The Marketing Minute: When Everyone Is a Thought Leader, No One Is
The Chemical Connection: More Solutions to Common PCB Etching Questions
It’s Only Common Sense: How to Demonstrate Grace Under Pressure During Tough Times
OSI Systems, Inc. announced its financial results for the three and nine months ended March 31, 2025.
Ajay Mehra, OSI Systems’ President and Chief Executive Officer, stated, “We are pleased to report a record-breaking third quarter for revenues, non-GAAP earnings and operating cash flow, led by excellent performance in the Security division and growth in the Optoelectronics and Manufacturing division. With record backlog and high visibility into our opportunity pipeline, we anticipate a strong finish to fiscal 2025.”
For Q3 FY25, the Company reported revenues of $444.4 million, a 10% increase over the $405.4 million reported for the same quarter of the prior year. Net income for Q3 FY25 was $41.1 million, or $2.40 per diluted share, compared to net income of $34.0 million, or $1.95 per diluted share, for the same quarter of the prior fiscal year. Non-GAAP net income for Q3 FY25 was $41.9 million, or $2.44 per diluted share, compared to non-GAAP net income for the same quarter of the prior year of $37.7 million, or $2.16 per diluted share.
For the nine months ended March 31, 2025, revenues were $1.208 billion, compared to $1.058 billion in the same period a year ago. Net income for the nine months ended March 31, 2025 was $96.9 million, or $5.67 per diluted share, compared to $83.5 million, or $4.82 per diluted share, for the same prior-year period. Non-GAAP net income for the nine months ended March 31, 2025 was $104.4 million, or $6.11 per diluted share, compared to non-GAAP net income of $91.5 million, or $5.29 per diluted share, for the same prior-year period.
The Company's book-to-bill ratio exceeded 1.0 for the third quarter of fiscal 2025. As of March 31, 2025, the Company's backlog was over $1.8 billion. For Q3 FY25, the Company generated cash from operations of $81.6 million, a significant improvement from cash used in operations of $52.1 million for the same quarter of the prior year. Capital expenditures were $4.5 million and $4.9 million for Q3 FY25 and Q3 FY24, respectively.
Mr. Mehra commented, “The Security division delivered another strong quarter as revenues increased 10% year-over-year leading to operating income growth, despite facing a challenging comparison with the previous year's quarter. Bookings were robust, and even with sizable conversion of backlog to revenue in the quarter, the Security division quarter-ended backlog reached a new record high. This reinforces our confidence that the positive momentum in the Security division will continue.”
Mr. Mehra continued, “Our Optoelectronics and Manufacturing division delivered strong financial results in the fiscal 2025 third quarter reporting 15% growth in revenues with strong operating margin expansion. This division continues to benefit from our vertically-integrated structure and is well-positioned to take advantage of future growth opportunities.”
Mr. Mehra concluded, “We are encouraged by the Q3 sales growth in our Healthcare division. With new leadership introduced to this division during the quarter, we anticipate positive momentum as we approach the new fiscal year.”
