OSI Systems(OSIS) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 FY25 revenues reached $444.4 million, a 10% increase from $405.4 million in Q3 FY24[3] - Q3 FY25 net income was $41.1 million, or $2.40 per diluted share, compared to $34.0 million, or $1.95 per diluted share in Q3 FY24[3] - For the nine months ended March 31, 2025, revenues totaled $1.208 billion, up from $1.058 billion in the same period last year[4] - Total revenues for the three months ended March 31, 2025, were $444,354 thousand, representing a 9.6% increase from $405,406 thousand in the same period of 2024[18] Backlog and Guidance - The Company's backlog exceeded $1.8 billion as of March 31, 2025, with a book-to-bill ratio above 1.0 for Q3 FY25[5] - The Company has increased its fiscal 2025 revenue guidance to $1.690 billion - $1.715 billion, up from the previous range of $1.685 billion - $1.710 billion[8] - Non-GAAP diluted EPS guidance for fiscal 2025 is now projected at $9.15 - $9.45, an increase from the previous guidance of $9.10 - $9.40[8] Division Performance - The Security division reported a 10% year-over-year revenue increase, contributing to operating income growth despite challenging comparisons[6] - The Optoelectronics and Manufacturing division experienced a 15% revenue growth in Q3 FY25, benefiting from a vertically-integrated structure[6] - The Security division generated revenues of $314,908 thousand for the three months ended March 31, 2025, up from $285,960 thousand, reflecting a growth of 10.5%[18] - The Healthcare division reported revenues of $43,722 thousand for the three months ended March 31, 2025, a 5.4% increase from $41,493 thousand in the same period of 2024[18] - The Optoelectronics and Manufacturing division's revenues rose to $100,860 thousand for the three months ended March 31, 2025, up from $87,974 thousand, indicating a growth of 14.5%[18] Operating Income and Cash Flow - Operating cash flow for Q3 FY25 was $81.6 million, a significant improvement from cash used in operations of $52.1 million in Q3 FY24[5] - Operating income for the total company for the three months ended March 31, 2025, was $56,217 thousand, an increase of 9.4% compared to $51,363 thousand in the same period of 2024[18] - Non-GAAP net income for the three months ended March 31, 2025, was $41,865 thousand, translating to diluted earnings per share of $2.44, compared to $37,660 thousand and $2.16 per share in the same period of 2024[22] Assets and Liabilities - Total assets increased from $1,936,008 thousand as of June 30, 2024, to $2,080,997 thousand as of March 31, 2025, marking an increase of 7.4%[20] - The company’s total liabilities increased from $1,072,525 thousand as of June 30, 2024, to $1,201,672 thousand as of March 31, 2025, reflecting a rise of 12%[20] Operating Margins and Charges - The Security division's operating income margin was 17.5% for the three months ended March 31, 2024, and decreased to 16.4% for the same period in 2025[23] - Restructuring and other charges for the nine months ended March 31, 2024, totaled $2,496, which is 0.2% of sales[25] - For the nine months ended March 31, 2025, restructuring and other charges were $3,648, accounting for 0.3% of sales[25] - Amortization of acquired intangible assets for the nine months ended March 31, 2024, was $12,268, or 1.2% of sales[25] - The amortization of acquired intangible assets for the nine months ended March 31, 2025, increased to $13,226, which is 1.1% of sales[25] Healthcare Division Performance - The Healthcare Division reported a GAAP operating income of $2,157, representing 1.8% of sales for the nine months ended March 31, 2024[25] - The Healthcare Division's GAAP operating income for the nine months ended March 31, 2025, was $3,830, accounting for 3.0% of sales[25] - The Healthcare division is expected to gain positive momentum with new leadership introduced during the quarter[6] Future Strategies - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[18]