OSI Systems, Inc. (NASDAQ:OSIS) Q2 2020 Earnings Conference Call - Final Transcript

Jan 28, 2020 • 04:30 pm ET


OSI Systems, Inc. (NASDAQ:OSIS) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the OSI Systems Incorporated Second Quarter 2020 Conference Call. At this time, all participants' lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Alan Edrick, Chief Financial Officer. Thank you. Please go ahead, sir.

Alan Edrick

Thank you. Good afternoon, and thank you for joining us. I'm Alan Edrick, Executive Vice President and CFO of OSI Systems. And I'm here today with Deepak Chopra, our President and CEO. Welcome to the OSI Systems fiscal 2020 second quarter conference call. We would like to extend a warm welcome to anyone who is a first-time participant on our conference calls. We are glad that you can join us.

Earlier today, we issued a press release announcing our second quarter fiscal year 2020 financial results. Before we discuss our results, I would like to remind everyone that today's discussion will include forward-looking statements. In connection with this conference call, the company wishes to take advantage of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking under the securities laws. These forward-looking statements are based on management's current expectations and are subject to uncertainties, risks, assumptions and contingencies, many of which are outside the company's control.

Such statements include, without limitation, information regarding the expected financial and operational performance of the company and its operating divisions, including the company's expected revenues and earnings. Undue reliance should not be placed on our forward-looking statements as actual results could differ materially from forward-looking statements due to numerous factors including, but not limited to factors described in the company's periodic reports filed with the SEC from time to time. All forward-looking statements made on this call are based on currently available information and speak only as of the date of this call, and the company undertakes no obligation to update any forward-looking statement that becomes untrue because of subsequent events or new information or otherwise.

During today's conference call, we may refer to both GAAP and non-GAAP financial measures. For information regarding non-GAAP measures and comparable GAAP measures of the company's results and a quantitative reconciliation of those figures, please refer to today's earnings press release, which has been furnished to the SEC as an exhibit to a current report on Form 8-K.

Before turning the call over to Deepak to discuss the company's general business and operations, I'll take a few minutes to provide a high-level financial overview of the second quarter results. First, we reported record second quarter fiscal 2020 revenues of $305 million, a 1% year-over-year increase. The key driver for the increased revenues was the strength of our Security division sales, which was partially offset by soft Healthcare division sales.

Second, we reported a record Q2 GAAP diluted earnings per share of $1.12 compared to $1.03 in the