OSI Systems, Inc. (OSIS), a provider of specialized electronics, Tuesday reported a rise in profit for the first quarter, despite a decline in revenue, reflecting lower costs of good sold and operating expenses. Further, the company said it raised earnings outlook for the full year.
Net income for the first quarter rose to $2.51 million or $0.14 per share from $0.10 million or $0.01 per share in the previous year.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share. Analysts estimates typically exclude special items.
Total revenue for the quarter decreased to $133.76 million from $148.16 million a year ago. Analysts expected a revenue of $138.84 million for the first quarter.
By segment, Security division reported revenues of $47.33 million, compared to $58.68 million last year. Revenue from Healthcare division declined to $46.96 million from $54.83 million while revenue from Optoelectronics and Manufacturing division increased to $45.79 million from $44.88 million in the year-ago quarter.
Cost of good sold decreased to $89.29 million from $98.53 million last year. Gross profit for the quarter was $44.47 million, compared to $49.63 million in the previous year.
Looking forward, the company anticipates fiscal 2010 sales to be between $620 million and $640 million, representing a 5% to 8% increase over fiscal 2009.
In addition, the company raised its earnings guidance and sees earnings per share to increase at a rate of 25%-35% to $1.14 - $1.23, excluding the impact of restructuring and other non-recurring charges incurred in fiscal 2009. Earlier, the company anticipated a 15% - 30% growth in earnings to $1.05 - $1.18 per share, excluding the impact of impairment, restructuring and other non-recurring charges.
Analysts expect the company to report earnings of $1.11 per share, on revenues of $610.08 million.
OSIS is currently trading at $18.53, up 0.81 or 4.57%, on a volume of 94K shares on the Nasdaq.
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