HAWTHORNE, CA -- OSI Systems today announced March quarter sales at its Optoelectronics and Manufacturing division fell 6.1% from a year ago to $61.3 million.

Operating income rose 6.3% during the period to $5.3 million. Operating margin rose to 9.6%, excluding the impact of impairment, restructuring and other charges, more favorable product and customer mix. It was OSI's sixth consecutive quarter of year-over-year operating margin expansion.

During the quarter the unit acquired two businesses, which the firm said that will expand its product offering and customer base in the US and UK.

"We believe this division is well positioned to resume topline growth in fiscal 2017,” said Deepak Chopra, OSI Systems’ chairman and chief executive.

The firm did cut its fiscal 2016 guidance, saying fourth-quarter sales would be in the range of $230 million to $255 million. The lower guidance is the result of slowness in its Healthcare division as well as the timing of awards and mix of revenues in the Security division.

Overall revenue was $210.8 million for the fiscal third quarter, down 2% from a year ago. Net income was $9.3 million, down 30% year-over-year. Excluding restructuring and other one-time charges, net income would have been $12.7 million, versus $15.9 million the prior year.

“Our third quarter results were largely in line with expectations and were driven by the overall strength of our Security division and continued operating margin expansion in our Optoelectronics and Manufacturing division," Chopra said. "We were disappointed with the results of our Healthcare division as topline challenges continued due to an unfavorable environment. While the difficult global market continues to challenge each of our businesses, our backlog and pipeline of opportunities remain robust and our management team is focused on setting the stage for a strong start to fiscal 2017.”

As of Mar. 31, the company’s backlog was approximately $661 million. Cash flow from operations was $20.7 million.

• Prev
• Next