter, cash flow used in operations was $5.3 million.

Mr. Chopra stated, “As expected, our Optoelectronics and Manufacturing division sales decreased year over year. However, operational improvements, together with a more favorable product mix and a migration to more profitable customers, resulted in a 9.4% operating margin, excluding the impact of impairment, restructuring and other charges. This represented our fifth consecutive quarter of year-over-year operating margin expansion.”

Mr. Chopra continued, “During the second quarter of the prior fiscal year, our Security division revenues included approximately $39 million from a Foreign Military Sale to the U.S. Department of Defense for use in Iraq, creating a difficult comparison for the current fiscal year. Our fiscal 2016 second quarter results were further impacted by the deferral of revenue recognition for equipment shipped during the quarter. As a result, we began the process of streamlining certain functions in the Security division. Actions already completed are expected to result in approximately $6 million of annual cost savings with further opportunities being considered. Security division bookings in the first half were up 272% over the prior year. These bookings, together with the ramp up of our turnkey program in Albania and a solid pipeline of opportunities, position the division well for a strong second half weighted to the fourth quarter based upon the anticipated timing of converting our backlog and opportunities into revenue.”

Mr. Chopra concluded, “During the second quarter, our Healthcare division sales were well below expectations. A variety of factors contributed to the performance. Management changes are in process to ensure we have the right leadership in place in our Healthcare division. Based upon a detailed review of our funnel of opportunities and product portfolio, we are optimistic that our Healthcare division sales will rebound during the second half of the fiscal year.”

Fiscal Year 2016 Outlook

Based on the information known as of today, the Company’s updated current fiscal 2016 sales guidance is $900 million - $945 million and earnings guidance is $2.95 to $3.20 per diluted share, excluding the impact of impairment, restructuring and other charges. Actual sales and diluted EPS could vary from this guidance including as a result of the matters discussed under the “Forward-Looking Statements” section.

Conference Call Information

OSI Systems, Inc. will host a conference call and simultaneous webcast over the Internet beginning at 1:30pm PT (4:30pm ET), today to discuss its results for the second quarter of fiscal 2016. To listen, please visit the investor relations section of the OSI Systems website, 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 shortly after the conclusion of the conference call until February 12, 2016. The replay can either be accessed through the Company’s website, www.osi-systems.com, or by telephonic replay by calling 1-855-859-2056 and entering the conference call identification number '35653465’ 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 and provides related services 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 in more than a dozen countries. The Company 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

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, projections and similar expressions concerning matters that are not historical facts and are not guarantees of future performance. Forward-looking statements 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 and growth in fiscal 2016. In addition, 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; delays in customer programs; delays in revenue recognition related to the timing of customer acceptance; unanticipated impacts of sequestration and other provisions of the Budget Control Act of 2011 as modified by the Bipartisan Budget Act of 2013; changes in domestic and foreign government spending, budgetary, procurement and trade policies adverse to the Company's businesses; unfavorable currency exchange rate fluctuations; market acceptance of the Company's new and existing technologies, products and services; the Company's ability to win new business and convert any orders received to sales within the fiscal year in accordance with the Company's operating plan; enforcement actions in respect of any noncompliance with laws and regulations including export control and environmental regulations and the matters that are the subject of some or all of the Company's ongoing investigations and compliance reviews; contract and regulatory compliance matters, and actions, if brought, resulting in judgments, settlements, fines, injunctions, debarment or penalties, as well as 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 any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2015 and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. All forward-looking statements 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 it is required to do so in connection with requirements under federal securities laws.

    OSI SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

  Three Months Ended

December 31,

Six Months Ended

December 31,

  2014       2015     2014       2015   Revenues $ 257,829 $ 197,339 $ 476,226 $ 397,389 Cost of goods sold   168,555     129,275     312,710     261,354   Gross profit 89,274 68,064 163,516 136,035 Operating expenses: Selling, general and administrative 47,894 43,141 92,076 83,534 Research and development 13,240 13,045 25,910 24,926 Impairment, restructuring and other charges   2,079     11,097     2,805     11,097   Total operating expenses   63,213     67,283     120,791     119,557   Income from operations 26,061 781 42,725 16,478 Interest expense and other, net   (832 )   (623 )   (1,696 )   (1,417 ) Income before income taxes 25,229 158 41,029 15,061 Provision for income taxes   6,988     50     11,539     4,148   Net income $ 18,241   $ 108   $ 29,490   $ 10,913     Diluted earnings per share $ 0.89   $ 0.01   $ 1.44   $

