OSI Systems ( OSIS Quick Quote OSIS - Free Report) is benefiting from continuing order wins, driven by its robust portfolio of security and healthcare solutions. The company’s Security division recently won an indefinite delivery, indefinite quantity (“IDIQ”) contract from the U.S. Customs and Border Protection (“CBP”) for low-energy portal (“LEP”) x-ray systems. OSI has also been selected to provide multi-energy portal (“MEP”) IDIQ contracts. LEPs and MEPs are non-intrusive inspection systems used for screening vehicles at border crossings to find illicit material. Under LEP and MEP, OSI received two delivery orders worth roughly $200 million. The company can receive an additional $65 million under these orders if CBP exercises its options. Last month, OSI’s healthcare division, Spacelabs Healthcare, received an order worth roughly $3 million to provide patient-monitoring solutions and related accessories to a Midwestern U.S. based hospital. The company’s Optoelectronics and Manufacturing division received an order of approximately $6 million to provide electronic sub-assemblies for a leading healthcare original equipment manufacturer. In August, the Optoelectronics and Manufacturing division received an order worth roughly $12 million to provide electronic sub-assemblies for an IT security technology provider. The Security division received an order worth roughly $13 million to provide multiple units of its RTT 110 (Real Time Tomography) explosive detection system, which is expected to be installed at an Asia Pacific international airport to screen passengers’ hold baggage. The division also received multiple orders worth approximately $30 million in aggregate for maintenance services of several platforms of cargo, vehicle and baggage inspection systems. Improving Security Demand Aids OSI’s Prospects
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Electronics - Miscellaneous Components peers Universal Display ( OLED Quick Quote OLED - Free Report) , TE Connectivity ( TEL Quick Quote TEL - Free Report) and Littelfuse ( LFUS Quick Quote LFUS - Free Report) , OSI’s fourth-quarter fiscal 2021 top line benefited from strong demand, particularly for its Security division solutions. The company’s revenues grew 20% year over year to $332 million. Markedly, Universal Display and Littelfuse’s second-quarter 2021 revenues jumped 123.7% and 70.3%, respectively. TE Connectivity witnessed 51% year-over-year growth in third-quarter fiscal 2021 revenues. In fourth-quarter fiscal 2021, OSI’s Security division accounted for 60.8% of revenues, which increased 23% year over year to $202 million. The company ended fiscal 2021 with a backlog of 21%, which was higher than the previous year’s backlog. Global bookings increased 14% year over year with orders from both U.S. and international customers. OSI’s security solutions like CertScan and RTT 110 CT Hold Baggage Screening System have gained traction in international markets. CertScan has been used by local authorities in Puerto Rico, Albania and Guatemala to manage drug introduction, customs enforcement, and controls of goods and tariffs. Moreover, a number of air cargo customers like FedEx, DHL and UPS are using RTT 110. Robust performance by the Security division is expected to aid OSI’s growth in fiscal 2022. The company expects revenues between $1.190 billion and $1.225 billion for the fiscal. OSI reported revenues of $1.15 billion in fiscal 2021.