OSI Systems Reports Strong Fiscal 2025 First Quarter Financial Results

OSI Systems, Inc. (NASDAQ: OSIS) has recently announced its financial results for the first quarter of fiscal 2025. The company reported record fiscal Q1 revenues of $344 million, marking a significant 23% growth year-over-year. The quarter ended on September 30, 2024.

In terms of earnings per diluted share, OSI Systems reported GAAP earnings per share of $1.05 for the first quarter. Additionally, the company achieved a record Q1 non-GAAP adjusted EPS of $1.25. Operating income growth for Q1 showed a notable increase of 34% year-over-year.

The company’s backlog as of September 30, 2024, stood at approximately $1.8 billion, an improvement from the previous quarter. Net cash used in operating activities for Q1 was $37.2 million, primarily driven by increases in working capital to support planned future growth.

OSI Systems highlighted the strength in its Security division, showing significant revenue growth of 36% year-over-year. The division’s performance led to considerable operating income growth and adjusted operating margin expansion. Moreover, the company recently acquired a business providing critical military, space, and surveillance solutions, which is expected to complement its sales channel.

The Optoelectronics and Manufacturing division also delivered solid quarterly results, reporting year-over-year revenue growth despite certain customers adjusting inventory levels and purchasing patterns. OSI Systems continues to focus on new product development, particularly in its patient monitoring portfolio within the Healthcare division.

In July 2024, OSI Systems issued $350 million of convertible senior notes due in fiscal 2030, which helped in reducing the outstanding balance under the company’s revolving credit facility and share repurchases.

Looking ahead, the company has increased its fiscal 2025 revenues and non-GAAP adjusted diluted EPS guidance. The updated guidance includes revenue expectations of $1.670 billion to $1.695 billion, showcasing growth rates between 8.5% and 10.2%. Non-GAAP adjusted diluted earnings per share are anticipated to be between $9.00 and $9.30, with a growth rate between 10.7% and 14.4%.

OSI Systems presented non-GAAP financial measures in its earnings release to provide enhanced insights into the company’s ongoing operations, facilitating better comparison and understanding of financial results. The company advised that actual revenues and adjusted diluted earnings per share could differ from guidance due to various factors.

In the financial statement analysis, the company also provided a breakdown of GAAP to non-GAAP reconciliations and operating income (loss) by segment for the reporting periods.

OSI Systems is a company known for its specialized electronic systems and components for critical applications in homeland security, healthcare, defense, and aerospace industries. With a track record of over 40 years, OSI Systems has strategically expanded into selective end-product markets across various countries. For further information, you can visit the company’s website at www.osi-systems.com.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read OSI Systems’s 8K filing here.

About OSI Systems

OSI Systems, Inc designs and manufactures electronic systems and components. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation monitoring, explosive and narcotics trace detection systems, and optical inspection systems under the Rapiscan name.