TODAY ANALYST COMMENTS ON CChttp://today.reuters.com/news/articlein ... ticlePage3"There are two things that are impacting guidance for the first quarter. The first is timing of shipments within their security business; the second is seasonal trends in their healthcare," Roth Capital Partners analyst Joshua Jabs said by phone.
However, Jabs reiterated his "buy" rating on the stock, citing the strength in the company's security business and continued room for margin improvements.
The share pullback was a buying opportunity, the analyst said in a note to clients.Morgan Keegan analyst Brian Ruttenbur said, "The outlook actually wasn't that bad. It was a little bit shy of what people were looking for."
Ruttenbur cited slightly higher-than-expected selling, general and administrative expenses as well as higher research and development costs for the forecast falling short of expectations.
"This is a good company that is turning around, the problem is it is not turning as quick as some of us thought."
Ruttenbur maintained his "outperform" rating on the stock
QUARTERLY AND FISCAL 2008 OUTLOOK
OSI Systems said it expects first-quarter loss to be significantly less than the loss of 36 cents a share in the year ago period. Analysts were expecting a profit of 2 cents a share, before items, according to Reuters Estimates.
The company forecast first-quarter net sales of $125 million to $130 million, which was below analysts' consensus view of $137.5 million.
For fiscal 2008, OSI expects net sales of $580 million to $595 million. Analysts expect revenue of $600.3 million.
QUARTERLY PROFIT
OSI Systems reported fourth-quarter net income of $4.3 million, or 24 cents a share, compared with $0.7 million, or 4 cents a share, a year ago.
Revenue for the quarter rose 22 percent to $152.8 million.
Analysts on average expected the company to earn 20 cents a share, excluding exceptional items, on revenue of $156.4 million.