OSIS - Earnings call transcript Q3 2024

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Operator

Good day, and thank you for standing by. Welcome to the OSI Systems, Inc., Third Quarter 2024 Conference Call. [Operator Instructions]Please be advised today's conference is being recorded.I would now like to hand the conference over to your speaker today, Alan Edrick, Chief Financial Officer. Please go ahead.

Alan Edrick

Good morning, and thank you for joining us. Fiscal Vice today CFO President with to OSI Executive and OSI and Edrick, Conference the here Quarter I'm Deepak Systems Alan President of and Systems, CEO.Welcome Call. I'm Third 'XX Chopra, OSI's

Private company everyone the statement based forward-looking We like year we our today's on to to are are the the and information Securities results.Before both third that today, GAAP respect forward-looking based issued quarter financial as announcing with when to release forward-looking discuss Earlier undertakes update review a company's results. financial non-GAAP today's Act the pleased available press to include any measures could events results, operational safe subsequent our refer this to or will XXXX we us information, would describing and forward-looking you call otherwise.During no of statements. company call, we provisions currently financial Litigation obligation the the results. that such statements new remind take however, join or I and of Reform XXXX of advantage discussion on All we harbor made fiscal and statements on wishes will

begin and over third comparable for turn then to a For those performance a will of Fiscal the quantitative earnings high-level call further figures, today's financial GAAP reconciliation summary of a our performance. operational the please measures information with Deepak our regarding discussion company's 'XX non-GAAP release.I the business and press of of of measures results and quarter our refer for and to

strong, revenues and our discussion and by Fiscal 'XX.Following the our growth income division Year outlook financial delivered then quarter operating in were finish will which Security with We EPS. EPS non-GAAP in for our very adjusted year-over-year revenue details results regarding financial updated significant and extraordinary third a QX, led results increase a and of more record

momentum of the by strong by as summary We in results. of are our Fiscal start another our QX evidenced encouraged quarter high-level business, bookings.Let's 'XX a overall with

a nearly year increased years.Before book-to-bill revenue financial over First, share revenues QX of and our again revenues a for of $X.X The turn from 'XX just led QX diving I with future we XX% significant earnings non-GAAP QX fiscal Deepak. the to Security the XX% will discussing prior driven by record backlog performance good the adjusted were XX% to the record the over of strong $X.XX, with the year-over-year call and deeply $XXX of in division, into a more year-over-year.Second, into ended outlook, fiscal where Fiscal the growth X, to of year.Third, bookings were the quarter up strong, million, up provides and visibility our backlog of billion. balance per results

Deepak Chopra

finished $X.X the Thank you, in million. with a of welcome quarter the X of Fiscal Systems quarter performance XXXX.We revenues to and quarter pleased book-to-bill for billion. We OSI and third very a exceeding record a fiscal backlog Alan, third to the XX% our had $XXX earnings are healthy grew about with which call

systems results.Beginning division further and Our services; discussion driven million program highlights X XX% deliver Defense, achieving for year-over-year on division, the book-to-bill to and the which quarter another our bookings international cargo where key $XXX-plus Department from X.During customer. major with we perform million in and our revenues primarily were some SEDENA, related with exceeding Security back to Security well.I division's across now performance will a for our results grew the Alan division, National were is quarter, the continues approximately discuss inspection continued each vehicle $XXX Mexico's million-plus, contract approximately to with $XXX cargo a programs: which the a of third handing QX, by of before financial it

and has and we systems. announced are well.In relentless programs contract both a March, team new vehicle cargo progressing Our its solutions for efforts, in inspection various been and cargo $XXX million

to you the manifesting as earlier, a for deliver of and port a scanners, awarded awards, discovered Z entry. worldwide agricultural large of we officers time The into systems previously Camino and seizure announced into revealed shipment of U.S.-Mexico customer.These CBP moment Texas cargo our million of the example our significant end officers the here scans, of how another that company's market XXXX.We growth utilizing a an subsequently secondary but truck about million, to the confidence product vehicle of Fiscal at affect million largest-ever recognized receipt with security portfolio anomalies meth tons to in and and here learned the our and on during quarter and market-leadership suspicious inspection a life award breadth of illustrate for Real value going great in provide let on contracts are Bridge $XXX of recall, a QX cargo Customs a X.X spending for products.We the fair to [ talking from cargo International international $XXX a and solutions ], may of which border chemicals the well-being in As QX programs traction, everyday addition use. we the a cargo and Border amount in had sustainable being of are CBP, methamphetamine, Portal designated and inspection recent U.S. take $XX discussed at combined a street ability performed Protection, me the cargo, provide U.S.

