OSI Systems Reports Revenues of $24.6 Million
30 April 1999
OSI Systems Reports Revenues of $24.6 Million, Net Income of $0.08 Per Share Before Non-Recurring Restructuring Costs
HAWTHORNE, Calif.--April 29, 1999--OSI Systems Inc. , today announced its revenues and earnings for the third quarter and nine months of its fiscal 1999 year, which ended March 31, 1999.Revenues for the third quarter of fiscal 1999 were $24.6 million, compared to $21.9 million for the third quarter of last year. Pro forma net income for the third quarter, which excludes non-recurring restructuring costs, was $771,000, and diluted earnings per share of $0.08 compared with net income of $2.1 million, and diluted earnings per share of $0.21, for the third quarter of last year.
Taking into account the non-recurring above mentioned charges, the company reported net income of $380,000 and diluted earnings per share of $0.04 for the third quarter as compared to net income of $2.1 million, and diluted earnings per share of $0.21, for the third quarter of last year.
Revenues for the nine months ending March 31, 1999, were $70.9 million, resulting in net income, before in-process research & development charges and restructuring costs, of $4.4 million and diluted earnings per share of $0.45. Factoring in the one-time charges, the company reported net income of $1.4 million and diluted earnings per share of $0.15. This compares with fiscal 1998 nine-month revenues of $69.1 million, net income of $5.9 million and diluted earnings per share of $0.68.
"We continue to make progress in integrating the various acquisitions which were partly responsible for lower net earnings," said Deepak Chopra, OSI's chairman and chief executive officer.
"Osteometer continues to further penetrate the U.S. market and unit sales volume for densiometers worldwide is increasing on a month to month basis, reflecting our vision for the growth prospects in the Osteoporosis Medical market. Metorex Security Products, which sells walk through metal detectors, had a good quarter with strong sales in the U.S. especially.
"SMI's semiconductor production is slowly getting absorbed at UDT Sensor's Hawthorne Plant. It is taking us longer than originally anticipated," continued Chopra. "Management continues to work diligently in order to complete the integration of these acquisitions within a short period."
OSI Systems Inc., headquartered in Hawthorne, Calif., 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.
Its 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 UltraSure(tm) and DexaCare(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 which 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 Securities and Exchange Commission, 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.
Financial data to follow:
OSI Systems Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
Three months Nine months
ended March 31, ended March 31,
-------------------------------------------
1999 1998 1999 1998
----------- ---------- ---------- ---------
Revenues $ 24,606 $ 21,893 $ 70,857 $ 69,139
Cost of goods sold 17,099 15,366 49,511 49,198
----------- ---------- ---------- ---------
Gross profit 7,507 6,527 21,346 19,941
Operating expenses:
Selling, general and
administrative 5,104 3,079 11,853 9,419
Research and development 1,537 995 4,120 2,795
In process research
and development -- -- 2,579 --
Goodwill amortization 203 27 391 79
Restructuring costs 458 -- 458 --
----------- ---------- ---------- ---------
Total operating expenses 7,302 4,101 19,401 12,293
----------- ---------- ---------- ---------
Income/(loss) from
operations (a) 205 2,426 1,945 7,648
Interest (income)/expense 125 (303) (125) (261)
----------- ---------- ---------- ---------
Income/(loss) before
provision for income taxes 80 2,729 2,070 7,909
Provision for income taxes (300) 667 633 2,036
----------- ---------- ---------- ---------
Net income/(loss) (a) $ 380 $ 2,062 $ 1,437 $ 5,873
=========== ========== ========== =========
Diluted earnings per
share (a) $ 0.04 $ 0.21 $ 0.15 $ 0.68
Weighted average shares
outstanding 9,844,207 9,908,512 9,850,376 8,655,729
=========== ========== ========== =========
(a) The following table represents the proforma results of the
ongoing business of OSI Systems Inc. and subsidiaries that
excludes for the three and nine months ended March 31, 1999,
nonrecurring charges for restructuring costs of $458 and for the
nine months ended March 31, 1999, additional nonrecurring charges
for in process research and development of $2,579 related to the
acquisitions of Osteometer MediTech A/S, Metorex Security
Products Oy and Silicon Microstructures Inc.
Income from operations $ 663 $ 2,426 $ 4,982 $ 7,648
Net income $ 771 $ 2,062 $ 4,407 $ 5,873
Diluted earnings
per share $ 0.08 $ 0.21 $ 0.45 $ 0.68
Weighted average
shares outstanding 9,844,207 9,908,512 9,850,376 8,655,729
Condensed Consolidated Balance Sheets
(in thousands)
March 31, 1999 June 30, 1998
(Unaudited)
Cash and cash equivalents $ 8,612 $ 22,447
Accounts receivables,
net of allowance for
doubtful accounts 25,970 24,254
Inventory 27,794 21,705
Other current assets 4,925 4,212
-------------- -------------
Total current assets 67,301 72,618
Non current assets 28,086 14,204
-------------- -------------
Total $ 95,387 $ 86,822
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Bank lines of credit $ 8,633 $ 198
Current portion of
long-term debt 321 633
Other current liabilities 18,499 19,370
-------------- -------------
Total current liabilities 27,453 20,201
Long-term debt 158 412
Other long term liabilities 295 294
Shareholders' equity 67,481 65,915
-------------- -------------
Total $ 95,387 $ 86,822
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