Exhibit 99.1
OSI Systems Reports First Quarter Fiscal 2008 Financial Results
-- Record Backlog of Approximately $224 million
-- Additional $5 million of Annualized Cost Savings Identified
HAWTHORNE, Calif.--(BUSINESS WIRE)--Nov. 6, 2007--OSI Systems,
Inc. (NASDAQ:OSIS), a vertically integrated provider of specialized
electronics products for critical applications in the Security and
Healthcare industries, today announced its financial results for its
fiscal first quarter ended September 30, 2007.
The Company reported revenues of $131.0 million for the first
quarter of fiscal 2008, an increase of 13% from the $115.5 million
reported for the first quarter of fiscal 2007. The net loss for the
first quarter of fiscal 2007 decreased to $(2.1) million, or $(0.12)
per diluted share, compared to a net loss of $(6.0) million, or
$(0.36) per diluted share, for the first quarter of fiscal 2007.
The Company's backlog as of September 30, 2007, was approximately
$224 million, compared to $209 million as of June 30, 2007. The
Security Division had a backlog of approximately $122 million as of
September 30, 2007, compared to $117 million as of June 30, 2007.
Deepak Chopra, OSI Systems' Chairman and CEO, stated, "We are
pleased with the improvement in our operating performance in the first
quarter compared to the same period last year. We remain committed to
our goal of continuing our top-line momentum while simultaneously
seeking margin improvement and further cost reductions to improve
profitability."
Mr. Chopra continued, "Strong bookings again led to a record
backlog at quarter end. Bookings of note for the quarter included a
$22 million contract for electronic sub-assemblies awarded to our
Optoelectronics & Manufacturing Division and significant contract
awards from the U.S. government to our Security Division for cargo &
vehicle inspection systems and next generation checkpoint X-Ray
systems. The Security Division awards underscore our leadership
position in the homeland security industry and have provided us with
good revenue visibility for the remainder of the fiscal year."
Mr. Chopra concluded, "The Healthcare division continued to
demonstrate in the first quarter its improved performance as revenues
increased 17% over the first quarter of fiscal 2007 and the operating
performance increased from a loss of $(4.3) million in the first
quarter of fiscal 2007 to operating income of $1.1 million in the
first quarter of fiscal 2008."
Following the continued review of its global operations and cost
basis the Company has identified a further approximate $5 million of
annualized cost savings that it expects to implement within the next
twelve months. This is in addition to the previously announced $2 - $3
million of annualized cost savings that it expects to implement by the
conclusion of the first half of fiscal 2008.
Fiscal Year 2008 Outlook
The Company reaffirms its previously published revenue guidance of
$580 - $595 million for the fiscal year. In addition, the Company
provided earnings guidance of $0.60 to $0.75 per diluted share for the
fiscal year ended June 30, 2008 excluding the impact of impairment,
restructuring and other one-time charges.
Alan Edrick, Executive Vice President and Chief Financial Officer,
stated, "The intense focus we have placed on improving efficiencies in
operations, IT infrastructure, working capital management and
integrations during the last nine months is delivering results. Moving
forward, we will continue to strive to operate in an efficient manner,
rationalize further costs and focus on our core strengths to deliver
improved bottom line performance."
Conference Call Information
OSI Systems, Inc. will host a conference call and simultaneous
webcast over the Internet beginning at 7:00am PST (10:00am EST) today
to discuss its financial and business results for the first quarter of
fiscal 2008. The conference call will contain forward looking
information. To listen, please log on to www.fulldisclosure.com or
www.osi-systems.com and follow the link that will be posted on the
front page. A replay of the webcast will be available shortly after
the conclusion of the conference call until November 20, 2007. The
replay can either be accessed through the Company's website,
www.osi-systems.com, or via telephonic replay by calling
1-888-286-8010 and entering the conference call identification number
'18553637' when prompted for the replay code.
About OSI Systems, Inc.
