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, 2021 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. Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the ...

Financial Performance - The company reported record revenues of $332 million in Q4 2021, representing a 20% growth year-over-year, driven by strong performance in the Security and Opto divisions [9][30] - Non-GAAP adjusted diluted earnings per share (EPS) for Q4 was $1.54, up 26% from the previous year, while the full year non-GAAP EPS was $5.32, a 16% increase [9][10] - Operating cash flow for Q4 was $8 million, contributing to a record total of $139 million for the fiscal year [10][41] - The book-to-bill ratio was 1.0 in Q4 and 1.2 for the full fiscal year, with a backlog of nearly $1.1 billion, a 25% increase from the start of fiscal 2021 [11] Business Segment Performance - **Security Division**: Q4 revenues increased 23% year-over-year to $202 million, with a backlog 21% higher than the previous year. Global bookings rose 14% from Q4 2020 [13][30] - **Optoelectronics Division**: Q4 revenues were $92 million, a 37% increase year-over-year, with full-year revenues reaching $350 million, up 23% [22][30] - **Healthcare Division**: Q4 revenues were $52 million, about 10% below the previous year, attributed to strong prior year demand due to COVID-19 [24][30] Market Data and Trends - The company noted a gradual return of passenger airport activity to pre-COVID levels, with ongoing upgrades to security infrastructure being discussed with aviation customers [15] - The U.S. infrastructure bill is expected to positively impact the company, particularly in airport and port upgrades [20] Company Strategy and Industry Competition - The company aims to focus on increasing recurring revenues, strategic acquisitions, and advancing technology and product offerings [28][46] - The management believes they are gaining market share relative to competitors, particularly in the cargo space, due to a diverse product portfolio and strong operational execution [78][80] Management Commentary on Operating Environment and Future Outlook - Management expressed cautious optimism regarding growth in fiscal 2022, emphasizing the importance of managing risks associated with the ongoing pandemic [45][91] - The company anticipates solid revenue growth in Security and Opto divisions, with a modest reduction in Healthcare revenues due to challenging comparisons [43][44] Other Important Information - The company has a strong balance sheet with net leverage of approximately 1.0 and no outstanding borrowings on its credit facility [42] - Significant investments in R&D were made, particularly in Security and Healthcare, with plans for increased investment in fiscal 2022 [36][82] Q&A Session Summary Question: Can you provide direction on the segments, particularly Security? - Management believes there will be growth in Security without the comparable from Mexico, supported by a strong backlog and opportunity pipeline [51] Question: What are the expectations for margins in the Security segment? - Management aims for top-line growth coupled with operating margin expansion, with opportunities to sustain and expand margins moving forward [52][53] Question: What is the status of personnel in Afghanistan? - All personnel and subcontractors have been safely evacuated, and revenues from Afghanistan are expected to be minimal in fiscal 2022 [61][62] Question: Can you provide revenue levels from CertScan and turnkey programs? - Recurring revenue was about 37% for Security and Healthcare, with expectations to increase this percentage in fiscal 2022 [63] Question: How is the company positioned in the automotive sector? - The company is well-positioned in the automotive sector, particularly with electric vehicle platforms, and has strong demand from both domestic and European brands [105]

Company Overview - OSI Systems is a leading provider of advanced, high-reliability electronics solutions for critical applications in diversified essential markets[5] - The company operates through three divisions: Security (64% of FY2020 revenue), Optoelectronics (20% of FY2020 revenue), and Healthcare (16% of FY2020 revenue)[7] - The company has a diverse and essential markets providing continued opportunities for growth[8] Financial Performance and Growth - The company's revenue for FY2020 was $1.166 billion[9] - The company's FY21 revenue guidance is $1.123 - $1.148 billion[9] - The company's Non-GAAP EPS for FY20 was $4.60, with FY21 guidance of $5.15 - $5.40[9] - The company has strong operating cash flow, with ~$575 million in operating cash flow over the last 5 years[13] Strategic Advantages - The company has technology leadership, portfolio breadth, turnkey solutions experience, and vertically-integrated, low-cost manufacturing[8] - The company has a large and growing global marquee customer base[8] - The company has a diversified revenue model including systems, service, and components[8] - The company is targeting attractive markets that provide considerable growth opportunities[14]