mission support stopping and well, proud other aviation to to homeland entering in and drugs it their and business, contraband and the with security bookings. CBP continues nation.Moving our revenues critical on U.S. We illegal checkpoints strong to the perform are

leading (ETD) systems of million multiyear along detection QX, announced trace international infrastructure XXXCT, Return scanning million a systems checkpoint During Tray from XX support.We an secondary including and announced with $XX screening our the baggage. carry-on a for computerized for and European a we automated Itemiser solutions, security also to passengers airport service explosive award provide award from tomography, with $XX System, airport

Itemiser helps for that XX, customers. broadest As million we in consumables, revenue our detection ] products, XXXDX portfolio, provide package to we (sic) optimized ongoing training including: compared the a see to a of for also a portfolio from to has margin.And XXXDX and CT-based revenue, systems, XXXDX cargo $X RTTXXX system; comment, packages.As other has side announced to recurring XXXCX a an the global explosive finally, which like it solutions provide service customer screening; these the we the have a which have logistics and you very revenue, say addition recurring variations utilizing from and award [ smaller the healthy broad leading for mentioned, air competitors, proud various the Orion and to are products technology different features can large to the

last airports the in quarters benefited the over this and air seen investments, into cargo significant have and Guatemala trend as our making anticipated. Albania, believe We will been business beyond.Our few and European airports continue that has customers have performing Puerto are infrastructure we Fiscal that projects turnkey Rico, and and security 'XX

Security, anticipated. a inventory which with gearing softer order up and one-off, for was a to forecasts, wins, a the turnkey, provide ] from strong. finish to customers a bookings the solutions. with for bodes we also our we critical Opto's is demand summer.In OEM short Recent year to going Opto that think which are uncharacteristically for The the used begin Manufacturing sometime quarter, look specialized its health turnkey, book-to-bill we in significant in addition, revenues their expect growth division, strong X continued million business, Uruguay we and suggest couple to pipeline latest [ innovative activity care continue to several beyond.Moving had to of where commence $XX sync well it an as announced XXXX a exceeding subassemblies In Optoelectronics major our work the has we achieved impacted division we which quarter, are forward.We and demand opportunity key in a which term, and including to

quarter. were and an positioned on the to CapEx is Despite believe for QX. down inventory customers.Finally, lower Healthcare QX prior where from new $X significant that, year's This in to in Tecate, X% to our return aspiring near-shore.Looking had Asia winds rightsizing continues than sensors shift approximately introducing a division, customers active to well division which defense from environment. to announced to work form began group capacity million in us electronics given major has also a advanced for a to operation QX, challenging hospital We Fiscal of we help Opto Healthcare through Mexico, as prospective division work our with award revenues to bookings missile systems.During ahead, provide to expect the OEM the 'XX, the customers moving many we

million our Xhibit $X hospital before patient to from Just patient a quarter-end, Xprezzon monitors, and monitors Central Stations, order Qube patient a won expect U.S.-based which monitoring we including we systems, for patient allow and platform This enhance QX.Our mobile features enables begin app. monitoring delivering in health to their services. the services digital by like customers monitoring SafeNSound patient integrating addition solutions real-time

next to finish continuing our leverage access monitoring Index continue the products can invest 'XX health our we momentum fiscal Rothman and strong heavily developing customers next-generation analytics, our primarily for about in solutions.Overall, to are further offerings.We platform and year Fiscal health in the into monitoring products, Additionally, comprehensive a new excited and advanced augmenting patient predictive software analytics beyond. in

would we always, will As guidance their stockholders discuss support.With for call our employees, before and results Alan that, open our over continued questions. thank to financial turn I to more Thank detail and the you. like I in to customers for back

Alan Edrick

Deepak. you, Thank

our QX up of of Security sales I vehicle the year-over-year in greater was revenues third revenues Now third The inspection XX% products. 'XX prior the revenues year. detail fiscal largely our of quarter the and in results growth result with increase QX quarter.Again, compared will XX% were division in cargo our the for financial review Fiscal

related had March announced January announced from XXXX 'XX.Third-party in were Opto revenue and in revenues and also shipments growth our double-digit contract aviation cargo products sales cargo million-plus services. $XXX and year-over-year. percentage from checkpoint revenues QX of million-plus $XXX included approximately significant down in the of the X% continued We contract

