Los Angeles Business Journal

Security Sales Boost Strong Quarter for OSI Systems

By Deborah Crowe Tuesday, April 24, 2012

OSI Systems Inc. said that its fiscal third-quarter net income jumped 43 percent as revenue from its large security scanner division rose 27 percent.

The Hawthorne maker of security, medical and other optical scanners on Tuesday reported net income of $12.6 million (62 cents a share) for the quarter ended March 31, compared with net income of $8.8 million (45 cents) in the same period a year earlier. Revenue climbed 19 percent to $208 million.

Excluding restructuring and other charges, net income was 65 cents a share. Analysts surveyed by FactSet on average expected adjusted net income of 63 cents a share on revenue of $195 million.

The company also raised its full-year forecast and now expects net income of between $2.33 and $2.43 per share. That compared with an earlier range of between $2.30 and $2.42. It now expects revenue of between $765 million and $780 million, higher than its previous guidance of $750 million to $770 million.

The Wall Street consensus is for net income of $2.34 per share on less than $757 million in revenue.

Revenue from the company's security unit rose 27 percent to nearly $112 million, while healthcare division revenue climbed 10 percent to $56.3 million.

“We achieved both record revenue and profitability as each of our divisions delivered strong results,” said Chief Executive Deepak Chopra in a statement.

Shares closed down 21 cents, or less than 1 percent, to $61.47 on the Nasdaq.