OSI Systems Sees Strong Bookings, Optimistic Cash Flow Outlook at JPMorgan Conference

OSI Systems delivered strong revenues, bookings, and profits in the first half of its fiscal year and expects US growth to become outstanding over the next few years. The company sees significant activity in RFIs and RFPs tied to US government demand, including border security equipment funding. OSI aims to participate meaningfully in the $1 billion non-intrusive inspection scanning equipment category and hopes to maintain or increase its 40%-45% share of CBP awards. The company also expects a five-year US checked-baggage replacement cycle to begin later in the decade, which could be incremental for OSI. Internationally, demand remains robust across ports/borders and aviation, with the Middle East being a fertile territory.