OSI Says Rapiscan Couldn't Have Manipulated Test Data

Just before the close on Thursday, OSI Systems, Inc.

announced that on November 9, 2012 Rapiscan Systems, its Security division, was delivered a show cause letter from the U.S. TSA. The letter, which pertains to a privacy system Rapiscan was developing under contract for the TSA, alleges that Rapiscan did not disclose issues related to the development process in a timely or complete manner. Contrary to some press reports, Rapiscan did not falsify test data; in fact, TSA testimony to Congress today confirms that this was at all times a government controlled test and that Rapiscan could not have manipulated any test data. Furthermore, the evidence shows that Rapiscan delivered for testing the exact configuration previously disclosed to TSA and which TSA had approved.