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Market: NASDAQ
Sector: Medical
EPIC: OSIS
Latest Price: 64.29  (1.45% Ascending)
52-week High: 67.92
52-week Low: 31.78
Market Cap: 1,276.46M
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OSI Systems
www.osi-systems.com

OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications.

Full OSI Systems profile here
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OSI Systems rallies on $400 mln contract with Mexico customs authority

18th Jan 2012, 12:11 pm by Brad Lemaire
OSI Systems rallies on $400 mln contract with Mexico customs authority

OSI Systems (NASDAQ:OSIS) has won a six-year contract valued at $400 million to provide turnkey screening services to Mexico’s tax and customs authority, the company said Wednesday.

Rapiscan Systems, a unit of OSI, will execute a number of cargo and vehicle security screening systems and services across Mexico.

Servicio de Administracion Tributaria, also known as SAT, awarded the six-year authorization.

OSI said it was chosen to conduct the program after a "thorough and competitive" tender process. It is the sole provider for this agreement and depending on scope and finalization of the program, the award's value may increase, the company said.

The company, which is U.S.-based, saw its shares rise 6.12 percent, climbing to $53.59 each Wednesday morning on the Nasdaq.

Under the program, Rapiscan will offer an x-ray screening program that incorporates technology, staff, systems integration and maintenance support sites networked throughout Mexico.

These operational capabilities are expected to "significantly" improve the Mexican government authorities' ability to interdict contraband and undeclared materials in ports of entry, inland checkpoints and airports.

The award is OSI’s second major win to provide turnkey screening services, which follows a 10-year award from the Puerto Rico Ports Authority.

"There is a growing need and trend to increase the level of cargo screening worldwide [as] only a small percentage of the world’s cargo volume is currently inspected," chief executive Deepak Chopra said in Wednesday’s statement.

"The combination of the magnitude, scope, and duration of the SAT award is unprecedented not only for us but for the entire security industry. This unique service model will result in significant recurring revenue for OSI Systems for the duration of the program."

OSI Systems, together with its subsidiaries, makes and designs electronic systems and components for homeland security, healthcare, defence and aerospace markets worldwide.

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