Benzinga  Sep 22  Comment 
Below are the top industrial electrical equipment stocks on the NASDAQ in terms of earnings per share. The trailing-twelve-month earnings per share at OSI Systems, Inc. (NASDAQ: OSIS) is $3.17. OSI Systems' revenue for the same period is...
newratings.com  Aug 20  Comment 
WASHINGTON (dpa-AFX) - Electronic systems maker OSI Systems, Inc. (OSIS) reported that fourth-quarter net income edged up to $22.43 million or $1.09 per share from $22.13 million or $1.07 per share in the prior-year quarter. Excluding the impact...
Benzinga  Jul 13  Comment 
OSI Systems, Inc. (NASDAQ: OSIS), today announced that its Security division, Rapiscan Systems, received awards totaling approximately $16 million from U.S. federal government customers to perform maintenance and support services for multiple...
Benzinga  Jun 25  Comment 
OSI Systems, Inc. (NASDAQ: OSIS) today announced that its Security division, Rapiscan Systems, received orders totaling approximately $47 million from customers in the Middle East to provide Baggage and Parcel Inspection (BPI) and Eagle® Cargo...
Benzinga  Jun 24  Comment 
OSI Systems, Inc. (NASDAQ: OSIS), today announced that its Healthcare division, Spacelabs Healthcare, received an approximate $8 million order from a U.S. Government medical center to provide patient monitoring and connectivity solutions including...
newratings.com  Apr 27  Comment 
WASHINGTON (dpa-AFX) - OSI Systems, Inc. (OSIS) reported net income for the third quarter of $13.2 million, or $0.64 per share, compared to $4.8 million, or $0.23 per share, for the third quarter of prior fiscal year. On a non-GAAP basis, net...
Benzinga  Apr 21  Comment 
OSI Systems, Inc. (NASDAQ: OSIS) today announced that its security division, Rapiscan Systems, has received a contract valued at approximately $27 million to provide multiple units of the RTT® 110 (Real Time Tomography) explosives detection...


OSI Systems, Inc. is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. It sells its products in diversified markets, including homeland security, healthcare, defense and aerospace. The company has three operating divisions: Security, Healthcare, and Optoelectronics and Manufacturing.

Business Growth

Most of the company's customers are governments. With homeland security spending at all-time highs, OSIS has seen double-digit growth over the past few years, particularly in the company's security division.[1] The other divisions have also seen growth due to a broad-based global economic recovery from the recession.

Key Trends and Forces

Counter-Terrorism and Defense Spending

The threat of terrorism jumped to the forefront of American foreign policy and defense spending after September 11, 2001. Since that time, defense spending has increased nearly $200 billion in order to pursue wars in Afghanistan and Iraq, but also to secure the US borders and ensure the safety of air travel and international shipping.[2] OSI Systems' products are sold to governments and government contractors around the world to assist in the noninvasive X-ray screening of cargo, travelers, and vehicles. The company is highly exposed to the forces that govern government spending and any decreased allocations for port, air cargo, or other shipping security would pose a significant challenge to OSIS's continued success.[3]

Large Amounts of International Business Expose the Company to Political and Currency Risks

North America provides approximately 60% of all of the company's revenues.[4] The remaining 40% is distributed among Europe and Asia [4] Business is conducted in a variety of global currencies, and changes in currency values are a risk to revenue. The devaluation of the US dollar versus other currencies makes doing business in other countries more expensive in US dollars, but also made revenue abroad worth more in US dollars. Because OSIS makes the majority of its revenues from the US, a decrease in the value of the dollar raises revenues.


Since OSIS is a diversified technology firm, different divisions in the company face different competitors. In addition, the competitors do not offer very similar products, improving the competitive background of OSIS's industries.


  1. Marketwatch.com: OSI Systems Reports Third Quarter Fiscal 2011 Financial Results
  2. US Defense Spending and Budget: The Mismatch Between Spending and Resources, Heritage Foundation, 6/7/10
  3. When is a Spike in Terrorism Good News?, Motley Fool, 11/10/10
  4. 4.0 4.1 Wikinvest SEC Files: OSIS 2010 10-K
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