Financial Performance - The company achieved record non-GAAP fiscal Q3 earnings per share of $1.38, up 15% from Q3 of fiscal 2020 [8] - Q3 adjusted operating margin was 12.6%, a 170-basis point increase from 10.9% in the same period last year [8] - Operating cash flow for Q3 was $42 million, with a record total of $131 million for the first nine months of fiscal 2021 [8][38] - Revenues in Q3 were $284 million compared to $293 million in the prior year Q3, with strong sales growth in Healthcare and Opto divisions offset by a 19% decline in Security division revenues [28][29] Business Line Performance - **Security Division**: Revenues decreased by 19% year-over-year due to pandemic impacts, but adjusted operating margins improved to 17.9% [29][36] - **Healthcare Division**: Revenues increased by 18% year-over-year, with significant operating margin expansion to 13.9% [21][37] - **Optoelectronics and Manufacturing Division**: Revenues were $19 million, a 29% increase year-over-year, with record operating income and backlog [23] Market Performance - The Security division's bookings were solid with a book-to-bill ratio of 1.1 for Q3, indicating a strong backlog of $1.1 billion [11][30] - The Healthcare division saw strength across multiple geographic channels, particularly in North America [29] - Opto division experienced growth in defense, space communication, and automotive sectors, indicating a broad customer base [24][71] Company Strategy and Industry Competition - The company is focused on executing its strategy for a safer and healthier world, with investments in product development and potential strategic acquisitions [42] - The company aims to maintain leadership in providing innovative products and solutions, leveraging a broad portfolio to capture large customers [66] - The company is well-positioned in the market with a strong product offering, particularly in cargo and border security [78] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the Security division as pandemic-related challenges begin to ease, with a strong backlog expected to drive revenue growth in Q4 [50][64] - The Healthcare division is expected to face some headwinds from COVID-related purchases but is investing in R&D for future growth [51] - Overall, management is optimistic about fiscal 2022, anticipating a return to normalcy and continued growth across divisions [55] Other Important Information - The company reported a decrease in SG&A expenses by 12% year-over-year, contributing to improved operating margins [33] - R&D expenses were $13.9 million, reflecting a commitment to innovation despite a slight decrease from the previous year [34] - The company has a strong balance sheet with net leverage of approximately 1.0, allowing for continued investment in growth [38] Q&A Session Summary Question: Outlook for Security division growth - Management noted that visibility for Q4 is strong, with a solid backlog and expectations for revenue growth as pandemic restrictions ease [49][50] Question: Healthcare segment growth and COVID impact - Management indicated that while there may be some downward pressure from COVID-related purchases, other product lines like cardiology are expected to pick up [51] Question: Visibility into next fiscal year and growth expectations - Management expressed optimism about returning to mid-to-high single-digit growth in fiscal 2022, supported by a strong backlog and order flow [55] Question: Timing of IDIQ orders - Management stated that while timing is difficult to predict, they expect activity to increase before the government fiscal year ends in September [56][57] Question: Operating leverage and margin expansion - Management aims to expand margins while balancing investments in R&D and sales, indicating a focus on both top-line growth and margin improvement [59] Question: Component and freight headwinds - Management acknowledged concerns but emphasized their strong vertical integration, which helps manage supply chain challenges effectively [69] Question: Security margins for fiscal 2022 - Management indicated that while there will be opportunities for margin expansion, some temporary cost reductions seen during the pandemic may revert [72]

