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OSI (OSIS) Wins $35-Million Electronic Assemblies Contract

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OSI Systems (OSIS - Free Report) has been recently awarded a $35-million order under its Optoelectronics and Manufacturing division. The company has kept the name of the customer under wraps. Per the multi-year order, the company will be providing electronic assemblies for use in patient care applications.

OSI's Optoelectronics and Manufacturing division designs, develops and manufactures original equipment manufacturer ("OEM") and customs solutions for use in a broad range of applications, which include aerospace and defense electronics, security and inspection systems, medical imaging and diagnostics systems, telecommunications, office automation, computer peripherals, industrial automation systems, automotive diagnostic systems, gaming systems and consumer products. The division, being one of the largest photodiode manufacturers in the world, has its manufacturing facilities in the United States, U.K., Mexico, India, Malaysia and Indonesia.

The latest order is the division’s largest order so far. In January, OSI’s Optoelectronics division was awarded a $5 million order by a leading X-ray imaging OEM for the supply of electronic components. Prior to that, in October 2021, OSI received a $6 million order to provide electronic sub-assemblies to a wireless communication technology OEM.

OSI's Optoelectronics and Manufacturing division is a critical supplier of key components for its Security and Healthcare divisions as well. In December, 2021, the company’s Security division received a $29 million contract from an international customer to provide cargo and vehicle inspection systems, baggage and parcel inspection systems, related training and maintenance services. In November, its Healthcare division took a $5 million order to provide patient monitoring solutions to a Northwestern U.S.-based hospital.

 

In October, the Healthcare division had received a similar order from a Southern U.S.-based hospital valued at $4 million. OSI Systems intends to improve supply chain coordination and responses to customer requirements through such vertical integrations.

 

In the second quarter of fiscal 2022, OSI reported revenues of $91.5 million under Optoelectronics and Manufacturing division (including intersegment revenues), which represented 33.1% of total revenues. For fiscal 2021, the division’s revenues were $349.9 million, accounting for 30.1% of total revenues.

Zacks Rank & Key Picks

OSI currently carries a Zacks Rank #3 (Hold). Shares of OSIS have declined 12.5% in the past year.

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