OSI Systems (OSIS) 10-Q 27 Oct 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2023	Oct. 24, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	000-23125
Entity Registrant Name	OSI SYSTEMS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0238801
Entity Address, Address Line One	12525 Chadron Avenue
Entity Address, City or Town	Hawthorne
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90250
City Area Code	310
Local Phone Number	978-0516
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	OSIS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,987,842
Entity Central Index Key	0001039065
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--06-30
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 82,591	$ 76,750
Accounts receivable, net	323,769	380,845
Inventories	418,797	338,008
Prepaid expenses and other current assets	46,942	44,300
Total current assets	872,099	839,903
Property and equipment, net	109,174	108,933
Goodwill	348,411	349,505
Intangible assets, net	140,211	140,857
Other assets	118,557	116,488
Total assets	1,588,452	1,555,686
CURRENT LIABILITIES:
Bank lines of credit	235,000	215,000
Current portion of long-term debt	8,134	8,076
Accounts payable	164,422	139,011
Accrued payroll and related expenses	44,430	51,243
Advances from customers	31,949	21,250
Other accrued expenses and current liabilities	127,693	137,114
Total current liabilities	611,628	571,694
Long-term debt	134,746	136,491
Deferred income taxes	6,868	6,571
Other long-term liabilities	110,753	114,765
Total liabilities	863,995	829,521
Commitments and contingencies (Note 10)
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value- 10,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.001 par value-100,000,000 shares authorized; issued and outstanding, 16,755,772 shares at June 30, 2023 and 16,987,842 shares at September 30, 2023	17	9,835
Retained earnings	745,955	735,957
Accumulated other comprehensive loss	(21,515)	(19,627)
Total stockholders' equity	724,457	726,165
Total liabilities and stockholders' equity	$ 1,588,452	$ 1,555,686

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2023	Jun. 30, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	16,987,842	16,755,772
Common stock, shares outstanding	16,987,842	16,755,772

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Net revenues:
Total net revenues	$ 279,210	$ 268,071
Cost of goods sold:
Total cost of goods sold	180,465	180,574
Gross profit	98,745	87,497
Operating expenses:
Selling, general and administrative	59,798	53,438
Research and development	15,922	14,540
Impairment, restructuring and other charges, net	466	1,219
Total operating expenses	76,186	69,197
Income from operations	22,559	18,300
Interest and other expense, net	(5,748)	(3,432)
Income before income taxes	16,811	14,868
Provision for income taxes	(3,932)	(3,633)
Net income	$ 12,879	$ 11,235
Earnings per share:
Basic	$ 0.77	$ 0.66
Diluted	$ 0.75	$ 0.65
Shares used in per share calculation:
Basic	16,825	16,924
Diluted	17,175	17,180
Products
Net revenues:
Total net revenues	$ 199,709	$ 196,954
Cost of goods sold:
Total cost of goods sold	136,983	143,369
Services
Net revenues:
Total net revenues	79,501	71,117
Cost of goods sold:
Total cost of goods sold	$ 43,482	$ 37,205

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
Net income	$ 12,879	$ 11,235
Other comprehensive loss:
Foreign currency translation adjustment, net of tax	(3,172)	(9,792)
Net unrealized gain on derivatives, net of tax	1,147	3,540
Other, net of tax	137	333
Other comprehensive loss	(1,888)	(5,919)
Comprehensive income	$ 10,991	$ 5,316

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance, at the beginning at Jun. 30, 2022	$ 17	$ 663,869	$ (25,462)	$ 638,424
Balance, at the beginning (in shares) at Jun. 30, 2022	16,870,050
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 194			194
Exercise of stock options (in shares)	2,919
Vesting of RSUs (in shares)	286,119
Shares issued under employee stock purchase program	$ 1,969			1,969
Shares issued under employee stock purchase program (in shares)	28,603
Stock-based compensation expense	$ 7,177			7,177
Repurchase of common stock	$ (208)	(17,079)		(17,287)
Repurchase of common stock (in shares)	(208,427)
Taxes paid related to net share settlement of equity awards	$ (9,132)	(2,008)		(11,140)
Taxes paid related to net share settlement of equity awards (in shares)	(125,111)
Net income		11,235		11,235
Other comprehensive loss			(5,919)	(5,919)
Balance, at the end at Sep. 30, 2022	$ 17	656,017	(31,381)	624,653
Balance, at the end (in shares) at Sep. 30, 2022	16,854,153
Balance, at the beginning at Jun. 30, 2023	$ 9,835	735,957	(19,627)	726,165
Balance, at the beginning (in shares) at Jun. 30, 2023	16,755,772
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 420			420
Exercise of stock options (in shares)	4,752
Vesting of RSUs (in shares)	363,820
Shares issued under employee stock purchase program	$ 2,031			2,031
Shares issued under employee stock purchase program (in shares)	29,813
Stock-based compensation expense	$ 7,089			7,089
Taxes paid related to net share settlement of equity awards	$ (19,358)	(2,881)		(22,239)
Taxes paid related to net share settlement of equity awards (in shares)	(166,315)
Net income		12,879		12,879
Other comprehensive loss			(1,888)	(1,888)
Balance, at the end at Sep. 30, 2023	$ 17	$ 745,955	$ (21,515)	$ 724,457
Balance, at the end (in shares) at Sep. 30, 2023	16,987,842

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 12,879	$ 11,235
Adjustments to reconcile net income to net cash provided by operating activities, net of effects from acquisitions:
Depreciation and amortization	9,568	9,541
Stock-based compensation expense	7,089	7,177
Recovery of losses on accounts receivable	(433)	(1,675)
Deferred income taxes	208	121
Amortization of debt discount and issuance costs		196
Other	42	7
Changes in operating assets and liabilities-net of business acquisitions:
Accounts receivable	55,868	(5,376)
Inventories	(82,035)	(29,966)
Prepaid expenses and other assets	(7,605)	(8,587)
Accounts payable	25,851	20,000
Accrued payroll and related expenses	(6,606)	(10,987)
Advances from customers	10,770	10,133
Deferred revenue	(7,142)	19,231
Other	(1,310)	(3,808)
Net cash provided by operating activities	17,144	17,242
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment	(5,239)	(3,281)
Proceeds from sale of property and equipment	44	92
Purchases of certificates of deposit	(2,068)	(73)
Proceeds from maturities of certificates of deposit	1,839
Acquisition of businesses, net of cash acquired		(1,871)
Payments for intangible and other assets	(4,154)	(3,944)
Net cash used in investing activities	(9,578)	(9,077)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on bank lines of credit	20,000	155,000
Proceeds from long-term debt	394	100,307
Payments on long-term debt	(2,073)	(242,479)
Proceeds from exercise of stock options and employee stock purchase plan	2,451	2,163
Payments of contingent consideration	(383)	(415)
Repurchases of common stock		(17,287)
Taxes paid related to net share settlement of equity awards	(22,239)	(11,140)
Net cash used in financing activities	(1,850)	(13,851)
Effect of exchange rate changes on cash	125	(4,526)
Net change in cash and cash equivalents	5,841	(10,212)
Cash and cash equivalents-beginning of period	76,750	64,202
Cash and cash equivalents-end of period	82,591	53,990
Supplemental disclosure of cash flow information:
Interest	5,455	3,856
Income taxes	$ 6,795	$ 7,235