PART I — FINANCIAL INFORMATION [Item 1 — Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20%E2%80%94%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for OSI Systems, Inc. as of March 31, 2021, and for the three and nine-month periods then ended [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Presents unaudited financial statements showing asset growth to **$1.33 billion** and nine-month net income of **$48.2 million** Condensed Consolidated Balance Sheet Summary (in millions) | Balance Sheet Items | June 30, 2020 (in millions) | March 31, 2021 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | $617.7 | $661.4 | | **Total Assets** | **$1,268.5** | **$1,326.0** | | **Total Current Liabilities** | $330.1 | $326.1 | | **Total Liabilities** | $696.4 | $710.1 | | **Total Stockholders' Equity** | $572.2 | $615.9 | Condensed Consolidated Statement of Operations Summary (in millions, except per share data) | Metric | Three Months Ended Mar 31, 2021 (in millions) | Nine Months Ended Mar 31, 2021 (in millions) | | :--- | :--- | :--- | | **Total Net Revenues** | $283.8 | $814.7 | | **Gross Profit** | $104.0 | $301.9 | | **Income from Operations** | $32.5 | $81.5 | | **Net Income** | $18.8 | $48.2 | | **Diluted EPS** | $1.03 | $2.63 | Condensed Consolidated Statement of Cash Flows Summary (Nine Months Ended Mar 31, in millions) | Cash Flow Activity | 2020 (in millions) | 2021 (in millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $105.6 | $131.1 | | **Net cash used in investing activities** | ($28.3) | ($26.2) | | **Net cash used in financing activities** | ($68.5) | ($91.4) | | **Net change in cash and cash equivalents** | $4.7 | $16.4 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details accounting policies, business combinations, balance sheet components, and ongoing legal and government investigations - In July 2020, the Healthcare division acquired a privately-held software development company for **$3.0 million** in cash, plus up to **$12.0 million** in potential contingent consideration[41](index=41&type=chunk) - Goodwill increased to **$319.2 million** as of March 31, 2021, from **$310.6 million** at June 30, 2020, primarily due to a new acquisition and foreign currency translation adjustments[44](index=44&type=chunk) - The company has a **$535 million** revolving credit facility maturing in April 2024, with **$468.3 million** available to borrow as of March 31, 2021[60](index=60&type=chunk) - The company is involved in lawsuits and government (SEC and DOJ) investigations following a short-seller report in December 2017, with uncertain ultimate outcomes[84](index=84&type=chunk)[85](index=85&type=chunk) Segment Revenues and Operating Income (Nine Months Ended Mar 31, in millions) | Segment | Revenues 2021 (in millions) | Operating Income 2021 (in millions) | | :--- | :--- | :--- | | **Security** | $431.4 | $52.7 | | **Healthcare** | $160.4 | $25.6 | | **Optoelectronics and Manufacturing** | $257.7 | $29.6 | [Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=Item%202%20%E2%80%94%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial performance, liquidity, and capital resources, highlighting COVID-19's varied impact across segments [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Analyzes revenue and operating income trends, noting a **3%** Q3 FY2021 revenue decrease driven by Security division declines Net Revenues by Segment - Q3 2021 vs Q3 2020 (in millions) | Segment | Q3 2020 (in millions) | Q3 2021 (in millions) | $ Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Security | $187.1 | $151.4 | ($35.7) | (19)% | | Healthcare | $45.7 | $54.0 | $8.3 | 18% | | Optoelectronics and Manufacturing | $60.1 | $78.4 | $18.3 | 30% | | **Total** | **$292.9** | **$283.8** | **($9.1)** | **(3)%** | - For the nine months ended March 31, 2021, Security division revenues decreased **25%** (**$147.1 million**) year-over-year, primarily due to COVID-19 related delays and a contract expiration in Mexico[124](index=124&type=chunk) - For the nine months ended March 31, 2021, Healthcare division revenues grew **25%** (**$32.5 million**) and Optoelectronics and Manufacturing revenues grew **22%** (**$40.2 million**) year-over-year[125](index=125&type=chunk)[126](index=126&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's strong liquidity position, with increased cash and cash equivalents and substantial available credit - Cash and cash equivalents increased by **$16.4 million** (**21.5%**) to **$92.5 million** at March 31, 2021, from June 30, 2020[134](index=134&type=chunk) - Net cash provided by operating activities was **$131.1 million** for the nine months ended March 31, 2021, up from **$105.6 million** in the prior-year period, driven by favorable changes in net working capital[136](index=136&type=chunk) - During the nine months ended March 31, 2021, the company repurchased **322,588 shares** of its common stock[70](index=70&type=chunk) [Trends and Uncertainties](index=32&type=section&id=Trends%20and%20Uncertainties) Identifies COVID-19, global economic instability, and regulatory changes as key factors influencing future operations - The COVID-19 pandemic has caused order delays and service revenue impacts in the Security division, while boosting demand for certain products in the Healthcare division[105](index=105&type=chunk) - The EU has extended the deadline for airports to comply with ECAC Standard 3 for hold baggage screening to March 2024, affecting the Security division's product deployment timeline[110](index=110&type=chunk) - Global macroeconomic factors, the U.S. political climate, and changes in global trade policies and tariffs create uncertainty that could negatively affect business operations and financial results[106](index=106&type=chunk)[107](index=107&type=chunk) [Item 3 — Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Reports no material changes in market risk exposure compared to the prior fiscal year's annual report - No material changes in market risk exposure were reported for the nine months ended March 31, 2021, compared to the disclosures in the last Annual Report[146](index=146&type=chunk) [Item 4 — Controls and Procedures](index=44&type=section&id=Item%204%20%E2%80%94%20Controls%20and%20Procedures) Confirms effective disclosure controls and procedures, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2021[147](index=147&type=chunk) - No material changes were identified in the company's internal control over financial reporting during the third quarter of fiscal 2021[148](index=148&type=chunk) PART II — OTHER INFORMATION [Item 1 — Legal Proceedings](index=45&type=section&id=Item%201%20%E2%80%94%20Legal%20Proceedings) Incorporates by reference detailed discussions of material legal proceedings from the financial statement notes - Material legal proceedings are detailed in Note 10, "Commitments and Contingencies," and are incorporated by reference[151](index=151&type=chunk) [Item 1A —Risk Factors](index=45&type=section&id=Item%201A%20%E2%80%94Risk%20Factors) States no material changes to previously disclosed risk factors, noting potential amplification by the COVID-19 pandemic - There have been no material changes to the risk factors previously disclosed in the company's Form 10-K for the fiscal year ended June 30, 2020[152](index=152&type=chunk) [Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202%20%E2%80%94%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Refers to the MD&A section for information regarding the company's equity security repurchase activities - Information on equity security purchases is incorporated by reference from the MD&A section[153](index=153&type=chunk) [Item 5 — Other Information](index=45&type=section&id=Item%205%20%E2%80%94%20Other%20Information) Details the CEO's long-term incentive program amendment, extending it through FY2023 with increased share awards - The CEO's long-term incentive program was amended on April 28, 2021, to extend through FY2023 and increase potential share awards based on operating income growth metrics[154](index=154&type=chunk)[155](index=155&type=chunk) [Item 6 — Exhibits](index=46&type=section&id=Item%206%20%E2%80%94%20Exhibits) Lists all exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications and XBRL data files - Lists certifications pursuant to the Sarbanes-Oxley Act and XBRL data files as exhibits filed with the report[156](index=156&type=chunk)

