OSI Systems Inc. on Thursday said its fiscal third-quarter net income fell 62 percent from a year ago, largely due to lower medical equipment sales and one-time restructuring charges. But shares rose in morning trading after the maker of X-ray security and other screening systems raised its profit outlook for the year.
The Hawthorne company reported third-quarter net income of $2.6 million (15 cents per share), compared with $6.9 million (39 cents per share) in the same quarter last year. Revenue fell 8 percent to $144 million.
The comparison was also skewed by the current restructuring charges and a one-time tax benefit in the year-ago quarter.
Excluding charges, net income was $4.2 million (24 cents). Analysts surveyed by Thomson Reuters on average expected adjusted net income of 18 cents per share on revenue of $154 million.
Chief Executive Deepak Chopra said sales of the company's airport security screen systems and similar devices were up 14 percent from a year ago. But he acknowledged that the business climate for the company's healthcare division continued to be challenging. That unit saw a 21 percent decline in revenue as U.S. hospitals put off purchases of the company's medical imaging equipment.
"Our financial results for the third quarter of fiscal 2009 continue to demonstrate the earnings-generating potential of our businesses," Chopra said in a statement. "These achievements, in light of the challenging economic conditions, are the direct result of our initiatives over the past two years."
Looking ahead, the company raised its fiscal 2009 earnings guidance to the range of 85 cents to 93 cents per share from previous guidance of 81 to 93 cents per share. Analysts expect the company to earn 85 cents per share.
OSI shares were up 83 cents, or 4.6 percent, to $18.74 in midday trading on the Nasdaq.
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