OSI Systems Announces Record Revenues of $117.1 Million for the Second Quarter of Fiscal 2006.HAWTHORNE Hawthorne. 1 City (1990 pop. 71,349), Los Angeles co., S Calif., a suburb of Los Angeles; inc. 1922. Located in an oil- and gas-producing area, Hawthorne manufactures navigation systems, solar panels, electronic components, silicon instruments, and , Calif. -- OSI Systems OSI Systems, Inc. (NASDAQ: OSIS) is a worldwide company based in California that develops and markets security and inspection systems such as airport security X-ray machines and metal detectors, medical monitoring and anesthesia systems, and optoelectronic devices. , Inc. (Nasdaq:OSIS OSIS Open Source Information System (now Intelink-U; US DOD) OSIS Ocean Surveillance Information System OSIS One-Stop Internet Shop (European Union) OSIS Open Scriptural Information Standard ):
-- Operating income of $2.9 million after stock-based
compensation expenses of $1.3 million;
-- Breakeven Diluted Earnings Per Share:
-- Stock-based compensation expenses of $1.3 million, or
$0.06 per diluted share;
-- Minority Interest provision of approximately $1 million
associated with Spacelabs Healthcare, or $0.06 per diluted
share;
-- Tax expense for the quarter of $1.9 million, tax rate of
64.4%.
OSI Systems, Inc. (Nasdaq:OSIS) today announced its revenues and results for the second quarter of fiscal 2006. The company reported record revenues of $117.1 million for the second quarter of fiscal 2006, an increase of 14% from $102.5 million reported for the second quarter of fiscal 2005. For the six months of fiscal 2006, revenues increased by $28.8 million, or 15%, to $219.0 million, from $190.2 million for the first six months of fiscal 2005. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the second quarter was $2.9 million, which included stock-based compensation expenses of $1.3 million. This compares to operating income of $3.2 million for the second quarter of fiscal 2005, which did not include stock-based compensation expenses. For the first six months of fiscal 2006, the company reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $3.6 million, which included stock-based compensation expenses of $2.5 million. This compares to operating income of $5.0 million for the first six months of fiscal 2005, which did not include stock-based compensation expenses. The tax rate for the second quarter of fiscal 2006 was 64.4%, compared to 24.3% for the second quarter of fiscal 2005. The increase in the tax rate for the second quarter of fiscal 2006 was due to the Company not receiving any tax benefit for losses in certain non-US subsidiaries and inclusion of incentive stock options in the stock compensation expense, which does not qualify as a tax deduction Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. . For the first six months of fiscal 2006 the tax benefit was 24%, compared to a tax provision of 26.9% for the first six months of fiscal 2005. Net income for the second quarter of fiscal 2006 was $85,000, compared to net income of $2.5 million for the second quarter of fiscal 2005. For the six months of fiscal 2006, the Company reported a net loss of $4.1 million, compared to net income of $3.8 million for the first six months of fiscal 2005. For the second quarter of fiscal 2006, the Company reported earnings of $0.00 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to earnings of $0.15 per diluted share for the second quarter of fiscal 2005. For the first six months of fiscal year 2006, the Company reported a loss of $0.26 per diluted share, compared to earnings of $0.23 per diluted share for the first six months of fiscal 2005. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Statement of Financial Accounting Standards No. 123(R), Share-Based Payment, the Company incurred stock-based compensation expenses of $1.3 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , or $0.06 per diluted share, for the second quarter of fiscal 2006. For the first half of fiscal 2006, the Company incurred stock-based compensation expenses of $2.5 million, or $0.12 per diluted share. For fiscal 2006, the Company anticipates that the total stock-based compensation expenses will be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5.5 million. Results for fiscal 2005 do not include stock-based compensation expenses. As of December December: see month. 31, 2005, cash and cash equivalents were approximately $17.1 million, compared to $14.6 million as of June June: see month. 