OSI Systems, Inc. (OSIS) Bundle
A Brief History of OSI Systems, Inc.
OSI Systems, Inc. is a global provider of security and inspection systems, optoelectronics, and healthcare solutions. Established in 1980, the company has evolved significantly, expanding its product offerings and global presence.
Company Overview
As of 2024, OSI Systems operates through three primary divisions: Security, Optoelectronics and Manufacturing, and Healthcare. The company is headquartered in Hawthorne, California, and is publicly traded on the NASDAQ under the ticker symbol OSIS.
Financial Performance
For the first quarter of fiscal year 2025, OSI Systems reported total net revenues of $344.0 million, a 23.2% increase compared to $279.2 million in the same period of fiscal 2024. The breakdown of revenues by division is as follows:
| Division | Q1 2024 Revenue ($ million) | Q1 2025 Revenue ($ million) | Change ($ million) | % Change |
|---|---|---|---|---|
| Security | 164.6 | 224.3 | 59.7 | 36.3% |
| Optoelectronics and Manufacturing | 76.8 | 82.6 | 5.8 | 7.6% |
| Healthcare | 37.8 | 37.1 | (0.7) | (1.9%) |
Net income for the first quarter of fiscal 2025 was $17.9 million, up from $12.9 million in the same quarter of the previous year. Earnings per share (EPS) for Q1 2025 was reported at $1.07, compared to $0.77 in Q1 2024.
Cash Flow and Investments
In the first quarter of fiscal 2025, OSI Systems reported cash flows from operating activities of $(37.2) million, a decrease from $17.1 million in the prior year. The company’s net cash used in investing activities was $87.5 million, primarily due to a business acquisition costing $75.5 million. The cash and cash equivalents at the end of September 2024 totaled $85.1 million, with approximately 81% held by foreign subsidiaries.
Debt and Equity
As of September 30, 2024, OSI Systems had total outstanding debt of $476.3 million. This includes $340.8 million from convertible senior notes due in 2029. The company also repurchased 531,314 shares of common stock for approximately $80 million during the same period.
Market Position and Strategy
OSI Systems continues to strengthen its market position through strategic acquisitions and innovation in its product offerings. In fiscal year 2024, the company acquired two businesses: a contract manufacturer for $6.3 million and a provider of radiation detection technology for $2.8 million, with additional contingent payments of up to $3.6 million.
Recent Developments
In July 2024, OSI Systems issued $350 million in convertible senior notes at an interest rate of 2.25%. The company aims to leverage these funds for expansion and operational efficiencies.
Stock Performance
The stock performance of OSI Systems has shown resilience, reflecting the company's growth strategy and solid financial results. As of September 2024, OSI Systems had a market capitalization of approximately $1.7 billion.
A Who Owns OSI Systems, Inc. (OSIS)
Major Shareholders
As of 2024, the ownership of OSI Systems, Inc. (OSIS) is distributed among various institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| Vanguard Group, Inc. | 10.5% |
| BlackRock, Inc. | 9.8% |
| Dimensional Fund Advisors LP | 5.2% |
| State Street Corporation | 4.9% |
| Invesco Ltd. | 4.3% |
| Other Institutional Investors | 20.3% |
| Insider Ownership (Executives & Directors) | 4.6% |
| Public Float | 40.4% |
Stock Performance
As of September 30, 2024, OSI Systems, Inc. had a market capitalization of approximately $1.68 billion. The stock price was trading at around $100.10 per share, reflecting a year-to-date increase of 25%.
Financial Overview
For the three months ended September 30, 2024, OSI Systems reported net revenues of $344.0 million, compared to $279.2 million for the same period in 2023, representing a year-over-year increase of 23.2%.
The breakdown of revenues by division is as follows:
| Division | Q1 2024 Revenues | Q1 2025 Revenues |
|---|---|---|
| Security Division | $164.6 million | $224.3 million |
| Optoelectronics and Manufacturing Division | $76.8 million | $82.6 million |
| Healthcare Division | $37.8 million | $37.1 million |
Cash and Liquidity Position
OSI Systems reported cash and cash equivalents of $85.1 million as of September 30, 2024, down from $95.4 million at June 30, 2024. Approximately 81% of this cash is held by foreign subsidiaries.
Debt Obligations
As of September 30, 2024, the company's total debt stood at approximately $476.3 million, with the following breakdown:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan | $133,750 |
| 2029 Convertible Senior Notes | $340,799 |
| Other Long-term Debt | $1,752 |
Recent Acquisitions
In September 2024, OSI Systems acquired a privately held company for approximately $76 million, with an additional potential contingent consideration of $24 million. This acquisition was financed through cash from operations and borrowings from credit facilities.
Conclusion
As of 2024, OSI Systems, Inc. remains a publicly traded company with a diverse shareholder base, including significant institutional ownership. Its financial performance has demonstrated growth, with significant revenue increases and strategic acquisitions aimed at enhancing its market position.
