OSI Systems Receives $12 Million Order for Mobile Cargo and Vehicle Inspection Systems

Rhea-AI Summary

OSI Systems (NASDAQ: OSIS) has secured a significant international order worth $12 million for its Security division. The contract includes the provision of multiple Eagle® M60 ZBx mobile cargo and vehicle inspection systems, along with maintenance and support services.

The systems will be deployed for international border and security requirements. The Eagle® M60 ZBx combines high-quality transmission X-ray technology with material discrimination capabilities and Z Backscatter® technology, enabling enhanced detection of organic threats and contraband through photo-like imaging for easier interpretation.

Positive

• Secured new $12 million international contract
• Contract includes long-term maintenance and support revenue stream
• Expands international market presence in border security sector

Negative

• None.

Insights

Defense Industry Analyst

This $12 million order represents a significant win for OSI Systems in the competitive security screening market, particularly noteworthy for its advanced dual-modality imaging technology. The Eagle® M60 ZBx's combination of transmission X-ray and Z Backscatter® technology creates a compelling value proposition in border security applications, where the ability to detect both dense materials and organic threats is crucial.

The inclusion of maintenance and support services in the contract is strategically important, as it establishes a recurring revenue stream that typically carries higher margins than equipment sales. For a company with a market cap of about $3.3 billion, while this single order may appear modest, it reinforces OSI's strong position in the global security infrastructure market.

Three key aspects make this deal particularly noteworthy:

• The international nature of the order demonstrates OSI's continued success in expanding its global footprint
• The selection of the premium M60 ZBx model indicates customers' willingness to invest in top-tier technology
• The timing aligns with increased global focus on border security and infrastructure protection

The order also validates OSI's R&D investments in advanced imaging technologies, particularly in material discrimination capabilities that are becoming increasingly critical for modern security applications. This technological edge helps maintain competitive barriers and supports pricing power in the market.

HAWTHORNE, Calif.--(BUSINESS WIRE)-- OSI Systems, Inc. (the “Company” or “OSI Systems”) (NASDAQ: OSIS) today announced that its Security division received an international award valued at approximately $12 million to provide multiple units of the Eagle^® M60 ZBx multi-energy, mobile cargo and vehicle inspection system with combinational imaging, including follow-on maintenance and support. These inspection systems are expected to be used for international border and security requirements.

Ajay Mehra, President and CEO of OSI Systems, commented, "We are pleased to receive this award and are committed to supporting our customer's critical mission. The Eagle^® M60 ZBx utilizes high-quality transmission X-ray technology with material discrimination for powerful imaging of dense cargo, alongside Z Backscatter^® technology for enhanced detection of organic threats and contraband, providing photo-like imaging for easier interpretation. These features enhance inspection capabilities to help identify various threats to infrastructure safety and security."

About OSI Systems

OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense, and aerospace industries. The Company combines more than 40 years of electronics engineering and manufacturing experience with offices and production facilities in more than a dozen countries to implement a strategy of expansion into selective end product markets. For more information on OSI Systems or any of its subsidiary companies, visit www.osi-systems.com. News Filter: OSIS-G

Forward-Looking Statements

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 OSI Systems’ current expectations, beliefs, and projections concerning matters that are not historical facts. Forward-looking statements are not guarantees of future performance and involve uncertainties, risks, assumptions, and contingencies, many of which are outside OSI Systems’ control and which may cause actual results to differ materially from those described in or implied by any forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are based on currently available information and speak only as of the date on which they are made. OSI Systems 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 factors that could cause OSI Systems’ future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in OSI Systems’ most recently filed Annual Report on Form 10-K and other risks described therein and in documents subsequently filed by OSI Systems from time to time with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129307018/en/

OSI Systems, Inc.

Ajay Vashishat

Vice President, Business Development

310-349-2237

avashishat@osi-systems.com

Source: OSI Systems, Inc.

FAQ

What is the value of OSI Systems' new contract for Eagle M60 ZBx systems?

OSI Systems (OSIS) received an international order valued at approximately $12 million for multiple Eagle M60 ZBx mobile cargo and vehicle inspection systems.

What technologies are included in the Eagle M60 ZBx inspection system?

The Eagle M60 ZBx system combines high-quality transmission X-ray technology with material discrimination and Z Backscatter technology for enhanced detection of organic threats and contraband.

What is the purpose of OSIS's new Eagle M60 ZBx order?

The inspection systems will be used for international border and security requirements, helping to identify various threats to infrastructure safety and security.

Does the OSIS contract include maintenance services?

Yes, the $12 million contract includes follow-on maintenance and support services for the Eagle M60 ZBx inspection systems.