Core Viewpoint - Banzai International, Inc. has appointed Dean Ditto as Chief Financial Officer, effective July 14, 2025, succeeding Alvin Yip, who will remain with the company as Chief Accounting Officer [1][3]. Company Overview - Banzai is a marketing technology company that offers AI-enabled marketing and sales solutions for businesses of all sizes, aiming to help customers grow by effectively targeting, engaging, and measuring both new and existing customers [4]. Leadership Experience - Dean Ditto brings over 30 years of experience as a strategic financial leader, having previously served as CFO at Akerna Corp., where he implemented a corporate restructuring plan that resulted in annual cost savings of $6 million [2]. - Ditto also raised $40 million for Mydecine Innovations Group, Inc. through public and private offerings to support drug and intellectual property development [2]. Strategic Importance - The appointment of Ditto is seen as a significant addition to Banzai's strategic operations, with expectations that his expertise in financial management of public companies will enhance the company's growth trajectory [3]. - The company is preparing for future challenges in a rapidly evolving market, focusing on value-added growth and commitments to shareholders [3].

Financial Performance & Guidance - OSI Systems reported revenue of $1.5 billion for the fiscal year ended June 30, 2024[8] - The company provides FY25 revenue guidance of $1.690 - $1.715 billion, representing 9.8% - 11.5% growth[12] - FY25 Non-GAAP Adjusted EPS guidance is $9.15 - $9.45, indicating 12.5% - 16.2% growth[12] - The company's year-end backlog is $1.7 billion[12] Business Segments & Geography - Security division accounts for 68% of OSI Systems' revenue[8, 30] - Optoelectronics division contributes 21% of the company's revenue[8, 93] - Healthcare division represents 11% of the company's revenue[8, 114] - 33% of the company's net sales are from the U S market[9] Recurring Revenue & Backlog - Security segment has recurring revenue of approximately 30%[16] - Healthcare segment has recurring revenue of over 40%[16] - Optoelectronics segment has repeat revenue of over 80%[16] - The company's backlog has grown at a CAGR of 19% from FYE20 to FYE24[16] Growth Drivers & Opportunities - Heightened global demand for high-performance threat detection screening solutions is a key market tailwind for the security division[18] - Strong demand for specialized optoelectronics is driven by the electrification and digitization of various products and solutions[18] - Increasing demand for efficient healthcare solutions to serve the aging population is a growth driver for the healthcare division[18]

Summary of OSI Systems Conference Call Company Overview - OSI Systems operates in three divisions: Security, Health Care, and Optoelectronics [3][4] - The Security division, RapidScan Systems, accounts for over two-thirds of revenues and is a leader in security detection [4][5] Key Points and Arguments Security Division - The Security division is primarily known for aviation products but is experiencing rapid growth in cargo and border solutions, particularly in the U.S. and internationally [4][5][10] - The U.S. government has significantly increased funding for non-intrusive inspection (NII) technology, with a proposed budget of $1.1 billion, quadrupling previous expectations of $300 million [12][14] - International growth remains strong, with notable opportunities in the Middle East, Latin America, Asia, and Europe [10][12] Revenue and Growth - Recent contracts in Mexico have matured, leading to a 50% decline in revenues from that region, but overall security revenues increased by 10% [15][16] - The service revenue from the installed base in Mexico is expected to increase as products roll off warranty, leading to higher margins [16][21] - The life cycle of security products is approximately 7-10 years, with aftermarket service revenues potentially doubling the initial product sale [20][21] Optoelectronics Division - The Opto business has shown resilience during a destocking period, with a 15% growth in the last quarter [30][31] - Companies are increasingly looking to shift manufacturing away from China, presenting opportunities for OSI Systems due to its global manufacturing footprint [32] Health Care Division - A new patient monitoring platform is set to launch in summer 2024, which is expected to drive significant growth [34][36] - The health care division has the highest contribution margins, and improvements in top-line revenue could lead to higher operating margins [36] Cash Flow and Financial Outlook - Free cash flow conversion is expected to be strong, with significant cash generation anticipated in fiscal 2026 [41][42] - The company has a disciplined approach to capital allocation, focusing on M&A, stock buybacks, and debt reduction [52][53] Market Position and Competition - OSI Systems is the largest security detection company and continues to gain market share, particularly in ports and borders [66][68] - The company is exploring acquisitions primarily in the security and optoelectronics sectors, with a focus on bolt-on opportunities [62][63] Leadership Transition - A new CEO has been appointed from within the company, ensuring continuity in strategy and operations [69][70] Margins and Future Expectations - Margins in the aviation sector are expected to be comparable to those in the cargo and border sectors, with no anticipated negative impact on overall operating margins [72] Additional Important Points - The company is actively managing costs, with SG&A as a percentage of sales decreasing as revenues grow [49][50] - Tariffs are not expected to have a material impact on the business, with the health care division being the most exposed [56][57] - The company has adequate manufacturing capacity to meet growing demand without significant new investments [60][61]

