[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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 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) Delaware (State or other jurisdiction of ...

OSI Systems, Inc. (NASDAQ:OSIS) Q3 2023 Earnings Conference Call April 27, 2023 12:00 PM ET Company Participants Alan Edrick - Executive Vice President and Chief Financial Officer Deepak Chopra - President and Chief Executive Officer Conference Call Participants Josh Nichols - B. Riley Brian Ruttenbur - Imperial Capital Jeff Martin - Roth Capital Larry Solow - CJS Securities Operator Thank you for standing by and welcome to the OSI Systems, Inc. Third Quarter 2023 Conference Call. [Operator Instructions] As ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 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 ...

S, INC. New projects Integration SaaS, Software as a Service Systems and inspection training programs GLOBAL INSPECTION INTEGRATION MARKET OVERVIEW Automation of inspection operations worldwide Simulated locations Vendor agnostic platform Software as a Service model Significant opportunity pipeline 16 Air cargo market upgrading to ACSTL and EDS Standard 3 Innovative, customer-focused solution design & development, consulting, staffing and training enabling affordable access to state-of-the-art technology Pr ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 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 ...

OSI Systems, Inc. (NASDAQ:OSIS) Q2 2023 Earnings Conference Call January 26, 2023 12:00 PM ET Company Participants Alan Edrick - Executive Vice President and CFO Deepak Chopra - President and CEO Conference Call Participants Brian Ruttenbur - Imperial Capital Larry Solow - CJS Securities Christopher Glynn - Oppenheimer Jeff Martin - ROTH Capital Partners Josh Nichols - B. Riley Operator Good day, and thank you for standing by. Welcome to OSI Systems, Inc. Second Quarter 2023 Conference Call. [Operator Instr ...

SECURITY, OPTOELECTRONICS AND HEALTHCARE SOLUTIONS FOR A SAFER & HEALTHIER WORLD Investor Presentation November 2022 1 Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to the Company's current expectations, beliefs, and projections concerning matters that are no ...