Albania has awarded security screening solutions provider OSI Systems [OSIS] a potential 15-year, $250 million contract to provide turnkey cargo and vehicle security screening services at various sites throughout the country, further bolstering the company’s screening services customer base.
The company said it currently anticipates between $150 million and $250 million in gross revenues over the lifetime of the contract but said the revenue tally could differ significantly based on the volume of cargo and other factors.
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| Rapiscan Mobile Eagle Cargo Inspection System. Photo: OSI Systems |
OSI Systems’ Rapiscan Systems division already has turnkey screening services contracts in Mexico and Puerto Rico. The company provides its screening equipment and then essentially provides a screening service at various land and seaports on a fee-per-scan basis.
The turnkey services business not only is boosting the company’s revenues and its profits by bolstering margins, it is providing a more reliable revenue stream in an industry that that has always been lumpy in terms of contract awards and revenue generation. The company competes against the likes of Britain’s Smiths Detection, American Science & Engineering [ASEI], L-3 Communications [LLL], SAIC [SAI], and others to provide cargo and vehicle screening solutions worldwide.
On the company’s fourth quarter earnings call earlier this month, OSI Systems officials said they were eyeing additional turnkey services contracts, including in the United States. The officials declined to discuss the U.S. prospects further.