Securing losses.

Despite heightened security regulations at U.S. ports, OSI Systems Inc. is struggling. The Hawthorne-based security and inspections company reported a loss of $4.0 million for the fourth quarter ended June 30, versus net income of $2.2 million in the year-ago period. Revenues rose to $100.7 million from $95.8 million.

OSI's stock fell nearly 9 percent on the news last week.

A big factor in the quarterly results, Chief Executive Deepak Chopra said in a statement, was a $2.5 million loss at OSI's cargo and vehicle inspection security unit, along with $4.4 million in Sarbanes-Oxley-related expenses.

The company has also been spending heavily on research and development of a radiological threat identification system, but Chopra admitted the company is waiting for U.S. government procurement decisions about its cargo products.

"There's no assurance that those investments are going to bear fruit," said Tim Quillin, security analyst with Stephens Inc. The company said it expects another loss for the first quarter ending Sept. 30, and anticipates a return to profitability by the second quarter. "They could get an order tomorrow that is very large, then not get another order for a year," Quillin said.

Staff Reporter Hilary Potkewitz can be reached at [phone] ext. 226, or by e-mail at [e-mail]