OSI Systems [OSIS]
4Q20 4Q19 FY20 FY19
Sales $277M $308.4M $1.2B $1.2B
Net Inc. $14M, $0.76 $16.7, 0.89 $75.3M, $4.05 $65M, $3.46
Sales in the quarter fell 10% driven by a 16% decline in Security segment sales to $163.6 million as the COVID-19 pandemic continues to delay business in the aviation and cargo security lines, although Deepak Chopra, OSI’s president and CEO, says the “opportunity pipeline continues to remain very strong.” He says the sales slowdown in security is expected to continue at least through the first quarter of fiscal year 2021. The pandemic has also slowed the start of turnkey screening services programs in Sri Lanka and Guatemala but Chopra expects these to begin operation in the next few months. Sales were also down in the Optoelectronics and Manufacturing segment, partially offset by an increase the Healthcare segment. Net income also fell 16% due to a 29% drop at Security and a decline at Optoelectronics and Manufacturing, partially offset by a gain at Healthcare. Alan Edrick, OSI’s chief financial officer, says the company took a $5 million charge in the fourth quarter related to workforce reductions, facilities consolidation, and the impairment of an intangible asst in the Security division. Orders in the quarter were about equal to sales and backlog stood at $861 million. Chopra says the company recently was notified of an award for its RTT explosive detection systems for screening checked bags, an award not in backlog yet. Free cash flow in the quarter was $19.3 million. For FY ’21, OSI is expecting sales of around $1.1 billion and adjusted earnings between $4.50 and $5.05 per share. The company’s board has authorized the repurchase of an additional two million shares of its stock.