OSI Systems, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended December 31, 2015. For the quarter, the company reported revenues of $197,339,000 against $257,829,000 a year ago. Income from operations was $781,000 against $26,061,000 a year ago. Income before income taxes was $158,000 against $25,229,000 a year ago. Net income was $108,000 against $18,241,000 a year ago. Diluted earnings per share were $0.01 against $0.89 a year ago. During the second fiscal quarter, cash flow used in operations was $5.3 million. Second quarter results were further impacted by the deferral of revenue recognition for equipment shipped during the quarter. On Non-GAAP basis, net income was $8,149,000 or $0.40 per share against $19,744,000 or $0.96 per share a year ago. The change in EPS was largely driven by the decline in sales in Healthcare division, which carries the highest contribution margin of 3 divisions along with the decrease in sales in Security division, coupled with other factors in this division. Operating cash flow less capital expenditures, was negative $8 million for the quarter as working capital requirements increased to build inventory to support the company's significant backlog in the Security division and the timing of collections led to higher day sales outstanding or DSO. Capital expenditures were $2.4 million.

For the six months, the company reported revenues of $397,389,000 against $476,226,000 a year ago. Income from operations was $16,478,000 against $42,725,000 a year ago. Income before income taxes was $15,061,000 against $41,029,000 a year ago. Net income was $10,913,000 against $29,490,000 a year ago. Diluted earnings per share were $0.53 against $1.44 a year ago. EBITDA was $74,813,000 against $58,852,000 a year ago. On Non-GAAP basis, net income was $18,954,000 or $0.93 per share against $31,506,000 or $1.54 per share a year ago.

For 2016, the company expects sales guidance is $900 million - $945 million and earnings guidance is $2.95 to $3.20 per diluted share, excluding the impact of impairment, restructuring and other charges.