HAWTHORNE, Calif. -- OSI Systems, Inc., a vertically integrated provider of specialized electronics products for critical applications in the Security and Healthcare industries, today announced operating results for its third quarter and nine months ended March 31, 2007.
The Company reported revenues of $126.5 million for the third quarter of fiscal 2007, an increase of 17% from the $108.1 million reported for the third quarter of fiscal 2006. The net income for the third quarter of fiscal 2007 was $3.6 million, or $0.21 per diluted share, compared to net income of $1.0 million, or $0.06 per diluted share, for the third quarter of fiscal 2006.
For the nine months ended March 31, 2007, the Company reported record revenues of $379.5 million, an increase of $52.4 million, or 16%, from $327.1 million for the first nine months of fiscal 2006. The net loss for the first nine months of fiscal 2007 was ($23.0) million or ($1.37) per diluted share, compared to a net loss of ($3.1) million, or ($0.20) per diluted share, for the first nine months of fiscal 2006.
The financial results for the three and nine months ended March 31, 2007 were favorably impacted by the settlement of a dispute with GE related to the acquisition of Spacelabs Medical in fiscal 2004. The settlement resulted in approximately $15.0 million of pre-tax income, which has been recorded as other income. The results were adversely impacted by a ($2.8) million fiscal third quarter operating loss in the OSI Defense Systems business, which is included in the Optoelectronics and Manufacturing division.
In the third quarter of fiscal 2007 the Company consolidated certain manufacturing processes and facilities resulting in a pre-tax restructuring charge of $2.2 million. These costs were directly related to the Company's previously announced plan to generate approximately $15 - $17 million of pre-tax annualized cost savings through the integration of recent acquisitions and the rationalization of the Company's cost structure. For the first nine months of fiscal 2007, the Company has incurred impairment, restructuring and other charges of approximately $34.0 million. Including the aforementioned restructuring charges the company incurred non-cash pre-tax charges of approximately $21.5 million associated with the impairment of certain fixed and intangible assets as well as the recording of $10.3 million of additional inventory reserves, which is included in cost of goods sold.
Deepak Chopra, OSI Systems' Chairman and CEO, stated, "We continued our positive top line momentum while our overall backlog increased to record levels due to the strength of our Security bookings. Improving our overall operating performance continues to be our top priority. We expect the previously announced cost cutting measures to be largely implemented by the end of the fiscal year."
The Company's backlog as of March 31, 2007 was $209 million compared to $197 million as of December 31, 2006. The Security Division had a backlog of approximately $124 million as of March 31, 2007 compared to $115 million as of December 31, 2006.