OSI Systems is keeping a close scan on transportation security and health care worldwide. The company's security division manufactures specialized inspection equipment under the Rapiscan Systems name used to screen everything from baggage and people to cargo and vehicles at airports, ports, and borders. Its Spacelabs Healthcare subsidiary makes patient monitoring, cardiac monitoring, and clinical networking systems primarily for hospitals. A third division makes optoelectronic devices (OSI Optoelectronics) for aerospace/defense electronics, industrial automation, security, medical diagnostics, and other applications. That division also offers contract electronics manufacturing services (OSI Electronics).
The company maintains manufacturing, research and development, and sales operations in North America, Europe, Asia, and Australia.
Security is OSI Systems' largest segment, accounting for almost half of annual revenues. Offering a broad range of screening technologies, Rapiscan Systems has built a solid reputation for its inspection systems, having been installed in such security-tight locations as Buckingham Palace, the Kremlin, the Vatican, and high-profile events, such as the Olympic Games and the World Cup.
Meanwhile, its health care division is focused on designing products that make critical patient information more readily accessible both within and outside of a hospital. Its optoelectronic products and manufacturing services are geared at OEM customers in need of specialized electronic components. They also serve OSI Systems' own security and health care divisions.
Sales and Marketing
There, products are sold by direct sales and marketing representatives and by a network of independent distributors. Major customers within its security segment include the Transportation Security Administration, the Bureau of Prisons, and various international airports around the globe. Health care and optoelectronic customers include Eisenhower Medical Center and Honeywell, respectively.
OSI Systems' revenues increased 21% to some $793 million due to increased sales in all of its operating segments, primarily from new security contracts and a larger base of installed equipment in the health care and optoelectronics segments. Net income also increased by 36% to $46 million that year.
In the security division, OSI Systems depends on the growing needs of the international government security markets. It expands in this segment by forming new supply contracts with government agencies; for instance it entered new contracts with the US Army (for vehicle inspection and personal screening products) and the Mexican customs authority (for cargo and vehicle screening equipment) during 2011 and 2012.
OSI Systems believes demand for patient monitoring systems and other health solutions will continue to grow in the US market (and other developing countries) due to an aging population, as well as in developing nations where health care infrastructures are being built and expanded. As such, its research programs focus on new products, such as the 2011 launch of the élance critical care monitor. – less
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