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OSI Systems, Inc. today announced financial results for the quarter ended September 30, 2015.
Deepak Chopra, OSI Systems’ Chairman and CEO, stated, “We are pleased to report the results of our first quarter. Although sales declined from the prior year as expected due to a difficult year-over-year comparable, we are very optimistic looking ahead as our book-to-bill ratio was 2.3 and our pipeline of opportunities is robust.”
The Company reported revenues of $200.1 million for the first quarter of fiscal 2016, a decrease of 8% from the $218.4 million reported for the first quarter of fiscal 2015. Net income for the first quarter of fiscal 2016 was $10.8 million, or $0.53 per diluted share, compared to net income of $11.2 million, or $0.55 per diluted share, for the first quarter of fiscal 2015.
During the three months ended September 30, 2015, the Company generated cash flow from operations of $24.8 million and capital expenditures were $2.5 million.
Mr. Chopra further commented, “Sales in our Healthcare division increased by 8% over the prior year first quarter driven by stronger sales in the U.S. and Europe. We are pleased with the reception of our new products, which continue to gain traction in the marketplace. We believe that our improved suite of products positions our Healthcare division well to benefit as worldwide markets continue to recover.”
Mr. Chopra continued, "Bookings in our Security division were outstanding, highlighted by the recently announced $19 million order under a $293 million IDIQ contract with the U.S. Customs and Border Protection agency and the commencement of the turnkey security screening program in Albania, our third such turnkey program. Sales were challenged by a difficult comparable with the prior year including the partial fulfillment of a significant Foreign Military Sales contract.”
Mr. Chopra concluded, “Our Optoelectronics and Manufacturing division achieved further operating margin expansion resulting in a 29% increase in operating profit over the prior year first quarter. The results benefited from a favorable sales mix and efficiencies realized as a result of a facility consolidation we completed in the prior year along with productivity improvement initiatives.”
Stock Repurchase Program
The Company announced that its board of directors has authorized a 500,000 share increase to the Company’s stock repurchase program. Since inception of the current program, the Company has repurchased approximately 3.5 million shares of common stock leaving authorization of up to approximately 480,000 shares under the program prior to the 500,000 share increase.
Alan Edrick, OSI Systems’ Executive Vice President and CFO, stated, “The strength of our balance sheet and significant free cash flow allow us to return capital to shareholders. We are pleased to announce that we have expanded our stock repurchase program demonstrating our continued commitment to enhancing shareholder value.”
Company Reiterates Guidance for Fiscal 2016
The Company is reiterating its fiscal 2016 sales guidance of $985 million - $1,020 million and earnings guidance of $3.75 to $4.00 per diluted share, excluding the impact of impairment, restructuring and other charges. Actual sales and diluted EPS could vary from this guidance including as a result of the matters discussed under the “Forward-Looking Statements” section.
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 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.