OSI Systems [OSIS]

1Q22                   1Q21

Sales                    $279.3M             $254.9M

Net Inc.               $19.1M, $1.04   $9.3M, $0.51

Sales increased 10% on strength in the Security and Optoelectronics segments, with Security revenue 11% higher to $149.5 million on cargo and vehicle inspection systems, and checkpoint screening systems. The company’s earnings benefited from a steep reduction in impairment and restructuring costs. Orders in the Security segment were an impressive 1.9 times sales and the company put about $200 million into backlog from recent cargo and vehicle inspection system orders from U.S. Customs and Border Protection. In addition to supplying its CarView Inlane, Z Portal and Eagle P60 ZBx non-intrusive inspection systems to CBP, a “meaningful” portion of the orders include the company’s CertScan integration platform that allows for data analysis, centralized viewing and integration with third party screening systems, Deepak Chopra, OSI’s chairman and CEO, said on the company’s earnings call. The NII systems for CBP are expected to begin deliveries in the fourth quarter of FY ’22 with the bulk of the orders occurring in FY ’23. Chopra said there is the potential for $65 million in additional orders under the contracts. Backlog at the end of the quarter stood at $1.2 billion, up 15 percent from the end of FY ’21 in June.