OSI Systems , Inc. (NASDAQ:OSIS), a manufacturer of electronic systems and components with a market capitalization of $3.09 billion and annual revenue of $1.6 billion, has announced the expansion of its Board of Directors and an amendment to an executive agreement, according to a recent SEC filing. According to InvestingPro data, the company has demonstrated strong financial performance, with robust profit margins and significant stock appreciation of over 45% year-to-date.
On Thursday, the Board voted to increase its size by one seat, effective January 1, 2025, bringing the total number of directors to seven. Ajay Mehra has been appointed to fill this new position. Mehra, who is currently the Executive Vice President and President of the Security division, will join the Board in the new year. His professional background is detailed in the company's proxy statement from October 25, 2024.
Additionally, Mehra does not hold any material interest in transactions with OSI Systems that would require disclosure. It is noted, however, that he is the first cousin of Deepak Chopra, the company's current President and CEO.
In conjunction with his board appointment, OSI Systems has entered into an amended employment agreement with Mehra, which will also take effect on January 1, 2025. Under the new terms, Mehra will serve as President and Chief Executive Officer with an initial annual base salary of $750,000.
The amendment outlines compensation and benefits in the event of termination, including severance payments, car allowance, outplacement services, and acceleration of vesting for stock options and other incentive awards. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 1.84, indicating solid liquidity to meet short-term obligations.
The company's stockholders held their Annual Meeting on Thursday, re-electing six directors to the Board and approving the appointment of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending June 30, 2025. Additionally, an advisory vote on executive compensation for the past fiscal year was conducted, with results included in the filing.
This news is based on the latest 8-K filing by OSI Systems with the Securities and Exchange Commission. The stock is currently trading near its 52-week high of $189.02, with InvestingPro subscribers having access to 10+ additional exclusive insights about OSI Systems' valuation, growth prospects, and financial health. Get the complete picture with InvestingPro's comprehensive research report, available for over 1,400 US stocks.
In other recent news, OSI Systems has been experiencing significant developments. The company reported a robust start to fiscal year 2025, with a 23% increase in revenue to $344 million, primarily driven by its Security division, and non-GAAP adjusted earnings per share of $1.25. OSI Systems has also raised its revenue guidance for fiscal '25 to between $1.67 billion and $1.695 billion, and non-GAAP diluted EPS guidance to $9 to $9.30 per share.
The company has seen leadership changes with the appointment of Ajay Mehra as the new President and Chief Executive Officer, succeeding Deepak Chopra, who will become the Executive Chairman of the Board. This appointment follows Mehra's successful tenure as the President of the company's Security division and Executive Vice President.
In addition, OSI Systems has secured a $6 million order from a leading healthcare equipment manufacturer for the provision of optical sensors. Another significant order of $6 million was secured from a U.S. hospital system for patient monitoring solutions. These orders demonstrate the company's ongoing commitment to its customers and its capability to meet specialized needs in the healthcare industry.
Oppenheimer has raised the company's target to $205 from $175, indicating a positive outlook for OSI Systems. The analyst from Oppenheimer highlighted Mehra's significant contributions to OSI's development into a leading global provider of ports and borders security screening solutions.
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