OSI Systems(US:OSIS)2025-10-30 21:13Financial Performance - Total net revenues for the three months ended September 30, 2025, increased to $384,623, up 11.9% from $344,007 in the same period of 2024[10] - Gross profit for the three months ended September 30, 2025, was $123,185, representing a slight increase from $121,502 in the prior year[10] - Net income for the three months ended September 30, 2025, rose to $20,556, compared to $17,936 for the same period in 2024, reflecting a growth of 14.4%[10] - Basic earnings per share increased to $1.22 for the three months ended September 30, 2025, up from $1.07 in the prior year[10] - The company reported a comprehensive income of $20,242 for the three months ended September 30, 2025, compared to $15,897 in the prior year[12] - Net income available to common stockholders for the three months ended September 30, 2025, was $20.556 million, representing a 14.4% increase from $17.936 million in the same period of 2024[19] - Basic earnings per share increased to $1.22 for the three months ended September 30, 2025, compared to $1.07 for the same period in 2024, reflecting a 14% growth[19] - Total revenues for the three months ended September 30, 2025, were $384,623 thousand, an increase from $344,007 thousand in the same period of 2024[87] Cash and Liquidity - Cash and cash equivalents at the end of the period increased to $124,416, compared to $106,405 at the beginning of the period[15] - Cash and cash equivalents totaled $124.4 million as of September 30, 2025, with approximately 64% held by foreign subsidiaries[21] - Cash flow from operations was $17.1 million in Q1 fiscal 2026, a significant improvement compared to cash used in operations of $37.2 million in the same period last year[119] - Net cash used in investing activities decreased to $10.9 million in Q1 fiscal 2026 from $87.5 million in Q1 fiscal 2025, primarily due to the absence of business acquisitions in Q1 fiscal 2026[120] - Net cash provided by financing activities was $12.2 million in Q1 fiscal 2026, down from $113.8 million in the same prior-year period, largely due to lower net proceeds from bank borrowings[121] Assets and Liabilities - Total current liabilities decreased to $696,938 as of September 30, 2025, down from $791,662 at June 30, 2025[9] - Long-term debt increased to $463,504 as of September 30, 2025, compared to $436,844 at June 30, 2025[9] - Total assets as of September 30, 2025, were $2,299,156, up from $2,241,257 at June 30, 2025[9] - The fair value of the company's convertible notes was $505.974 million as of September 30, 2025, reflecting an increase from $472.770 million as of June 30, 2025[24] - As of September 30, 2025, long-term debt totaled $442.2 million, with future principal payments scheduled at $4.1 million for 2026 and $347.7 million for 2030[64] Operational Metrics - Operating expenses for the three months ended September 30, 2025, were $90,112, slightly down from $91,174 in the same period of 2024[10] - Segment income from operations for the Security Division was $30,966 thousand for the three months ended September 30, 2025[87] - Revenue recognized from contract liabilities existing at the beginning of the period for the three months ended September 30, 2025 was $36.7 million[46] - The Security division's product revenues increased by approximately $9.6 million, while service revenues rose by $20.4 million in Q1 fiscal 2026[108] Acquisitions and Investments - The company acquired a privately held provider of military and surveillance solutions for approximately $76.0 million, with potential contingent consideration of up to $24.0 million, totaling a purchase consideration of $85.7 million[35] - The acquisition date fair value of total assets acquired was $113.9 million, including $30.7 million in goodwill and $47.3 million in other intangible assets[35] Expenses and Charges - Restructuring and other charges recognized during the three months ended September 30, 2025 amounted to $2.7 million, compared to $1.2 million for the same period in 2024, indicating a significant increase[51] - Total restructuring and other charges amounted to $2.730 million, with employee termination costs contributing $300,000 and acquisition-related costs at $22,000[54] - Selling, general and administrative expenses decreased by $5.2 million to $67.0 million in Q1 fiscal 2026, primarily due to favorable foreign currency exchange rates[112] - Research and development expenses increased by 14.6% to $20.4 million in Q1 fiscal 2026, compared to $17.8 million in Q1 fiscal 2025[112] Taxation - The effective tax rate for the three months ended September 30, 2025, was 19.9%, down from 21.9% in the same period of 2024[83] - The company recorded a net discrete tax benefit of $0.9 million for the three months ended September 30, 2025, related to equity-based compensation[83] Stock and Shareholder Information - The company has not paid any dividends since its IPO in 1997 and does not intend to pay dividends in the foreseeable future[72] - As of September 30, 2025, there are 1,190,556 shares remaining available for repurchase under the stock repurchase program[71] - The company issued $350.0 million principal amount of 2.25% convertible senior notes due in August 2029, with net proceeds of $340.4 million after issuance costs[57] - The company recorded stock-based compensation expense of $6.199 million for the three months ended September 30, 2025, down from $6.422 million in the same period of 2024[66] - The company granted 48,185 performance-based RSUs during the three months ended September 30, 2025, which are contingent on achieving specific performance metrics[69]