Basis of Presentation

Basis of Presentation	3 Months Ended
	Sep. 30, 2023
Basis of Presentation
Basis of Presentation	1. Basis of Presentation The condensed consolidated financial statements include the accounts of OSI Systems, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded in accordance with SEC rules and regulations and GAAP applicable to interim unaudited financial statements. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for audited annual financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. These unaudited condensed consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 filed with the SEC. The results of operations for the three months ended September 30, 2023 are not necessarily indicative of the operating results to be expected for the full 2024 fiscal year or any future periods. Use of Estimates ​ The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales, costs of sales and expenses during the reporting period. The most significant of these estimates and assumptions for our company relate to contract revenue, fair values of assets acquired and liabilities assumed in business combinations, values for inventories reported at lower of cost or net realizable value, stock-based compensation expense, income taxes, accrued warranty costs, contingent consideration, allowance for doubtful accounts, and the recoverability, useful lives and valuation of recorded amounts of long-lived assets, identifiable intangible assets and goodwill. Changes in estimates are reflected in the periods during which they become known. Due to the inherent uncertainty involved in making estimates, our actual amounts reported in future periods could differ materially from these estimates. ​ Earnings Per Share Computations ​ We compute basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. We compute diluted earnings per share by dividing net income available to common stockholders by the sum of the weighted average number of common shares and dilutive potential common shares outstanding during the period. Potential common shares consist of the shares issuable upon the exercise of stock options and restricted stock unit awards under the treasury stock method. ​ The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2022 2023 Net income available to common stockholders ​ $ 11,235 ​ $ 12,879 Weighted average shares outstanding—basic ​ 16,924 ​ ​ 16,825 Dilutive effect of equity awards ​ 256 ​ ​ 350 Weighted average shares outstanding—diluted ​ 17,180 ​ ​ 17,175 Basic earnings per share ​ $ 0.66 ​ $ 0.77 Diluted earnings per share ​ $ 0.65 ​ $ 0.75 Shares excluded from diluted earnings per share due to their anti-dilutive effect ​ ​ 26 ​ ​ 8 ​ Cash and Cash Equivalents ​ We consider all highly liquid investments with maturities of three months or less as of the acquisition date to be cash equivalents. Our cash and cash equivalents totaled $82.6 million at September 30, 2023. Of this amount, approximately 91% was held by our foreign subsidiaries and subject to repatriation tax considerations. These foreign funds were held primarily by our subsidiaries in the United Kingdom, Qatar, Singapore, India, Malaysia and Canada, and to a lesser extent in Indonesia, Australia, Germany, Mexico and Egypt among other countries. We have cash holdings in financial institutions that exceed insured limits for such financial institutions; however, we mitigate this risk by utilizing international financial institutions of high credit quality. ​ Fair Value of Financial Instruments ​ Our financial instruments consist primarily of cash and cash equivalents, insurance company contracts, accounts receivable, accounts payable, debt instruments, an interest rate swap contract and foreign currency forward contracts. The carrying values of financial instruments, other than long-term debt instruments and the interest rate swap contract, are representative of their fair values due to their short-term maturities. The carrying values of our long-term debt instruments are considered to approximate their fair values because the interest rates of these instruments are variable or comparable to current rates for financing available to us. The fair values of our foreign currency forward contracts were not significant as of June 30, 2023 and September 30, 2023. ​ Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The “Level 1” category includes assets and liabilities at quoted prices in active markets for identical assets and liabilities. The “Level 2” category includes assets and liabilities from observable inputs other than quoted market prices. The “Level 3” category includes assets and liabilities for which valuation techniques are unobservable and significant to the fair value measurement. Our contingent payment obligations related to acquisitions, which are further discussed in Note 10 to the condensed consolidated financial statements, are in the “Level 3” category for valuation purposes. ​ The fair values of our financial assets and liabilities are categorized as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 September 30, 2023 ​ Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets—Insurance company contracts ​ $ — ​ $ 47,181 ​ $ — ​ $ 47,181 ​ $ — ​ $ 47,508 ​ $ — ​ $ 47,508 Assets – Interest rate swap contract ​ $ — ​ $ 5,369 ​ $ — ​ $ 5,369 ​ $ — ​ $ 6,826 ​ $ — ​ $ 6,826 Liabilities—Contingent consideration ​ $ — ​ $ — ​ $ 21,181 ​ $ 21,181 ​ $ — ​ $ — ​ $ 19,784 ​ $ 19,784 ​ Derivative Instruments and Hedging Activity ​ Our use of derivatives consists of foreign currency forward contracts and an interest rate swap contract. The foreign currency forward contracts are utilized to partially mitigate certain balance sheet exposures or used as a net investment hedge to protect against potential changes resulting from short-term foreign currency fluctuations. These contracts have original maturities of up to three months. We also manage our risk to changes in interest rates using derivative instruments. We use fixed interest rate swaps to effectively convert a portion of the variable interest rate payments to fixed interest rate payments. We do not use hedging instruments for speculative purposes. ​ The net gains or losses from our foreign currency forward contracts, which are not designated as hedge instruments, are reported in the consolidated statements of operations, and the amounts reported for the three months ended September 30, 2022 and 2023 were not significant. The fair value of our foreign currency forward contracts is estimated using a standard valuation model and market-based observable inputs over the contractual term. Unrealized gains are recognized as assets and unrealized losses are recognized as liabilities. As of June 30, 2023 and September 30, 2023, we held foreign currency forward contracts with notional amounts totaling $21.6 million and $25.6 million, respectively. Unrealized gains and losses from our foreign currency forward contracts as of June 30, 2023 and September 30, 2023 were not significant. The interest rate swap agreement was entered into to improve the predictability of cash flows from interest payments related to our variable, Secured Overnight Financing Rate (“SOFR”) based debt. The interest rate swap matures in December 2026. The interest rate swap is considered an effective cash flow hedge, and as a result, the net gains or losses on such instrument are reported as a component of other comprehensive income in the consolidated financial statements and are reclassified as net income when the underlying hedged interest expense impacts earnings. A qualitative and quantitative assessment over the hedge effectiveness is performed on a quarterly basis, unless facts and circumstances indicate that the hedge may no longer be highly effective. As of June 30, 2023 and September 30, 2023, the notional amount of the derivative instruments designated as an interest rate swap hedge was $175 million. The fair value of the interest rate swap contract as of as of June 30, 2023 and September 30, 2023 is recorded in Other assets within the consolidated balance sheet. The effect of the cash flow hedges on other comprehensive income (loss) and earnings for the periods presented was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2022 2023 Total interest and other expense, net presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded ​ $ (3,432) ​ $ (5,748) Gain recognized in other comprehensive income, net of tax ​ 3,540 ​ 1,147 Benefit (expense) reclassified from accumulated other comprehensive income to interest expense, net ​ (120) ​ 872 ​ Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on our Consolidated Financial Statements upon adoption. There were no new pronouncements adopted in the first quarter of fiscal year 2024.

Business Combinations

Business Combinations	3 Months Ended
	Sep. 30, 2023
Business Combinations
Business Combinations	2. Business Combinations Under Accounting Standards Codification Topic 805, Business Combinations Fiscal Year 2024 Business Acquisition In October 2023, we (through our Security Division) acquired a privately held provider of radiation detection technology for approximately $2.8 million, plus up to $3.6 million in potential contingent consideration. The acquisition was financed with cash on hand. The goodwill recognized for this business acquisition is not deductible for income tax purposes. Fiscal Year 2023 Business Acquisitions In April 2023, we (through our Optoelectronics and Manufacturing division) acquired a privately held provider of engineering and contract manufacturing solutions for approximately $2.5 million, plus up to $2.5 million in potential contingent consideration. The acquisition was financed with cash on hand. In February 2023, we (through our Healthcare division) acquired a privately held provider of software and solutions for approximately $2.1 million plus up to $5.0 million in potential contingent consideration. The acquisition was financed with cash on hand. Through our Security division, we acquired (i) in December 2022 certain assets of a provider of baggage and parcel inspection systems for approximately $1.6 million and (ii) in August 2022 a privately held provider of training software and solutions for approximately $1.9 million plus an immaterial amount of potential contingent consideration. These acquisitions were financed with cash on hand. The goodwill recognized for each of the fiscal year 2023 business acquisitions is not deductible for income tax purposes. These business acquisitions in fiscal 2023 and 2024, individually and in the aggregate, were not material to our consolidated financial statements. Accordingly, pro-forma historical results of operations and other disclosures related to these businesses have not been presented.

Balance Sheet Details

Balance Sheet Details	3 Months Ended
	Sep. 30, 2023
Balance Sheet Details
Balance Sheet Details	3. Balance Sheet Details ​ The following tables set forth details of selected balance sheet accounts (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, Accounts receivable, net 2023 2023 Accounts receivable ​ $ 395,218 ​ $ 337,365 Less allowance for doubtful accounts ​ (14,373) ​ (13,596) Total ​ $ 380,845 ​ $ 323,769 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, Inventories 2023 2023 Raw materials ​ $ 233,217 ​ $ 271,449 Work-in-process ​ 56,329 ​ 82,969 Finished goods ​ 48,462 ​ 64,379 Total ​ $ 338,008 ​ $ 418,797 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, Property and equipment, net 2023 2023 Land ​ $ 15,691 ​ $ 15,663 Buildings, civil works and improvements ​ 49,166 ​ 48,564 Leasehold improvements ​ 13,553 ​ 13,533 Equipment and tooling ​ 135,703 ​ 136,399 Furniture and fixtures ​ 3,632 ​ 3,241 Computer equipment ​ 24,119 ​ 21,229 Computer software ​ 26,981 ​ 27,487 Computer software implementation in process ​ ​ 9,705 ​ ​ 9,544 Construction in process ​ 4,108 ​ 5,806 Total ​ 282,658 ​ 281,466 Less accumulated depreciation and amortization ​ (173,725) ​ (172,292) Property and equipment, net ​ $ 108,933 ​ $ 109,174 ​ Depreciation and amortization expense for property and equipment was $4.9 million in each of the three months ended September 30, 2022 and 2023.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets
Goodwill and Intangible Assets	4. Goodwill and Intangible Assets ​ The changes in the carrying value of goodwill by segment for the three-month period ended September 30, 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Optoelectronics ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ And ​ ​ ​ ​ ​ Security ​ Healthcare ​ Manufacturing ​ ​ ​ ​ Division Division Division Consolidated Balance as of June 30, 2023 ​ $ 230,662 ​ $ 48,455 ​ $ 70,388 ​ $ 349,505 Foreign currency translation adjustment ​ (132) ​ ​ (103) ​ ​ (859) ​ ​ (1,094) Balance as of September 30, 2023 ​ $ 230,530 ​ ​ 48,352 ​ ​ 69,529 ​ ​ 348,411 ​ Intangible assets consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ September 30, 2023 ​ ​ Weighted ​ Gross ​ ​ ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Carrying ​ Accumulated ​ Intangibles ​ Carrying ​ Accumulated ​ Intangibles ​ Lives Value Amortization Net Value Amortization Net Amortizable assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Software development costs 8-9 years ​ $ 77,844 ​ $ (20,285) ​ $ 57,559 ​ ​ 81,845 ​ ​ (21,145) ​ ​ 60,700 Patents 19 years ​ 8,636 ​ (3,404) ​ 5,232 ​ ​ 8,742 ​ ​ (3,515) ​ ​ 5,227 Developed technology 10 years ​ 68,274 ​ (38,353) ​ 29,921 ​ ​ 68,246 ​ ​ (40,186) ​ ​ 28,060 Customer relationships 7 years ​ 55,780 ​ (39,101) ​ 16,679 ​ ​ 55,570 ​ ​ (40,833) ​ ​ 14,737 Total amortizable assets ​ ​ ​ 210,534 ​ ​ (101,143) ​ ​ 109,391 ​ ​ 214,403 ​ ​ (105,679) ​ ​ 108,724 Non-amortizable assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In-process R&D ​ ​ ​ ​ 533 ​ ​ — ​ ​ 533 ​ ​ 533 ​ ​ — ​ ​ 533 Trademarks ​ ​ ​ 30,933 ​ ​ — ​ ​ 30,933 ​ ​ 30,954 ​ ​ — ​ ​ 30,954 Total intangible assets ​ ​ ​ $ 242,000 ​ $ (101,143) ​ $ 140,857 ​ ​ 245,890 ​ ​ (105,679) ​ ​ 140,211 ​ Amortization expense related to intangible assets was $4.7 million in each of the three months ended September 30, 2022 and 2023. ​ At September 30, 2023, the estimated future amortization expense for amortizable intangible assets was as follows (in thousands): ​ Fiscal Year ​ ​ ​ ​ ​ 2024 (remaining 9 months) $ 14,187 2025 ​ 15,879 2026 ​ 12,705 2027 ​ ​ 8,741 2028 ​ ​ 5,953 Thereafter ​ 51,259 Total ​ $ 108,724 ​ Software development costs for software products incurred before establishing technological feasibility are charged to operations. Software development costs incurred after establishing technological feasibility are capitalized on a product-by-product basis until the product is available for general release to customers at which time amortization begins. Annual amortization, charged to cost of goods sold, is the amount computed using the ratio that current revenues for a product bear to the total current and anticipated future revenues for that product. In the event that future revenues are not estimable, such costs are amortized on a straight-line basis over the remaining estimated economic life of the product. Amortizable assets that have not yet begun to be amortized are included in Thereafter in the table above. For the three months ended September 30, 2022 and 2023, we capitalized software development costs in the amounts of $3.9 million and $4.0 million, respectively.

