Financial Performance - Record Q4 revenues of $481 million, representing a 17% year-over-year growth[1] - Record fiscal year revenues of $1.54 billion, a 20% increase compared to the previous fiscal year[3] - Q4 GAAP diluted EPS of $2.55 and record non-GAAP diluted EPS of $2.84, up from $2.66 in the same quarter last year[2] - Fiscal year GAAP diluted EPS of $7.38 and record non-GAAP diluted EPS of $8.13, reflecting a 31% growth year-over-year[3] - Total revenues for the three months ended June 30, 2024, were $480,907, a 16.7% increase from $411,870 for the same period in 2023[14] - The Security division reported revenues of $342,509 for the three months ended June 30, 2024, up from $269,103, representing a 27.2% increase[14] - Operating income for the total company for the three months ended June 30, 2024, was $62,818, compared to $57,151 for the same period in 2023, reflecting an increase of 9.3%[14] - The company reported a GAAP net income of $44,679 for the three months ended June 30, 2024, compared to $42,381 for the same period in 2023, an increase of 5.4%[17] - Non-GAAP net income for the three months ended June 30, 2024, was $49,680, up from $45,823 for the same period in 2023, reflecting a 4.0% increase[17] Future Outlook - Anticipated fiscal year 2025 revenues in the range of $1.620 billion to $1.650 billion, with non-GAAP adjusted EPS guidance of $8.80 to $9.15[6] - Strong Q4 backlog of approximately $1.7 billion, indicating robust demand and future revenue visibility[3] - Focus on new product development in the Healthcare division, particularly in patient monitoring, to drive future growth[5] Assets and Liabilities - Cash and cash equivalents increased to $95,353 as of June 30, 2024, from $76,750 as of June 30, 2023, marking a 24.2% increase[16] - Accounts receivable rose significantly to $648,155 as of June 30, 2024, compared to $380,845 as of June 30, 2023, an increase of 70.4%[16] - Total assets increased to $1,936,008 as of June 30, 2024, from $1,555,686 as of June 30, 2023, representing a growth of 24.4%[16] - The total liabilities increased to $1,072,525 as of June 30, 2024, from $829,521 as of June 30, 2023, an increase of 29.3%[16] Operating Income and Expenses - Total GAAP operating income for the company was $189.06 million, which is 12.3% of total sales[21] - Total operating income (loss) on a Non-GAAP basis was $212.22 million, representing 13.8% of total sales[21] - GAAP operating income for the Security Division was $183.27 million, representing 17.6% of sales[21] - Non-GAAP operating income for the Optoelectronics Manufacturing Division was $50.36 million, accounting for 13.1% of sales[21] - The Healthcare Division reported an operating income of $8.03 million, which is 4.7% of its sales[21] - Restructuring and other charges amounted to $6.39 million, representing 0.4% of total sales[21] - The Security Division's restructuring charges were $675,000, equating to 0.1% of its sales[21] - The Optoelectronics Manufacturing Division incurred restructuring charges of $3.55 million, or 1.0% of its sales[21] - Corporate/Elimination segment reported a loss of $41.68 million[21] Capital Management - Successful issuance of $350 million convertible senior notes at an interest rate of 2.25%, aimed at reducing borrowing costs[5] - Capital expenditures of $8.5 million and depreciation and amortization of $11.7 million reported for Q4 FY24[3]

Wall Street analysts expect OSI Systems (OSIS) to post quarterly earnings of $2.79 per share in its upcoming report, which indicates a year-over-year increase of 4.9%. Revenues are expected to be $466.48 million, up 13.3% from the year-ago quarter. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Prior to a company's earnings announcem ...

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> This airport security and full-body scanner manufacturer is expected to post quarterly earnings of $2.79 per share in its upcoming report, which represents a year-over-year change of +4.9%. Revenues are expected to be $466.48 million, up 13.3% from the year-ago quarter. For OSI, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a ...

Building on this momentum, the company recently announced that its Security division has secured an order valued at approximately $17 million from an international customer. OSI Systems will also provide comprehensive services, including system installation, training and multi-year service and maintenance support, underscoring its commitment to delivering integrated security solutions globally. OSI Systems Prospects Strong Further bolstering its market presence, in June, OSI Systems announced an $11-million ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. - ...

Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either TDK Corp. (TTDKY) or OSI Systems (OSIS) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emp ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-23125 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OSI SYSTEMS, INC. For the quarterly period ended March 31, 2024 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Third Quarter Fiscal 2024 Performance](index=1&type=section&id=Third%20Quarter%20Fiscal%202024%20Performance) The company reported record third-quarter revenues of $405.4 million, a 34% year-over-year increase, and a 54% rise in GAAP Diluted EPS to $1.95, primarily driven by the Security division, maintaining a strong backlog of approximately $1.8 billion Q3 FY2024 vs Q3 FY2023 Financial Highlights | Metric | Q3 FY2024 | Q3 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $405.4M | $302.9M | +34% | | Net Income (GAAP) | $34.0M | $21.8M | +56% | | Diluted EPS (GAAP) | $1.95 | $1.27 | +54% | | Net Income (Non-GAAP) | $37.7M | $25.6M | +47% | | Diluted EPS (Non-GAAP) | $2.16 | $1.49 | +45% | - The company's backlog was approximately **$1.8 billion** as of March 31, 2024, with a **book-to-bill ratio of 1.0** for the third quarter[5](index=5&type=chunk) [Year-to-Date Fiscal 2024 Performance](index=1&type=section&id=Year-to-Date%20Fiscal%202024%20Performance) For the first nine months of fiscal 2024, revenues grew to $1.06 billion from $866.6 million in the prior-year period, with GAAP diluted EPS seeing a significant increase to $4.82 from $2.88 year-over-year Nine Months Ended March 31, 2024 vs 2023 Financial Highlights | Metric | Nine Months FY2024 | Nine Months FY2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1.06B | $866.6M | +22% | | Net Income (GAAP) | $83.5M | $49.4M | +69% | | Diluted EPS (GAAP) | $4.82 | $2.88 | +67% | | Net Income (Non-GAAP) | $91.5M | $61.0M | +50% | | Diluted EPS (Non-GAAP) | $5.29 | $3.55 | +49% | [Business Segment Performance](index=1&type=section&id=Business%20Segment%20Performance) The Security division was the primary growth driver with a 60% year-over-year revenue increase and significant operating income growth, while Optoelectronics and Manufacturing reported softer revenues due to customer inventory adjustments, and Healthcare continued to face challenges from the hospital spending environment - The Security division's revenues increased **60% year-over-year**, driving significant operating income growth and adjusted operating margin expansion, with the quarter-end backlog remaining strong despite substantial revenue conversion[6](index=6&type=chunk) - The Optoelectronics and Manufacturing division experienced softer Q3 revenues as some customers adjusted inventory levels and delayed deliveries, with a solid fourth quarter anticipated[6](index=6&type=chunk) - The Healthcare division was challenged by the hospital spending environment, with the company focusing on new product development, particularly in its patient monitoring portfolio, to drive future growth[6](index=6&type=chunk) [Fiscal Year 2024 Outlook](index=2&type=section&id=Fiscal%20Year%202024%20Outlook) OSI Systems reiterated its fiscal 2024 revenue growth guidance of over 19% and increased its non-GAAP adjusted diluted EPS growth guidance from greater than 29% to greater than 30% compared to fiscal 2023 - The company reiterates its fiscal 2024 revenue guidance, anticipating growth in excess of **19%** over fiscal 2023[8](index=8&type=chunk) - The company increased its non-GAAP adjusted diluted EPS guidance for fiscal 2024 from over **29% growth** to over **30% growth** compared to the previous fiscal year[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The income statement for the three and nine months ended March 31, 2024, shows a significant year-over-year increase in total net revenues, gross profit, and income from operations, leading to a substantial rise in net income and diluted earnings per share Condensed Consolidated Statements of Operations (in thousands) | | Three Months Ended March 31, | Nine Months Ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | **2024** | **2023** | | **Total net revenues** | **$405,406** | **$302,889** | **$1,057,851** | **$866,557** | | Gross profit | $136,095 | $103,786 | $376,141 | $287,490 | | Income from operations | $51,363 | $34,337 | $126,243 | $78,128 | | **Net income** | **$34,043** | **$21,808** | **$83,475** | **$49,397** | | **Diluted EPS** | **$1.95** | **$1.27** | **$4.82** | **$2.88** | [Unaudited Segment Information](index=4&type=section&id=Unaudited%20Segment%20Information) This section details revenues and operating income by division, highlighting that the Security division's substantial growth in both metrics for the three and nine-month periods more than compensated for the slight declines in the Optoelectronics and Healthcare divisions Segment Revenues (in thousands) | Segment | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Security | $285,960 | $178,752 | $700,564 | $491,188 | | Optoelectronics | $87,974 | $93,888 | $282,199 | $286,513 | | Healthcare | $41,493 | $43,911 | $121,130 | $130,994 | Segment Operating Income (in thousands) | Segment | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Security | $50,127 | $29,496 | $122,592 | $66,014 | | Optoelectronics | $9,435 | $12,493 | $32,493 | $35,963 | | Healthcare | $1,564 | $1,787 | $2,157 | $4,819 | [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, the company's balance sheet shows total assets of $1.83 billion, an increase from $1.56 billion at June 30, 2023, primarily driven by increases in accounts receivable and inventories, funded partly by an increase in bank lines of credit Condensed Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Total current assets | $1,119,250 | $839,903 | | **Total Assets** | **$1,831,075** | **$1,555,686** | | Total current liabilities | $761,682 | $571,694 | | **Total liabilities** | **$1,017,662** | **$829,521** | | **Total stockholders' equity** | **$813,413** | **$726,165** | [Non-GAAP Financial Measures and Reconciliations](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Presentation of Non-GAAP Financial Measures](index=2&type=section&id=Presentation%20of%20Non-GAAP%20Financial%20Measures) The company explains its use of non-GAAP financial measures to provide a clearer comparison of its underlying operational performance, excluding items like impairment, restructuring charges, amortization of acquired intangible assets, and certain tax effects not reflective of ongoing results - Management believes non-GAAP measures offer enhanced insight into ongoing operations and provide a more meaningful comparison of financial results across periods and against peer companies[10](index=10&type=chunk) - Adjustments to GAAP figures include impairment, restructuring charges, amortization of intangible assets from acquisitions, non-cash interest expense, and associated tax effects[10](index=10&type=chunk) [Reconciliation of GAAP to Non-GAAP Net Income and EPS](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income%20and%20EPS) This section provides a detailed reconciliation from GAAP to non-GAAP net income and EPS, where for Q3 FY24, GAAP net income of $34.0 million was adjusted for items like restructuring charges ($1.0M) and amortization of intangibles ($3.9M) to arrive at a non-GAAP net income of $37.7 million Q3 FY2024 GAAP to Non-GAAP Reconciliation (in thousands, except EPS) | Description | Net Income | EPS | | :--- | :--- | :--- | | **GAAP basis** | **$34,043** | **$1.95** | | Restructuring and other charges | $1,004 | $0.06 | | Amortization of acquired intangible assets | $3,881 | $0.22 | | Tax effect of adjustments & discrete items | ($1,268) | ($0.07) | | **Non-GAAP basis** | **$37,660** | **$2.16** | [Reconciliation of GAAP to Non-GAAP Operating Income by Segment](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Operating%20Income%20by%20Segment) These tables reconcile GAAP to non-GAAP operating income and margin for each business segment, showing that for Q3 FY24, the company's total non-GAAP operating margin was 13.9%, compared to a GAAP margin of 12.7%, with the Security division's non-GAAP operating margin at 18.6% Q3 FY2024 GAAP to Non-GAAP Operating Income Reconciliation (in thousands) | Segment | GAAP Operating Income | Adjustments | Non-GAAP Operating Income | | :--- | :--- | :--- | :--- | | Security | $50,127 | $2,985 | $53,112 | | Optoelectronics | $9,435 | $1,284 | $10,719 | | Healthcare | $1,564 | $612 | $2,176 | | **Total** | **$51,363** | **$4,885** | **$56,248** | Nine Months FY2024 GAAP to Non-GAAP Operating Income Reconciliation (in thousands) | Segment | GAAP Operating Income | Adjustments | Non-GAAP Operating Income | | :--- | :--- | :--- | :--- | | Security | $122,592 | $9,387 | $131,979 | | Optoelectronics | $32,493 | $3,678 | $36,171 | | Healthcare | $2,157 | $1,215 | $3,372 | | **Total** | **$126,243** | **$14,764** | **$141,007** | [Other Information](index=2&type=section&id=Other%20Information) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) The company announced it would host a conference call and simultaneous webcast on the morning of the earnings release to discuss the financial results - A conference call and webcast were scheduled for **9:00 am PT (12:00 pm ET)** on **April 25, 2024**, to discuss the financial results[12](index=12&type=chunk) [About OSI Systems](index=3&type=section&id=About%20OSI%20Systems) OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense, and aerospace industries - The company has over **40 years of experience** in electronics engineering and manufacturing, with facilities in more than a dozen countries[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, cautioning that forward-looking statements regarding future performance are subject to various risks and uncertainties that could cause actual results to differ materially from expectations - Forward-looking statements in the release relate to current expectations about revenues, earnings, and growth, and are not guarantees of future performance[15](index=15&type=chunk) - Risks include contract award delays, supply chain disruptions, global economic uncertainty, and other factors detailed in the company's SEC filings[15](index=15&type=chunk)

