OSI Systems [OSIS]
3Q21 3Q20
Sales $283.8M $292.9M
Net Inc. $18.8M, $1.03 $19.6M, $1.06
Sales tumbled fell 3% on a 19% decline in revenue in the Security segment due largely to delays in completing installations and testing of cargo screening projects for some customers. The inability to complete these projects for the time being is due to travel restrictions related to the COVID-19 pandemic. Still, company officials say that fourth quarter Security segment sales should increase versus the same quarter a year ago as restrictions ease. Net income fell 4% due to higher taxes and a 2% drop in operating profit at the Security segment. Orders in the Security segment remain robust with bookings coming in at 1.1-times sales, helping to grow the company’s overall backlog to $1.1 billion, up 23% since the end of FY ’20. OSI said that some airports internationally are already preparing for a return to normal, helping to fuel orders. The pipeline of security opportunities in the U.S. and internationally remains strong, it said. Free cash flow in the quarter was $39 million. OSI increased its outlook slightly for sales, which are still projected to be around $1.1 billion, and by adjusted earnings per share to between $5.15 and $5.40 EPS versus prior guidance of between $5 and $5.35.