OSI Systems Reports Third Quarter Fiscal 2012 Financial Results
- Record Q3 Revenue - 19% increase over prior year
Record Q3 Earnings Per Share
- GAAP of $0.62 (38% increase over prior year)
- Non-GAAP of $0.65 (36% increase over prior year)
- Record Backlog of $1.1 billion
- Company raises FY 2012 Revenue guidance to $765 - $780 million (17% - 19% growth)
- Company raises FY 2012 Earnings guidance to $2.33 - $2.43 per share (27% - 32% growth)
HAWTHORNE, Calif.--(BUSINESS WIRE)-- OSI Systems, Inc. (OSIS), a vertically integrated provider of solutions in Security, Healthcare, and specialized electronics, today announced financial results for the third quarter ended March 31, 2012.
Deepak Chopra, OSI Systems Chairman and CEO, stated, We are very pleased to report that our third quarter was a remarkable and transformative quarter. First, we achieved both record revenue and profitability as each of our divisions delivered strong results. Second, our Security division won a six-year turnkey screening services agreement with Servicio de Administración Tributaria (SAT), Mexicos tax and customs authority, valued at approximately $900 million. And third, our Rapiscan RTT® (Real Time Tomography) ultra-high speed, checked baggage screening system has been certified by the European Civil Aviation Conference (ECAC) by passing its Standard 3 threat detection as the industrys fastest baggage screening system.
The Company reported revenues of $208 million for the third quarter of fiscal 2012, an increase of 19% as compared to the same period a year ago. Net income for the third quarter of fiscal 2012 was $12.6 million, or $0.62 per diluted share, compared to net income of $8.8 million, or $0.45 per diluted share, for the third quarter of fiscal 2011.
For the nine months ended March 31, 2012, the Company reported revenues of $558 million, an increase of 18% as compared to the same period a year ago. Net income for the nine months ended March 31, 2012 was $29.6 million, or $1.46 per diluted share, compared to net income of $21.4 million, or $1.10 per diluted share, for the nine months ended March 31, 2011.
Excluding the impact of restructuring and other charges, net income for the third quarter of fiscal 2012 would have been $13.2 million, or $0.65 per diluted share, compared to net income of $9.4 million, or $0.48 per diluted share, for the third quarter of fiscal 2011 and net income for the nine months ended March 31, 2012 would have been $30.3 million, or $1.50 per diluted share, compared to net income of $22.8 million, or $1.18 per diluted share, for the nine months ended March 31, 2011. These non-GAAP figures are provided to allow for the comparison of underlying earnings, net of restructuring and other charges, thus providing additional insight into the on-going operations of the Company.
As of March 31, 2012, the Companys backlog was approximately $1.1 billion compared to $0.3 billion as of June 30, 2011, an increase of 263%. Excluding the SAT agreement, the backlog is approximately $0.4 billion.
During the nine months ended March 31, 2012, the Company generated cash flow from operations of $86 million.
Mr. Chopra continued, "During the third quarter our Security division continued to see excellent growth as revenues increased 27% to a record $112 million and the SAT agreement drove the divisions backlog to over $1 billion. Our record backlog, the European certification of our Rapiscan RTT® ultra-high speed, checked baggage screening system and a robust opportunity pipeline, provide a tremendous outlook for our Security division.
Mr. Chopra added, Our Healthcare division generated record third quarter profits as operating income increased 175% on revenue growth of 10% highlighting the substantial leverage of this business. We continued to see an improved U.S. market, our most profitable region, which positions us well for continued top line growth and margin expansion.
Fiscal Year 2012 Outlook
Subject to the risk factors detailed in the Safe Harbor section of this press release, the Company is raising its annual revenue guidance from $750 million - $770 million to between $765 million - $780 million. In addition, the Company is raising its fiscal 2012 earnings guidance and expects earnings per diluted share to increase at a rate of 27% - 32% to between $2.33 to $2.43, excluding the impact of restructuring and other non-recurring charges. In addition, the impact of the agreement with SAT is not considered in the Companys guidance pending further clarity on expected timing.
