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HAWTHORNE, Calif. - OSI Systems, Inc. (NASDAQ:OSIS), a $3.4 billion market cap provider of specialized electronic systems, has secured a contract worth approximately $76 million to deliver airport screening solutions to a major international airport. According to InvestingPro data, the company has demonstrated strong financial performance with a 41.6% return over the past year. The company’s Security division will supply advanced systems including the RTT® 110 explosive detection system for hold baggage and the Itemiser® 5X for detecting traces of explosives and narcotics. This contract adds to OSI Systems’ impressive revenue growth of 20.7% over the last twelve months, with analysts maintaining a strong buy consensus for the stock.
Ajay Mehra, OSI Systems’ President and CEO, stated that the company is honored to collaborate with the airport to enhance security measures. He emphasized that their computed tomography detection systems are designed to rapidly identify potential threats in passenger baggage, underscoring the customer’s confidence in OSI Systems’ technology and long-term support.
OSI Systems, with over four decades of experience in electronics engineering and manufacturing, operates globally with a focus on the homeland security, healthcare, defense, and aerospace industries. The company’s strategy involves expanding into selective end-product markets through its international offices and production facilities. InvestingPro analysis reveals the company maintains a healthy current ratio of 1.88, indicating strong liquidity to support its expansion plans. Get access to 8 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
The announcement of this contract reflects OSI Systems’ commitment to providing security solutions that comply with international standards and contribute to safer global travel. The company’s broad product portfolio aims to deliver flexibility and a technological edge in securing airports worldwide. With a return on equity of 17% and gross profit margins of 33.9%, the company demonstrates solid operational efficiency in its market segment.
This press release contains forward-looking statements regarding OSI Systems’ expectations and projections. However, actual results may differ due to various uncertainties and risks. OSI Systems does not undertake any obligation to update forward-looking statements unless required by federal securities laws. For detailed insights and comprehensive analysis, including Fair Value estimates and financial health scores, explore the full OSI Systems Pro Research Report, available exclusively on InvestingPro.
The information in this article is based on a press release statement from OSI Systems, Inc.
In other recent news, OSI Systems reported strong financial results for the second quarter of fiscal year 2025, with a record non-GAAP adjusted earnings per share (EPS) of $2.42, surpassing the forecast of $2.33. The company’s revenues rose by 12% year-over-year to $420 million, exceeding the projected $402 million. OSI Systems has also raised its revenue and EPS guidance for FY2025, indicating continued growth expectations. In addition, OSI Systems secured a $32 million contract for its Security division to provide radio frequency-based critical systems for secure communications. This new order highlights the company’s ongoing engagement in providing advanced technology solutions for critical applications. On the analyst front, JPMorgan initiated coverage with a Neutral rating and a $225 price target, while Oppenheimer raised its price target to $225, maintaining an Outperform rating. These developments come amid a short report from Culper Research, which raised concerns about OSI Systems’ financial reporting and potential legal issues related to its contract with Mexico’s Ministry of Defense.
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