OSI Systems [OSIS]
1Q17 1Q16
Sales $257.1M $220.9M
Net Inc. $10.2M, 0.52 $700K, 0.03
Sales increased 16% to a record largely due to the acquisition of the explosives trace detection business of the former Morpho Detection, which added $22 million to the top line. Sales in the security segment were also a record, $162.2 million, up 31% from $123.7 million a year ago. The strong sales in the ETD business were driven by foreign airports meeting U.S. Department of Homeland Security requirements for enhanced screening of inbound flights to the U.S., company officials say. All three of the companies operating segments posted improved operating earnings, led by Security with $22.7 million, up more than 100% from $9.4 million a year ago. The Security segment tallied a very strong $234 million in orders in the quarter and overall OSI booked about $411 million in new business for a robust 1.6 book-to-bill ratio. Security bookings were healthy on the domestic and international fronts with demand for the company’s trace, cargo, baggage scanning products contributing. Free cash flow in the quarter was more than $11 million and backlog stood at $846 million, up 15% from $738 million at the end of the third quarter. The new trace business added $14 million to backlog. Based on results in the quarter and expectations for the rest of the year, OSI raised its sales guidance by $50 million but still in the range of $1 billion to $1.1 billion, and its adjusted earnings guidance by a nickel to between $3.40 and $3.65 EPS.