OSI Systems secures $23 million RF communications contract

Published 08/01/2025, 14:38
OSI Systems secures $23 million RF communications contract

HAWTHORNE, Calif. - OSI Systems , Inc. (NASDAQ:OSIS), a provider of specialized electronic systems for security applications, has been awarded a $23 million contract to support the deployment and integration of long-range radio frequency (RF) communication systems for the U.S. government. This contract involves supplying critical hardware and technical services to enhance secure communications in key global regions. The company, currently valued at $2.73 billion, has demonstrated strong financial health with revenue growing 24% over the last twelve months to $1.6 billion. According to InvestingPro analysis, OSI Systems maintains a healthy liquidity position with a current ratio of 1.84.

The company's recent acquisition of an RF-based critical solutions business has expanded its product offerings in the defense sector. OSI Systems' President and CEO, Ajay Mehra, expressed the company's commitment to aiding the U.S. government in upgrading and maintaining secure communication channels. Trading at a P/E ratio of 20.8, InvestingPro analysis suggests the stock is slightly overvalued relative to its Fair Value, though it maintains strong profitability metrics.

OSI Systems, with over four decades of experience in electronics engineering and manufacturing, operates globally, focusing on homeland security, healthcare, defense, and aerospace industries.

This press release contains forward-looking statements that involve risks and uncertainties. There is no guarantee that the anticipated outcomes of the contract will be realized. OSI Systems does not have an obligation to update any forward-looking statements unless required by federal securities laws.

The information in this article is based on a press release statement from OSI Systems, Inc.

In other recent news, OSI Systems has reported substantial developments. The company has secured a $27 million order for security screening solutions and two $6 million orders for optical sensors and patient monitoring solutions in the healthcare sector. The firm has also demonstrated strong financial performance, with a 23% increase in revenue to $344 million, primarily driven by its Security division, and non-GAAP adjusted earnings per share of $1.25.

Furthermore, OSI Systems has raised its revenue guidance for fiscal '25 to between $1.67 billion and $1.695 billion, and non-GAAP diluted EPS guidance to $9 to $9.30 per share. The company has also announced leadership changes, with Ajay Mehra appointed as the new President and Chief Executive Officer, succeeding Deepak Chopra, who will become the Executive Chairman of the Board.

Oppenheimer has increased the company's target to $205 from $175, highlighting Mehra's significant contributions to OSI's development as a global provider of security screening solutions. These recent developments reflect OSI Systems' ongoing commitment to its customers and its capability to meet specialized needs across various industries.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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