Contract Assets and Liabilities

Contract Assets and Liabilities	3 Months Ended
	Sep. 30, 2023
Contract Assets and Liabilities
Contract Assets and Liabilities	5. Contract Assets and Liabilities ​ We enter into contracts to sell products and provide services, and we recognize contract assets and liabilities that arise from these transactions. We recognize revenue and corresponding accounts receivable according to ASC Topic 606, Revenue from Contracts with Customers ​ The table below shows the balance of contract assets and liabilities as of June 30, 2023 and September 30, 2023, including the change between the periods. There were no substantial non-current contract assets for the periods presented. Contract Assets (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, September 30, ​ ​ ​ ​ 2023 2023 Change % Change Unbilled revenue (included in accounts receivable, net) ​ $ 86,818 ​ $ 103,663 ​ $ 16,845 ​ 19 % Contract Liabilities (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, September 30, ​ ​ ​ 2023 2023 Change % Change ​ Advances from customers ​ $ 21,250 ​ $ 31,949 ​ $ 10,699 ​ 50 % Deferred revenue—current ​ 43,861 ​ ​ 39,000 ​ ​ (4,861) ​ (11) % Deferred revenue—long-term ​ 22,200 ​ ​ 19,733 ​ ​ (2,467) ​ (11) % ​ Contract assets increased during the three months ended September 30, 2023 primarily from the timing and nature of milestones met in contracts for a number of customers in our Security Division where we met the revenue recognition criteria under ASC 606 in advance of the time when contracts give us the right to invoice customers. ​ Remaining Performance Obligations ​ Practical Expedients.

Leases

Leases	3 Months Ended
	Sep. 30, 2023
Leases
Leases	6. Leases ​ The components of operating lease expense were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2022 2023 Operating lease cost ​ $ 2,826 ​ $ 2,805 Variable lease cost ​ ​ 406 ​ ​ 265 Short-term lease cost ​ ​ 223 ​ ​ 325 ​ ​ $ 3,455 ​ $ 3,395 ​ Supplemental disclosures related to operating leases were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Category June 30, 2023 September 30, 2023 ​ Operating lease right of use (“ROU”) assets, net Other assets ​ $ 32,618 ​ $ 32,534 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities, current portion Other accrued expenses and current liabilities ​ $ 9,787 ​ $ 9,929 ​ Operating lease liabilities, long-term Other long-term liabilities ​ 23,733 ​ 23,472 ​ Total operating lease liabilities ​ ​ ​ $ 33,520 ​ $ 33,401 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term ​ ​ ​ ​ ​ 4.0 years ​ Weighted average discount rate ​ ​ ​ ​ ​ 3.9 % ​ Supplemental cash flow information related to operating leases was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2022 2023 Cash paid for operating lease liabilities ​ $ 2,685 ​ $ 2,994 ROU assets obtained in exchange for new lease obligations ​ 413 ​ ​ 1,791 ​ Maturities of operating lease liabilities at September 30, 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ September 30, 2023 Less than one year ​ $ 11,008 1 – 2 years ​ 8,845 2 – 3 years ​ 7,664 3 – 4 years ​ 5,357 4 – 5 years ​ 1,282 Thereafter ​ 1,969 ​ ​ 36,125 Less: imputed interest ​ (2,724) Total lease liabilities ​ $ 33,401 ​

Impairment, Restructuring and O

Impairment, Restructuring and Other Charges	3 Months Ended
	Sep. 30, 2023
Impairment, Restructuring and Other Charges
Impairment, Restructuring and Other Charges	7. Impairment, Restructuring and Other Charges ​ We endeavor to align our global capacity and infrastructure with demand by our customers as well as fully integrate acquisitions and thereby improve operational efficiency. ​ During the three months ended September 30, 2023, we recognized $0.5 million in impairment, restructuring and other charges, which included $0.1 million in legal charges, $0.1 million for employee terminations, $0.1 million for other facility closure costs for operational efficiency activities, and $0.2 million in acquisition related costs. ​ During the three months ended September 30, 2022, we recognized $1.2 million in restructuring and other charges, which included $0.9 million in legal charges and $0.3 million for employee terminations. The following tables summarize impairment, restructuring and other charges (benefits), net for the periods set forth below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2022 ​ ​ ​ ​ ​ Optoelectronics and ​ ​ ​ ​ ​ ​ ​ ​ ​ Healthcare ​ Manufacturing ​ ​ ​ ​ ​ ​ ​ Security Division Division Division Corporate Total Employee termination costs ​ $ 23 ​ $ — ​ $ — ​ $ — ​ $ 23 Facility closures/consolidation ​ ​ 241 ​ ​ — ​ ​ 15 ​ ​ — ​ ​ 256 Legal costs, net ​ 524 ​ ​ 294 ​ ​ — ​ ​ 122 ​ ​ 940 Total ​ $ 788 ​ $ 294 ​ $ 15 ​ $ 122 ​ $ 1,219 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Optoelectronics and ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Healthcare ​ Manufacturing ​ ​ ​ ​ ​ ​ ​ Security Division Division Division Corporate Total Employee termination costs ​ $ 13 ​ $ — ​ $ — ​ $ 110 ​ $ 123 Facility closures/consolidation ​ ​ — ​ ​ — ​ ​ 51 ​ ​ — ​ ​ 51 Acquisition-related costs ​ ​ 208 ​ ​ — ​ ​ — ​ ​ — ​ ​ 208 Legal costs, net ​ 52 ​ ​ — ​ ​ — ​ ​ 32 ​ ​ 84 Total ​ $ 273 ​ $ — ​ $ 51 ​ $ 142 ​ $ 466 ​ The accrued liability for restructuring and other charges is included in other accrued expenses and current liabilities in the condensed consolidated balance sheets. The changes in the accrued liability for restructuring and other charges for the three-month period ended September 30, 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Facility ​ ​ ​ ​ ​ ​ ​ Acquisition- ​ Employee ​ Closure/ ​ Legal ​ ​ ​ ​ ​ Related ​ Termination ​ Consolidation ​ Costs and ​ ​ ​ ​ Costs Costs Cost Settlements Total Balance as of June 30, 2023 ​ $ 7 ​ $ 107 ​ $ 1,609 ​ $ 656 ​ $ 2,379 Restructuring and other charges, net ​ 208 ​ 123 ​ 51 ​ 84 ​ 466 Payments, adjustments and reimbursements, net ​ (208) ​ 72 ​ (716) ​ (228) ​ (1,080) Balance as of September 30, 2023 ​ $ 7 ​ $ 302 ​ $ 944 ​ $ 512 ​ $ 1,765 ​

Borrowings

Borrowings	3 Months Ended
	Sep. 30, 2023
Borrowings.
Borrowings	8. Borrowings ​ Revolving Credit Facility ​ In December 2021, we entered into an amendment to the senior secured credit facility that increased the aggregate amount available to borrow from $535 million to $750 million. The amended facility matures in December 2026 and is comprised of a $600 million revolving credit facility and a $150 million term loan. The revolving credit facility includes a $300 million sub-limit for letters of credit. Under certain circumstances and subject to certain conditions, we have the ability to increase the revolving credit facility by the greater of $250 million or such amount as would not cause our secured leverage ratio to exceed a specified level. Borrowings under the amended facility bore interest at SOFR plus a margin of 1.0% as of September 30, 2023 (which margin can range from 1.0% to 1.75% based on our consolidated net leverage ratio as defined in the credit facility). Letters of credit reduce the amount available to borrow under the credit facility by their face value amount. The unused portion of the facility bore a commitment fee of 0.10% as of September 30, 2023 (which fee can range from 0.10% to 0.25% based on our consolidated net leverage ratio as defined in the credit facility). Our borrowings under the credit agreement are guaranteed by certain of our U.S.-based subsidiaries and are secured by substantially all of our assets and substantially all the assets of certain of our subsidiaries. The credit facility contains various representations and warranties, affirmative, negative and financial covenants and events of default. As of September 30, 2023, there were $235 million of borrowings outstanding under the revolving credit facility, $37.7 million outstanding under the letters of credit sub-facility, and $141.3 million outstanding under the term loan. As of September 30, 2023, the amount available to borrow under the revolving credit facility was $327.3 million. Loan amounts under the revolving credit facility may be borrowed, repaid and re-borrowed during the term. The principal amount of each loan is due and payable in full on the maturity date. We have the right to repay each loan in whole or in part from time to time without penalty. It is our practice to routinely borrow and repay several times per year under the revolving facility and therefore, borrowings under the revolving credit facility are included in current liabilities. As of September 30, 2023, we were in compliance with all financial covenants under this credit facility. In September 2022, we entered into an interest rate swap in order to mitigate the interest rate risk on a portion of the interest payments expected to be made on the borrowings outstanding under the revolving credit facility and term loan. Refer to Note 1 for details. Interest expense related to the credit facility and term loan was $2.1 million and $6.3 million for the three months ended September 30, 2022 and 2023, respectively. 1.25% Convertible Senior Notes (“Notes”) ​ In February 2017, we issued $287.5 million of the Notes in a private offering. On September 1, 2022, we repurchased and cancelled the remaining $242.3 million balance of the Notes. Total interest expense recognized for the three months ended September 30, 2022 related to the Notes was $0.7 million, which consisted of $0.5 million of contractual interest expense and $0.2 million of amortization of debt issuance costs. Other Borrowings ​ Several of our foreign subsidiaries maintain bank lines of credit, denominated in local currencies and U.S. dollars, primarily for the issuance of letters of credit. As of September 30, 2023, $56.8 million was outstanding under these letter-of-credit facilities. As of September 30, 2023, the total amount available under these credit facilities was $17.6 million. ​ Long-term debt consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ 2023 2023 Term loan ​ $ 143,125 ​ $ 141,250 Other long-term debt ​ 1,442 ​ ​ 1,630 ​ ​ 144,567 ​ ​ 142,880 Less current portion of long-term debt ​ (8,076) ​ ​ (8,134) Long-term portion of debt ​ $ 136,491 ​ $ 134,746 ​