30, 2005. During the second quarter of fiscal 2006, the Company repaid approximately $24 million under its lines of credit. OSI (1) (Open System Interconnection) An ISO standard for worldwide communications that defines a framework for implementing protocols in seven layers. Control is passed from one layer to the next, starting at the application layer in one station, proceeding to the Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Deepak Chopra Deepak Chopra (Hindi: दीपक चोपड़ा; born October 22, 1946) is an Indian medical doctor and writer. He has written extensively on spirituality and diverse topics in mind-body medicine. said, "I am very pleased with the company's operating performance in the second quarter as we turned the corner and returned to profitability. I expect that the company will improve on this performance in the second half of fiscal 2006, supported by the Company's strong backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. position, which currently stands at approximately $134 million. The Security Group continues to improve its operating performance, and we expect that the Group will be profitable in the second half of fiscal 2006. Additionally, both the Healthcare Group and Opto-electronics Group will continue to be profitable for the remainder of fiscal 2006. "The Security Group has been investing heavily in their Cargo and Vehicle Inspection and Hold Baggage Screening ("HBS HBS Harvard Business School HBs Hepatitis B Surface HBS Heinrich Boell Stiftung (German Political Foundation) HBS Household Budget Survey HBS Hogere Burgerschool HBS Hawaii Biological Survey (Bishop Museum) ") product portfolio over the last five quarters. In the second quarter of fiscal 2006, we were excited to announce the launch and market acceptance of our first product offering in the HBS market, the Rapiscan MVXR5000 Inline Automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. Hold Baggage Screening System for checked baggage This article or section may contain original research or unverified claims. Please help Wikipedia by adding references. See the for details. This article has been tagged since September 2007. . The product received `Approval for Use' accreditation accreditation, n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice. from the UK Department of Transport in December, allowing the Group to begin selling the system internationally with the exception of the US market. Additionally, we continue to invest in the development of the first-of-its-kind, high speed, solid-state sol·id-state adj. Based on or consisting chiefly or exclusively of semiconducting materials, components, and related devices. solid-state Adjective CT system that we call `Real Time Tomography tomography Radiological technique for obtaining clear X-ray images of internal structures by focusing on a specific plane within the body to produce a cross-sectional image. ,' or RTT RTT - Round-Trip Time . The RTT, being electronic and non-mechanical, can achieve a throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. of up to 1,500 bags per hour, compared to the current systems on the market, which have a throughput of approximately 600 bags an hour. The RTT will also result in the reduction of installation costs and maintenance issues. "This quarter also saw the successful IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. of Spacelabs Healthcare
Spacelabs Healthcare , Inc., our Healthcare Group, on the London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. AIM market. The IPO will provide us with an independent share currency, which we intend to utilize for the growth and expansion of Spacelabs Healthcare. Operationally, the Group achieved record revenues in the second quarter, helped by a 36% bookings increase for patient monitoring solutions in the US market. Additionally, Blease Medical, recently acquired in February February: see month. 2005, received 510(k) approval from the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. for the distribution of its Sirius Sirius (sĭr`ēəs), or Dog Star, brightest star in the sky. It is located in the constellation Canis Major (1992 position R.A. 6h44.8m, Dec. anaesthesia anaesthesia anesthesia. system and ventilators in the US market. We expect to launch this product in the US market in 2007." Guidance for the Six Months Ended June 30, 2006 For the second half of fiscal 2006 the Company announced revenue guidance of $231 million to $236 million, compared to revenues of $219 million for the first half of fiscal 2006, and $194.9 million for the second half of fiscal 2005. The Company expects to be profitable for the second half of fiscal 2006 and anticipates that revenues and earnings will be stronger in the fourth quarter when compared to the third quarter of