The following is a summary of the OSI Systems, Inc. (OSIS) Q4 2024 Earnings Call Transcript:
Financial Performance:
OSI Systems reported a Q4 revenue of $481 million, a 17% increase year-over-year, driven by outstanding performance in the Security division.
Q4 non-GAAP adjusted earnings per share were at a record $2.84.
Full fiscal year 2024 revenues reached a record $1.54 billion, marking a 20% increase from the previous year, with non-GAAP adjusted EPS at $8.13 for the year, up 31%.
The company concluded the year with a strong backlog of approximately $1.7 billion, providing visibility for fiscal year 2025.
Business Progress:
Security division showed remarkable growth with Q4 revenues up 27% year-over-year, primarily driven by significant programs including a major program with Mexico's SEDENA and a $200 million international contract.
Opto Electronics Manufacturing division achieved record revenues of $102 million in Q4, focusing on strategic near-shoring to reduce dependency on Chinese supply chains.
Healthcare division showed robust performance despite challenges, securing a $6 million award from a U.S. hospital.
Opportunities:
Continued focus on expanding service revenues which carry higher margins compared to product revenues.
Strong backlog and robust pipeline of opportunities across security, opto electronics, and healthcare divisions predicting favorable growth in fiscal year 2025.
Risks:
The company anticipates fluctuations in gross margin influenced by revenue mix and varying operational costs.
Possible impacts from ongoing adjustments in supply chain and inventory levels affecting near-term financial outcomes.
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