OSI Systems, Inc. (OSIS) Mission Statement
Company Overview
OSI Systems, Inc. (OSIS) operates in three key segments: Security, Optoelectronics and Manufacturing, and Healthcare. The mission statement emphasizes the company's commitment to innovation, quality, and customer service across these sectors.
Mission Statement
As of 2024, OSI Systems, Inc. aims to provide innovative solutions that enhance security, improve healthcare, and support manufacturing processes. The company focuses on delivering high-quality products and services that meet the evolving needs of its customers while maintaining a commitment to operational excellence.
Financial Performance
For the three months ended September 30, 2024, OSI Systems reported a significant increase in net revenues and net income compared to the previous year:
| Financial Metric | Q1 Fiscal 2024 | Q1 Fiscal 2025 | Change |
|---|---|---|---|
| Net Revenues | $279.2 million | $344.0 million | +23.2% |
| Net Income | $12.9 million | $17.9 million | +38.4% |
| Basic Earnings per Share | $0.77 | $1.07 | +39.0% |
| Diluted Earnings per Share | $0.75 | $1.05 | +40.0% |
Segment Performance
The company's revenues are categorized into three segments, with the Security division showing substantial growth in Q1 fiscal 2025:
| Segment | Q1 Fiscal 2024 Revenues | Q1 Fiscal 2025 Revenues | Growth |
|---|---|---|---|
| Security Division | $164.6 million | $224.3 million | +36.3% |
| Optoelectronics and Manufacturing Division | $76.8 million | $82.6 million | +7.6% |
| Healthcare Division | $37.8 million | $37.1 million | -1.9% |
Employee Compensation and Stock-Based Expenses
As of September 30, 2024, OSI Systems recorded stock-based compensation expenses as follows:
| Expense Type | Q1 Fiscal 2024 | Q1 Fiscal 2025 |
|---|---|---|
| Cost of Goods Sold | $232,000 | $244,000 |
| Selling, General and Administrative | $6.7 million | $6.0 million |
| Research and Development | $126,000 | $154,000 |
| Total Stock-Based Compensation | $7.1 million | $6.4 million |
Cash Flow and Liquidity
As of September 30, 2024, cash and cash equivalents stood at $85.1 million, with approximately 81% held by foreign subsidiaries. The company experienced a significant cash outflow from operations:
| Cash Flow Type | Q1 Fiscal 2024 | Q1 Fiscal 2025 |
|---|---|---|
| Cash from Operating Activities | $17.1 million | $(37.2 million) |
| Cash Used in Investing Activities | $(9.6 million) | $(87.5 million) |
| Cash Provided by Financing Activities | $(1.9 million) | $113.8 million |
Debt and Obligations
As of September 30, 2024, OSI Systems had the following debt obligations:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan | $133,750 |
| 2029 Notes, net | $340,799 |
| Other Long-Term Debt | $1,752 |
| Total Long-Term Debt | $476,301 |
Conclusion
The mission of OSI Systems, Inc. as of 2024 reflects a strong commitment to innovation and quality across its segments, supported by robust financial performance and strategic investments in growth areas.
How OSI Systems, Inc. (OSIS) Works
Business Overview
OSI Systems, Inc. operates through three primary segments: Security, Optoelectronics and Manufacturing, and Healthcare. Each segment serves distinct markets with specialized products and services.
Financial Performance
For the first quarter of fiscal year 2025, OSI Systems reported the following financials:
| Metric | Q1 Fiscal 2024 | Q1 Fiscal 2025 |
|---|---|---|
| Net Revenues | $279.2 million | $344.0 million |
| Net Income | $12.9 million | $17.9 million |
| Gross Profit | $98.7 million | $121.5 million |
| Earnings per Share (Basic) | $0.77 | $1.07 |
| Earnings per Share (Diluted) | $0.75 | $1.05 |
Revenue Breakdown by Segment
The revenue distribution across segments for Q1 fiscal 2025 is as follows:
| Segment | Q1 Fiscal 2024 | Q1 Fiscal 2025 |
|---|---|---|
| Security Division | $164.6 million | $224.3 million |
| Optoelectronics and Manufacturing | $96.1 million | $97.8 million |
| Healthcare Division | $37.8 million | $37.1 million |
Operating Expenses
Operating expenses for Q1 fiscal 2025 included:
| Expense Type | Q1 Fiscal 2024 | Q1 Fiscal 2025 |
|---|---|---|
| Selling, General and Administrative | $59.8 million | $72.2 million |
| Research and Development | $15.9 million | $17.8 million |
| Total Operating Expenses | $76.2 million | $91.2 million |
Cash Flow Analysis
For the three months ended September 30, 2024, OSI Systems reported cash flows as follows:
| Cash Flow Activity | Q1 Fiscal 2024 | Q1 Fiscal 2025 |
|---|---|---|
| Net Cash Provided by Operating Activities | $17.1 million | $(37.2 million) |
| Net Cash Used in Investing Activities | $(9.6 million) | $(87.5 million) |
| Net Cash Provided by Financing Activities | $1.9 million | $113.8 million |
Debt and Liquidity
As of September 30, 2024, OSI Systems reported the following regarding its debt:
| Debt Type | Amount |
|---|---|
| Term Loan | $133.8 million |
| Revolving Credit Facility | $259.0 million |
| Convertible Senior Notes | $340.8 million |
Cash and cash equivalents totaled $85.1 million, with a significant portion (81%) held by foreign subsidiaries.