Conference Call Information
OSI Systems, Inc. will host a conference call and simultaneous webcast over the Internet beginning at 9:00 am PT (12:00 pm ET) today to discuss its results for the third quarter of fiscal 2012. 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 12:00 pm PT (3:00 pm ET) until May 8, 2012. The replay can either be accessed through the Companys website, www.osi-systems.com, or via telephonic replay by calling 1-888-286-8010 and entering the conference call identification number 83590372 when prompted for the replay code.
About OSI Systems, Inc.
OSI Systems, Inc. is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sells its products and services in diversified markets, including homeland security, healthcare, defense and aerospace. The Company has more than 30 years of experience in electronics engineering and manufacturing and maintains offices and production facilities located in more than a dozen countries. It implements a strategy of expansion by leveraging its electronics and contract manufacturing capabilities into selective end product markets through organic growth and acquisitions. For more information on OSI Systems, Inc. or any of its subsidiary companies, visit www.osi-systems.com. News Filter: OSIS-E
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to the Companys current expectations, beliefs, projections and similar expressions concerning matters that are not historical facts and are not guarantees of future performance. Forward-looking statements involve uncertainties, risks, assumptions and contingencies, many of which are outside the Companys control, that may cause actual results to differ materially from those described in or implied by any forward-looking statement. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. The Company assumes no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws. For a further discussion of these and other factors that could cause the Companys future results to differ materially from any forward-looking statements, see the section entitled Risk Factors in the Companys Annual Report on Form 10-K for the year ended June 30, 2011 and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.
|OSI SYSTEMS, INC. AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|(in thousands, except per share data)|
For the Three Months Ended
For the Nine Months Ended
|Cost of goods sold||112,678||139,308||303,497||369,937|
|Selling, general and administrative expenses||37,116||37,063||103,050||107,409|
|Research and development||12,436||12,932||33,509||35,358|
|Restructuring and other charges||905||931||2,064||931|
|Total operating expenses||50,457||50,926||138,623||143,698|
|Income from operations||11,796||18,205||30,551||44,114|
|Interest expense and other, net||612||(792||)||(484||)||(2,312||)|
|Income before income taxes||12,408||17,413||30,067||41,802|
|Provision for income taxes||3,642||4,838||8,691||12,165|
|Diluted earnings per share||$||0.45||$||0.62||$||1.10||$||1.46|
|Weighted average shares outstanding - diluted||19,687||20,433||19,424||20,253|
|CONSOLIDATED BALANCE SHEETS|
|June 30,||March 31,|
|Cash and cash equivalents||$||55,619||$||90,787|
|Accounts receivable, net||136,716||157,830|
|Other current assets||43,317||34,897|
|Total current assets||405,286||485,966|
|Liabilities and Stockholders' Equity|
|Accounts payable and accrued expenses||$||80,887||$||80,715|
|Other current liabilities||80,094||74,278|
|Total current liabilities||160,981||154,993|
|Other long-term liabilities||36,379||145,570|
|Total shareholders equity||384,800||418,599|
|Total Liabilities and Equity||$||584,916||$||721,741|
Three Months Ended
Nine Months Ended
|Revenues by Segment Group:|
|Optoelectronics and Manufacturing Group including intersegment revenues||47,865||49,976||137,458||154,426|
|Intersegment revenues elimination||(12,221||)||(9,666||)||(33,597||)||(32,093||)|
|Operating income (loss) by Segment Group:|
|Healthcare Group (i)||2,274||6,254||10,536||16,977|
|Optoelectronics and Manufacturing Group (ii)||4,284||3,558||11,975||12,947|
|(i)||Includes restructuring and other charges of $0.8 million and $1.2 million, respectively, for the three and nine months ended March 31, 2011.|
|(ii)||Includes restructuring and other charges of $0.9 million for the three and nine months ended March 31, 2012.|
|Reconciliation of GAAP to Non-GAAP|
|(in thousands, except earnings per share data)|
|For the Three Months Ended March 31,||For the Nine Months Ended March 31,|
|Restructuring and other charges, net of tax||639||0.03||672||0.03||1,467||0.08||660||0.04|
OSI Systems, Inc.
Vice President, Business Development
Source: OSI Systems, Inc.Copyright Business Wire 2012