Core Viewpoint - Investors in the Electronics - Miscellaneous Components sector should consider TE Connectivity (TEL) and OSI Systems (OSIS) as potential value stocks, with TEL appearing to be the more attractive option based on valuation metrics [1][7]. Valuation Metrics - Both TEL and OSIS have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - TEL has a forward P/E ratio of 18.66, while OSIS has a forward P/E of 24.03, suggesting TEL is more undervalued [5]. - The PEG ratio for TEL is 2.01, compared to OSIS's PEG ratio of 2.04, indicating TEL's expected earnings growth is more favorable relative to its price [5]. - TEL's P/B ratio is 3.75, while OSIS has a P/B of 4.27, further supporting TEL's position as the superior value option [6]. Value Grades - TEL has a Value grade of B, while OSIS has a Value grade of C, reflecting TEL's stronger valuation metrics [6].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify effective metrics for assessing momentum in stocks [2] Group 2: OSI Systems (OSIS) Performance - OSI Systems currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - Over the past week, OSIS shares increased by 11.49%, significantly outperforming the Zacks Electronics - Miscellaneous Components industry, which rose by 3.47% [6] - In a longer timeframe, OSIS shares have gained 8.59% over the past quarter and 65.88% over the last year, while the S&P 500 has moved -5.55% and 13.72%, respectively [7] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for OSIS is 222,060 shares, indicating a bullish sign with rising stock prices [8] - Recent earnings estimate revisions for OSIS show 2 estimates moving higher for the full year, increasing the consensus estimate from $9.26 to $9.29 [10] - For the next fiscal year, 1 estimate has moved upwards with no downward revisions, supporting a positive earnings outlook [10] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, OSI Systems is positioned as a promising investment opportunity with a Momentum Score of B [12]

Core Viewpoint - OSI Systems (OSIS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to stock price movements based on their buying or selling actions [3]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [6]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks receive favorable ratings based on earnings estimate revisions [8][9]. OSI's Earnings Estimate Revisions - OSI is projected to earn $9.29 per share for the fiscal year ending June 2025, reflecting a year-over-year increase of 14.3% [7]. - Over the past three months, the Zacks Consensus Estimate for OSI has risen by 0.7%, indicating a positive trend in earnings estimates [7].

Core Viewpoint - OSI Systems Inc. is conducting its fiscal '25 third quarter conference call to review financial and operational results, with key executives present [1][3]. Financial Results - The company has released its fiscal '25 third quarter financial results, which will be discussed during the call [4]. - Both GAAP and non-GAAP financial measures will be referenced in the discussion of the company's results [5].

Financial Performance - Revenues increased 10% year over year to a record $444 million in Q3, with growth in all three divisions, including a 10% increase in the Security division and a 15% increase in the Opto division [6][20] - Non-GAAP adjusted earnings per share reached a record $2.44, and the company finished the quarter with a record backlog exceeding $1.8 billion [6][27] - Operating cash flow for Q3 was a record $82 million, a significant improvement from negative cash flow of $52 million in the same quarter last year [6][25] Business Line Performance - Security division revenues increased 10% year over year to $315 million, driven by strong demand and significant new orders, including a $76 million order for explosive detection systems [20][12] - Optoelectronics and Manufacturing division achieved a 15% revenue growth year over year, surpassing $100 million in sales, with strong operating margin expansion [14][15] - Healthcare division saw a 5% year-over-year increase in revenues, with a new president leading efforts for long-term growth [16][17] Market Data - The company is actively addressing challenges posed by evolving global trade environments, particularly U.S. tariff policies, while maintaining strong international revenue generation [9][10] - The backlog is diversified across various sectors, including cargo, aviation, and security, providing confidence for sustained growth [49][90] Company Strategy and Industry Competition - The company is focused on cost optimization and strategic pricing discussions to mitigate impacts from trade frictions, leveraging a diversified portfolio and strong customer relationships [9][10] - Anticipated growth in defense and security funding is expected to benefit the company, with ongoing investments in R&D to support innovative product development [18][24] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff impacts and highlighted a strong pipeline of opportunities for future growth [10][18] - The company is increasing its revenue and non-GAAP EPS guidance for fiscal year 2025, reflecting a positive outlook based on current performance and backlog [27][28] Other Important Information - The effective tax rate under GAAP was reported at 14.3%, down from 22.6% in the previous year, while the adjusted operating margin improved to 14.2% [24][25] - The RF Solutions acquisition contributed $29 million to the top line in Q3, indicating strong growth from this segment [79] Q&A Session Summary Question: Impact of tariffs on segments - Management indicated no anticipated impact from tariffs on Q4 results, with limited exposure in the largest divisions [30][31] Question: Strength in services revenue - Services revenue saw significant growth due to an increasing installed base of security products rolling off warranty, leading to higher recurring revenue [32][34] Question: RF Solutions acquisition growth potential - The acquisition is expected to provide a long runway for growth, particularly with established products like over-the-horizon radars [36][37] Question: Cash flow expectations - Strong cash flow is anticipated to continue into Q4 and fiscal year 2026, with opportunities for improvement in working capital [38][39] Question: Mexico contract trends - Revenue from Mexico is expected to decline year over year, but overall security division growth is anticipated due to strong bookings in other areas [57][59] Question: Opportunities in border security funding - The upcoming budget reconciliation includes significant funding for border security, which is expected to provide multi-year visibility for the company [61][75] Question: Pipeline for security projects - The pipeline of opportunities is strong and growing, with increased diversification in backlog across various sectors [90]

Group 1: Earnings Performance - OSI Systems reported quarterly earnings of $2.44 per share, exceeding the Zacks Consensus Estimate of $2.38 per share, and up from $2.16 per share a year ago, representing an earnings surprise of 2.52% [1] - The company posted revenues of $444.35 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.03%, compared to year-ago revenues of $405.41 million [2] - OSI has surpassed consensus EPS estimates for four consecutive quarters [2] Group 2: Stock Performance and Outlook - OSI shares have increased approximately 22.3% since the beginning of the year, while the S&P 500 has declined by 5.3% [3] - The future performance of OSI's stock will depend on management's commentary during the earnings call and the earnings outlook for upcoming quarters [4][6] - The current consensus EPS estimate for the next quarter is $3.20 on revenues of $497.04 million, and for the current fiscal year, it is $9.26 on revenues of $1.7 billion [7] Group 3: Industry Context - The Electronics - Miscellaneous Components industry, to which OSI belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact OSI's stock performance [5]

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]