OSI Systems, Inc. is a vertically integrated designer and
manufacturer of specialized electronic systems and components for
critical applications. The Company sells its products in diversified
markets, including homeland security, healthcare, defense and
aerospace. The Company has more than 30 years of experience in
electronics engineering and manufacturing and maintains offices and
production facilities located in more than a dozen countries. It
implements a strategy of expansion by leveraging its electronics and
contract manufacturing capabilities into selective end product markets
through organic growth and acquisitions. For more information on OSI
Systems Inc. or any of its subsidiary companies, visit
www.osi-systems.com.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such
statements include information regarding the Company's expectations,
goals or intentions about the future, including the Company's
predictions about the effects of steps being taken to improve
profitability as well as the Company's guidance regarding future
revenues and future earnings. The actual results may differ materially
from those described in or implied by any forward-looking statement.
In particular, there can be no assurance that the Company will achieve
profitability or that future revenues or earnings predictions will
ultimately prove accurate. Other important factors are set forth in
our Securities and Exchange Commission filings. All forward-looking
statements speak only as of the date made, and we undertake no
obligation to update these forward-looking statements.
OSI SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended
September 30,
--------------------------
2006 2007
------------ -------------
Revenue $115,529 $131,013
Cost of goods sold 77,032 86,903
------------ -------------
Gross profit 38,497 44,110
------------ -------------
Operating expenses:
Selling, general and administrative 36,370 36,211
Research and development 10,819 9,729
Impairment, restructuring, and other
charges 219 85
------------ -------------
Total operating expenses 47,408 46,025
------------ -------------
Loss from operations (8,911) (1,915)
Other income / (expense) (74) -
Interest income 141 119
Interest expense (1,014) (1,208)
------------ -------------
Loss before benefit for income taxes and
minority interest (9,858) (3,004)
Benefit for income taxes (3,179) (1,055)
Minority interest 638 (118)
------------ -------------
Net loss $ (6,041) $ (2,067)
============ =============
Diluted loss per share $ (0.36) $ (0.12)
============ =============
Weighted average shares outstanding -
diluted 16,668 17,171
============ =============
Condensed Consolidated Balance Sheets
(in thousands)
June 30, September 30,
2007 2007
------------ -------------
(unaudited)
Assets
Cash and cash equivalents $ 15,980 $ 14,644
Accounts receivable, net 140,483 136,697
Inventories 120,174 134,590
Other current assets 38,002 40,798
------------ -------------
Total current assets 314,639 326,729
Non-current assets 138,844 141,531
------------ -------------
Total $451,483 $468,260
============ =============
Liabilities and Stockholders' Equity
Bank lines of credit $ 16,775 $ -
Current portion of long-term debt 5,744 4,615
Accounts payable and accrued expenses 81,806 87,003
Other current liabilities 51,573 52,431
------------ -------------
Total current liabilities 155,898 144,049
Long-term debt 25,709 49,507
Other long-term liabilities 13,849 20,806
------------ -------------
Total liabilities 195,456 214,362
Minority interest 8,815 8,685
Shareholders' equity 247,212 245,213
------------ -------------
Total $451,483 $468,260
============ =============
SEGMENT INFORMATION
(in thousands)
(unaudited)
Three Months Ended
September 30,
-------------------
2006 2007
--------- ---------
Revenues - by Segment Group:
Security Group $ 41,047 $ 48,805
Healthcare Group 48,231 56,598
Optoelectronics and Manufacturing Group
including intersegment revenues 34,278 36,372
Intersegment revenues elimination (8,027) (10,762)
--------- ---------
Total $115,529 $131,013
========= =========
Operating income (loss) - by Segment Group:
Security Group $ (1,788) $ (696)
Healthcare Group (4,263) 1,051
Optoelectronics and Manufacturing Group 3,811 1,339
Corporate (6,319) (3,479)
Eliminations (352) (130)
--------- ---------
Total $ (8,911) $ (1,915)
========= =========
CONTACT: OSI Systems, Inc.
Jeremy Norton, 310-349-2372
Director, Investor Relations