OSI Systems, Inc. (the “Company” or “OSI Systems”) (NASDAQ: OSIS) today announced that its Security division was recently awarded an indefinite delivery, indefinite quantity (“IDIQ”) contract by the U.S. Customs and Border Protection (“CBP”) for low-energy portal (“LEP”) x-ray systems. The multiple vendor IDIQ contract has a potential value of up to $390 million and contains a five-year ordering period for systems and associated services. This is in addition to the previously announced $480 million, multi-energy portal (“MEP”) IDIQ contract.
Under the LEP and MEP IDIQ contract awards, the Company received two delivery orders totaling approximately $200 million. The Company could potentially receive up to an additional $65 million under these orders if the CBP exercises its options.
“We are excited to receive the largest orders awarded to date under these IDIQs. We look forward to supporting CBP’s non-intrusive inspection program with our industry-leading Rapiscan, AS&E and S2 Global border security offerings that provide our customers a range of solutions to address continually evolving threats,” said Deepak Chopra, OSI Systems’ Chairman and CEO.
LEPs and MEPs are non-intrusive inspection systems used for screening vehicles at border crossings to find illicit materials. The LEPs are used for passenger vehicle screening, and the Company’s Security division will be supplying the CarView® In-Lane and Z Portal® systems for this order. The MEPs are used for screening commercial trucks and the Company’s Security division will be supplying the Eagle® P60 ZBx inspection system. These systems use a combination of transmission and Z Backscatter® imaging to produce multiple views of the vehicle for efficient detection of contraband and threats. Also included with these orders is the Company’s new Under-Vehicle Backscatter option, which generates images of the underside of cars and trucks. These systems are expected to be deployed with the Company’s CertScan® integration platform for image analysis, data integration and inspection adjudication.
The CertScan® integration platform, currently in use for inspection around the globe and at U.S. CBP border crossings, connects a broad range of inspection technologies and transport related data into an efficient unified workflow. By integrating the new inspection technologies with legacy lane equipment and shipment information, CertScan® facilitates commercial trade crossing the border in a faster and more secure manner.
“We are proud to deliver our most advanced non-intrusive inspection technology, along with an integration platform that is designed to meet the challenges faced at our borders today. We look forward to working closely with CBP as we continue to develop and deploy technology to meet future challenges, and help achieve the mandated 100% scanning requirement at border crossings,” said Ajay Mehra, EVP of OSI Systems and President of Cargo Scanning & Solutions.
About OSI Systems
OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense, and aerospace industries. The Company combines more than 40 years of electronics engineering and manufacturing experience with offices and production facilities in more than a dozen countries to implement a strategy of expansion into selective end product markets. For more information on OSI Systems or its subsidiary companies, visit www.osi-systems.com. News Filter: OSIS-G
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to OSI Systems’ current expectations, beliefs, and projections concerning matters that are not historical facts and include, without limitation, the Company’s statements regarding the potential value of the IDIQ contracts, which provide the Company an opportunity to potentially receive delivery orders up to the value of the IDIQ awards but does not guarantee any additional orders or option exercises over the terms of the contracts.Forward-looking statements are not guarantees of future performance and involve uncertainties, risks, assumptions, and contingencies, many of which are outside OSI Systems’ control, and which may cause actual results to differ materially from those described in or implied by any forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are based on currently available information and speak only as of the date on which they are made. OSI Systems assumes no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws. For a further discussion of factors that could cause OSI Systems’ future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in OSI Systems’ most recently filed Annual Report on Form 10-K and other risks described therein and in documents subsequently filed by OSI Systems from time to time with the Securities and Exchange Commission.
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