OSIS · CIK 1039065
What OSI Systems, Inc. told the SEC could break it.
OSI Systems' disclosures pair customer concentration with an offshore manufacturing base. Its Security division leans on a few big customers — one was 11% of net revenue in fiscal 2025 and a single Security customer was 42% of net accounts receivable — including the U.S. Government (about $182.8 million in direct sales) under contracts generally terminable for convenience, so a budget shift or cancellation would hit revenue and collections. It performs most of its high-volume, labor-intensive manufacturing in Mexico, India, Indonesia and Malaysia, concentrating production in regions exposed to geopolitical disruption. That footprint runs straight into trade policy: because it imports into the U.S. from those plants, it explicitly cites tariffs — alongside raw-material, freight and logistics costs — as a driver pressuring its gross margins.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- Security-division / U.S. Government customer concentration (terminable for convenience)medium
OSI's Security division carries customer concentration: one Security customer was 11% of net revenue in FY2025 (16% and 11% from two customers in FY2024) and a single Security customer represented 42% of net accounts receivable; direct sales to the U.S. Government were ~$182.8M, and U.S. Government contracts are generally terminable for convenience — so a budget shift or contract cancellation would hit Security revenue and collections.
“In fiscal year 2024, two Security division customers accounted for 16 % and 11 % of net revenues, respectively. In fiscal year 2025, one Security division customer accounted for 11 % of net revenues.”
SEC filing →As of 2025
Geographic concentration
- High-volume manufacturing concentrated offshore — Mexico, India, Indonesia, Malaysiamedium
OSI performs most of its high-volume, labor-intensive manufacturing at facilities in Mexico, India, Indonesia and Malaysia (with additional sites in the U.S., Canada and U.K.), concentrating production in regions exposed to tariffs, trade restrictions, export controls and geopolitical disruption that could interrupt supply or raise landed costs.
“Most of our high-volume, labor-intensive manufacturing activities are performed at our facilities in Mexico, India, Indonesia and Malaysia.”
SEC filing →As of 2025
Regulatory & policy
- Tariffs as a manufacturing-cost driver (offshore production imported to U.S.)medium
OSI explicitly cites tariffs (alongside raw-material/component costs, freight and logistics) as a factor affecting gross profit; because it manufactures heavily in Mexico and Asia and imports into the U.S., tariff increases directly raise its product costs and pressure margins.
“Gross profit is impacted by sales volume and changes in overall manufacturing-related costs, such as raw materials and component costs, warranty expense, provision for inventory, freight, tariffs, and logistics.”
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