OSI Systems, Inc (OSIS) has reported 4,375 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $4.83 million, or $0.25 a share in the quarter, compared with $0.11 million, or $0.01 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.41 million, or $0.68 a share compared with $8.55 million or $0.42 a share, a year ago. Revenue during the quarter grew 22.91 percent to $242.55 million from $197.34 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 34.05 percent. Total expenses were 96.42 percent of quarterly revenues, down from 99.60 percent for the same period last year. This has led to an improvement of 319 basis points in operating margin to 3.58 percent.
Operating income for the quarter was $8.69 million, compared with $0.78 million in the previous year period.
However, the adjusted operating income for the quarter stood at $20.60 million compared to $12.44 million in the prior year period. At the same time, adjusted operating margin improved 219 basis points in the quarter to 8.49 percent from 6.30 percent in the last year period.
“Driven by growth in our Security division, we are pleased to announce strong fiscal second quarter results,” said Deepak Chopra, OSI Systems’ Chairman and Chief Executive Officer. “The integration and performance of American Science and Engineering (“AS&E”), which was acquired during our fiscal first quarter, has been quite positive and has contributed as expected to our solid results.”
Osi Systems forecasts revenue to be in the range of $955 million to $990 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.80 to $3.20 on adjusted basis.
Working capital drops significantly
OSI Systems, Inc has witnessed a decline in the working capital over the last year. It stood at $40.95 million as at Dec. 31, 2016, down 86.43 percent or $260.87 million from $301.83 million on Dec. 31, 2015. Current ratio was at 1.07 as on Dec. 31, 2016, down from 1.99 on Dec. 31, 2015. Days sales outstanding went down to 65 days for the quarter compared with 75 days for the same period last year.
Days inventory outstanding has decreased to 82 days for the quarter compared with 193 days for the previous year period.
Debt increases substantially
OSI Systems, Inc has witnessed an increase in total debt over the last one year. It stood at $356.49 million as on Dec. 31, 2016, up 448.36 percent or $291.48 million from $65.01 million on Dec. 31, 2015. Total debt was 28.34 percent of total assets as on Dec. 31, 2016, compared with 6.43 percent on Dec. 31, 2015. Debt to equity ratio was at 0.66 as on Dec. 31, 2016, up from 0.11 as on Dec. 31, 2015. Interest coverage ratio improved to 4.39 for the quarter from 1.25 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