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Sep. 30, 2023
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity ​ Stock-based Compensation ​ As of September 30, 2023, we maintained the Amended and Restated 2012 Incentive Award Plan (the “OSI Plan”) as a stock-based employee compensation plan. ​ We recorded stock-based compensation expense in the consolidated statements of operations as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2022 2023 Cost of goods sold ​ $ 216 ​ $ 232 Selling, general and administrative ​ ​ 6,840 ​ ​ 6,731 Research and development ​ ​ 121 ​ ​ 126 Stock-based compensation expense ​ $ 7,177 ​ $ 7,089 ​ As of September 30, 2023, total unrecognized compensation cost related to share-based compensation grants under the OSI Plan were estimated at $0.6 million for stock options and $19.6 million for restricted stock units (“RSUs”). We expect to recognize these costs over a weighted average period of 1.8 years with respect to the stock options and 2.3 years with respect to the RSUs. ​ The following summarizes stock option activity during the three months ended September 30, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Weighted-Average ​ Aggregate ​ ​ Number of ​ Exercise ​ Remaining Contractual ​ Intrinsic Value ​ Options Price Term (in thousands) Outstanding at June 30, 2023 83,677 $ 87.09 ​ ​ ​ ​ Granted — ​ ​ — ​ ​ ​ ​ ​ Exercised (4,752) ​ ​ 88.39 ​ ​ ​ ​ ​ Expired or forfeited — ​ ​ — ​ ​ ​ ​ ​ Outstanding at September 30, 2023 78,925 ​ $ 87.01 ​ 6.9 years ​ $ 2,449 Exercisable at September 30, 2023 ​ 34,225 ​ $ 83.15 4.8 years ​ $ 1,194 ​ The following summarizes RSU award activity during the nine months ended September 30, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Average ​ Shares Fair Value Nonvested at June 30, 2023 455,515 ​ $ 85.15 Granted 307,506 ​ ​ 93.35 Vested (363,820) ​ ​ 79.00 Forfeited (1,890) ​ ​ 74.15 Nonvested at September 30, 2023 397,311 ​ $ 97.19 ​ As of September 30, 2023, there were approximately 0.2 million shares available for grant under the OSI Plan. Under the terms of the OSI Plan, RSUs granted from the pool of shares available for grant reduce the pool by 1.87 shares for each award granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 1.87 shares for each award forfeited. ​ We granted 109,594 and 75,988 performance-based RSUs during the three months ended September 30, 2022 and 2023, respectively. These performance-based RSU awards are contingent on the achievement of certain performance metrics. The payout related to these awards can range from zero to 376% of the original number of shares or units awarded. Compensation cost associated with these performance based RSUs are recognized based on the estimated number of shares that we ultimately expect will vest. If the estimated number of shares to vest is revised in the future, then stock-based compensation expense will be adjusted accordingly. ​ Stock Repurchase Program ​ In September 2022, our Board of Directors increased the stock repurchase authorization to a total of 2 million shares. This program does not expire unless our Board of Directors acts to terminate the program. The timing and actual numbers of shares purchased depends on a variety of factors, including stock price, general business and market conditions and other investment opportunities. Repurchases may be made from time to time under the program through open-market purchases or privately-negotiated transactions at our discretion. Upon repurchase, the shares are restored to the status of authorized but unissued shares, and we record them in our consolidated financial statements as a reduction in the number of shares of common stock issued and outstanding, with the excess purchase price over par value recorded as a reduction of additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. ​ During the three months ended September 30, 2023, we did not repurchase shares of our common stock. As of September 30, 2023, there were 1,721,870 shares remaining available for repurchase under the authorized repurchase program. ​ Dividends ​ We have not paid any dividends since the consummation of our initial public offering in 1997 and we do not currently intend to pay any dividends in the foreseeable future. Our Board of Directors will determine the payment of future dividends, if any. Certain of our current bank credit facilities restrict the payment of dividends and future borrowings may contain similar restrictions.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2023
Commitments and Contingencies
Commitments and Contingencies	10. Commitments and Contingencies ​ Acquisition-Related Contingent Obligations ​ Under the terms and conditions of the purchase agreements associated with certain acquisitions, we may be obligated to make additional payments based on the achievement of certain sales or profitability milestones through the acquired operations. For agreements that contain contingent consideration obligations that are capped, the remaining maximum amount of such potential future payments is $45.0 million as of September 30, 2023. ​ Projections and estimated probabilities are used to estimate future contingent earnout payments, which are discounted back to present value to compute contingent earnout liabilities. The following table provides a roll-forward from June 30, 2023 to September 30, 2023 of the contingent consideration liability, which is included in other accrued expenses and current liabilities and other long-term liabilities in our consolidated balance sheets (in thousands): ​ ​ ​ ​ ​ Beginning fair value, June 30, 2023 $ 21,181 Foreign currency translation adjustment ​ ​ (150) Changes in fair value for contingent earnout obligations ​ (864) Payments on contingent earnout obligations ​ (383) Ending fair value, September 30, 2023 ​ $ 19,784 ​ Environmental Contingencies ​ We are subject to various environmental laws. We often conduct environmental investigations at our manufacturing facilities in North America, Asia-Pacific, and Europe, and, to the extent practicable, on all new properties in order to identify, as of the date of such investigation, potential areas of environmental concern related to past and present activities or from nearby operations. In certain cases, we have conducted further environmental assessments consisting of soil and groundwater testing and other investigations deemed appropriate by independent environmental consultants. ​ We have not accrued for loss contingencies relating to environmental matters because we believe that, although unfavorable outcomes are possible, they are not considered by our management to be probable and reasonably estimable. If one or more of these environmental matters are resolved in a manner adverse to us, the impact on our business, financial condition, results of operations and cash flow could be material. ​ Indemnifications and Certain Employment-Related Contingencies ​ In the normal course of business, we have agreed to indemnify certain parties with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from breaches of representations, warranties or covenants, or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered into indemnification agreements with our directors and certain of our officers. It is not possible to determine the maximum potential liability amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. We have not recorded any liability for costs related to contingent indemnification obligations as of September 30, 2023. ​ On December 31, 2017, we and Deepak Chopra, our Chief Executive Officer, entered into an amendment to Mr. Chopra’s employment agreement that, among other things, provides for a $13.5 million bonus payment to Mr. Chopra on or within 45 days of January 1, 2024 contingent upon Mr. Chopra’s continued employment with us through that date, subject to accelerated payout terms in the event of Mr. Chopra’s death or disability. The bonus is recorded in the financial statements over the remaining term of the employment agreement and is included in accrued payroll and related expenses. ​ ​ Product Warranties ​ We offer our customers warranties on many of the products that we sell. These warranties typically provide for repairs and maintenance of the products if problems arise during a specified time period after original shipment. Concurrent with the sale of products, we record a provision for estimated warranty expenses with a corresponding increase in cost of goods sold. We periodically adjust this provision based on historical experience and anticipated expenses. We charge actual expenses of repairs under warranty, including parts and labor, to this provision when incurred. The current obligation for warranty provision is included in other accrued expenses and current liabilities and the noncurrent portion is included in other long-term liabilities in the consolidated balance sheets. ​ The following table presents changes in warranty provisions (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2022 2023 Balance at beginning of period ​ $ 13,347 ​ $ 11,149 Additions ​ ​ 884 ​ ​ 312 Reductions for warranty repair costs and adjustments ​ (1,972) ​ ​ (902) Balance at end of period ​ $ 12,259 ​ $ 10,559 ​ Legal Proceedings In February 2023, one of our subsidiaries received a subpoena from the U.S. Department of Justice (“DoJ”) relating to a federal investigation involving a former employee of an OSI Systems subsidiary. The DoJ is currently prosecuting the former employee for embezzlement and other conduct occurring before he was hired by our subsidiary and while he was employed by another company in the United States and Mexico. The subpoena requests documents and records relating to, among other things, the former employee and the Company's business dealings in Mexico since 2020. We have produced documents in response to this subpoena and intend to cooperate with any further subpoenas or other requests in connection with this or any ensuing investigation. In September 2023, an employee demanded a $4 million payment claiming that he was retaliated against for internally reporting that a Mexican government official solicited a payment in connection with a $35 million opportunity. The opportunity has not been awarded, no payment was actually made, and we have reported the employee’s allegations to the U.S. Department of Justice. We have denied the employee’s claim of retaliation and intend to vigorously contest any potential lawsuit that may be filed as lacking in credibility and merit. We are involved in various other potential or actual claims and legal proceedings arising in the ordinary course of business. In our opinion after consultation with legal counsel, the ultimate disposition of such proceedings is not likely to have a material adverse effect on our business, financial condition, results of operations or cash flows. We have not accrued for loss contingencies relating to any non-ordinary course matters because we believe that, although unfavorable outcomes in the proceedings are possible, they are not considered by management to be probable and reasonably estimable. If one or more of these matters are resolved in a manner adverse to our company, the impact on our business, financial condition, results of operations and cash flows could be material.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2023
Income Taxes
Income Taxes	11. Income Taxes ​ The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate and the development of tax planning strategies during the year. In addition, as a global commercial enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. ​ The effective tax rates for the three months ended September 30, 2022 and 2023 were 24.4% and 23.4%, respectively. During the three months ended September 30, 2022 and 2023, we recognized a net discrete tax benefit of $0.1 million and $0.4 million, respectively, related to equity-based compensation under ASU 2016-09.

Segment Information

Segment Information	3 Months Ended
	Sep. 30, 2023
Segment Information
Segment Information	12. Segment Information ​ We have determined that we operate in three identifiable industry segments: (a) security and inspection systems (Security division), (b) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division) and (c) medical monitoring systems (Healthcare division). We also have a corporate segment (Corporate) that includes executive compensation and certain other general and administrative expenses, expenses related to stock issuances and legal, audit and other professional service fees not allocated to industry segments. Both the Security and Healthcare divisions comprise primarily end-product businesses, whereas the Optoelectronics and Manufacturing division primarily supplies components and subsystems to external OEM customers, as well as to the Security and Healthcare divisions. Sales between divisions are at transfer prices that approximate market values. All other accounting policies of the segments are the same as described in Note 1, Basis of Presentation. The following tables present our results of operations and identifiable assets by industry segment (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ 2022 2023 Revenues (1) —by Segment: ​ ​ ​ ​ ​ ​ Security division ​ $ 144,992 ​ $ 164,629 Optoelectronics and Manufacturing division, including intersegment revenues ​ ​ 93,915 ​ ​ 96,128 Healthcare division ​ ​ 43,563 ​ ​ 37,787 Intersegment revenues elimination ​ ​ (14,399) ​ ​ (19,334) Total ​ $ 268,071 ​ $ 279,210 ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations —by Segment: ​ ​ ​ ​ ​ ​ Security division ​ $ 14,924 ​ $ 20,609 Optoelectronics and Manufacturing division ​ ​ 11,258 ​ ​ 11,437 Healthcare division ​ ​ 1,628 ​ ​ 164 Corporate ​ ​ (10,178) ​ ​ (9,916) Intersegment Eliminations ​ ​ 668 ​ ​ 265 Total ​ $ 18,300 ​ $ 22,559 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ 2023 2023 Assets (2) —by Segment: ​ ​ ​ ​ ​ ​ Security division ​ $ 948,126 ​ $ 987,134 Optoelectronics and Manufacturing division ​ 310,930 ​ ​ 296,328 Healthcare division ​ ​ 245,856 ​ ​ 238,897 Corporate ​ 94,678 ​ ​ 113,252 Eliminations (3) ​ (43,904) ​ ​ (47,159) Total ​ $ 1,555,686 ​ $ 1,588,452 (1) (2) (3)