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, 2020 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 2021 Earnings Conference Call January 28, 2021 12:00 PM ET Company Participants Alan Edrick - Executive VP & CFO Deepak Chopra - Chairman, CEO & President Conference Call Participants Jeff Martin - ROTH Capital Partner Larry Solow - CJS Securities Christopher Glynn - Oppenheimer Josh Nichols - B. Riley Greg Konrad - Jefferies David Mizrahi - Berenberg Operator Ladies and gentlemen, thank you standing by, and welcome to the OSI Systems Inc Second Quarter 2021 Conference Cal ...

OSI Systems, Inc. (NASDAQ:OSIS) Q1 2021 Earnings Conference Call October 29, 2020 12:00 PM ET Company Participants Deepak Chopra - President and Chief Executive Officer Alan Edrick - Chief Financial Officer Conference Call Participants Jeff Martin - ROTH Capital Larry Solow - CJS Sheila Kahyaoglu - Jefferies Josh Nichols - B. Riley Operator Ladies and gentlemen, thank you for standing by and welcome to the OSI Systems Inc. First Quarter 2021 Conference Call. At this time, all participants are in a listen-on ...

Financial Data and Key Metrics Changes - The company announced its fourth quarter and fiscal year 2020 financial results, indicating a focus on the impact of the COVID-19 pandemic on operations [5][4] - Forward-looking statements were made regarding future performance, emphasizing the company's commitment to transparency and compliance with the Private Securities Litigation Reform Act [6] Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the available content [5] Market Data and Key Metrics Changes - The conference call did not include specific market data or key metrics changes [5] Company Strategy and Development Direction and Industry Competition - The company is navigating the challenges posed by the COVID-19 pandemic, indicating a strategic focus on health and safety for employees and stakeholders [4] Management's Comments on Operating Environment and Future Outlook - Management expressed hope for the safety and health of families during the ongoing pandemic, reflecting a cautious but optimistic outlook for the future [4] Other Important Information - The conference call included a reminder about the forward-looking statements and the company's intention to utilize Safe Harbor provisions [6] Q&A Session Summary Question: Inquiry about financial results and future guidance - Specific questions and answers from the Q&A session were not included in the provided content [5]

OSI Systems, Inc. (NASDAQ:OSIS) Q3 2020 Earnings Conference Call April 30, 2020 4:30 PM ET Company Participants Alan Edrick – Chief Financial Officer Deepak Chopra – President and Chief Executive Officer Conference Call Participants Larry Solow – CJS Securities Sheila Kahyaoglu – Jefferies Jeff Martin – ROTH Capital Partners Operator Good afternoon. My name is Jerome, and IÂ'll be your conference operator today. At this time, I would like to welcome everyone to the OSI Systems, Inc. Third Quarter 2020 Confe ...