OSI Systems, Inc. (NASDAQ:OSIS) Q4 2020 Earnings Conference Call - Final Transcript
Aug 20, 2020 • 04:30 pm ET
Ladies and gentlemen thank you for standing by and welcome to the OSI Systems, Inc. Fourth Quarter and Fiscal Year 2020 Conference Call. [Operator Instructions] Please be advised that today's conference maybe recorded. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Alan Edrick, Chief Financial Officer. Please go ahead sir.
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 fourth quarter and year-end conference call. We are glad that you can join us. We hope you and your families are safe and healthy as the global community continues to battle the COVID-19 pandemic. Earlier today, we issued a press release announcing our fourth quarter and fiscal year '20 financial results.
Before we discuss the results, I would like to remind everyone that today's discussion will include forward-looking statements and the company wishes to take advantage of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to all such statements. All forward-looking statements made on this call are based on currently available information and the company undertakes no obligation to update any forward-looking statement based on subsequent events or new information or otherwise.
During today's call, we'll refer to both GAAP and non-GAAP financial measures when describing the company's results. For information regarding non-GAAP measures and GAAP measures of the company's results and a quantitative reconciliation of those figures, please refer to today's earnings release.
With that being said, I will begin with a summary of our financial performance and then Deepak will take over the discussion. I will then return to finish with more detail regarding our financial results and to discuss our outlook for fiscal 2021.
First, we are quite pleased by the efforts of our global team that has risen to the occasion to meet the needs of our customers and our partners, while emphasizing safety among our team members during this challenging time. These efforts resulted in our non-GAAP Q4 earnings per share coming in at the upper end of the guidance we provided in April despite the adverse impact on revenues of the pandemic.
Second, we continue to drive operating margin expansion as our Q4 year-over-year adjusted operating margin increased from 11.1% to 12.3%. Third, our cash flow is substantial both during Q4 and for the full year. We have consistently demonstrated strong cash flow conversion and delivered a solid $129 million of operating cash flow in fiscal 2020. Our balance sheet is strong. It is our goal to be active in capitalizing on acquisition and other strategic opportunities, while simultaneously investing for the future. In addition, as part of our capital allocation strategy, our Board authorized an increase of 2 million shares to our stock buyback program. And finally, our Q4 book-to-bill ratio was a solid 1.0 during these challenging times. And we