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Sep. 30, 2023
Basis of Presentation
Basis of Presentation	1. Basis of Presentation The condensed consolidated financial statements include the accounts of OSI Systems, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded in accordance with SEC rules and regulations and GAAP applicable to interim unaudited financial statements. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for audited annual financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. These unaudited condensed consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 filed with the SEC. The results of operations for the three months ended September 30, 2023 are not necessarily indicative of the operating results to be expected for the full 2024 fiscal year or any future periods.
Use of Estimates	Use of Estimates ​ The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales, costs of sales and expenses during the reporting period. The most significant of these estimates and assumptions for our company relate to contract revenue, fair values of assets acquired and liabilities assumed in business combinations, values for inventories reported at lower of cost or net realizable value, stock-based compensation expense, income taxes, accrued warranty costs, contingent consideration, allowance for doubtful accounts, and the recoverability, useful lives and valuation of recorded amounts of long-lived assets, identifiable intangible assets and goodwill. Changes in estimates are reflected in the periods during which they become known. Due to the inherent uncertainty involved in making estimates, our actual amounts reported in future periods could differ materially from these estimates. ​
Earnings Per Share Computations	Earnings Per Share Computations ​ We compute basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. We compute diluted earnings per share by dividing net income available to common stockholders by the sum of the weighted average number of common shares and dilutive potential common shares outstanding during the period. Potential common shares consist of the shares issuable upon the exercise of stock options and restricted stock unit awards under the treasury stock method. ​ The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2022 2023 Net income available to common stockholders ​ $ 11,235 ​ $ 12,879 Weighted average shares outstanding—basic ​ 16,924 ​ ​ 16,825 Dilutive effect of equity awards ​ 256 ​ ​ 350 Weighted average shares outstanding—diluted ​ 17,180 ​ ​ 17,175 Basic earnings per share ​ $ 0.66 ​ $ 0.77 Diluted earnings per share ​ $ 0.65 ​ $ 0.75 Shares excluded from diluted earnings per share due to their anti-dilutive effect ​ ​ 26 ​ ​ 8 ​
Cash and Cash Equivalents	Cash and Cash Equivalents ​ We consider all highly liquid investments with maturities of three months or less as of the acquisition date to be cash equivalents. Our cash and cash equivalents totaled $82.6 million at September 30, 2023. Of this amount, approximately 91% was held by our foreign subsidiaries and subject to repatriation tax considerations. These foreign funds were held primarily by our subsidiaries in the United Kingdom, Qatar, Singapore, India, Malaysia and Canada, and to a lesser extent in Indonesia, Australia, Germany, Mexico and Egypt among other countries. We have cash holdings in financial institutions that exceed insured limits for such financial institutions; however, we mitigate this risk by utilizing international financial institutions of high credit quality. ​
Fair Value of Financial Instruments	Fair Value of Financial Instruments ​ Our financial instruments consist primarily of cash and cash equivalents, insurance company contracts, accounts receivable, accounts payable, debt instruments, an interest rate swap contract and foreign currency forward contracts. The carrying values of financial instruments, other than long-term debt instruments and the interest rate swap contract, are representative of their fair values due to their short-term maturities. The carrying values of our long-term debt instruments are considered to approximate their fair values because the interest rates of these instruments are variable or comparable to current rates for financing available to us. The fair values of our foreign currency forward contracts were not significant as of June 30, 2023 and September 30, 2023. ​ Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The “Level 1” category includes assets and liabilities at quoted prices in active markets for identical assets and liabilities. The “Level 2” category includes assets and liabilities from observable inputs other than quoted market prices. The “Level 3” category includes assets and liabilities for which valuation techniques are unobservable and significant to the fair value measurement. Our contingent payment obligations related to acquisitions, which are further discussed in Note 10 to the condensed consolidated financial statements, are in the “Level 3” category for valuation purposes. ​ The fair values of our financial assets and liabilities are categorized as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 September 30, 2023 ​ Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets—Insurance company contracts ​ $ — ​ $ 47,181 ​ $ — ​ $ 47,181 ​ $ — ​ $ 47,508 ​ $ — ​ $ 47,508 Assets – Interest rate swap contract ​ $ — ​ $ 5,369 ​ $ — ​ $ 5,369 ​ $ — ​ $ 6,826 ​ $ — ​ $ 6,826 Liabilities—Contingent consideration ​ $ — ​ $ — ​ $ 21,181 ​ $ 21,181 ​ $ — ​ $ — ​ $ 19,784 ​ $ 19,784 ​
Derivative Instruments and Hedging Activity	Derivative Instruments and Hedging Activity ​ Our use of derivatives consists of foreign currency forward contracts and an interest rate swap contract. The foreign currency forward contracts are utilized to partially mitigate certain balance sheet exposures or used as a net investment hedge to protect against potential changes resulting from short-term foreign currency fluctuations. These contracts have original maturities of up to three months. We also manage our risk to changes in interest rates using derivative instruments. We use fixed interest rate swaps to effectively convert a portion of the variable interest rate payments to fixed interest rate payments. We do not use hedging instruments for speculative purposes. ​ The net gains or losses from our foreign currency forward contracts, which are not designated as hedge instruments, are reported in the consolidated statements of operations, and the amounts reported for the three months ended September 30, 2022 and 2023 were not significant. The fair value of our foreign currency forward contracts is estimated using a standard valuation model and market-based observable inputs over the contractual term. Unrealized gains are recognized as assets and unrealized losses are recognized as liabilities. As of June 30, 2023 and September 30, 2023, we held foreign currency forward contracts with notional amounts totaling $21.6 million and $25.6 million, respectively. Unrealized gains and losses from our foreign currency forward contracts as of June 30, 2023 and September 30, 2023 were not significant. The interest rate swap agreement was entered into to improve the predictability of cash flows from interest payments related to our variable, Secured Overnight Financing Rate (“SOFR”) based debt. The interest rate swap matures in December 2026. The interest rate swap is considered an effective cash flow hedge, and as a result, the net gains or losses on such instrument are reported as a component of other comprehensive income in the consolidated financial statements and are reclassified as net income when the underlying hedged interest expense impacts earnings. A qualitative and quantitative assessment over the hedge effectiveness is performed on a quarterly basis, unless facts and circumstances indicate that the hedge may no longer be highly effective. As of June 30, 2023 and September 30, 2023, the notional amount of the derivative instruments designated as an interest rate swap hedge was $175 million. The fair value of the interest rate swap contract as of as of June 30, 2023 and September 30, 2023 is recorded in Other assets within the consolidated balance sheet. The effect of the cash flow hedges on other comprehensive income (loss) and earnings for the periods presented was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2022 2023 Total interest and other expense, net presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded ​ $ (3,432) ​ $ (5,748) Gain recognized in other comprehensive income, net of tax ​ 3,540 ​ 1,147 Benefit (expense) reclassified from accumulated other comprehensive income to interest expense, net ​ (120) ​ 872
Recently Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on our Consolidated Financial Statements upon adoption. There were no new pronouncements adopted in the first quarter of fiscal year 2024.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Sep. 30, 2023
Basis of Presentation
Schedule of computation of basic and diluted earnings per share	​ The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2022 2023 Net income available to common stockholders ​ $ 11,235 ​ $ 12,879 Weighted average shares outstanding—basic ​ 16,924 ​ ​ 16,825 Dilutive effect of equity awards ​ 256 ​ ​ 350 Weighted average shares outstanding—diluted ​ 17,180 ​ ​ 17,175 Basic earnings per share ​ $ 0.66 ​ $ 0.77 Diluted earnings per share ​ $ 0.65 ​ $ 0.75 Shares excluded from diluted earnings per share due to their anti-dilutive effect ​ ​ 26 ​ ​ 8 ​
Schedule of fair values of our financial assets and liabilities	The fair values of our financial assets and liabilities are categorized as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 September 30, 2023 ​ Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets—Insurance company contracts ​ $ — ​ $ 47,181 ​ $ — ​ $ 47,181 ​ $ — ​ $ 47,508 ​ $ — ​ $ 47,508 Assets – Interest rate swap contract ​ $ — ​ $ 5,369 ​ $ — ​ $ 5,369 ​ $ — ​ $ 6,826 ​ $ — ​ $ 6,826 Liabilities—Contingent consideration ​ $ — ​ $ — ​ $ 21,181 ​ $ 21,181 ​ $ — ​ $ — ​ $ 19,784 ​ $ 19,784
Summary of unrealized gains and losses from our foreign currency forward contracts	​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2022 2023 Total interest and other expense, net presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded ​ $ (3,432) ​ $ (5,748) Gain recognized in other comprehensive income, net of tax ​ 3,540 ​ 1,147 Benefit (expense) reclassified from accumulated other comprehensive income to interest expense, net ​ (120) ​ 872

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	3 Months Ended
	Sep. 30, 2023
Balance Sheet Details
Schedule of selected balance sheet accounts	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, Accounts receivable, net 2023 2023 Accounts receivable ​ $ 395,218 ​ $ 337,365 Less allowance for doubtful accounts ​ (14,373) ​ (13,596) Total ​ $ 380,845 ​ $ 323,769 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, Inventories 2023 2023 Raw materials ​ $ 233,217 ​ $ 271,449 Work-in-process ​ 56,329 ​ 82,969 Finished goods ​ 48,462 ​ 64,379 Total ​ $ 338,008 ​ $ 418,797 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, Property and equipment, net 2023 2023 Land ​ $ 15,691 ​ $ 15,663 Buildings, civil works and improvements ​ 49,166 ​ 48,564 Leasehold improvements ​ 13,553 ​ 13,533 Equipment and tooling ​ 135,703 ​ 136,399 Furniture and fixtures ​ 3,632 ​ 3,241 Computer equipment ​ 24,119 ​ 21,229 Computer software ​ 26,981 ​ 27,487 Computer software implementation in process ​ ​ 9,705 ​ ​ 9,544 Construction in process ​ 4,108 ​ 5,806 Total ​ 282,658 ​ 281,466 Less accumulated depreciation and amortization ​ (173,725) ​ (172,292) Property and equipment, net ​ $ 108,933 ​ $ 109,174

