While most local manufacturers are refraining from providing revenue guidance during the Covid-19 pandemic, Hawthorne-based OSI Systems Inc. is “relatively pleased with the outlook through the remainder of the fiscal year,” according to Chief Financial Officer Alan Edrick.
The manufacturer of security scanning equipment, medical monitoring devices and optoelectronic components in March saw increased demand for patient monitoring platforms, and it “expects that trend to continue in Q4 as health care facilities increase their bed capacity to handle growth in Covid-19 patient volume,” Chief Executive Deepak Chopra — not to be confused with the well-known alternative medicine guru — said during a call with investors on April 30.
The uptick enabled OSI Systems to provide a 2020 revenue guidance range of $1.17 billion to $1.19 billion. The company also anticipates full-year earnings will be $4.45 to $4.65 per share.
OSI posted third-quarter income of $19.6 million on revenue of $293 million, a 4% year-over-year decrease in sales. OSI’s medical division accounted for $45.6 million, a 6.5% decrease, while security brought in $187 million, a 3% dip. The company’s optoelectronics and manufacturing division brought in $70 million, about the same amount as during the same period last year.
“Though there has been and will continue to be a financial impact to the company as a result of the pandemic, production in each of our operating divisions has been deemed essential, and we continue to work to fulfill demand for those essential products in a safe and healthy way,” Edrick said.
OSI also said it acquired “a privately held manufacturing business,” in February for $3.35 million, plus up to $1.65 million in potential contingent consideration, which may be earned over a three-year period.
The strategic acquisition “bought the right assets, patents and IP” so that OSI’s security division can “go faster into the machine language and artificial intelligence to make automation better,” Chopra said.
OSI employs about 7,000 people, including 600 at facilities in Hawthorne and Torrance.
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