OSI Systems, Inc. (NASDAQ:OSIS) Q4 2020 Earnings Conference Call - Final Transcript
Aug 20, 2020 • 04:30 pm ET
Thank you. [Operator Instructions] Our first question comes from Jeff Martin with ROTH Capital Partners. You may proceed with your question.
Thanks. Good afternoon. Just want to commend you for your execution in a very challenging environment, impressive to see what you guys have accomplished. So I wanted to start with that.
Thank you, Jeff.
And then, I wanted to get a sense of some of the -- it sounds like you've got some new market opportunities, biosecurity being one, remote patient monitoring being another, could you give us a sense of how quickly you expect that market to be -- those two markets to become material to OSI?
Jeff, this is Deepak here. The biosecurity we've been working in Australia with the government for the last couple of years, and actually we have multiple RTT systems in various Australian airports. We're actually operating there to check for these kind of things coming into the country, whether it's food products, whether it's animal, things or anything else that could destroy the environment in Australia. New Zealand has caught on to it. There are other countries looking at it and we believe that with the development and the integration together with the Australian government, Agriculture Department, this is all over the globe can have an impact. So, we continue to manage with it is and we think that this is a real revenue maker. And not only that, but as a sale, it could also be a turnkey service that we could apply at ports and other places as an add-on to our install base already.
Regarding your question about the patient monitoring, as you know, you hear -- every day you hear about telehealth, telehealth, telehealth. You've seen some of the activity that's happening, so that remote monitoring is becoming the norm. People don't want to go to the hospitals, people would rather go to an urgent care center or remain at home and get an introduction. And even in a hospital, if the doctor and the nurse does not have to come in contact with the patient and can stand outside and get the data, that's fantastic. And this technology that we bought allows us to look at it. We are going to integrate it, and we think that as the new platforms are launched in the next 12 months, 18 months, this will have a big impact on what we call as the new norm in monitoring patients.
Alan, do you want to add in?
No, that was good.
Okay. Thanks for that. And then, sticking with the Healthcare segment, the strength in Q4, obviously I don't think you want folks to extrapolate that as kind of the run rate level going forward. Was curious if you could help us discern between how much of that 15% growth was improvements in general operations and sales effectiveness in the period versus kind of a one-time uplift from the need of additional patient monitoring from hospitals due to COVID-related demand?