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets
Schedule of changes in the carrying value of goodwill by segment	The changes in the carrying value of goodwill by segment for the three-month period ended September 30, 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Optoelectronics ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ And ​ ​ ​ ​ ​ Security ​ Healthcare ​ Manufacturing ​ ​ ​ ​ Division Division Division Consolidated Balance as of June 30, 2023 ​ $ 230,662 ​ $ 48,455 ​ $ 70,388 ​ $ 349,505 Foreign currency translation adjustment ​ (132) ​ ​ (103) ​ ​ (859) ​ ​ (1,094) Balance as of September 30, 2023 ​ $ 230,530 ​ ​ 48,352 ​ ​ 69,529 ​ ​ 348,411
Schedule of intangible assets	Intangible assets consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ September 30, 2023 ​ ​ Weighted ​ Gross ​ ​ ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Carrying ​ Accumulated ​ Intangibles ​ Carrying ​ Accumulated ​ Intangibles ​ Lives Value Amortization Net Value Amortization Net Amortizable assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Software development costs 8-9 years ​ $ 77,844 ​ $ (20,285) ​ $ 57,559 ​ ​ 81,845 ​ ​ (21,145) ​ ​ 60,700 Patents 19 years ​ 8,636 ​ (3,404) ​ 5,232 ​ ​ 8,742 ​ ​ (3,515) ​ ​ 5,227 Developed technology 10 years ​ 68,274 ​ (38,353) ​ 29,921 ​ ​ 68,246 ​ ​ (40,186) ​ ​ 28,060 Customer relationships 7 years ​ 55,780 ​ (39,101) ​ 16,679 ​ ​ 55,570 ​ ​ (40,833) ​ ​ 14,737 Total amortizable assets ​ ​ ​ 210,534 ​ ​ (101,143) ​ ​ 109,391 ​ ​ 214,403 ​ ​ (105,679) ​ ​ 108,724 Non-amortizable assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In-process R&D ​ ​ ​ ​ 533 ​ ​ — ​ ​ 533 ​ ​ 533 ​ ​ — ​ ​ 533 Trademarks ​ ​ ​ 30,933 ​ ​ — ​ ​ 30,933 ​ ​ 30,954 ​ ​ — ​ ​ 30,954 Total intangible assets ​ ​ ​ $ 242,000 ​ $ (101,143) ​ $ 140,857 ​ ​ 245,890 ​ ​ (105,679) ​ ​ 140,211
Schedule of estimated future amortization expense for intangible assets	At September 30, 2023, the estimated future amortization expense for amortizable intangible assets was as follows (in thousands): ​ Fiscal Year ​ ​ ​ ​ ​ 2024 (remaining 9 months) $ 14,187 2025 ​ 15,879 2026 ​ 12,705 2027 ​ ​ 8,741 2028 ​ ​ 5,953 Thereafter ​ 51,259 Total ​ $ 108,724

Contract Assets and Liabiliti_2

Contract Assets and Liabilities (Tables)	3 Months Ended
	Sep. 30, 2023
Contract Assets and Liabilities
Schedule of contract assets and contract liabilities	Contract Assets (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, September 30, ​ ​ ​ ​ 2023 2023 Change % Change Unbilled revenue (included in accounts receivable, net) ​ $ 86,818 ​ $ 103,663 ​ $ 16,845 ​ 19 % Contract Liabilities (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, September 30, ​ ​ ​ 2023 2023 Change % Change ​ Advances from customers ​ $ 21,250 ​ $ 31,949 ​ $ 10,699 ​ 50 % Deferred revenue—current ​ 43,861 ​ ​ 39,000 ​ ​ (4,861) ​ (11) % Deferred revenue—long-term ​ 22,200 ​ ​ 19,733 ​ ​ (2,467) ​ (11) % ​

Leases (Tables)

Leases (Tables)	3 Months Ended
	Sep. 30, 2023
Leases
Schedule of components of operating lease expense	The components of operating lease expense were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2022 2023 Operating lease cost ​ $ 2,826 ​ $ 2,805 Variable lease cost ​ ​ 406 ​ ​ 265 Short-term lease cost ​ ​ 223 ​ ​ 325 ​ ​ $ 3,455 ​ $ 3,395
Schedule of supplemental disclosures related to operating leases	Supplemental disclosures related to operating leases were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Category June 30, 2023 September 30, 2023 ​ Operating lease right of use (“ROU”) assets, net Other assets ​ $ 32,618 ​ $ 32,534 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities, current portion Other accrued expenses and current liabilities ​ $ 9,787 ​ $ 9,929 ​ Operating lease liabilities, long-term Other long-term liabilities ​ 23,733 ​ 23,472 ​ Total operating lease liabilities ​ ​ ​ $ 33,520 ​ $ 33,401 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term ​ ​ ​ ​ ​ 4.0 years ​ Weighted average discount rate ​ ​ ​ ​ ​ 3.9 %
Schedule of supplemental cash flow information related to operating leases	Supplemental cash flow information related to operating leases was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2022 2023 Cash paid for operating lease liabilities ​ $ 2,685 ​ $ 2,994 ROU assets obtained in exchange for new lease obligations ​ 413 ​ ​ 1,791
Schedule of maturities of operating lease liabilities	Maturities of operating lease liabilities at September 30, 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ September 30, 2023 Less than one year ​ $ 11,008 1 – 2 years ​ 8,845 2 – 3 years ​ 7,664 3 – 4 years ​ 5,357 4 – 5 years ​ 1,282 Thereafter ​ 1,969 ​ ​ 36,125 Less: imputed interest ​ (2,724) Total lease liabilities ​ $ 33,401 ​

Impairment, Restructuring and_2

Impairment, Restructuring and Other Charges (Tables)	3 Months Ended
	Sep. 30, 2023
Impairment, Restructuring and Other Charges
Schedule of impairment, restructuring and other charges (benefit), net	The following tables summarize impairment, restructuring and other charges (benefits), net for the periods set forth below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2022 ​ ​ ​ ​ ​ Optoelectronics and ​ ​ ​ ​ ​ ​ ​ ​ ​ Healthcare ​ Manufacturing ​ ​ ​ ​ ​ ​ ​ Security Division Division Division Corporate Total Employee termination costs ​ $ 23 ​ $ — ​ $ — ​ $ — ​ $ 23 Facility closures/consolidation ​ ​ 241 ​ ​ — ​ ​ 15 ​ ​ — ​ ​ 256 Legal costs, net ​ 524 ​ ​ 294 ​ ​ — ​ ​ 122 ​ ​ 940 Total ​ $ 788 ​ $ 294 ​ $ 15 ​ $ 122 ​ $ 1,219 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Optoelectronics and ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Healthcare ​ Manufacturing ​ ​ ​ ​ ​ ​ ​ Security Division Division Division Corporate Total Employee termination costs ​ $ 13 ​ $ — ​ $ — ​ $ 110 ​ $ 123 Facility closures/consolidation ​ ​ — ​ ​ — ​ ​ 51 ​ ​ — ​ ​ 51 Acquisition-related costs ​ ​ 208 ​ ​ — ​ ​ — ​ ​ — ​ ​ 208 Legal costs, net ​ 52 ​ ​ — ​ ​ — ​ ​ 32 ​ ​ 84 Total ​ $ 273 ​ $ — ​ $ 51 ​ $ 142 ​ $ 466 ​
Schedule of changes in the accrued liability for restructuring and other charges	The accrued liability for restructuring and other charges is included in other accrued expenses and current liabilities in the condensed consolidated balance sheets. The changes in the accrued liability for restructuring and other charges for the three-month period ended September 30, 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Facility ​ ​ ​ ​ ​ ​ ​ Acquisition- ​ Employee ​ Closure/ ​ Legal ​ ​ ​ ​ ​ Related ​ Termination ​ Consolidation ​ Costs and ​ ​ ​ ​ Costs Costs Cost Settlements Total Balance as of June 30, 2023 ​ $ 7 ​ $ 107 ​ $ 1,609 ​ $ 656 ​ $ 2,379 Restructuring and other charges, net ​ 208 ​ 123 ​ 51 ​ 84 ​ 466 Payments, adjustments and reimbursements, net ​ (208) ​ 72 ​ (716) ​ (228) ​ (1,080) Balance as of September 30, 2023 ​ $ 7 ​ $ 302 ​ $ 944 ​ $ 512 ​ $ 1,765 ​

Borrowings (Tables)

Borrowings (Tables)	3 Months Ended
	Sep. 30, 2023
Borrowings.
Schedule of long-term debt	Long-term debt consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ 2023 2023 Term loan ​ $ 143,125 ​ $ 141,250 Other long-term debt ​ 1,442 ​ ​ 1,630 ​ ​ 144,567 ​ ​ 142,880 Less current portion of long-term debt ​ (8,076) ​ ​ (8,134) Long-term portion of debt ​ $ 136,491 ​ $ 134,746 ​

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Sep. 30, 2023
Stockholders' Equity
Schedule of stock-based compensation expense in the consolidated statements of operations	​ We recorded stock-based compensation expense in the consolidated statements of operations as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2022 2023 Cost of goods sold ​ $ 216 ​ $ 232 Selling, general and administrative ​ ​ 6,840 ​ ​ 6,731 Research and development ​ ​ 121 ​ ​ 126 Stock-based compensation expense ​ $ 7,177 ​ $ 7,089 ​
Schedule of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Weighted-Average ​ Aggregate ​ ​ Number of ​ Exercise ​ Remaining Contractual ​ Intrinsic Value ​ Options Price Term (in thousands) Outstanding at June 30, 2023 83,677 $ 87.09 ​ ​ ​ ​ Granted — ​ ​ — ​ ​ ​ ​ ​ Exercised (4,752) ​ ​ 88.39 ​ ​ ​ ​ ​ Expired or forfeited — ​ ​ — ​ ​ ​ ​ ​ Outstanding at September 30, 2023 78,925 ​ $ 87.01 ​ 6.9 years ​ $ 2,449 Exercisable at September 30, 2023 ​ 34,225 ​ $ 83.15 4.8 years ​ $ 1,194 ​
Summary of RSU award activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Average ​ Shares Fair Value Nonvested at June 30, 2023 455,515 ​ $ 85.15 Granted 307,506 ​ ​ 93.35 Vested (363,820) ​ ​ 79.00 Forfeited (1,890) ​ ​ 74.15 Nonvested at September 30, 2023 397,311 ​ $ 97.19 ​

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Sep. 30, 2023
Commitments and Contingencies
Schedule of roll-forward of the contingent consideration liability	The following table provides a roll-forward from June 30, 2023 to September 30, 2023 of the contingent consideration liability, which is included in other accrued expenses and current liabilities and other long-term liabilities in our consolidated balance sheets (in thousands): ​ ​ ​ ​ ​ Beginning fair value, June 30, 2023 $ 21,181 Foreign currency translation adjustment ​ ​ (150) Changes in fair value for contingent earnout obligations ​ (864) Payments on contingent earnout obligations ​ (383) Ending fair value, September 30, 2023 ​ $ 19,784 ​
Schedule of warranty provisions	​ The following table presents changes in warranty provisions (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2022 2023 Balance at beginning of period ​ $ 13,347 ​ $ 11,149 Additions ​ ​ 884 ​ ​ 312 Reductions for warranty repair costs and adjustments ​ (1,972) ​ ​ (902) Balance at end of period ​ $ 12,259 ​ $ 10,559 ​

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Sep. 30, 2023
Segment Information
Schedule of results of operations and identifiable assets by industry segment	The following tables present our results of operations and identifiable assets by industry segment (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ 2022 2023 Revenues (1) —by Segment: ​ ​ ​ ​ ​ ​ Security division ​ $ 144,992 ​ $ 164,629 Optoelectronics and Manufacturing division, including intersegment revenues ​ ​ 93,915 ​ ​ 96,128 Healthcare division ​ ​ 43,563 ​ ​ 37,787 Intersegment revenues elimination ​ ​ (14,399) ​ ​ (19,334) Total ​ $ 268,071 ​ $ 279,210 ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations —by Segment: ​ ​ ​ ​ ​ ​ Security division ​ $ 14,924 ​ $ 20,609 Optoelectronics and Manufacturing division ​ ​ 11,258 ​ ​ 11,437 Healthcare division ​ ​ 1,628 ​ ​ 164 Corporate ​ ​ (10,178) ​ ​ (9,916) Intersegment Eliminations ​ ​ 668 ​ ​ 265 Total ​ $ 18,300 ​ $ 22,559 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ 2023 2023 Assets (2) —by Segment: ​ ​ ​ ​ ​ ​ Security division ​ $ 948,126 ​ $ 987,134 Optoelectronics and Manufacturing division ​ 310,930 ​ ​ 296,328 Healthcare division ​ ​ 245,856 ​ ​ 238,897 Corporate ​ 94,678 ​ ​ 113,252 Eliminations (3) ​ (43,904) ​ ​ (47,159) Total ​ $ 1,555,686 ​ $ 1,588,452 (1) (2) (3)

Basis of Presentation - Earning

Basis of Presentation - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Per Share Computations
Net income available to common stockholders	$ 12,879	$ 11,235
Weighted average shares outstanding-basic	16,825	16,924
Dilutive effect of equity awards	350	256
Weighted average shares outstanding-diluted	17,175	17,180
Basic earnings per share	$ 0.77	$ 0.66
Diluted earnings per share	$ 0.75	$ 0.65
Shares excluded from diluted earnings per share due to their anti-dilutive effect	8	26

Basis of Presentation - Cash an

Basis of Presentation - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023
Cash Equivalents
Cash and cash equivalents	$ 82,591	$ 76,750
Cash, cash equivalents, and investments held by our foreign subsidiaries and subject to repatriation tax considerations(as a percentage)	91%

Basis of Presentation - Fair Va

Basis of Presentation - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Fair Value of Financial Instruments
Liabilities-Contingent consideration	$ 19,784	$ 21,181
Recurring
Fair Value of Financial Instruments
Assets-Insurance company contracts	47,508	47,181
Assets - Interest rate swap contract	6,826	5,369
Liabilities-Contingent consideration	19,784	21,181
Recurring | Level 2
Fair Value of Financial Instruments
Assets-Insurance company contracts	47,508	47,181
Assets - Interest rate swap contract	6,826	5,369
Recurring | Level 3
Fair Value of Financial Instruments
Liabilities-Contingent consideration	$ 19,784	$ 21,181

Basis of Presentation - Derivat

Basis of Presentation - Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Derivative Instruments and Hedging Activity
Total interest and other expense, net presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$ (5,748)	$ (3,432)
Gain recognized in other comprehensive income, net of tax	1,147	3,540
Benefit (expense) reclassified from accumulated other comprehensive income to interest expense, net	872	$ (120)
Foreign currency forward contracts
Derivative Instruments and Hedging Activity
Notional amounts	25,600		$ 21,600
Interest rate swap
Derivative Instruments and Hedging Activity
Notional amount	$ 175,000		$ 175,000

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Millions	1 Months Ended
	Oct. 31, 2023	Apr. 30, 2023	Feb. 28, 2023	Dec. 31, 2022	Aug. 31, 2022	Sep. 30, 2023
A privately held provider of engineering and contract manufacturing solutions
Business Combinations
Maximum contingent consideration		$ 2.5
Consideration paid		$ 2.5
Privately held provider of training software and solutions
Business Combinations
Maximum contingent consideration			$ 5
Consideration paid			$ 2.1		$ 1.9
Privately held provider of radiation technology
Business Combinations
Maximum contingent consideration	$ 3.6
Consideration paid	$ 2.8
Provider of baggage and parcel inspection systems
Business Combinations
Consideration paid				$ 1.6
Other business acquisitions
Business Combinations
Maximum contingent consideration						$ 45

Balance Sheet Details (Details)

Balance Sheet Details (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Accounts receivable, net
Accounts receivable	$ 337,365		$ 395,218
Less allowance for doubtful accounts	(13,596)		(14,373)
Total	323,769		380,845
Inventories
Raw materials	271,449		233,217
Work-in-process	82,969		56,329
Finished goods	64,379		48,462
Total	418,797		338,008
Property and equipment, net
Property and equipment, gross	281,466		282,658
Less accumulated depreciation and amortization	(172,292)		(173,725)
Property and equipment, net	109,174		108,933
Depreciation	4,900	$ 4,900
Land
Property and equipment, net
Property and equipment, gross	15,663		15,691
Buildings, civil works and improvements
Property and equipment, net
Property and equipment, gross	48,564		49,166
Leasehold improvements
Property and equipment, net
Property and equipment, gross	13,533		13,553
Equipment and tooling
Property and equipment, net
Property and equipment, gross	136,399		135,703
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	3,241		3,632
Computer equipment
Property and equipment, net
Property and equipment, gross	21,229		24,119
Computer software
Property and equipment, net
Property and equipment, gross	27,487		26,981
Computer software implementation in process
Property and equipment, net
Property and equipment, gross	9,544		9,705
Construction in process
Property and equipment, net
Property and equipment, gross	$ 5,806		$ 4,108

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2023 USD ($)
Changes in the carrying value of goodwill
Balance at the beginning of the period	$ 349,505
Foreign currency translation adjustment	(1,094)
Balance at the end of the period	348,411
Security Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	230,662
Foreign currency translation adjustment	(132)
Balance at the end of the period	230,530
Healthcare Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	48,455
Foreign currency translation adjustment	(103)
Balance at the end of the period	48,352
Optoelectronics And Manufacturing Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	70,388
Foreign currency translation adjustment	(859)
Balance at the end of the period	$ 69,529

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible assets subject to amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Amortizable assets:
Gross Carrying Value	$ 214,403		$ 210,534
Accumulated Amortization	(105,679)		(101,143)
Total	108,724		109,391
Total intangible assets
Gross Carrying Value	245,890		242,000
Intangible assets, net	140,211		140,857
Amortization expense	4,700	$ 4,700
In-process R&D
Non-amortizable assets:
Gross Carrying Value	533		533
Trademarks
Non-amortizable assets:
Gross Carrying Value	30,954		30,933
Software development costs
Amortizable assets:
Gross Carrying Value	81,845		77,844
Accumulated Amortization	(21,145)		(20,285)
Total	$ 60,700		57,559
Software development costs | Minimum [Member]
Goodwill and Intangible Assets
Weighted Average Lives (in Years)	8 years
Software development costs | Maximum [Member]
Goodwill and Intangible Assets
Weighted Average Lives (in Years)	9 years
Patents
Goodwill and Intangible Assets
Weighted Average Lives (in Years)	19 years
Amortizable assets:
Gross Carrying Value	$ 8,742		8,636
Accumulated Amortization	(3,515)		(3,404)
Total	$ 5,227		5,232
Developed technology
Goodwill and Intangible Assets
Weighted Average Lives (in Years)	10 years
Amortizable assets:
Gross Carrying Value	$ 68,246		68,274
Accumulated Amortization	(40,186)		(38,353)
Total	$ 28,060		29,921
Customer relationships
Goodwill and Intangible Assets
Weighted Average Lives (in Years)	7 years
Amortizable assets:
Gross Carrying Value	$ 55,570		55,780
Accumulated Amortization	(40,833)		(39,101)
Total	$ 14,737		$ 16,679

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Estimated future amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Estimated future amortization expense
2024 (remaining 9 months)	$ 14,187
2025	15,879
2026	12,705
2027	8,741
2028	5,953
Thereafter	51,259
Total	108,724		$ 109,391
Software development costs
Estimated future amortization expense
Total	60,700		$ 57,559
Capitalized software development costs	$ 4,000	$ 3,900

Contract Assets and Liabiliti_3

Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023
Contract Assets
Unbilled revenue (included in accounts receivable, net)	$ 103,663	$ 86,818
Change in unbilled revenue	$ 16,845
Percentage of change in unbilled revenue	19%
Contract Liabilities
Advances from customers	$ 31,949	21,250
Deferred revenue-current	39,000	43,861
Deferred revenue-long-term	19,733	$ 22,200
Change in advances from customers	$ 10,699
Percentage of change in advances from customers	50%
Change in deferred revenue - current	$ (4,861)
Percentage of change in deferred revenue - current	(11.00%)
Change in deferred revenue - long-term	$ (2,467)
Percentage of change in deferred revenue - long-term	(11.00%)
Remaining Performance Obligations
Revenue remaining performance obligation	$ 906,200
Remaining performance obligation expected percentage recognized	67%
Recognized revenue from contract liabilities	$ 29,700
Revenue, practical expedient, incremental cost of obtaining contract [true false]	true
Revenue, practical expedient, financing component [true false]	true
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Remaining Performance Obligations
Remaining performance obligation expected timing of satisfaction period	12 months

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Operating lease expense
Operating lease cost	$ 2,805	$ 2,826
Variable lease cost	265	406
Short-term lease cost	325	223
Operating lease expense	3,395	3,455
Balance sheet assets and liabilities related to operating leases
Operating lease right of use ("ROU") assets, net	$ 32,534		$ 32,618
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent.		Other Assets, Noncurrent.
Operating lease liabilities, current portion	$ 9,929		$ 9,787
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current		Other Liabilities, Current
Operating lease liabilities, long-term	$ 23,472		$ 23,733
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent		Other Liabilities, Noncurrent
Total operating lease liabilities	$ 33,401		$ 33,520
Weighted average remaining lease term	4 years
Weighted average discount rate	3.90%
Cash flow information related to operating leases
Cash paid for operating lease liabilities	$ 2,994	2,685
ROU assets obtained in exchange for new lease obligations	$ 1,791	$ 413