case. revenues last division customers been that continue and/or ordering to impacted the mentioned we the that And call, short Opto anticipated quarter's would indeed As on in has with inventory adjusting patterns, this certain over term. be levels

product sales of of we challenging the mentioned, see from going the This margin XX.X% improving, revenues, Fiscal on was largely 'XX mix favorable this year-over-year in QX well. forward.The of our and less increased, carry QX significant gross this was hospital service year. gross favorable than as CapEx service mix margin while decreased product a division in Healthcare the gross environment.The due driven Thus, X% to XX.X% year in Deepak margin gross quarter last revenues revenues, decreased this less year-over-year. increase by revenues revenues, As in QX sales as a which down was margin a growth the the on margin service

to margin will costs, mix inflation of gross based and generally fluctuate operating among from to other expenses. period period and changes factors.Moving on volume, Our in chain supply impacts revenue

of our to costs to QX XX.X% of across FX, significant linked improve professional of sales, the cost quarter. including diligently were and was or XX.X% sales Fiscal work unfavorable structure. increase year. SG&A other in of million, compensation, our $XX.X prior to to 'XX $XX.X million, manage efficiency continue higher by sales each $XX.X items.Research were incentive in We absolute sales, year the X.X% QX SG&A expenses and or development prior prudently growth, of divisions same expenses compared compared year-over-year of in fees and our The to of driven million, in to QX compensation sales, X.X% increased or among

of higher other 'XX, interest QX and 'XX.Moving million Net Security Fiscal expenses we success executed on to to Fiscal considerable $X.X R&D, restructuring our dedicate of in 'XX, 'XX, Fiscal 'XX. businesses.We in remain million under in of development, a a an in taxes. recorded other on Fiscal bank primarily to borrowings. GAAP recognized and our we reported Fiscal interest and million view items. of 'XX, amounts focused of interest $X increased rate QX rate of Fiscal QX 'XX resources as increased to tax 'XX we due to product each of to Fiscal of the immaterial debt.Our of segments, in effective QX charges continue QX rates which of of and our XX.X% and swap to in vital particularly during discrete QX $X.X as We tax was to level compared in We In XX.X% Healthcare interest innovative long-term from floating-rate portion fix

to sales the margin product lower effective in operating Security our with with Fiscal a performance receivable QX non-GAAP of operating in now XX.X% compared XX.X%, associated balance as in primarily in adjusted driven cash improvement significant favorable 'XX, QX in of CapEx and Excluding 'XX, we used QX division invested $X.X finish will in division. the associated 'XX, Fiscal modest was of of quarter of given QX items, operating in negligible, our Fiscal flow. was the of a of XX.X% million.Our XX.X%, the normalized in normalized tax margin Overall, Security Security driven In with 'XX division's Fiscal was sales.Moving product division solid, strong to Fiscal Opto from primarily to increased a 'XX, leverage depreciation 'XX.The this while of revenue margin. by quarter, increases from non-GAAP the of less Healthcare anticipate was We to margin strong XX.X% division's tax accounts of our out 'XX in division is X.Xx. net reduction division expanded amortization a quarter was the amounts discussion in rate last capital operating turn Fiscal adjusted of Fiscal in effective third XX.X% company's in adjusted year's of adjusted and $XX growth. Fiscal expense decreased tax the discrete to higher sequential working to 'XX operations million, margin sheet QX, by comparable in cash rate We in mix. impact QX the due the XX.X% million, to The in $XX.X revenues.The non-GAAP adjusted from due third the XX.X% 'XX.I QX of operating in our to growth.

principal debt finally, term payments Aside required our the our bulk turn matures bank loan, Fiscal of in annual from to $X.X million of 'XX.And let's under guidance.

as EPS XX%, XX%. share, our This than non-GAAP intangible diluted and restructuring maintaining We EPS guidance 'XX to partners.And from rates global take remain our in supporting and this like impact is in estimates at difficult acquired 'XX, over of charges, over are growth noncash increase an of excludes impairment to while interest will the assets of more guidance providing increasing efforts focused our Fiscal solutions.We to other growth earnings Fiscal guidance per to revenue and continue amortization thank our predict changes and open to from could backlog expense and diluted non-GAAP and potential again financial conversion believe due for chain We discrete of and anticipated reflects risks other businesses. vary share the associated to and their tax continue well in the questions. to guidance enable actual and we'd of customers Actual items.We results interest expected and inflation our above dedication to the the discussed like company's estimates. guidance innovative would to results indicated costs SEC effects OSI tax products other in and non-GAAP reasonable per supply of to on significantly continued currently vary and call this our believe OSI uncertainties as The increased in opportunity timing on the on currently this guidance. our its disruptions earnings nonrecurring team the reflected of could filings.We the time, impact revenues,

