OSI Systems [OSIS]
4Q17 4Q16 FY ’17 FY ‘16
Sales $252.4M $221.5M $961M $829.7M
Net Inc. $1.5M, 0.08 $5.9M, 0.30 $21.1M, 1.07 $26.2M, 1.30
The top line in the fourth quarter was up 14% on the strength of a 33% increase in sales at the Rapiscan Systems security segment, which posted $147.2 million in sales. Rapiscan’s sales benefited from $23 million in revenue gained through the acquisition of the former American Science & Engineering in the first quarter and a 12% rise in organic revenue. Net income slid 75% due to a $1.5 million loss at Rapiscan, which posted $8.1 million in operating income a year ago. The company says the Security segment was hit with about $17.5 million in asset impairment charges at its turnkey services work in Mexico. Excluding various charges, operating margin at Rapiscan grew 5.4% to 15.2%. Security bookings in the quarter were $198 million and $554 million for the year, which excludes the turnkey services contracts. Security sales in the quarter were $555.2 million and operating income was $35.3 million. Deepak Chopra, OSI’s chairman and CEO, says on the earnings call that Rapiscan has been realigned “so that the Cargo and Solutions group focuses on cargo and vehicle inspection and the Detection group on checkpoint security systems and security detection instruments. He also says that Mal Maginnis, formerly president of Smiths Detection and then managing director of Iveagh Technology Pte Ltd. in Singapore, has been named president of the Detection group. Ajay Mehra still leads the Cargo and Solutions Group.