Financial Performance - Total net revenues for the six months ended December 31, 2023, increased to $652,445,000, up 15.7% from $563,668,000 in the same period of 2022[9] - Net income for the three months ended December 31, 2023, was $36,553,000, representing a 123.5% increase compared to $16,354,000 in the same period of 2022[11] - Gross profit for the six months ended December 31, 2023, rose to $240,046,000, a 30.5% increase from $183,704,000 in the same period of 2022[9] - Net income for the six months ended December 31, 2023, increased to $49,432 thousand, up from $27,589 thousand in the same period of 2022, representing an increase of 79%[16] - Basic earnings per share for the six months ended December 31, 2023, rose to $2.92, compared to $1.63 for the same period in 2022, reflecting an increase of 79%[20] - The company reported a diluted earnings per share of $2.11 for the three months ended December 31, 2023, compared to $0.96 for the same period in 2022, marking a 119.8% increase[9] - Total revenues for the six months ended December 31, 2023, were $652,445,000, an increase from $563,668,000 in the same period of 2022, representing a growth of 15.7%[86] Cash and Liquidity - Cash and cash equivalents decreased to $76,750,000 as of June 30, 2023, down from $127,258,000 as of December 31, 2022[8] - Cash and cash equivalents at the end of the period totaled $127,258 thousand, a significant increase from $45,600 thousand at the end of the previous year[16] - Cash and cash equivalents increased by $50.5 million, or 65.8%, to $127.3 million at December 31, 2023, from $76.8 million at June 30, 2023[133] - As of December 31, 2023, cash and cash equivalents totaled $127.3 million, with approximately 92% held by foreign subsidiaries[141] Assets and Liabilities - Total current liabilities decreased to $571,694,000 as of June 30, 2023, from $700,391,000 as of December 31, 2022, reflecting a reduction of approximately 18.3%[8] - Total assets decreased to $1,555,686,000 as of June 30, 2023, from $1,726,477,000 as of December 31, 2022, a decline of approximately 9.9%[8] - The company’s retained earnings as of December 31, 2023, were $782,508,000, down from $735,957,000 as of June 30, 2023[13] - The warranty provision balance at the end of the period was $10,496,000, down from $10,734,000 at the beginning of the period[76] Research and Development - Research and development expenses for the six months ended December 31, 2023, were $32,272,000, up from $28,996,000 in the same period of 2022, indicating a growth of 7.9%[9] - Research and development expenses for YTD Q2 fiscal 2024 increased by $3.3 million, or 11.4%, to $32.3 million, primarily due to compensation costs related to new product development initiatives[129] Acquisitions and Investments - In December 2023, the company acquired a privately held contract manufacturer for approximately $6.3 million, financed with cash on hand[33] - In October 2023, the company acquired a provider of radiation detection technology for approximately $2.8 million, plus up to $3.6 million in potential contingent consideration[34] Revenue by Division - The Security division generated revenues of $414,604,000 for the six months ended December 31, 2023, up from $312,436,000 in the prior year, reflecting a growth of 32.8%[86] - Revenues from the Security division accounted for 64% of total consolidated revenues for the six months ended December 31, 2023, up from 55% in the same period of 2022[94] - The Security division's revenues increased by 49.3% year-over-year in Q2 fiscal 2024, reaching $250 million, driven by growth in cargo and vehicle inspection systems sales[111] - The Optoelectronics and Manufacturing division's revenues decreased by 3.8% year-over-year in Q2 fiscal 2024, totaling $81.4 million[113] - The Healthcare division's revenues decreased by 3.9% year-over-year in Q2 fiscal 2024, primarily due to a reduction in patient monitoring sales of $4.8 million[114] Operating Expenses - Total operating expenses for YTD Q2 fiscal 2024 were $165.2 million, an increase of $25.3 million, or 18.1%, from $139.9 million in the same prior-year period[128] - The company recognized $1.5 million in restructuring and other charges for the six months ended December 31, 2023, compared to $3.5 million for the same period in 2022[50] Market Conditions and Risks - The company faces uncertainties due to global economic factors, including inflationary pressures and supply chain disruptions, which may impact demand for its products and services[98] - The ongoing conflict between Russia and Ukraine has increased global economic and political uncertainty, potentially disrupting the company's supply chain and access to resources[106] Tax and Compliance - The effective tax rate for the six months ended December 31, 2023, was 21.0%, compared to 21.6% for the same period in 2022[83] - The company recognized a net discrete tax benefit of $2.3 million from changes in prior year tax estimates during the six months ended December 31, 2023[83] Other Financial Metrics - Interest expense related to the credit facility increased from $5.0 million in Q4 2022 to $7.0 million in Q4 2023[55] - Stock-based compensation expense for Q4 2023 was $7.328 million, slightly up from $7.239 million in Q4 2022[59] - Total unrecognized compensation cost related to share-based compensation grants was estimated at $1.2 million for stock options and $23.8 million for restricted stock units as of December 31, 2023[59]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-23125 OSI SYSTEMS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 33-0238801 (I.R.S. Employer Identification No.) 12525 Chadron Avenue Hawthorne, California 9025 ...