Operator

is of Our [Operator Josh Riley. from to Nichols, first line Instructions] come question B. going with the

Josh Nichols

bit see year, have curious, the thought decline. I'm Great going now, you conversion. to these just people a guidance right levels have much is how kind $X.X most a that holding that giving of fiscal to know I record be next could see backlog the near would despite billion of I little this? of fiscal you for you're expected but recognized around backlog of year? contextualize to next not big

Alan Edrick

Josh, that guidance in that We year-to-year question, of we have the the would and provide months Fiscal this necessarily our We is Thanks to we strong that say see mention perspective. next Alan. here significant 'XX. new we a with of year our tend Therefore, the to before good backlog be 'XX. don't a this the a Fiscal for of do will on visibility portion time, bookings question. from backlog recognized we year, all very couple get at of already fiscal QX as start in not believe start before well into rollout we'll

So of it nice a us really a places in and us year. next position gives deal for confidence great

Josh Nichols

the XQ. that right-sizing to behind is hear improvement Great. inventory And effectively in fiscal in like space the the some good looking then sounds company, for Optoelectronics sequential it

but bit very for XQ, for Healthcare. division, could any percentage expecting When Healthcare? is Healthcare strong it's for revenue, that's typically it's looking the headwind higher type at pretty the though, quarter big a guess, I and little know been quarter that I contribution. a guidance what not usually a of you of for a margin of fourth Looking at provide you're

Alan Edrick

Josh, you on. little I'll our then QX strong year Deepak don't division, in for in aided extremely add fiscal as a you'll booking by Though division, provide QX a there, received that shipped had can we we and Healthcare an color recall, by of last guidance and quarter QX. was significant give

revenues tough Embedded Fiscal for that we will for pretty 'XX Systems suggests we last level it in won't the we of be were providing OSI in QX provides the that So over in sequentially improve overall at QX, we're our guidance Healthcare at but a comp. year.

Josh Nichols

last subsequently But there in has expectations And I for was the for cash a like, question receivable. guess, mean, the quarter? me. And free that, flow that significant collected? know fiscal it. I been bump then I Got fourth accounts in

Alan Edrick

collect subsequent heavy nice Receivables have namely.We had cash we capital. March working XX, collected in as we our expect and to are amount significant amount up is 'XX. growth in of through the a point investments think Fiscal the with generating turning real big to division, cash that a Clearly, a the strong today, question. Security of cash well.However, of the Good balance real flow quarter as here sit significantly we for

heavy while to we little on expect this some reverse we in in cash a 'XX, nice to been a areas investment those inventory course And year. of both start year of big bit a see growing X investment drive So think and receivables. to can next really has the continue in flow we

Operator

of Securities. line CJS question from our going with Solow, is next And the come to Larry

Lawrence Solow

I guess backlog forward-looking. I the real -- guess just just question my a or question is on the or

obviously and like another would the in any get confidence comfort over of impact maybe I the should X just book-to-bill So kind guys. beyond look that give feels comfort for how mentioned X. it you be and backlog, quarter as opportunities. remaining year contracts guess a is larger below Maybe you could 'XX over color help these pipeline of But long and little just your sort to grow 'XX, continuing your people the years. your more your pipeline you of good maybe you given that strong out once couple are better level, the beyond, and level, there, the run line then able top be X above satisfied book-to-bill next just falling us, to

Deepak Chopra

Good question.

good quite of confident The very and activity it. very, are strong. We pipeline about feel is

time for strong broadest security the to with security to as as we trade important at other next are whole the China is it that into the than more portfolio. begin up, between moving factor the with look aviation all do entering more people a each as are everywhere to to product are you proud country, that, be I them.And going world think say backlog continues very is an we to the over. have places, is that same more from say At We concerned people thing important year with.But very

have good over buy install portfolio. definitely very to interest the have and customers the something, invited We we pipeline, definitely it the And the more a we good the all do globe, they our reputation, stuff to more like dance.So the [ are come good we prospects, to reputation. good do product to good when ] looks

be And same invest the we're think time, and we we not all continue will for at confident new but innovation beyond. those continue. things will to, just beneficial very And this in heavily So products. 'XX, very

