(Source: Business Wire)
OSI Systems, Inc. (NASDAQ:OSIS), a vertically integrated provider of
specialized electronics, today announced financial results for the first
quarter ended September 30, 2009.
Deepak Chopra, OSI Systems' Chairman and CEO, stated, "We had a very
successful first quarter of fiscal 2010 despite the impact of a
challenging economic environment. Outstanding bookings led to a backlog
of $234 million at quarter-end, positioning the Company for substantial
sales and earnings growth for fiscal 2010. We are pleased to again
demonstrate significantly improved earnings while simultaneously
generating excellent free cash flow. These achievements are the direct
result of our initiatives to implement organizational changes that have
reduced our cost structure and improved our overall operating
efficiencies."
The Company reported revenues of $133.8 million for the first quarter of
fiscal 2010, a decrease of $14.4 million, or 9.7%, from the $148.2
million reported for the first quarter of fiscal 2009. Net income for
the first quarter of fiscal 2010 was $2.5 million, or $0.14 per diluted
share, compared to net income of $0.1 million, or $0.01 per diluted
share, for the first quarter of fiscal 2009.
As of September 30, 2009, the Company's backlog of $234 million compared
to $203 million as of June 30, 2009, an increase of 15%. During the
three months ended September 30, 2009, the Company generated cash flow
from operations of $10.5 million.
Mr. Chopra continued, "Our Security Division is well-positioned to
realize significant growth during fiscal 2010. With outstanding bookings
of $77 million during the first quarter, our Security Division achieved
arecord backlog of $146 million by quarter-end, which is a 26% increase
since the beginning of the fiscal year. Among the contracts we received
during the quarter is a $25 million order for multiple units of the
Rapiscan Secure 1000 Single Pose advanced checkpoint security screening
solution. This order is the first to be placed under the terms of our
recently awarded $173 million Indefinite Delivery, Indefinite Quantity
(IDIQ) contract from the TSA."
Mr. Chopra concluded, "Our Healthcare division achieved a record
operating profit in the first quarter of fiscal 2010 aided by the
proactive measures undertaken in the prior fiscal year to reduce our
fixed cost structure. Although Healthcare sales declined due to a
challenging macroeconomic environment, we are beginning to see positive
signs for recovery. As sales to hospitals improve, this division is well
positioned to experience strong operating margin expansion."
Fiscal Year 2010 Outlook
Subject to the risk factors detailed in the Safe Harbor section of this
press release, the Company announced that it anticipates fiscal 2010
sales to be between $620 million and $640 million, representing a 5% to
8% increase over fiscal 2009 and 10% to 15% year-over-year growth for
the nine-months ending June 30, 2010. In addition, the Company is
raising its earnings guidance and expects earnings per diluted share to
increase at a rate of 25-35% to between $1.14 to $1.23, excluding the
impact of restructuring and other non-recurring charges incurred in
fiscal 2009.
Conference Call Information
OSI Systems, Inc. will host a conference call and simultaneous webcast
over the Internet beginning at 9:00am PT (12:00pm ET) today to discuss
its results for the first quarter of fiscal 2010. To listen, please log
on to www.fulldisclosure.com
or www.osi-systems.com
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 at 12:00pm PT (3:00pm ET) until November 10, 2009. The
replay can either be accessed through the Company's website, www.osi-systems.com,
or via telephonic replay by calling 1-888-286-8010 and entering the
conference call identification number 88847525' 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 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
located in more than a dozen countries. It 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.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such
statements include information regarding the Company's expectations,
goals or intentions about the future, including the Company's
predictions about the cash generating potential of its businesses and
future earnings. The actual results may differ materially from those
described in or implied by any forward-looking statement. In particular,
there can be no assurance that the Company will continue to generate
cash, that strong sales by its Security division will continue to occur
in the future, or that cost-cutting measures in its Healthcare division
will ultimately prove beneficial. Other important factors are set forth
in our Securities and Exchange Commission filings. All forward-looking
statements speak only as of the date made, and we undertake no
obligation to update these forward-looking statements.
OSI SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited)
Three Months EndedSeptember 30,
2008 2009
Revenue $ 148,161 $ 133,761
Cost of goods sold 98,526 89,294
Gross profit 49,635 44,467
Operating expenses:
Selling, general and administrative 37,541 32,280
Research and development 10,213 7,989
Restructuring and other charges 801 -
Total operating expenses 48,555 40,269
Income from operations 1,080 4,198
Interest expense, net (895 ) (605 )
Income before income taxes 185 3,593
Income tax expense 53 1,083
Net income $ 132 $ 2,510
Diluted earnings per share $ 0.01 $ 0.14
Weighted average shares outstanding -- diluted 18,166 17,818
-------------------------------------------------------------------------------
Consolidated Balance Sheets (in thousands)
June 30, September 30,
2009 2009
Assets
Cash and cash equivalents $ 25,172 $ 24,630
Accounts receivable, net 110,453 112,542
Inventories 150,763 141,755
Other current assets 36,855 38,910
Total current assets 323,243 317,837
Non-current assets 151,585 157,422
Total assets $ 474,828 $ 475,259
Liabilities and Shareholders' Equity
Bank lines of credit $ 4,000 $ 2,000
Current portion of long-term debt 8,557 8,497
Accounts payable and accrued expenses 68,813 69,267
Other current liabilities 54,265 52,515
Total current liabilities 135,635 132,279
Long-term debt 39,803 33,867
Other long-term liabilities 23,390 29,314
Total liabilities 198,828 195,460
Total shareholders' equity 276,000 279,799
Total liabilities and equity $ 474,828 $ 475,259
-------------------------------------------------------------------------------
Segment Information (in thousands)
Three Months EndedSeptember 30,
2008 2009
Revenues -- by Segment:
Security division $ 58,685 $ 47,335
Healthcare division 54,827 46,962
Optoelectronics and Manufacturing division, including intersegment revenues 44,882 45,791
Intersegment revenues elimination (10,233 ) (6,327 )
Total $ 148,161 $ 133,761
Operating income (loss) -- by Segment:
Security division $ 3,048 $ 1,969
Healthcare division (1,824 ) 1,495
Optoelectronics and Manufacturing division 3,863 3,461
Corporate (4,185 ) (3,280 )
Eliminations 178 553
Total $ 1,080 $ 4,198
-------------------------------------------------------------------------------
A service of YellowBrix, Inc.
