OSI Systems(OSIS) - 2025 Q2 - Quarterly Results

Financial Performance - Q2 FY25 revenues reached $419.8 million, a 12% increase year-over-year[3] - Q2 FY25 net income was $37.8 million, or $2.22 per diluted share, compared to $36.6 million, or $2.11 per diluted share in the prior year[3] - Non-GAAP net income for Q2 FY25 was $41.2 million, or $2.42 per diluted share, compared to $38.3 million, or $2.21 per diluted share in the prior year[3] - Six-month revenues for FY25 were $763.8 million, up from $652.4 million in the same period last year[4] - Six-month net income for FY25 was $55.8 million, or $3.27 per diluted share, compared to $49.4 million, or $2.87 per diluted share in the prior year[4] - Updated FY25 revenue guidance is $1.685 billion to $1.710 billion, representing a growth rate of 9.5% to 11.1%[8] - Updated FY25 non-GAAP diluted EPS guidance is $9.10 to $9.40, representing a growth rate of 11.9% to 15.6%[8] - Total revenue for the company grew from $373.235 million in Q3 2023 to $419.820 million in Q3 2024, a 12.5% increase[18] - Non-GAAP net income grew from $38.254 million in Q3 2023 to $41.233 million in Q3 2024, a 7.8% increase[22] Division Performance - Security division revenues increased 16% year-over-year, with an adjusted operating margin of 19.9% in Q2 FY25[6] - Security division revenue increased from $249.975 million in Q3 2023 to $289.987 million in Q3 2024, a growth of 16%[18] - Operating income for the Security division rose from $51.856 million in Q3 2023 to $54.053 million in Q3 2024, a 4.2% increase[18] - Healthcare division operating income significantly improved from $0.429 million in Q3 2023 to $1.722 million in Q3 2024, a 301% increase[18] - Non-GAAP operating income for the Security division increased from $55.359 million in Q3 2023 to $57.775 million in Q3 2024, a 4.4% rise[23] - Non-GAAP operating margin for the Security division improved from 22.1% in Q3 2023 to 19.9% in Q3 2024[23] - Total non-GAAP operating income grew from $58.027 million in Q3 2023 to $62.870 million in Q3 2024, an 8.3% increase[23] - Optoelectronics and Security Division's GAAP operating income for the six months ended December 31, 2023, was $72,465, representing 17.5% of sales[24] - Manufacturing Division's GAAP operating income for the six months ended December 31, 2023, was $23,058, representing 11.9% of sales[24] - Healthcare Division's GAAP operating income for the six months ended December 31, 2023, was $593, representing 0.7% of sales[24] - Total GAAP operating income for the six months ended December 31, 2023, was $74,880, representing 11.5% of sales[24] - Optoelectronics and Security Division's Non-GAAP operating income for the six months ended December 31, 2023, was $78,867, representing 19.0% of sales[24] - Manufacturing Division's Non-GAAP operating income for the six months ended December 31, 2023, was $25,452, representing 13.1% of sales[24] - Healthcare Division's Non-GAAP operating income for the six months ended December 31, 2023, was $1,196, representing 1.5% of sales[24] - Total Non-GAAP operating income for the six months ended December 31, 2023, was $84,759, representing 13.0% of sales[24] - Optoelectronics and Security Division's GAAP operating income for the six months ended December 31, 2024, was $82,909, representing 16.1% of sales[24] - Manufacturing Division's GAAP operating income for the six months ended December 31, 2024, was $22,891, representing 11.5% of sales[24] Cash Flow and Debt - Q2 FY25 cash from operations was $52.5 million, a significant improvement from $23.5 million used in operations in the same quarter of the prior year[5] - Total assets increased from $1.936 billion in June 2024 to $2.131 billion in December 2024, a 10.1% growth[20] - Long-term debt surged from $129.383 million in June 2024 to $466.560 million in December 2024, a 260.6% increase[20] Backlog and Book-to-Bill Ratio - The company's book-to-bill ratio was 1.2 for Q2 FY25, with a backlog of over $1.8 billion as of December 31, 2024[5]