Lawrence Solow

question a Alan. Great. I Okay. guess for

down sequential outlook. of that know the [in out this like sort probably over of more orders? was upside. in couple on a progress a do you little trying -- -- orders? the the short-term of, revenue. a when better But Just explains of Division But sounds is ramp in overall to get you the bit orders? quarter stand shift: was just Do the higher? of economies you and last of the there there generally you the and profile, service that term to of get margins Security more just some you the margins it the complete -- where color revenue it's I'm quarter, or on Does Security mentioned trying more it kind the new on shift get to that just as product based more anomaly mid- of more XX% an long-term context called some over of margins mix as of these just you just scale on the margins grow years, little less as next I orders? get and any had you the a in on to better ]. it of with Is drop and expect little any larger a these more margin kind the sort basic Or And reflection longer of some within

Alan Edrick

Thank Larry, is This Alan. you. question. good

a customer, on there's bit. couple Security is out in by or mix pipeline top the opportunities division the Certain into out as just always in goal basis we forward, may goal able the around upon growth is 'XX, on expanding our line quarters, shift think our the do expand been when we've with backlog, at we look what's think but based margins look margins a 'XX, that revenues of expansion, an of to to regularly. Our But basis.And year-over-year we by quite and continue 'XX, margin to historically that. I the not to do ample to opportunity operating annual our product

the at backlog and great fulfill [ with we're this the to, in now and point as things we ] into have that already XXXX confidence 'XX. even Deepak in to strong Given right alluded 'XX, beginning

So we're margin those a lot think really there's focused in on years, out of and all those. potential we

Lawrence Solow

it? just, that, SEDENA it And if backlog big be, I that's a in is of $XXX one, you give revenue probably that lot probably I I -- imagine beyond mean, will specific, percent color it the us to that will what service the how as that like, be better, as -- like seems Mexico, some on will annually. that But percent be of margin look -- can much like margin better? at a contract, up Do maybe you at that progress million close half you get a makes obviously, your on does back or because in does is improve? that get also something fulfill as a there imagine any you Like, component, contract? a better X/X But I the too. of Is margins -- is that which margin difference

Alan Edrick

referring the service. contract as products of as different consists Larry, to you're So well that multiple

products little a the margin that will upon products the So mix and the particular we're bit quarter. in of differ fulfilling a depending

the too. that into is expect carries and product job would to revenue, margin our be outstanding Our an a doing move on service But service we generally actually element, we as the than you're higher case team that. here, right,

as be annual nice So getting revenues from it's nicely us been a that warranty, service us. start very those contract then recurring as margin-accretive for we will post well. to But

Operator

of ROTH is going Jeff the And our to MKM. come with next line question Martin, from

Jeff Martin

to you you huge providers just other a the positioned in. vehicle curious that Obviously, how market dive competitively of Still with market. see respect you mature was see OSI out wanted also to cargo is comment a to could that kind there. in international lay relative out I the and for if I you. inspection opportunity not

Deepak Chopra

to we can Deepak to This we it we compared now have the are are that broadest about say good it. can in that portfolio say competitors. that especially proudly and before, is I've this here. that space, Also, cargo #X. proud our product feel We we the we said say solutions areas also

a from as the you line is reach to gets traction a of continue good with any it's country dollars and doing. we stake good going reputation, more accepted, and broader as has quite put customers. Because more as So get we tried and no larger, to the you product your with preferential vendor are draw in more you world get at millions are with what unless happy reputation.So get

your We great very even The are better. about cargo, talking team much to had keep do question aviation successes. continue a the job.We to cargo, some focused about time same doing at is the marvelous but we've in space

product good very a line. have We

line. think think we grow, it, very traffic just that the the and be continues are will continue.And but product too. We want. customers what aviation that customers domestically, not space even that install most thing we we at all, all to look and largest international, base well that cargo for not suited the on to we continue space.So and to the as that have broader we And look in focused air they improves, also that And it at to working in listening with forget, to the ignore continue and that good, that's people

Jeff Martin

orders the the great. what with follow-on Patrol? Customs could potential happen update Border Alan, think That's you for an from Deepak, on you U.S. and might and or maybe comment,

Deepak Chopra

will there more there like more, we even placed. a or obviously, are again, year next well forward or to And we X Well, And the have 'XX, And settled now think be big those requirements. will that Fiscal into we said, so, it. we we going be that are think IDIQs. the more looking that budgets there, have been And for we activity. lot

area, events and East the settle all all, the DoD. Border the all international are are unfortunate Middle just it. to So but happening it, call, in And in going in be Patrol, there's think the conference security it's mentioned protect more last for well Ukraine down government that that the yes, Western people. that we we for much as requirement not around State equipment Department, placed And and for stuff, the we, will finance but again, they allies to as the

