OSI Systems(US:OSIS)2025-05-02 20:17Financial Performance - Total net revenues for the three months ended March 31, 2025, increased to $444,354, up 9.8% from $405,406 in the same period of 2024[11]. - Net income for the three months ended March 31, 2025, was $41,134, representing a 20.5% increase from $34,043 in the prior year[13]. - Earnings per share (diluted) rose to $2.40 for the three months ended March 31, 2025, compared to $1.95 for the same period in 2024, reflecting a 23.1% increase[11]. - Gross profit for the nine months ended March 31, 2025, was $418,944, up from $376,141 in the same period of 2024, indicating an increase of 11.4%[11]. - For the nine months ended March 31, 2025, total revenues increased to $1,208,181 thousand, up from $1,057,851 thousand in the same period of 2024, representing a growth of approximately 14.2%[90]. - Total net revenues for Q3 fiscal 2025 increased by 9.6% to $444.3 million compared to $405.4 million in Q3 fiscal 2024[111]. - Gross profit for Q3 fiscal 2025 was $150.3 million, representing a gross margin of 33.8%, compared to $136.1 million and 33.6% in Q3 fiscal 2024[113]. Assets and Liabilities - Total current assets decreased to $1,215,524 as of June 30, 2024, down from $1,272,529 as of March 31, 2025, a decline of 4.5%[10]. - Total liabilities decreased to $1,072,525 as of June 30, 2024, compared to $1,201,672 as of March 31, 2025, a reduction of 10.7%[10]. - The total stockholders' equity as of March 31, 2025, was $879,325, a decrease from $863,483 as of June 30, 2024, reflecting a decline of 1.8%[10]. - Cash and cash equivalents stood at $95,353 as of June 30, 2024, slightly down from $95,830 as of March 31, 2025[10]. - As of March 31, 2025, total unrecognized compensation cost related to share-based compensation grants was estimated at $18.6 million[69]. - Long-term debt as of March 31, 2025, totaled $473.196 million, with a long-term portion of $465.051 million[66]. Cash Flow - Cash flows from operating activities provided $97,030 thousand in the nine months ended March 31, 2025, compared to a cash outflow of $58,458 thousand in the same period of 2024[17]. - Cash and cash equivalents at the end of the period totaled $95,830 thousand, with approximately 83% held by foreign subsidiaries, primarily in India and the United Kingdom[23]. - Cash provided by operations for YTD Q3 fiscal 2025 was $97.0 million, compared to cash used in operations of $58.5 million in the same prior-year period[131]. - Net cash used in investing activities was $106.4 million for YTD Q3 fiscal 2025, compared to $24.9 million in the same prior-year period, with $75.5 million used for a business acquisition in September 2024[132]. - Net cash provided by financing activities was $10.4 million for YTD Q3 fiscal 2025, a decrease from $110.7 million in the same prior-year period, primarily due to net repayment of $228.0 million on the credit facility[133]. Expenses - Research and development expenses for the three months ended March 31, 2025, were $18,570, a 8.3% increase from $17,144 in the prior year[11]. - Operating expenses increased by 11.2% to $94.2 million in Q3 fiscal 2025, with selling, general and administrative expenses rising by 10.1% to $73.3 million[114]. - Research and development expenses increased by 8.8% to $18.6 million in Q3 fiscal 2025, reflecting higher compensation costs for new product development initiatives[115]. - Interest and other expense, net, increased to $8.2 million in Q3 fiscal 2025 from $7.4 million in Q3 fiscal 2024, driven by higher borrowings[117]. Acquisitions and Investments - The company acquired a privately held provider of military, space, and surveillance solutions for approximately $76.0 million, with total purchase consideration reaching $85.7 million, including contingent consideration[36]. - Revenue from the acquired business was $50.7 million from the acquisition date through March 31, 2025[37]. - The preliminary acquisition date fair value of total assets acquired was $115.9 million, including $31.5 million in goodwill and $46.2 million in other intangible assets[36]. - The company had net borrowings of $134,000 thousand on bank lines of credit during the nine months ended March 31, 2025, while there were repayments of $228,000 thousand in the same period of 2024[17]. Taxation - The effective tax rate for the nine months ended March 31, 2025, was 19.5%, a decrease from 21.7% in the same period of 2024[87]. - The effective tax rate for Q3 fiscal 2025 was 14.3%, down from 22.6% in Q3 fiscal 2024, with a provision for income taxes of $6.9 million[118]. - The company recognized net discrete tax benefits of $4.0 million for changes in prior year tax estimates during the nine months ended March 31, 2025, compared to $2.3 million in the prior year[87]. Legal and Compliance - The company is currently involved in various legal proceedings, but management believes that the ultimate disposition is not likely to have a material adverse effect on its financial condition[84]. - The company is in compliance with applicable financial covenants under the indenture governing the 2029 Notes as of March 31, 2025[63]. Market and Economic Factors - The company continues to face uncertainties related to global economic factors, including supply chain disruptions and geopolitical tensions, which may impact future performance[103].