OSI Systems, Inc. (NASDAQ:OSIS), a vertically integrated provider of specialized electronics, today announced financial results for the first quarter ended September 30, 2009.
Deepak Chopra, OSI Systems’ Chairman and CEO, stated, “We had a very successful first quarter of fiscal 2010 despite the impact of a challenging economic environment. Outstanding bookings led to a backlog of $234 million at quarter-end, positioning the Company for substantial sales and earnings growth for fiscal 2010. We are pleased to again demonstrate significantly improved earnings while simultaneously generating excellent free cash flow. These achievements are the direct result of our initiatives to implement organizational changes that have reduced our cost structure and improved our overall operating efficiencies.”
The Company reported revenues of $133.8 million for the first quarter of fiscal 2010, a decrease of $14.4 million, or 9.7%, from the $148.2 million reported for the first quarter of fiscal 2009. Net income for the first quarter of fiscal 2010 was $2.5 million, or $0.14 per diluted share, compared to net income of $0.1 million, or $0.01 per diluted share, for the first quarter of fiscal 2009.
As of September 30, 2009, the Company’s backlog of $234 million compared to $203 million as of June 30, 2009, an increase of 15%. During the three months ended September 30, 2009, the Company generated cash flow from operations of $10.5 million.
Mr. Chopra continued, "Our Security Division is well-positioned to realize significant growth during fiscal 2010. With outstanding bookings of $77 million during the first quarter, our Security Division achieved a record backlog of $146 million by quarter-end, which is a 26% increase since the beginning of the fiscal year. Among the contracts we received during the quarter is a $25 million order for multiple units of the Rapiscan Secure 1000 Single Pose advanced checkpoint security screening solution. This order is the first to be placed under the terms of our recently awarded $173 million Indefinite Delivery, Indefinite Quantity (IDIQ) contract from the TSA.”
Mr. Chopra concluded, “Our Healthcare division achieved a record operating profit in the first quarter of fiscal 2010 aided by the proactive measures undertaken in the prior fiscal year to reduce our fixed cost structure. Although Healthcare sales declined due to a challenging macroeconomic environment, we are beginning to see positive signs for recovery. As sales to hospitals improve, this division is well positioned to experience strong operating margin expansion.”
Fiscal Year 2010 Outlook
Subject to the risk factors detailed in the Safe Harbor section of this press release, the Company announced that it anticipates fiscal 2010 sales to be between $620 million and $640 million, representing a 5% to 8% increase over fiscal 2009 and 10% to 15% year-over-year growth for the nine-months ending June 30, 2010. In addition, the Company is raising its earnings guidance and expects earnings per diluted share to increase at a rate of 25-35% to between $1.14 to $1.23, excluding the impact of restructuring and other non-recurring charges incurred in fiscal 2009.
Conference Call Information
OSI Systems, Inc. will host a conference call and simultaneous webcast over the Internet beginning at 9:00am PT (12:00pm ET) today to discuss its results for the first quarter of fiscal 2010. To listen, please log on to www.fulldisclosure.com or www.osi-systems.com and follow the link that will be posted on the front page. A replay of the webcast will be available shortly after the conclusion of the conference call at 12:00pm PT (3:00pm ET) until November 10, 2009. The replay can either be accessed through the Company’s website, www.osi-systems.com, or via telephonic replay by calling 1-888-286-8010 and entering the conference call identification number ‘88847525’ when prompted for the replay code.
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