Screening Systems Manufacturing Firm OSI Reports Record Revenues

Diversified manufacturer and engineering firm OSI Systems, which makes medical monitoring and anesthesia products in addition to providing security and engineering services, reported a break-through second quarter of its 2006 fiscal year. The company is best known in the physical security industry for its Rapiscan baggage screening systems.

OSI, based in Hawthorne, Calif., reported revenues of $117.1 million for that second quarter. The number was a record for the company, which also saw highlights of operating income at $2.9 million for the quarter (after a stock-based compensation program that cost $1.3 million). That factored out to what the company calls "break even" diluted earnings per share. OSI Chairman and CEO Deepak Chopra described the quarter's results as a financial turnaround and "a return to profitability."

While much of the company's focus is on the healthcare sector, the company's security division has been notably making headway. According to Chopra, the OSI Systems Security Group has been expanding greatly with its cargo and vehicle inspection technologies and its hold baggage screening solutions.

Chopra touted the company's Rapiscan MVXR5000 inline baggage screening system, which launched recently and has already been approved by the UK and international markets. The device is still waiting for approval from the U.S. before it can be sold.

"Additionally," said Chopra, "we continue to invest in the development of the first-of-its-kind, high speed, solid-state CT system that we call `Real Time Tomography,' or RTT."

The company's RTT system claims a through-put up to 1,500 bags each hour. It's estimated that this is more than double the throughput of currently used systems.