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
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