0.53

  Weighted average shares outstanding – diluted   20,487     20,386     20,506     20,427    

CONSOLIDATED BALANCE SHEETS

(in thousands)  

June 30, 2015

  December 31, 2015

(Unaudited)

Assets Cash and cash equivalents $ 47,593 $ 79,789 Accounts receivable, net 178,519 157,799 Inventories 230,421 280,600 Other current assets   84,988   89,252 Total current assets 541,521 607,440 Non-current assets   438,153   402,951 Total Assets $ 979,674 $ 1,010,391   Liabilities and Stockholders' Equity Bank lines of credit $ -- $ 55,000 Current portion of long-term debt 2,801 2,752 Accounts payable and accrued expenses 114,525 122,960 Deferred revenues 47,787 36,609 Other current liabilities   84,168   88,294 Total current liabilities 249,281 305,615 Long-term debt 8,556 7,257 Deferred income taxes 65,435 65,582 Other long-term liabilities   74,623   64,329 Total liabilities 397,895 442,783 Total stockholders’ equity   581,779   567,608 Total Liabilities and Stockholders’ Equity $ 979,674 $ 1,010,391  

SEGMENT INFORMATION

(in thousands) (unaudited)    

Three Months Ended December 31,

Six Months Ended

December 31,

 

2014

      2015     2014      

2015

 

Revenues – by Segment:

Security division

$

137,005

$ 93,720 $ 250,444 $

190,130

Healthcare division 69,493 55,548 117,327 107,013 Optoelectronics and Manufacturing division (including intersegment revenues) 65,535 60,560 134,621 123,108 Intersegment revenues eliminations   (14,204 )   (12,489 )   (26,166 )   (22,862 ) Total $ 257,829   $ 197,339   $ 476,226   $ 397,389     Operating income (loss) – by Segment: Security division (1) $ 20,401 $ 2,534 $ 37,660 $ 15,169 Healthcare division (2) 7,489 3,380 7,551 6,318 Optoelectronics and Manufacturing division (3) 4,366 3,192 8,693 8,753 Corporate (4) (5,733 ) (7,903 ) (10,250 ) (13,105 ) Eliminations   (462 )   (422 )   (929 )   (657 ) Total $ 26,061   $ 781   $ 42,725   $ 16,478     (1)     Includes impairment, restructuring and other charges of $1.7 million and $1.8 million for the three and six months ended December 31, 2014, respectively, and $6.3 million for the three and six months ended December 31, 2015, respectively. (2) Includes impairment, restructuring and other charges of $0.1 million and $0.2 million for the three and six months ended December 31, 2014, respectively. (3) Includes impairment, restructuring and other charges of $0.1 million and $0.2 million for the three months and six months ended December 31, 2014, respectively, and $2.5 million for the three and six months ended December 31, 2015, respectively. (4) Includes impairment, restructuring and other charges of $0.2 million and $0.6 million for the three months and six months ended December 31, 2014, respectively, and $2.3 million for both the three and six months ended December 31, 2015.   Reconciliation of GAAP to Non-GAAP

(in thousands, except earnings per share data)

(unaudited)

    Three Months Ended December 31, Six Months Ended December 31, 2014   2015 2014   2015 Net income   EPS Net income   EPS Net income   EPS Net income  

EPS*

GAAP basis $ 18,241 $ 0.89 $ 108 $ 0.01 $ 29,490 $ 1.44 $ 10,913 $

0.53

  Impairment, restructuring and other charges, net of tax   1,503   0.07   8,041   0.39   2,016   0.10   8,041   0.39   Non-GAAP basis $ 19,744 $ 0.96

$

8,149

$ 0.40 $ 31,506 $ 1.54 $ 18,954 $

0.93

  *     Due to rounding, the GAAP basis EPS of $0.53 plus the add-back EPS of $0.39 equals $0.93.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160127006235/en/

OSI Systems, Inc.Ajay VashishatVice President, Business DevelopmentTel: (310) 349-2237avashishat@osi-systems.com