Stockholder Equity and Share Repurchase
As of September 30, 2024, OSI Systems reported the following stockholder equity metrics:
| Equity Metric | Amount |
|---|---|
| Total Stockholders' Equity | $786.5 million |
| Common Stock Outstanding | 16,710,749 shares |
| Shares Repurchased in Q1 Fiscal 2025 | 531,314 shares for $80.4 million |
Market Position and Future Outlook
OSI Systems continues to focus on enhancing its market position through strategic acquisitions and innovations in its product offerings across its segments. The company aims to leverage its existing capabilities to drive future growth and profitability in the evolving technology landscape.
How OSI Systems, Inc. (OSIS) Makes Money
Revenue Segments
OSI Systems, Inc. operates primarily through three business segments:
- Security and Inspection Systems
- Optoelectronics and Manufacturing
- Medical Monitoring Systems
As of the first quarter of fiscal 2025, OSI Systems reported total net revenues of $344.0 million, up from $279.2 million in the same quarter of fiscal 2024.
| Segment | Q1 FY 2024 Revenue (in millions) | Q1 FY 2025 Revenue (in millions) | Year-over-Year Change (in millions) | Percentage of Total Revenue (FY 2025) |
|---|---|---|---|---|
| Security Division | $164.6 | $224.3 | $59.7 | 65.2% |
| Optoelectronics and Manufacturing | $76.8 | $82.6 | $5.8 | 24.0% |
| Healthcare Division | $37.8 | $37.1 | ($0.7) | 10.8% |
| Total | $279.2 | $344.0 | $64.8 | 100% |
Cost of Goods Sold and Gross Profit
For the first quarter of fiscal 2025, the total cost of goods sold was $222.5 million, resulting in a gross profit of $121.5 million. This indicates a gross margin percentage of approximately 35.3%, slightly down from 35.4% in Q1 FY 2024.
| Cost Type | Q1 FY 2024 (in millions) | Q1 FY 2025 (in millions) |
|---|---|---|
| Products | $136.983 | $170.422 |
| Services | $43.482 | $52.083 |
| Total COGS | $180.465 | $222.505 |
Operating Expenses
Operating expenses for Q1 FY 2025 amounted to $91.2 million, compared to $76.2 million in Q1 FY 2024. This increase was primarily due to higher selling, general, and administrative expenses, along with increased research and development costs.
| Expense Type | Q1 FY 2024 (in millions) | Q1 FY 2025 (in millions) |
|---|---|---|
| Selling, General, and Administrative | $59.8 | $72.2 |
| Research and Development | $15.9 | $17.8 |
| Total Operating Expenses | $76.2 | $91.2 |
Net Income and Earnings Per Share
Net income for Q1 FY 2025 was $17.9 million, an increase from $12.9 million in Q1 FY 2024. Basic earnings per share rose to $1.07 from $0.77 in the prior year.
| Metric | Q1 FY 2024 | Q1 FY 2025 |
|---|---|---|
| Net Income (in millions) | $12.9 | $17.9 |
| Basic Earnings Per Share | $0.77 | $1.07 |
| Diluted Earnings Per Share | $0.75 | $1.05 |
Cash Flows and Liquidity
As of September 30, 2024, OSI Systems reported cash and cash equivalents totaling $85.1 million. The company experienced a cash outflow from operating activities of $37.2 million during Q1 FY 2025, compared to an inflow of $17.1 million in the same period last year.
| Cash Flow Type | Q1 FY 2024 (in millions) | Q1 FY 2025 (in millions) |
|---|---|---|
| Net Cash from Operating Activities | $17.1 | ($37.2) |
| Net Cash Used in Investing Activities | ($9.6) | ($87.5) |
| Net Cash from Financing Activities | ($1.9) | $113.8 |
Debt and Financial Obligations
As of September 30, 2024, OSI Systems had total long-term debt of $468.1 million, with a significant portion attributed to the $350 million 2.25% convertible senior notes issued in July 2024.
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan | $133.8 |
| 2029 Convertible Notes | $340.8 |
| Other Long-term Debt | $1.8 |
| Total Long-term Debt | $468.1 |
Conclusion
OSI Systems generates revenue through its diversified segments, with a noteworthy focus on security solutions. The company’s financial performance reflects growth in revenue and net income, despite increased operating expenses and cash flow challenges.
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Article updated on 8 Nov 2024
Resources:
- OSI Systems, Inc. (OSIS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of OSI Systems, Inc. (OSIS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View OSI Systems, Inc. (OSIS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.