OSI Systems Board Authorizes Stock Buyback of Up to 2 Million Shares
22 March 1999
OSI Systems Board Authorizes Stock Buyback of Up to 2 Million Shares; Company Reacts to Recent Market Volatility
HAWTHORNE, Calif.--March 22, 1999--OSI Systems Inc. , Monday announced that its board of directors has authorized a program to repurchase up to 2 million shares, or approximately 21 percent of the company's outstanding common stock.OSI Systems has approximately 9.7 million shares of common stock outstanding.
This action by the board authorizes stock purchases in the open market or through privately negotiated transactions. The timing of the purchases and the amount of stock to be repurchased will depend upon overall financial and market conditions as well as subsequent corporate needs and developments.
The stock repurchase program may be interrupted or discontinued at any time and will be reviewed regularly by the company's board of directors.
"We believe our common shares are undervalued at this time," said Deepak Chopra, OSI Systems chairman and chief executive officer. "Recent market volatility has led to an excessive drop in our share price and, as a result, our board of directors is unanimous in their approval to repurchase OSI Systems shares at these low levels.
"We believe it represents an attractive valuation in light of the growth of our overall business, and it serves as a tool for enhancing shareholder value."
About the Company
OSI Systems, with headquarters in Hawthorne, manufactures and sells optical and pressure-sensitive electronics subsystems worldwide through its global network of sales and manufacturing facilities in Singapore, Malaysia, Denmark, Norway, Finland, the United Kingdom and the United States. OSI customers include many of the leading Fortune 1000 companies.
OSI's products are used in a wide range of applications including security, medical, aerospace, oil exploration and automotive. For security and inspection customers worldwide, OSI manufactures and sells X-ray inspection and metal detection systems under the trade names Rapiscan(TM) and Metor(TM).
OSI manufactures and sells electromechanical pressure-sensing subsystems under the Silicon Microstructures trade name. OSI also sells complete systems for life science applications, including X-ray and ultrasound systems for detecting osteoporosis, under the trade names DexaCare(TM) and UltraSure(TM) through its wholly owned subsidiary, Osteometer MediTech.
The company, which employs approximately 800 people worldwide, had revenues of $94 million in its 1998 fiscal year, which ended June 30, 1998.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995:
The statements contained in this release that are not historical facts are forward-looking statements that are subject to risks and uncertainties including those risks detailed in the company's Securities and Exchange Commission filings that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. In addition to the factors discussed in the filings with the SEC, among the other factors that could cause actual results to differ materially are the following: adverse changes in the business conditions and the general economy; competitive factors, such as rival companies' pricing and marketing efforts; availability of third-party material products at reasonable prices; the financial condition of the customer; risks of obsolescence due to shifts in market demand and litigation involving product liabilities and consumer issues.