OSI Systems Provides Update on TSA Order Termination

OSI Systems

today announced that its security division, Rapiscan Systems, provided an update on the delivery order recently terminated by the U.S. Transportation Security Administration (TSA). The Company believes the termination resulted from Rapiscan's use of an upgraded component in the AT-2 detection systems. While the component change was vetted by Rapiscan's internal quality assurance, it did not meet the contractual requirement of obtaining TSA's approval in advance. When Rapiscan leadership discovered the error, they proactively informed TSA of the configuration change, the related procedural lapse and proposed a course for corrective action. OSI Systems Chief Executive Officer, Deepak Chopra, commented, “The referenced component is the X-ray generator, an electrical component