March 4, 2013
OSI Systems (NASDAQ: OSIS ) may be on the outs with America's Transportation Security Administration these days, but at least it's still doing good business overseas. On Monday, the X-ray security specialist announced that it has received orders for "approximately $15 million worth of "Rapiscan Eagle high energy X-ray mobile and fixed location cargo and vehicle inspection systems."
Saying only that the orders were placed by "a Middle East customer," OSI kept the identity of its client secret. One hint as to who's placing the order, however, may have come in the form of a Defense Security Cooperation Agency announcement last week, when the DSCA confirmed that it has notified Congress of an impending sale of multiple Rapiscan Eagle vehicles to Iraq.
The Iraq sale announcement included a mix of vehicles from both OSI and rival American Science and Engineering (NASDAQ: ASEI ) . Still, valued at $600 million, the Iraq sale's OSI component seems much larger than the relatively small, $15 million sale announced today. On the other hand, if today's announcement is followed in fairly short order by additional announcements to still more "Middle East customers," the destination of today's shipment should be easy to figure out.
OSI shares closed up 5.7% on today's news, ending Monday trading at $60.89.