OSI Systems Inc
NASDAQ:OSIS
OSI Systems Inc
Deep in the heart of California, OSI Systems Inc. stands as a diverse, innovative force in the electronics and security industries. Founded in 1987, OSI has crafted a reputation as a reliable creator of high-technology solutions for three distinct sectors: security, healthcare, and optoelectronics. At its core, OSI Systems orchestrates a symphony of specialized equipment and software, delivering products that cater to a variety of niche markets. Whether you are traveling through a bustling airport and your luggage passes seamlessly through an advanced scanning system, or a patient in a hospital undergoing a critical diagnostic exam with cutting-edge medical imaging devices, OSI’s fingerprints are evident.
The company's business model is anchored in its ability to produce and integrate complex systems, boosted by a commitment to innovation and quality. Revenues are primarily driven by its Security segment, which focuses on providing essential inspection systems, detection devices, and infrastructure—capabilities greatly in demand amid rising global security concerns. Meanwhile, its Healthcare division offers diagnostic cardiology, patient monitoring, and anesthesia systems across the globe. The lesser-known Optoelectronics segment feeds the relentless push for miniaturization and precision with components that serve multiple industries, enhancing other businesses' capabilities and forming a critical part of the supply chain. Through strategic acquisitions and robust R&D investments, OSI Systems continues to expand its footprint, embracing both organic growth and technological advancements to sustain its revenue streams.
Deep in the heart of California, OSI Systems Inc. stands as a diverse, innovative force in the electronics and security industries. Founded in 1987, OSI has crafted a reputation as a reliable creator of high-technology solutions for three distinct sectors: security, healthcare, and optoelectronics. At its core, OSI Systems orchestrates a symphony of specialized equipment and software, delivering products that cater to a variety of niche markets. Whether you are traveling through a bustling airport and your luggage passes seamlessly through an advanced scanning system, or a patient in a hospital undergoing a critical diagnostic exam with cutting-edge medical imaging devices, OSI’s fingerprints are evident.
The company's business model is anchored in its ability to produce and integrate complex systems, boosted by a commitment to innovation and quality. Revenues are primarily driven by its Security segment, which focuses on providing essential inspection systems, detection devices, and infrastructure—capabilities greatly in demand amid rising global security concerns. Meanwhile, its Healthcare division offers diagnostic cardiology, patient monitoring, and anesthesia systems across the globe. The lesser-known Optoelectronics segment feeds the relentless push for miniaturization and precision with components that serve multiple industries, enhancing other businesses' capabilities and forming a critical part of the supply chain. Through strategic acquisitions and robust R&D investments, OSI Systems continues to expand its footprint, embracing both organic growth and technological advancements to sustain its revenue streams.
Record Revenue: OSI Systems posted Q2 revenue of $464 million, up 11% year-over-year, setting a new Q2 record.
Strong Segment Growth: Security division revenue grew 15% and Optoelectronics 12%, both achieving double-digit top-line gains.
EPS & Guidance: Adjusted EPS reached a record $2.58. Full-year non-GAAP EPS guidance was raised to $10.30–$10.55, representing 10–13% growth.
Cash Flow: Operating cash flow was $62 million in Q2, with expectations for even stronger cash generation in the latter half of the year, particularly as Mexico receivables are collected.
Security Bookings: Security orders were lower than expected due to timing delays, but the backlog remained healthy at $1.8 billion; management expects a stronger second half.
Margin Outlook: Service revenue growth, which carries higher margins, is expected to drive margin expansion, especially in Q4 as Mexico-related headwinds subside.
Major Contracts: Wins include a $20 million radiological threat detection contract and participation in the $151 billion Shield/Golden Dome missile defense program.
