OSI Systems secures $24 million border security deal

Published 15/04/2025, 13:38
OSI Systems secures $24 million border security deal

HAWTHORNE, Calif. - OSI Systems, Inc. (NASDAQ: OSIS), a $3.2 billion market cap designer and manufacturer of specialized electronic systems, has been awarded a $24 million contract to supply its Z Portal high-throughput inspection systems for international border security applications. The company’s stock has shown remarkable momentum, gaining over 30% in the past six months, according to InvestingPro data. The systems are designed to scan large trucks, buses, and cargo containers, with the aim of enhancing infrastructure safety and security.

The company, which has over 40 years of experience in electronics engineering and manufacturing, will also provide follow-on service and support as part of the agreement. The Z Portal systems are recognized for their ability to detect organic threats such as explosives and contraband, contributing to the safeguarding of global trade and border integrity. With a healthy current ratio of 1.88 and revenue growth of nearly 21% in the last twelve months, OSI Systems demonstrates strong financial fundamentals.

Ajay Mehra, President and CEO of OSI Systems, stated, "We are pleased to receive this order from a long-standing customer. The Z Portal leverages sophisticated technology to deliver remarkable inspection capabilities."

OSI Systems operates globally with offices and production facilities in multiple countries, focusing on critical applications in homeland security, healthcare, defense, and aerospace industries.

The announcement of this contract comes as part of OSI Systems’ ongoing expansion strategy into selective end product markets. However, as with any forward-looking statements, there are uncertainties and risks involved. The company cautions not to place undue reliance on these statements, which are based on information available as of today and may change due to future events or new information.

This news is based on a press release statement from OSI Systems, Inc. and does not constitute an endorsement of the company or its products. Investors should note that OSI Systems is currently trading at a P/E ratio of 26.6 and is scheduled to report earnings on April 24, 2025. For deeper insights into OSI Systems’ valuation and growth prospects, including access to comprehensive Pro Research Reports covering 1,400+ stocks, visit InvestingPro.

In other recent news, OSI Systems has secured several significant contracts across various sectors. The company announced a $76 million contract to provide airport screening solutions at a major international airport, utilizing advanced systems like the RTT® 110 explosive detection system. Additionally, OSI Systems secured a $17 million order from a North American customer for Eagle® M60 high-energy mobile cargo and vehicle inspection systems. Furthermore, the company has been awarded a $32 million contract to supply radio frequency-based critical systems for long-range secure communications.

In the healthcare domain, OSI Systems’ Spacelabs Healthcare® division secured a $4 million agreement to provide patient monitoring solutions to a U.S. hospital. Meanwhile, Culper Research released a report suggesting OSI Systems misrepresented its financial position concerning a contract with Mexico’s Ministry of Defense, raising concerns about premature revenue recognition and potential Foreign Corrupt Practices Act violations. The report also highlighted significant insider stock sales, including those by Chairman and CEO Deepak Chopra, who plans to retire by the end of 2024. These developments have drawn attention from investors and regulatory bodies.

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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