OSI Systems [OSIS]
4Q18 4Q17 FY18 FY17
Sales $287.3M $252.4M $1.1B $961M
Net Inc. $5.1M, 0.27 $1.5, 0.08 ($29.1M, 1.57) $21.1M, 1.07
Sales in the quarter and the year were records, driven by strong gains at the Rapiscan Systems security segment. The company also topped $1 billion in annual sales for the first time. Rapiscan’s sales in the quarter were a record $185.2 million, up 26 percent overall and 14 percent organically. The segment benefited from $17.5 million in revenue through the acquisition of the explosive trace detection business of Safran. OSI says that organic sales drivers at Rapiscan in the quarter were inspection systems for cargo and checkpoint security, and services. Bookings in the security business were $198 million in the quarter. The loss for the year was due to a $55 million charge related to new tax law that went into effect on Jan. 1. Rapiscan generated $17.9 million in operating income for the quarter and $84.1 million for the year versus a quarterly loss of $1.5 million a year ago and $35.3 million in income in FY ’17. Deepak Chopra, OSI’s chairman and CEO, said on the company’s earnings call that Rapiscan is seeing increased demand for its products from international countries that have oil-based economies. He also says that Rapiscan’s turnkey services solutions business, S2, is looking to expand work with sports and entertainment venues such as football stadiums and concert halls. The business already has major solutions contracts in place in Albania, Mexico and Puerto Rico, and also provides security for major events such as the Olympics. Backlog at the end of the year stood at $976 million, up from $738 million a year ago. Free cash flow for the year was $89.8 million. Sales in FY ’19 are expected to be between $1.1 billion and $1.2 billion with the security business showing growth. Adjusted per share earnings for the year are expected to range between $3.80 and $4.