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OSI Systems secures $10M border security contract

EditorNatashya Angelica
Published 29/07/2024, 18:26
OSIS
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HAWTHORNE, Calif. - OSI Systems , Inc. (NASDAQ:OSIS) announced today that its Security division has been awarded a contract worth approximately $10 million from an international customer. The contract is for the provision of the company's Z Backscatter® Van (ZBV®) cargo and vehicle inspection systems, which are intended for border customs applications.

The order also includes associated maintenance, training, and support for the systems. The ZBV systems are recognized for their role in enhancing border security measures.

Deepak Chopra, OSI Systems' Chairman and CEO, stated, "We look forward to delivering one of our most advanced and widely deployed security solutions." He added that the company is eager to support its customer's mission to maintain safe and secure borders.

OSI Systems is a provider of specialized electronic systems and components for critical applications in various industries, including homeland security, healthcare, defense, and aerospace. The company leverages over 40 years of electronics engineering and manufacturing experience across a global network of offices and production facilities.

The information regarding the new contract is based on a press release statement from OSI Systems. The company has not disclosed the identity of the international customer or the specific timeline for the deployment of the ZBV systems.

Investors and interested parties should note that forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected. OSI Systems has clarified that it does not undertake any obligation to update forward-looking statements except as required by federal securities laws.

In other recent news, OSI Systems announced its intention to offer $275 million in convertible senior notes due in 2029. The company also plans to repurchase up to $100 million of its common stock in privately negotiated transactions.

In addition, OSI Systems secured several significant contracts, including a $7 million order to supply navigation sensors to an aerospace and defense original equipment manufacturer, an $11 million contract to supply radiation monitoring portals to an international client, and a $42 million contract for enhancing security measures at an international airport.

The company also received a $7 million order to supply portable health monitoring devices to a leading provider of diagnostic solutions and a $9 million order from an international client for its Eagle® M60 high-energy mobile cargo and vehicle inspection systems. These recent developments highlight OSI Systems' ongoing business activities across multiple sectors.

InvestingPro Insights

OSI Systems, Inc. (NASDAQ:OSIS), with a current market capitalization of $2.56 billion, is demonstrating strong financial performance. The company's Price-to-Earnings (P/E) ratio stands at 20.28, indicating a valuation that is in line with its near-term earnings growth. This is further corroborated by the company's PEG ratio, which at 0.4 suggests that the stock may be undervalued based on its earnings growth potential, an important factor for investors seeking growth at a reasonable price.

The company's revenue growth also paints a positive picture, with a significant increase of 22.13% over the last twelve months as of Q3 2024. This robust growth trajectory is reflected in the company's quarterly revenue growth, which surged by 33.85% in Q3 2024, signaling strong operational performance.

An InvestingPro Tip worth noting is that OSI Systems is trading near its 52-week high, with the price at 97.99% of this peak, suggesting a strong market sentiment. Moreover, analysts are optimistic about the company's profitability, expecting OSI Systems to be profitable this year, a sentiment supported by the company's profitable performance over the last twelve months.

For investors who are interested in exploring more about OSI Systems, there are additional InvestingPro Tips available. These tips delve deeper into the company's financial health and market position, providing a more comprehensive analysis for informed investment decisions. To access these insights, visit https://www.investing.com/pro/OSIS, and don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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