On this page of StockholderLetter.com we present the latest annual shareholder letter from OSI SYSTEMS INC — ticker symbol OSIS. Reading current and past OSIS letters to shareholders can bring important insights into the investment thesis.
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10/25/2024 Letter Continued (Full PDF)
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10/26/2023 OSIS Stockholder Letter
• More "Electronic Equipment & Products" Category Stockholder Letters
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OSIS Benford's Law Stock Score = 85
10/25/2024 Letter Continued (Full PDF)
•
10/26/2023 OSIS Stockholder Letter•
More "Electronic Equipment & Products" Category Stockholder Letters•
OSIS Benford's Law Stock Score = 85OSIS Shareholder/Stockholder Letter Transcript:
ADVANCING PROTECTION IN A CONNECTED WORLD Annual Report 2024 OSI Systems, Inc. provides specialized electronic systems and components that meet the critical needs of the homeland security, healthcare, defense, and aerospace industries. FINANCIAL HIGHLIGHTS (June 30th fiscal year end) $1.5B 68% SALES BY DIVISION 18% 32% 21% SALES BY GEOGRAPHY 11% 16% Fiscal 2024 Sales 34% Security Optoelectronics Healthcare United States EMEA SALES Other Americas APAC NON-GAAP EPS $1,183M $1,278M $1,539M $5.81 $6.21 $8.13 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 RECONCILIATION OF GAAP TO NON-GAAP EPS DILUTED EPS GAAP basis FY 2022 6.45 FY 2023 FY 2024 5.34 7.38 Impairment, restructuring, and other charges 0.42 0.44 0.37 Amortization of acquired intangible assets 0.75 0.87 0.97 Non-cash interest expense 0.03 0.03 Gain from disposition of property (1.53) Tax effect of the above adjustments 0.08 (0.30) (0.32) (0.39) (0.17) (0.27) 6.21 8.13 Discrete income tax items Non-GAAP basis 5.81 DEAR FELLOW STOCKHOLDERS, As we close the chapter on a dynamic fiscal year 2024, I am pleased to share with you the highlights of our achievements, which underscore our commitment to innovation, growth, and value creation. This past fiscal year, OSI Systems not only met but exceeded our expectations, achieving record revenues with a 20% year-over-year increase for the full fiscal year. All divisions contributed to our operating performance, but the Security division s stellar growth was particularly notable, with revenues surging by 37% for the year. This success was fueled by significant contracts, such as our ongoing projects with Mexico s SEDENA, which exemplifies our capability to handle large-scale, critical security operations. Our global footprint continues to expand. Our turnkey projects in Albania, Puerto Rico, Guatemala, and a European airport showcase our adaptability and expertise in providing customized security solutions. By early FY25, we expect to commence operations in Uruguay with our advanced cargo screening technology and expertise to help its government safeguard trade routes and foster economic stability in the region. These projects generate recurring revenues, enhance our reputation, and open doors for future engagements. The adoption of our CertScan platform globally is a testament to our technological leadership in providing integrated security solutions. In the aviation sector, we ve seen growth in demand for our security equipment as passenger traffic continues to rebound. Significant orders from international airports for our RTT 110 and 920CT systems reflect our market position and trust in our ability to deliver high-quality, reliable security solutions. demands and had several new wins in the healthcare and defense electronics sectors, which are expected to position us well for continued growth. Our expansion into Mexico and prominent operating infrastructure in the APAC region enable us to diversify our supply chain and reduce geopolitical risks for our customers. Despite challenges in the Healthcare sector, primarily due to deferred hospital purchases, we ve advanced our innovative solutions like SafeNSound patient alarm management and our Rothman Index predictive analytics, demonstrating our resilience and commitment to overcoming obstacles in a competitive market. Looking ahead to fiscal 2025, we are poised for further growth with a strong backlog and a robust pipeline of opportunities. We are committed to enhancing our product lines, expanding our services, and exploring new markets, ensuring that OSI Systems remains at the forefront of innovation in security, optoelectronics, and healthcare technologies. I want to express my deepest gratitude to our employees, whose dedication and hard work have been instrumental in our success. To our shareholders, thank you for your continued support. Together, we are building a future where OSI Systems not only meets but anticipates market needs, ensuring we provide advanced technological solutions that are critical to promoting safety and security. Sincerely, DEEPAK CHOPRA President, Chief Executive Officer and Chairman of the Board The Optoelectronics and Manufacturing division made strategic and operational adjustments to align with customer OSI SYSTEMS, INC. 2024 ANNUAL REPORT 1 SECURITY SOLUTIONS FOR A SAFER WORLD Our Security division plays a vital role in global safety by providing innovative solutions that help to protect people around the world every day, even in dynamic situations. From core markets, such as airports, seaports, and land borders, to premier global sporting events and high-threat facilities, we are a leading, trusted supplier of end-toend security inspection solutions. Customers rely on our experience and expertise to help them solve complex security challenges, including combatting terrorism, drug and weapon smuggling, and trade fraud. Our broad screening solutions portfolio leverages advanced detection technologies supported by sophisticated threat identification algorithms to deliver critical assistance to security professionals around the world. With our vast industry knowledge, we can meet demanding security requirements while offering customers outstanding value for their screening and inspection operations. Our comprehensive screening solutions perform highspeed threat and contraband detection through CONOPS design, advanced inspection technology, integration with information systems, and recurring training. HOLD BAGGAGE SCREENING CARGO AND VEHICLE INSPECTION BAGGAGE AND PARCEL INSPECTION PEOPLE SCREENING RADIATION DETECTION TRACE DETECTION OPTICAL INSPECTION 2 OSI SYSTEMS, INC. 2024 ANNUAL REPORT 3