QUOTE AND NEWS
Benzinga  Aug 17  Comment 
  Shopify Inc (NYSE: SHOP) surged 1.4 percent to $38.89. The volume of Shopify shares traded was 1200 percent higher than normal. Shopify priced its US$286,875,000 offering of Class A subordinate voting shares. Urban Outfitters, Inc. ...
Benzinga  Aug 16  Comment 
Cybersecurity company OSI Systems, Inc. (NASDAQ: OSIS) released its fiscal Q4 earnings results after the closing bell on Tuesday. In the wake of the quarterly report, investors had pushed up the stock a little less than 6 percent in late...
newratings.com  Aug 16  Comment 
WASHINGTON (dpa-AFX) - OSI Systems Inc. (OSIS) announced a profit for fourth quarter that fell from last year. The company said its bottom line dropped to $10.76 million, or $0.55 per share. This was lower than $24.98 million, or $1.22 per...
Motley Fool  Jun 28  Comment 
AS&E is selling, and the lawyers are circling. Do they have a case?
Forbes  Jun 21  Comment 
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Amgen Inc (NASD: AMGN), where a total volume of 10,779 contracts has been traded thus far today, a contract volume which is...
Benzinga  Jun 21  Comment 
American Science and Engineering, Inc. (NASDAQ: ASEI) disclosed Tuesday that it reached a definitive agreement to be acquired by OSI Systems, Inc. (NASDAQ: OSIS) for $37.00 per share in an all-cash transaction. The deal involves a total...
Reuters  Jun 21  Comment 
* Says evercore is serving as financial advisor and provided a fairness opinion to as&e.




 
TOP CONTRIBUTORS

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.


Competition

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.

References

  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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