fiscal 2006. The Company expects that the effective tax rate for the full year of fiscal 2006 will be in the mid-forties n. 1. the time of life between 40 and 50. Noun 1. mid-forties - the time of life between 40 and 50 forties time of life - a period of time during which a person is normally in a particular life state . Segment Information Security Group The Security Group reported revenues of $30.4 million for the second quarter of fiscal 2006, a decrease of 5%, from $32.0 million reported for the second quarter of fiscal 2005. For the first six months of fiscal 2006, revenues decreased by $4.7 million, or 8%, to $57.3 million, from $62 million for the first six months of fiscal 2005. Loss from operations for the second quarter of fiscal 2006 was $651,000, compared to a loss from operations of $1.3 million for the second quarter of fiscal 2005, and $3.2 million for the first quarter of fiscal 2006. For the first six months of fiscal 2006, the Group had a loss from operations of $3.8 million, compared to income from operations of $1.1 million for the first six months of fiscal 2005. For the second quarter and first six months of fiscal 2006, the Group incurred stock-based compensation expenses of $0.2 million and $0.4 million, respectively. In fiscal 2005, the Group did not incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. stock-based compensation expenses. Healthcare Group The Healthcare Group reported record revenues of $61.0 million for the second quarter of fiscal 2006, compared to $54.0 million reported for the second quarter of fiscal 2005. For the first six months of fiscal 2006, revenues increased by $15.6 million to a record level of $112.4 million from $96.8 million for the first six months of fiscal 2005. Adjusting for the Blease acquisition completed in February 2005, revenues grew for the second quarter of fiscal 2006 by approximately 6%, compared to the second quarter of fiscal 2005. Income from operations for the second quarter of fiscal 2006 was $5.3 million, compared to $4.9 million for the second quarter of fiscal 2005. For the first six months of fiscal 2006, income from operations increased by $1.4 million, or 27%, to $6.5 million, from $5.1 million for the first half of fiscal 2005. Operating results for the second quarter and six months ending December 31, 2005, included stock-based compensation-related expenses of $0.3 million and $0.5 million, respectively. In fiscal 2005, the Group did not incur stock based-compensation expenses. Optoelectronics See optoelectronic. Group The Optoelectronics & Manufacturing Group reported external revenues of $25.8 million for the second quarter of fiscal 2006, an increase of 56% from $16.5 million reported for the second quarter of fiscal 2005. For the first half of fiscal 2006, external revenues increased by $17.9 million, or 57%, to $49.3 million from $31.4 million for first six months of fiscal 2005. Income from operations for the second quarter of fiscal 2006 was $2.6 million, compared to $2 million for the second quarter of fiscal 2005. For the first half of fiscal 2006, income from operations increased by $0.1 million, to $3.8 million from $3.7 million for the first six months of fiscal 2005. For the second quarter and first six months of fiscal 2006, the Group incurred stock-based compensation expenses of $0.1 million and $0.3 million, respectively. In fiscal 2005, the Group did not incur stock-based compensation expenses. Earnings Conference Call Information OSI Systems, Inc. will webcast the live earnings call over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at 9:00 am PT (12:00 pm ET) on February 9, 2006. To listen, please log on to www.earnings.com or www.osi-systems.com and follow the link that will be posted on the front page. A replay of the webcast will be available shortly after the presentation and will be archived on www.earnings.com or www.osi-systems.com. A telephonic replay of the call will also be available from 11:00 am PT (2:00 pm ET) on February 9, 2006, until February 16, 2006. The replay may be accessed by calling 1-888-286-8010 (domestic) or +1-617-801-6888 (international) and entering the replay passcode of "10995854". About OSI Systems, Inc. OSI Systems, Inc. is a Hawthorne-based diversified diversified (di·verˑ·s global developer, manufacturer and seller of security and inspection systems, medical monitoring and anesthesia anesthesia (ănĭsthē`zhə) [Gr.,=insensibility], loss of sensation, especially that of pain, induced by drugs, especially as a means of facilitating safe surgical procedures. delivery products, and optoelectronic-based components, as well as a provider of engineering and manufacturing services. The Company has more than 30 years of experience in electronics engineering and manufacturing and maintains offices and production facilities located in more than a dozen countries. OSI Systems implements a strategy of expansion by leveraging its electronics and contract manufacturing capabilities into selective end product markets through organic growth and acquisitions. For more information on OSI Systems, Inc. or any of its subsidiary companies, visit www.osi-systems.