Jeff Martin

finally, are free capital Because then working cash significant allocation cash generation. year? And sense. flips you're that next how generating into flow about going investment you be thinking to capital as Makes

Alan Edrick

Alan oftentimes at look is we as nice strategic expect perspective, allocation all with look and but this well. X.We organically, to principally do them we areas, From X look that Jeff, necessarily here. always capital we M&A as We don't supplement to can exclusive. a at grow mutually

some of historically have, acquisition is then we've we been Stock the residual been buyback much to so use we to borrowings. very in this cash any well And in; flow as active capital. as So working very investing much targets. not we've would cash down pay our go could some year, something that

Operator

And next from Glynn, of & is question Instructions] our with come [Operator going Oppenheimer Christopher to Co. the line

Christopher Glynn

a wanted of A gross to to margin. supply I chain bit of pertains question. just sort it ask

any on gross mix variability if around how in year-over-year mix supply with You seen well. sequentially the is or really dynamics. chain that sequential curious, Curious costs. XX% supply if there talked was expedited about was bridge that as the I'm gross performing? chain material margin variability You've just dynamics Security margin growth,

Deepak Chopra

is fast, question. supply good you a chain as very ramp up A challenge. Definitely, so

our We've We've in well. much.But but managed we are very ability be we to has there, good managing it contacts. that it helped global have successful been us And have We our challenges the well. think done even manufacturing well.

And has do post under a freight manage And stuff, that, and and it we going COVID of couple of want stabilized. think it things at of that have add to we prices, those some for forward, control big something? we that cost can the quarters the you well.Alan,

Alan Edrick

Chris, product Sure. And some is in margin function sequentially changes of gross see and OSI a really overall versus year-over-year the service. for you of

lower product than large growth, the margin inherently contracts we're With a delivering right substantial these products revenues X and revenue now, gross service. carry

revenue, said, higher the a service products result, contribution to gross gross that's would it very becomes consolidate to opportunity there it the really that. enhance be impacted margins. still gross margin margin thing margin finish may So overall. the But as Once when is because the little in a dip operating revenues, even we delivering be nice these that product-related when an of our being we added and whole by

Christopher Glynn

O&M And sound the the a constructive, segment. that lead pretty sales I period. a guess, inventory and given aren't you really forward. on external And declines correction extreme on follow-up we're going in time

you want Just bit Are provide if little terms where to picking like much you visibility, back you a up more of in thrust tied medical can verticals that or direct see the curious any to how Opto? there or defense about whatever is talk specifications. for

Deepak Chopra

Good question.

we'll happening keeps passed, the as back and to their Consumer picking Firstly, inventory going Ukraine as products group. we the that aerospace and stuff budgets behind.And forward, the little especially normal stability, our might defense I again. on to adjustment. track.Most get shows and That mean, more that was a call up the for then did aid with think the at start get Opto stuff, to with get we on think X business back book-to-bill segments Israel will say the the we be are there's bit of going

is call we well. lot and we I supply need but hospital the kind what and those is up segments And market, still will for all automotive of industry, things, We designed there, we a product in it.The the there do for supply are consumables. lot overall, devices that.The industry of that.So of think, a is tension though into there CapEx medical to well on the

proudly any one good say, on segment. can One are of not dependent things we the we

to broad based. We think is growing.Alan? overall, we segment start the going very And that, business are

Alan Edrick

sales between I think modest. you're right, do overall. the industrial, the And expect of that's And bit we companies, quite Chris, a case. diversified some think Deepak defense, was in continue automotive, improvement light of see corrections reduction the mentioning. across into more some revenues third-party seeing I levels customers may of the that little that technology inventory somewhat our to while nice Yes, on QX, in like sequential a medical, was spectrum. And we in We're are

that QX. are nice we over in So highly see here a we'll pickup QX encouraged

Operator

to And Deepak would no conference Thank questions And to I at closing back hand time. this you. remarks. for like the showing Chopra further I'm

Deepak Chopra

to to our call. much. with employees Thank our We you speaking conference and stockholders you Thank the very call for again year-end look attending in to you Thank our next August. our once everybody, and forward over investors, you customers.

Operator

conference today's concludes This call. Thank participating. you for

You may now disconnect.

OSI Systems (OSIS) 25 Apr 242024 Q3 Earnings call transcript