HAWTHORNE, Calif. - OSI Systems , Inc. (NASDAQ: NASDAQ:OSIS) announced today that it has secured a $6 million order from a U.S. hospital system to provide a suite of patient monitoring solutions through its healthcare division, Spacelabs Healthcare®. The deal includes the delivery of Xhibit® Central Stations, Xprezzon bedside monitors, Qube® portable patient monitors, and the ICS G2 clinical information system equipped with SafeNSoundTM alarm management technology.
Deepak Chopra, CEO of OSI Systems, expressed the company's enthusiasm for the partnership, stating their readiness to upgrade the hospital's patient monitoring systems with OSI's advanced clinical information and process workflow technology.
OSI Systems, a company with over 40 years of experience in electronics engineering and manufacturing, operates in the homeland security, healthcare, defense, and aerospace industries. The company has a global presence with offices and production facilities in multiple countries.
This announcement is based on a press release statement, and it should be noted that forward-looking statements involve risks and uncertainties. OSI Systems has disclosed that these statements are not guarantees of future performance and that actual results may differ materially from those projected.
Investors are advised that all forward-looking statements are based on information currently available and may change due to future events or new information. OSI Systems does not assume any obligation to update statements if circumstances or management's estimates or opinions should change, except as required by law.
In other recent news, OSI Systems has reported a significant Q1 growth, marking a robust start to the fiscal year 2025. The company's revenue rose by 23% to a record $344 million, driven mainly by a strong performance in the Security division. Non-GAAP adjusted earnings per share reached $1.25, and the company ended the quarter with a substantial backlog of approximately $1.8 billion.
CEO Deepak Chopra, who announced his retirement at the end of 2024, and CFO Alan Edrick shared these developments during the company's earnings call. The company's guidance for fiscal '25 revenue has been increased to between $1.67 billion and $1.695 billion, and non-GAAP diluted EPS guidance has been raised to $9 to $9.30 per share.
Despite challenges in backlog conversion and supply chain disruptions, the company remains optimistic about its growth potential. The Security division, which saw a 36% increase, secured a $500 million contract with Mexico's defense agency and completed a strategic acquisition. These recent developments underscore OSI Systems' strong financial performance and potential for continued growth.
InvestingPro Insights
OSI Systems' recent $6 million order from a U.S. hospital system aligns with the company's strong financial performance and market position. According to InvestingPro data, OSI Systems boasts a market capitalization of $2.23 billion and has demonstrated impressive revenue growth of 24.35% over the last twelve months as of Q1 2023. This growth trajectory is further supported by a robust EBITDA growth of 30.39% during the same period.
InvestingPro Tips highlight that OSI Systems is trading at a low P/E ratio relative to its near-term earnings growth, with a current P/E ratio of 16.84. This suggests that the stock may be undervalued considering its growth prospects. Additionally, the company's liquid assets exceed its short-term obligations, indicating a strong financial position to support its ongoing operations and potential future contracts.
Management's aggressive share buyback program, as noted in another InvestingPro Tip, signals confidence in the company's future performance and commitment to enhancing shareholder value. This strategy aligns well with the company's recent contract win and its potential for continued growth in the healthcare technology sector.
For investors seeking more comprehensive insights, InvestingPro offers 7 additional tips for OSI Systems, providing a deeper understanding of the company's financial health and market position.
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