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding the company's expectations, goals or intentions about the future, including, but not limited to, statements regarding its revenues, profitability, tax rates, stock-based compensation expenses, and operating performance, the Security Group's real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. tomography product, the use to which the company will put its Spacelabs Healthcare share currency, the launch of the Healthcare Group's Sirius anaesthesia system and ventilators in the US market, and future revenues and operating income of the Optoelectronics and Manufacturing Group will continue to experience growth or that the medical OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and device sector will continue to contribute to such growth. The actual results may differ materially from those described in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by any forward-looking statement. In particular, there can be no assurance that predictions made in connection with the foregoing financial matters will be in line with current expectations, that the Security Group's real-time tomography product will achieve throughput rates Throughput rate is an obsolete term[1] in the terminology of automated chemical analysis. It may mean either:
1. ^ International Union of Pure and Applied Chemistry. "throughput rate". and other currently expected benefits or be sold, that the Spacelabs Healthcare IPO will ultimately prove to have been an auspicious aus·pi·cious adj. 1. Attended by favorable circumstances; propitious: an auspicious time to ask for a raise in salary. See Synonyms at favorable. 2. Marked by success; prosperous. undertaking, that the Sirius anaesthesia system will launch in the US on time or at all. Other important factors are set forth in our Securities and Exchange Commission filings. All forward-looking statements speak only as of the date made, and we undertake no obligation to update these forward-looking statements.
OSI SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three months ended Six months ended
December 31, December 31,
----------------------- -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenues $117,138 $102,531 $219,008 $190,175
Cost of goods sold -
(includes non-cash,
stock-based expense
of $53 and $108 for
the three and six
months ended December
31, 2005) 71,999 66,079 136,917 119,933
----------- ----------- ----------- -----------
Gross profit 45,139 36,452 82,091 70,242
Operating expenses:
Selling, general and
administrative -
(includes non-cash,
stock-based expense
of $1,144 and $2,218
for the three and six
months ended
December 31, 2005) 33,515 25,595 66,929 50,388
Research and development -
(includes non-cash,
stock-based expense of
$103 and $215 for the
three and six months
ended December 31,
2005) 8,700 7,066 17,431 13,736
Management retention
bonus 51 549 572
Restructuring charges - - 800 1,098
----------- ----------- ----------- -----------
Total operating
expenses 42,266 33,210 85,732 65,222
----------- ----------- ----------- -----------
Income (Loss) from
operations 2,873 3,242 (3,641) 5,020
Interest income 69 103 89 191
Interest expense (399) (98) (950) (154)
Gain on marketable
securities 349 349
----------- ----------- ----------- -----------
Income (loss) before
provision (benefit)
for income taxes and
minority interest 2,892 3,247 (4,153) 5,057
Provision (benefit)
for income taxes 1,861 789 (996) 1,358
----------- ----------- ----------- -----------
Income (loss) before
minority interest 1,031 2,458 (3,157) 3,699
Minority interest (946) - (946) 68
----------- ----------- ----------- -----------
Net income (loss) $85 $2,458 ($4,103) $3,767
=========== =========== =========== ===========
Earnings (loss) per
share $0.01 $0.15 ($0.25) $0.23
=========== =========== =========== ===========
Diluted earnings
(loss) per share $0.00 $0.15 ($0.26) $0.23
=========== =========== =========== ===========
Weighted average
shares outstanding 16,299,337 16,168,778 16,270,205 16,185,269
=========== =========== =========== ===========
Weighted average
shares outstanding -
