OSI Systems announced a multi‑year contract worth more than $40 million with a leading medical device OEM to supply critical electronic sub‑assemblies through its Optoelectronics and Manufacturing division.
The award adds a predictable revenue stream to a division that grew 15% year‑over‑year to $100.9 million in Q3 FY25, reinforcing the company’s strategy to expand recurring service revenue while maintaining high‑margin product sales.
Management highlighted the contract’s importance: "We are pleased to have been selected by this leading medical device OEM for a significant manufacturing program. This award highlights our capabilities in delivering high‑quality, reliable solutions that support critical healthcare applications. We look forward to continuing to support this customer's needs through our global manufacturing footprint."
The multi‑year nature of the contract provides OSI with a stable revenue source that complements its backlog of more than $1.8 billion at the end of FY2025 and supports the company’s FY2026 revenue guidance of $1.805 billion to $1.850 billion.
The contract reinforces OSI’s presence in the healthcare sector, where it already supplies patient monitoring and diagnostic cardiology solutions, and adds to a portfolio that spans security, optoelectronics, and healthcare.
Historically, OSI has secured sizable medical device contracts, such as a $10.5 million OEM contract in 2006, underscoring its long‑standing capability to win and execute on complex supply‑chain projects.
Overall, the award represents a major operational milestone that strengthens the company’s recurring revenue base and positions it to capture further growth in the high‑growth medical device market.
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