Press Release

<< Back
Apr 24, 2008
FLIR Systems Announces First Quarter 2008 Financial Results

PORTLAND, OR, Apr 24, 2008 (MARKET WIRE via COMTEX News Network) -- FLIR Systems, Inc. (NASDAQ: FLIR) today announced financial results for the first quarter ended March 31, 2008. Revenue was $236.9 million, up 47% compared to first quarter 2007 revenue of $161.4 million. Excluding the impact of the previously announced acquisitions of Extech Instruments and Cedip Infrared Systems, revenue increased by 35% compared to the first quarter of 2007. Operating income for the quarter was $55.1 million, up 53% from $36.0 million in the first quarter of 2007. Net income for the quarter was $37.3 million, or $0.24 per diluted share, compared with net income of $26.3 million, or $0.18 per diluted share on a split-adjusted basis, in the first quarter a year ago.

Revenue from the Company's Government Systems division increased 40% over the first quarter of 2007, to $113.7 million, driven by strength across all served markets, including airborne, land, and maritime. Revenue from the Company's Commercial Vision Systems division increased 67% over the first quarter of last year, to a record $43.7 million, reflecting strong growth across all served markets. Revenue from the Company's Thermography division increased 47% over the first quarter of last year, to $79.5 million. Excluding the impact of the Extech Instruments and Cedip Infrared Systems acquisitions, Thermography revenue increased 17% during the first quarter, reflecting strong demand for the T-Series, R&D, and GasFindIR(TM) product lines. Revenue contribution to other divisions related to the Cedip and Extech acquisitions was not significant.

The backlog of firm orders for delivery within the next twelve months was approximately $471 million at March 31, 2008, an increase of $78 million compared with backlog at December 31, 2007. Backlog in the Government System's division was $371 million, up $66 million during the quarter due to strong order activity both in the U.S. and internationally. Backlog in the Commercial Vision System's division was $80 million, up $12 million during the quarter. Backlog in the Thermography division was $20 million, flat with the prior quarter. Backlog of $17 million was acquired during the quarter as a result of the Cedip acquisition, primarily in the Commercial Vision Systems and Government Systems divisions, respectively.

Cash provided by operations during the quarter was a record $55.2 million. Cash used during the quarter included $68.2 million net for the acquisition of Cedip Infrared Systems, $19.0 million to repay the remaining balance on a credit facility, and $17.8 million to repurchase 700,000 shares of FLIR common stock. At March 31, 2008, cash and cash equivalents were $159.1 million, compared with $203.7 million at December 31, 2007.

"We are quite pleased with the start to the year. Our first quarter financial performance was very good and our long-term strategies continue to deliver results," noted Earl R. Lewis, President and CEO. "Demand was excellent, particularly in our Government Systems and Commercial Vision Systems divisions, as backlog at the end of the quarter again set a record. Based on the quarter's results, and the expectations for the remainder of the year, we are reaffirming our outlook for strong growth in 2008."

Revenue and Earnings Outlook for 2008

Based on its financial results for the first quarter of 2008, and the outlook for the remainder of the year, management today is reaffirming its outlook for revenue and earnings per share for the full year 2008. Management currently expects revenue for 2008 to be in the range of $1 billion to $1.05 billion, and net earnings to be in the range of $1.13 to $1.20 per diluted share.

Conference Call

FLIR has scheduled a conference call at 11:00 am EDT today. A simultaneous webcast will be available from the Investor Relations link at A replay will be available after 2:30 PM EDT at this same internet address. For a telephone replay, dial (800) 642-1687, Conference ID #40744334 after 2:30 PM EDT.