assuming dilution 16,490,714 16,592,724 16,270,205 16,577,752
=========== =========== =========== ===========
Condensed Consolidated Balance Sheets
(in thousands)
December 31, June 30, 2005
2005
---------------- --------------
Cash, cash equivalents and marketable
securities $17,201 $14,623
Accounts receivable, net of allowance
for doubtful accounts 101,392 89,227
Inventory 110,235 107,441
Other current assets 29,218 26,382
---------------- --------------
Total current assets 258,046 237,673
Non-current assets 111,407 109,447
---------------- --------------
Total $369,453 $347,120
================ ==============
Bank lines of credit $2,050 $15,752
Current portion of long-term debt and
capital lease obligations 1,037 499
Other current liabilities 104,091 97,024
---------------- --------------
Total current liabilities 107,178 113,275
Long-term debt 5,567 4,852
Other long-term liabilities 6,095 5,366
Minority interest 8,718
Shareholders' equity 241,894 223,627
---------------- --------------
Total $369,453 $347,120
================ ==============
Segment Information
(in thousands)
Quarter ended December 31, 2005
Security Healthcare Optoelectronics
Group(1) Group(1) Group(1)
--------- ----------- ----------------
Revenues:
External $30,378 $60,999 $25,761
Intercompany - - 5,367
--------- ----------- ----------------
Total Revenues $30,378 $60,999 $31,128
========= =========== ================
Operating (Loss) Income $(651) $5,319 $2,581
========= =========== ================
Quarter ended December 31, 2005
Corporate(1) Eliminations Total
------------ ------------- ---------
Revenues:
External $- $- $117,138
Intercompany - (5,367) -
------------ ------------- ---------
Total Revenues $- $(5,367) $117,138
============ ============= =========
Operating (Loss) Income $(4,293) $(83) $2,873
============ ============= =========
Quarter ended December 31, 2004
Security Healthcare Optoelectronics
Group Group Group
--------- ----------- ----------------
Revenues:
External $32,037 $54,000 $16,494
Intercompany - - 5,652
--------- ----------- ----------------
Total Revenues $32,037 $54,000 $22,146
========= =========== ================
Operating (Loss) Income $(1,283) $4,863 $2,004
========= =========== ================
Quarter ended December 31, 2004
Corporate Eliminations Total
------------ ------------- ---------
Revenues:
External $- $- $102,531
Intercompany - (5,652) -
------------ ------------- ---------
Total Revenues $- $(5,652) $102,531
============ ============= =========
Operating (Loss) Income $(2,062) $(280) $3,242
============ ============= =========
(1) Includes non-cash, stock-based compensation in accordance with
SFAS 123R for the three months ended December 31, 2005,
as follows:
Security Group $206
Healthcare Group 290
Optoelectronics Group 126
Corporate 678
-------
$1,300
Six months ended December 31, 2005
Security Healthcare Optoelectronics
Group(2) Group(2) Group(2)
--------- ----------- ----------------
Revenues:
External $57,341 $112,370 $49,297
Intercompany - - 9,607
--------- ----------- ----------------
Total Revenues $57,341 $112,370 $58,904
========= =========== ================
Operating (Loss) Income $(3,844) $6,502 $3,783
========= =========== ================
Six months ended December 31, 2005
Corporate(2) Eliminations Total
--------------- ------------- ---------
Revenues:
External $- $- $219,008
Intercompany - (9,607) -
--------------- ------------- ---------
Total Revenues $- $(9,607) $219,008
=============== ============= =========
Operating (Loss) Income $(10,115) $33 $(3,641)
=============== ============= =========
Six months ended December 31, 2004
Security Healthcare Optoelectronics
Group Group Group
--------- ----------- ----------------
Revenues:
External $61,980 $96,804 $31,391
Intercompany - - 9,917
--------- ----------- ----------------
Total Revenues $61,980 $96,804 $41,308
========= =========== ================
Operating Income (Loss) $1,076 $5,098 $3,689
========= =========== ================
Six months ended December 31, 2004
Corporate Eliminations Total
--------------- ------------- ---------
Revenues:
External $- $- $190,175
Intercompany - (9,917) -
--------------- ------------- ---------
Total Revenues $- $(9,917) $190,175
=============== ============= =========
Operating Income (Loss) $(4,426) $(417) $5,020
=============== ============= =========
(2) Includes non-cash, stock-based compensation in accordance with
SFAS 123R for the six months ended December 31, 2005, as follows:
Security Group $447
Healthcare Group 457
Optoelectronics Group 277
Corporate 1360
-------
$2,541
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion