OSI Systems [OSIS]
3Q19
3Q18
Sales $304.4M $267.3M
Net Inc. $19.6M, $1.05 $2.6M, 0.13
Sales increased 14% to a record on strong increases in sales in all of the company’s segments, with the Security segment up 14 percent to a record $193.5 million. The company credited demand for its cargo and vehicle inspection products and “robust” sales of its Real Time Tomography 110 explosives detection system for screening checked bags for driving the top line growth. “The overall opportunity pipeline at airports and cargo facilities is quite strong and our sales and operations team is ramping up for expected increased demand as we move into fiscal 2020,” says Deepak Chopra, OSI’s CEO. Net income rose substantially due to a benefit from restructuring efforts versus a $14.1 million charge a year ago, combined with margin expansion in each of the company’s operating segments. The company says a relatively new turnkey screening services contract with Guatemala is going well with operations expected to begin later this calendar year. Free cash flow was $38.6 million. OSI raised it sales guidance for FY ’19 slightly but still approaching $1.2 billion with adjusted earnings between $4.10 and $4.30 per share versus prior guidance of $3.93 to $4.10.