OSI Systems wins $34 million security screening contract

HAWTHORNE, Calif. - OSI Systems, Inc. (NASDAQ:OSIS), a security technology company with a market capitalization of $3.96 billion, has secured a contract valued at approximately $34 million to provide security screening systems to an international customer, according to a press release statement. The company’s stock, currently trading at $235.64, has delivered an impressive 69.38% return over the past year.

The company will deploy multiple units of its Z Portal high-throughput inspection system for screening trucks and cargo, along with its CarView InLane Portal for scanning passenger vehicles. The CarView system can reportedly scan up to 400 passenger vehicles per hour per lane.

As part of the agreement, OSI Systems will also manage civil works, provide training, and perform multi-year service and maintenance support for the installed systems.

The security screening equipment is designed for use in various environments, including ports and border crossings, to detect threats and contraband.

"We are pleased with this award and to supply our advanced Z Portal and CarView InLane Portal for cargo and vehicle security," said Ajay Mehra, President and CEO of OSI Systems.

OSI Systems operates through three segments: Security, Optoelectronics and Manufacturing, and Healthcare. The company’s Security division provides inspection systems and screening solutions designed to protect infrastructure and people.

The contract represents part of OSI Systems’ global security business, which serves customers in over 170 countries according to the company.

In other recent news, OSI Systems has announced several significant developments. The company secured a $17 million order from an international customer for cargo and vehicle inspection systems, which includes installation, training, and multi-year maintenance. Additionally, OSI Systems received a $10 million order for its Eagle M60 ZBx mobile inspection system, designed for scanning cargo and vehicles at various security checkpoints. Another contract, valued at approximately $14 million, was awarded for mobile cargo inspection systems to be used at port and border crossings. Furthermore, OSI Systems was awarded an $11 million contract to provide radiation monitoring portals for European border security applications.

In financial developments, OSI Systems expanded its senior secured credit facility from $750 million to $825 million, enhancing its liquidity and financial agility. The revised terms include a more favorable pricing structure and an increased accordion feature. Wells Fargo Securities, BofA Securities, JPMorgan Chase Bank, and PNC Capital Markets played key roles in arranging the transaction. These recent developments highlight OSI Systems’ ongoing efforts to strengthen its security solutions and financial standing.

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