OSI Systems, Inc. (OSIS) is already seeing the majority of its growth from X-ray inspection equipment in U.S. airports; however, the company is also eyeing the international market for large cargo inspection equipment and has secured a $ 1 billion contract in Mexico for the screening of cargo containers and tractor trailers, says Brian W. Ruttenbur, Managing Director at CRT Capital Group LLC.
“OSI Systems is a company that about half their business and the majority of their growth comes from security equipment. That’s X-ray inspection equipment; that division is under the name Rapiscan, and you’ll recognize them from U.S. airports. They have about 50% market share in U.S. airports,” Ruttenbur said.
FOR MORE INFORMATION ABOUT THIS INTERVIEW CLICK HERE.
Though OSIS is seeing success domestically, the company is also seeing major growth in the international markets with its cargo inspection equipment, Ruttenbur says. He points to the company’s contract in Mexico, where OSIS is on track to take over and screen all large cargo coming into the country.
“They make large cargo inspection equipment for tractor trailers and for cargo containers, and they are in the process of taking over and screening all the cargo containers and tractor trailers entering Mexico. That’s a $1 billion contract; that’s large, and it’s going to produce very large margins for them. They have already taken over the screening in Puerto Rico. There’s going to be growth in that as countries look to secure their own ports and borders from drugs, currency and weapons trafficking,” Ruttenbur said.
Biotech with a $2 Billion Market Cap has a $10 Billion Wet AMD Treatment in Development
April 10, 2019
Petroleo Brasileiro Petrobras SA (PBR) Repels Oil Service Companies with Contract-Renewal Obstacles
February 25, 2013
Norepinephrine Control Drug Leads to Department of Defense Contract for this Biotech Stock
October 10, 2019
Norfolk Southern Corp. (NSC): Railroads Secularly Increase Overall Cargo Despite Coal’s Cyclical Changes
March 13, 2013
Orbital Sciences Corp (ORB) Grows Satellite and Space-Cargo Business Organically
May 24, 2013
