OSI Systems Inc (OSIS) Reports Q1 FY24 Earnings: Revenue and EPS Show Growth
OSI Systems Inc (NASDAQ:OSIS) reported Q1 FY24 revenues of $279.2 million, marking a 4% increase year-over-year.
The company's GAAP EPS was $0.75, and Non-GAAP Adjusted EPS was $0.91.
OSI Systems Inc (NASDAQ:OSIS) reported a Q1 operating income growth of 23% year-over-year.
The company ended Q1 with a backlog of approximately $1.8 billion.
On October 26, 2023, OSI Systems Inc (NASDAQ:OSIS) announced its financial results for the first quarter of fiscal 2024. The company reported revenues of $279.2 million, a 4% increase from the $268.1 million reported for the same quarter of the prior year. The GAAP net income for Q1 FY24 was $12.9 million, or $0.75 per diluted share, compared to $11.2 million, or $0.65 per diluted share, for the same quarter of the prior year. The Non-GAAP net income for Q1 FY24 was $15.6 million, or $0.91 per diluted share.
Company Performance and Outlook
Deepak Chopra, OSI Systems Chairman and CEO, stated,
Our first quarter sales and earnings were generally consistent with our expectations with strong growth in the Security division and solid performance in the Optoelectronics and Manufacturing division overcoming some headwinds in the Healthcare business. Given our strong backlog and momentum as demonstrated by our recent awards, we are excited about the significant revenues and earnings growth anticipated for the balance of fiscal 2024.
The company's backlog was approximately $1.8 billion at the end of Q1 FY24. For Q1 FY24, operating cash flow was $17.1 million compared to $17.2 million for the same quarter of the prior year. Capital expenditures were $5.2 million and $3.3 million for Q1 FY24 and Q1 FY23, respectively.
Division Performance
Mr. Chopra commented on the performance of the Security division,
We were pleased with the performance of the Security division in the first quarter of fiscal 2024 as revenues increased 14% year-over-year with strong operating margin expansion. Bookings were solid, leading to a record Security division backlog. We expect strong performance in the Security division throughout this fiscal year as the division is well positioned to accelerate growth.
He also noted the solid financial results of the Optoelectronics and Manufacturing division with adjusted operating margin expansion. However, he acknowledged that general market conditions posed challenges to the Healthcare division, resulting in reduced revenues and operating income compared to the same quarter of the previous year.
Fiscal Year 2024 Outlook
The company is reiterating its fiscal 2024 revenues guidance with anticipated revenue growth in excess of 18% over revenues in fiscal 2023. Based on the strength of the first quarter and the outlook for the remainder of the fiscal year, the company is increasing its non-GAAP adjusted diluted earnings per share guidance from greater than 25% growth to greater than 27% growth compared to non-GAAP adjusted diluted earnings per share for fiscal year 2023.
Financial Tables
The company's unaudited condensed consolidated statements of operations showed a net income of $12.879 million for the three months ended September 30, 2023, up from $11.235 million for the same period in 2022. The diluted earnings per share increased from $0.65 in 2022 to $0.75 in 2023.
The unaudited condensed consolidated balance sheets showed total assets of $1.588 billion as of September 30, 2023, up from $1.556 billion as of June 30, 2023. Total liabilities also increased from $829.521 million to $863.995 million over the same period.
Explore the complete 8-K earnings release (here) from OSI Systems Inc for further details.
This article first appeared on GuruFocus.
