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OSI Systems, Inc. today announced financial results for the fiscal quarter ended December 31, 2014.
“We are pleased to announce strong second quarter financial results. Led by our Security Division, we achieved record sales and record earnings per share. With a solid pipeline of opportunities and strong balance sheet, we believe we are well positioned for future growth,” said Deepak Chopra, OSI Systems’ Chairman and CEO.
The Company reported revenues of $258 million for the second quarter of fiscal 2015, an increase of 9% as compared to the same period a year ago. Net income for the second quarter of fiscal 2015 was $18.2 million, or $0.89 per diluted share, compared to net income of $14.6 million, or $0.71 per diluted share, for the second quarter of fiscal 2014. Excluding the impact of restructuring and other charges, net income for the second quarter of fiscal 2015 would have been $19.7 million, or $0.96 per diluted share, compared to net income of $16.1 million, or $0.78 per diluted share for the comparable quarter of the prior year.
For the six months ended December 31, 2014, the Company reported revenues of $476 million, an increase of 8% as compared to the same period a year ago. Net income in this period was $29.5 million, or $1.44 per diluted share, compared to net income of $21.0 million, or $1.02 per diluted share, in the same period a year ago. Excluding the impact of restructuring and other charges, net income for the six months ended December 31, 2014 would have been $31.5 million, or $1.54 per diluted share, compared to net income of $25.5 million, or $1.24 per diluted share, for the comparable period in the prior year.
As of December 31, 2014, the Company’s backlog was approximately $0.7 billion. During the second fiscal quarter, the Company generated free cash flow of $26 million.
Mr. Chopra continued, “During the second quarter, our Security Division generated both record sales and profits as sales grew by 29%. This strong performance was highlighted by solid execution on our Foreign Military Sales contract with the U.S. Department of Defense.”
Mr. Chopra further commented, “Sales in our Healthcare Division increased by 10% over the prior year driven by growth in the emerging markets and the impact of an acquisition completed in the first quarter. Our operating income was unfavorably impacted by product/channel mix.”
Mr. Chopra concluded, “As expected, our Optoelectronics and Manufacturing sales decreased year over year. However, operational improvements coupled with a more favorable product mix resulted in strong operating margin expansion.”
Fiscal Year 2015 Outlook
The Company is increasing its sales guidance for fiscal 2015 to $975 million – $998 million. In addition, the Company is raising its earnings guidance expecting diluted earnings to increase at a rate of 13% to 20% over fiscal 2014 to $3.54 - $3.76 per share, excluding the impact of restructuring and other non-recurring charges, and the impact of certain tax elections.
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 provides related 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. The Company 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.