About FLIR Systems

FLIR Systems, Inc. is a world leader in the design, manufacture, and marketing of thermal imaging and stabilized camera systems for a wide variety of thermography and imaging applications including condition monitoring, research and development, manufacturing process control, airborne observation and broadcast, search and rescue, drug interdiction, surveillance and reconnaissance, navigation safety, border and maritime patrol, environmental monitoring and ground-based security. Visit the Company's web site at

Forward-Looking Statements

The statements in this release by Earl R. Lewis and the statements in the section captioned "Revenue and Earnings Outlook for 2008" above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: the possibility that the Company will experience difficulties in the integration of the operations, employees, strategies, technologies and products of Extech or Cedip, the potential inability to realize expected benefits and synergies from the Extech or Cedip transactions, changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, the Company's continuing compliance with US export control laws and regulations, the timely receipt of export licenses for international shipments, constraints on supplies of critical components, excess or shortage of production capacity, the ability to manufacture and ship the products in the time period required, actual purchases under agreements, the continuing eligibility of the Company to act as a federal contractor, the amount and availability of appropriated government procurement funds and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes made to this document by wire services or Internet service providers.

                             FLIR SYSTEMS, INC.
           (In thousands, except per share amounts) (Unaudited)
                                                      Three Months Ended
                                                           March 31,
                                                       2008        2007
                                                   ----------   ----------
Revenue                                            $  236,906   $  161,363
Cost of goods sold                                    106,111       71,541
                                                   ----------   ----------
    Gross profit                                      130,795       89,822
Operating expenses:
  Research and development                             23,110       18,016
  Selling, general and administrative                  52,579       35,824
                                                   ----------   ----------
    Total operating expenses                           75,689       53,840
    Earnings from operations                           55,106       35,982
Interest expense                                        2,471        2,740
Other income, net                                         (18)      (2,409)
                                                   ----------   ----------
    Earnings before income taxes                       52,653       35,651
Income tax provision                                   15,319        9,387
                                                   ----------   ----------
    Net earnings                                   $   37,334   $   26,264
                                                   ==========   ==========
Net earnings per share:
  Basic                                            $     0.27   $     0.20
                                                   ----------   ----------
  Diluted                                          $     0.24   $     0.18
                                                   ==========   ==========
Weighted average shares outstanding:
  Basic                                               136,992      132,084
                                                   ----------   ----------
  Diluted                                             161,488      156,068
                                                   ----------   ----------
                            FLIR SYSTEMS, INC.
                        CONSOLIDATED BALANCE SHEETS
                        (In thousands) (Unaudited)
                                                   March 31,   December 31,
                                                     2008          2007
                                                 ------------  ------------
Current assets:
   Cash and cash equivalents                     $    159,087  $    203,681
   Accounts receivable, net                           208,804       203,371
   Inventories, net                                   196,264       179,366
   Prepaid expenses and other current assets           68,531        58,056
   Deferred income taxes, net                          10,882        11,033
                                                 ------------  ------------
      Total current assets                            643,568       655,507
Property and equipment, net                           129,586       120,873
Deferred income taxes, net                              2,370         2,237
Goodwill                                              177,725       176,230
Intangible assets, net                                 50,812        52,819
Other assets                                           83,379        16,650
                                                 ------------  ------------
                                                 $  1,087,440  $  1,024,316
                                                 ============  ============
Current liabilities:
   Notes payable                                 $      1,835  $     19,000
   Accounts payable                                    63,444        53,990
   Deferred revenue                                    22,534        19,612
   Accrued payroll and related liabilities             34,755        39,431
   Accrued product warranties                           7,807         6,594
   Advance payments from customers                     14,341         9,156
   Other current liabilities                           18,979        14,600
   Accrued income taxes                                 7,640         3,752
   Current portion of long-term debt                        7             7
                                                 ------------  ------------
      Total current liabilities                       171,342       166,142
Long-term debt                                        208,106       207,889
Deferred tax liability, net                             1,950         1,902
Accrued income taxes                                    4,738         4,295
Pension and other long-term liabilities                22,092        20,813
Commitments and contingencies
Shareholders' equity                                  679,212       623,275
                                                 ------------  ------------
                                                 $  1,087,440  $  1,024,316
                                                 ============  ============

Company Contact:
Tony Trunzo
+1 503.498.3547

SOURCE: FLIR Systems, Inc.


Copyright 2008 Market Wire, All rights reserved.

News Provided by COMTEX