OSI Systems [OSIS]
2Q20 2Q19
Sales $305.3M $303.2
Net Inc. $21.0M, $1.12 $19.1, 1.03
The top line barely eked out a 1 percent gain due to record sales in the Rapiscan Systems security division. Net income was up 10 percent on increases at Rapiscan, and the Optoelectronics and Manufacturing Division. Rapiscan’s sales increased 7 percent to $202.4 million, driven by strong demand for cargo and vehicle inspection system for port and border applications, air cargo, and services, company officials said on an earnings call. Operating income at the security segment increased 10 percent to $21 million as operating margin expanded. Rapiscan secured $234 million in orders in the quarter and the company’s overall backlog increased to $886 million from $869 million at the end of the first quarter. The outlook in the security business remains strong, as the company expects to soon begin turnkey services programs with Guatemala and Sri Lanka and for U.S. Customs and Border Protection at some point to begin spending down on the hundreds of millions of dollars the Congress provided last year for non-intrusive inspection equipment for border security applications. Due to order delays in the security space and softness in the company’s healthcare business, it trimmed sales guidance for the year slightly to just over $1.2 billion from between $1.2 billion and $1.3 billion previously Earnings guidance was raised two cents to between $4.63 and $4.85 earnings per share.