Leases - Maturities of operatin

Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Maturities of operating lease liabilities
Less than one year	$ 11,008
1 - 2 years	8,845
2 - 3 years	7,664
3 - 4 years	5,357
4 - 5 years	1,282
Thereafter	1,969
Total	36,125
Less: imputed interest	(2,724)
Total operating lease liabilities	$ 33,401	$ 33,520

Impairment, Restructuring and_3

Impairment, Restructuring and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Impairment, Restructuring and Other Charges
Acquisition-related costs	$ 208
Employee termination costs	123	$ 23
Facility closures/consolidation	51	256
Legal costs, net	84	940
Total	466	1,219
Other operational efficiency activities
Impairment, Restructuring and Other Charges
Acquisition-related costs	200
Employee termination costs	100	300
Facility closures/consolidation	100
Legal costs, net	100	900
Total	500	1,200
Security Division
Impairment, Restructuring and Other Charges
Acquisition-related costs	208
Employee termination costs	13	23
Facility closures/consolidation		241
Legal costs, net	52	524
Total	273	788
Healthcare Division
Impairment, Restructuring and Other Charges
Legal costs, net		294
Total		294
Optoelectronics And Manufacturing Division
Impairment, Restructuring and Other Charges
Facility closures/consolidation	51	15
Total	51	15
Corporate
Impairment, Restructuring and Other Charges
Employee termination costs	110
Legal costs, net	32	122
Total	$ 142	$ 122

Impairment, Restructuring and_4

Impairment, Restructuring and Other Charges - Accrued liability for restructuring and other charges (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2023 USD ($)
Restructuring and other charges
Balance at the beginning	$ 2,379
Restructuring and other charges, net	466
Payments, adjustments and reimbursements, net	(1,080)
Balance, at the end	1,765
Acquisition-Related Costs
Restructuring and other charges
Balance at the beginning	7
Restructuring and other charges, net	208
Payments, adjustments and reimbursements, net	(208)
Balance, at the end	7
Employee Termination Costs
Restructuring and other charges
Balance at the beginning	107
Restructuring and other charges, net	123
Payments, adjustments and reimbursements, net	72
Balance, at the end	302
Facility Closure/ Consolidations Costs
Restructuring and other charges
Balance at the beginning	1,609
Restructuring and other charges, net	51
Payments, adjustments and reimbursements, net	(716)
Balance, at the end	944
Legal Costs and Settlements
Restructuring and other charges
Balance at the beginning	656
Restructuring and other charges, net	84
Payments, adjustments and reimbursements, net	(228)
Balance, at the end	$ 512

Borrowings (Details)

Borrowings (Details) - USD ($)	1 Months Ended	3 Months Ended
	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Sep. 01, 2022	Feb. 28, 2017
BORROWINGS
Borrowings outstanding		$ 235,000,000		$ 215,000,000
Contractual interest expense			$ 500,000
Revolving credit facility
BORROWINGS
Maximum borrowing capacity	$ 600,000,000
Credit facility under term loan	150,000,000
Unused commitment fee (as a percent)		0.10%
Borrowings outstanding		$ 235,000,000
Available credit facility		$ 327,300,000
Revolving credit facility | Minimum
BORROWINGS
Maximum borrowing capacity	535,000,000
Unused commitment fee (as a percent)		0.10%
Revolving credit facility | Maximum
BORROWINGS
Maximum borrowing capacity	750,000,000
Increase in the credit agreement's borrowing capacity available under certain circumstances	250,000,000
Unused commitment fee (as a percent)		0.25%
Revolving credit facility | LIBOR
BORROWINGS
Interest rate margin (as a percent)		1%
Revolving credit facility | LIBOR | Minimum
BORROWINGS
Interest rate margin (as a percent)		1%
Revolving credit facility | LIBOR | Maximum
BORROWINGS
Interest rate margin (as a percent)		1.75%
Letters of credit sub facility
BORROWINGS
Maximum borrowing capacity	$ 300,000,000
Amount outstanding under letters of credit		$ 37,700,000
Term Loan
BORROWINGS
Borrowings outstanding		141,300,000
1.25% Convertible Senior Notes Due 2022
BORROWINGS
Interest rate			700,000
Principal amount						$ 287,500,000
Principal value of notes repurchased and cancelled					$ 242,300,000
Contractual interest expense		500,000
Amortization of debt issuance costs			200,000
Lines-of-credit
BORROWINGS
Amount outstanding under letters of credit		56,800,000
Available credit facility		17,600,000
Credit facility and delayed draw term loan
BORROWINGS
Interest rate		$ 6,300,000	$ 2,100,000

Borrowings - Other borrowings (

Borrowings - Other borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Components of long-term debt
Term loan	$ 141,250	$ 143,125
Other long-term debt	1,630	1,442
Total	142,880	144,567
Less current portion of long-term debt	(8,134)	(8,076)
Long-term portion of debt	$ 134,746	$ 136,491

Stockholders' Equity - Stock-ba

Stockholders' Equity - Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Stockholders' Equity
Stock-based compensation expense	$ 7,089	$ 7,177
RSU
Stockholders' Equity
Unrecognized compensation cost	$ 19,600
Weighted-average period	2 years 3 months 18 days
Shares
Nonvested at the beginning of the period (in shares)	455,515
Granted (in shares)	307,506
Vested (in shares)	(363,820)
Forfeited (in shares)	(1,890)
Nonvested at the end of the period (in shares)	397,311
Weighted-Average Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 85.15
Granted (in dollars per share)	93.35
Vested (in dollars per share)	79
Forfeited (in dollars per share)	74.15
Nonvested at the end of the period (in dollars per share)	$ 97.19
Stock Options
Stockholders' Equity
Unrecognized compensation cost	$ 600
Weighted-average period	1 year 9 months 18 days
Number of Options
Outstanding at the beginning of the period (in shares)	83,677
Exercised (in shares)	(4,752)
Outstanding at the end of the period (in shares)	78,925
Exercisable at the end of the period (in shares)	34,225
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 87.09
Exercised (in dollars per share)	88.39
Outstanding at the end of the period (in dollars per share)	87.01
Exercisable at the end of the period (in dollars per share)	$ 83.15
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period	6 years 10 months 24 days
Exercisable at the end of the period	4 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding at the end of the period	$ 2,449
Exercisable at the end of the period	$ 1,194
Performance-based restricted stock units
Shares
Granted (in shares)	75,988	109,594
Performance-based restricted stock units | Minimum
Shares
Share based compensation arrangement by percentage of shares units awarded	0%
Performance-based restricted stock units | Maximum
Shares
Share based compensation arrangement by percentage of shares units awarded	376%
OSI Plans
Stockholders' Equity
Shares available for grant	200,000
OSI Plans | RSU
Stockholders' Equity
Number of shares available for grant reduced for each award granted	1.87
Number of shares available for grant increased for each award forfeited and returned	1.87
Cost of goods sold
Stockholders' Equity
Stock-based compensation expense	$ 232	$ 216
Selling, general and administrative
Stockholders' Equity
Stock-based compensation expense	6,731	6,840
Research and development
Stockholders' Equity
Stock-based compensation expense	$ 126	$ 121

Stockholders' Equity - Addition

Stockholders' Equity - Additional information (Details) - Common stock - shares	Sep. 30, 2023	Sep. 30, 2022
Employee Stock Purchase Plan and Stock Repurchase Program
Number of repurchased shares authorized		2,000,000
Number of shares available for repurchase	1,721,870

Commitments and Contingencies -

Commitments and Contingencies - Contingent Acquisition Obligations (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2017	Sep. 30, 2023
Contingent Acquisition Obligations
Beginning fair value, June 30, 2023		$ 21,181
Foreign currency translation adjustment		(150)
Changes in fair value for contingent earnout obligations		(864)
Payments on contingent earnout obligations		(383)
Ending fair value, September 30, 2023		19,784
Other business acquisitions
Contingent Acquisition Obligations
Remaining maximum amount of contingent consideration		$ 45,000
Mr. Chopra, Chief Executive Officer | Deferred bonus
Indemnifications and Certain Employment-Related Contingencies
Bonus payment on or within 45 days of January 1, 2024 contingent upon continued employment through that date	$ 13,500
Maximum number of days after January 1, 2024, bonus payment due	45 days

Commitments and Contingencies_2

Commitments and Contingencies - Warranty provisions (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Changes in provision for warranties
Balance at beginning of period	$ 11,149	$ 13,347
Additions	312	884
Reductions for warranty repair costs and adjustments	(902)	(1,972)
Balance at end of period	$ 10,559	$ 12,259

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Taxes
Effective income tax rate (as a percent)	23.40%	24.40%
Net discrete tax benefits for equity-based compensation	$ 0.4	$ 0.1

Segment Information - Operation

Segment Information - Operations and Identifiable Assets (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2023 USD ($) segment customer	Sep. 30, 2022 USD ($) customer	Jun. 30, 2023 USD ($) customer
Segment Information
Number of identifiable industry segments | segment	3
Total revenues	$ 279,210	$ 268,071
Income (loss) from operations	22,559	$ 18,300
Segments assets	$ 1,588,452		$ 1,555,686
Number of major customers | customer	0	0	0
One customer. | Accounts receivable | Customer
Segment Information
Concentration (as a percent)	10%		10%
International customers | Revenues | Customer
Segment Information
Concentration (as a percent)	10%	10%
Operating segments | Security division
Segment Information
Total revenues	$ 164,629	$ 144,992
Income (loss) from operations	20,609	14,924
Segments assets	987,134		$ 948,126
Operating segments | Optoelectronics And Manufacturing Division
Segment Information
Total revenues	96,128	93,915
Income (loss) from operations	11,437	11,258
Segments assets	296,328		310,930
Operating segments | Healthcare division
Segment Information
Total revenues	37,787	43,563
Income (loss) from operations	164	1,628
Segments assets	238,897		245,856
Corporate
Segment Information
Income (loss) from operations	(9,916)	(10,178)
Segments assets	113,252		94,678
Intersegment revenue elimination
Segment Information
Total revenues	(19,334)	(14,399)
Income (loss) from operations	265	$ 668
Segments assets	$ (47,159)		$ (43,904)

Insider Trading Arrangements

Insider Trading Arrangements - Victor Sze	3 Months Ended
	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On September 13, 2023, Victor Sze, Executive Vice President and General Counsel, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 30,000 shares of our common stock until March 15, 2024.
Name	Victor Sze
Title	Executive Vice President and General Counsel
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 13, 2023
Aggregate Available	30,000
Expiration Date	March 15, 2024