OSI Systems Reports Fiscal 2021 Third Quarter Financial Results

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04/29/2021 - 09:00 AM

OSI Systems, Inc. (the “Company” or “OSI Systems”) (Nasdaq: OSIS) today announced financial results for the three and nine months ended March 31, 2021.

Deepak Chopra, OSI Systems’ Chairman and Chief Executive Officer, stated, “We are pleased with our third quarter performance as we delivered another quarter of record adjusted earnings despite the ongoing impact of the COVID-19 pandemic on our Security division. With the strength of our backlog and momentum in our end markets, we expect to conclude fiscal 2021 with fourth quarter year-over-year sales growth of 11% - 20% and strong earnings.”

For the third quarter of fiscal 2021, the Company reported revenues of $283.8 million compared to $292.9 million reported for the third quarter of fiscal 2020. Net income for the third quarter of fiscal 2021 was $18.8 million, or $1.03 per diluted share, compared to net income of $19.6 million, or $1.06 per diluted share, for the third quarter of fiscal 2020. Non-GAAP net income for the third quarter of fiscal 2021 was $25.3 million, or $1.38 per diluted share, compared to non-GAAP net income for the fiscal 2020 third quarter of $22.1 million, or $1.20 per diluted share.

For the nine months ended March 31, 2021, revenues were $814.7 million compared to $889.1 million in the same period a year ago. Net income for the nine months ended March 31, 2021 was $48.2 million, or $2.63 per diluted share, compared with $61.3 million, or $3.28 per diluted share, for the same period a year ago. Non-GAAP net income for the nine months ended March 31, 2021 was $69.3 million, or $3.79 per diluted share, compared with non-GAAP net income of $63.1 million, or $3.38 per diluted share, for the comparable prior-year period.

For the quarter ended March 31, 2021, the Company’s book-to-bill ratio was 1.1. As of March 31, 2021, the Company's backlog was $1.063 billion compared to $861 million as of June 30, 2020. During the quarter ended March 31, 2021, operating cash flow was $41.6 million, and capital expenditures were $2.6 million.

Mr. Chopra commented, “Our Optoelectronics and Manufacturing division delivered excellent results with record third quarter sales and operating income. Bookings were also strong leading to a record Opto backlog positioning the division for a strong finish to fiscal 2021.”

Mr. Chopra continued, “The Security division’s solid operational performance contributed to adjusted operating margin expansion despite lower year-over-year revenues that were impacted by the pandemic, most notably in our aviation and cargo businesses. We continue to demonstrate our leadership in the global marketplace and are seeing signs of the Security business beginning to emerge from the pandemic-related challenges with numerous recent awards. We expect to resume sales growth during the fourth fiscal 2021 quarter.”

Mr. Chopra concluded, “The Healthcare division reported another terrific quarter with an 18% increase in third quarter year-over-year revenue and significant operating income growth. We made significant investments in research and development as we continue our focus on enhancing core offerings and developing new products.”

Fiscal Year 2021 Outlook