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PORTLAND, OR, Apr 27, 2007 (MARKET WIRE via COMTEX News Network) -- FLIR Systems, Inc. (NASDAQ: FLIR) today announced financial results
for the quarter ended March 31, 2007. Revenue was $161.4 million, up
38% compared to first quarter 2006 revenue of $117.3 million.
Operating income for the quarter was $36.0 million, up 91% from $18.9
million in the first quarter of 2006. Net income for the quarter was
$26.3 million, or $0.35 per diluted share, compared with net income
of $12.7 million, or $0.17 per diluted share, in the first quarter a
year ago.
Revenue from the Company's Thermography division increased 19% over
the first quarter of 2006, to $54.0 million, due primarily to strong
demand in the InfraCAM®, P-Series® and E-Series® product lines.
Revenue from the Company's Government Systems division increased by
52% to $81.2 million, driven by strength across all served markets,
including airborne, land, and maritime. Revenue from the Company's
Commercial Vision Systems division increased 42% over the first
quarter of last year, to $26.2 million, reflecting growth across
numerous product lines.
The backlog of firm orders for delivery within the next twelve months
was approximately $280 million at March 31, 2007, an increase of $6
million during the quarter. Backlog in the Government System's
division was $216 million, down slightly from $220 million at
December 31, 2006, as deliveries and orders were both strong.
Backlog in the Commercial Vision System's division was $53 million,
up $11 million during the quarter due primarily to strong demand for
its security and surveillance product lines. Backlog in the
Thermography division was $11 million, down $1 million during the
quarter. The Thermography division operates primarily on a book and
ship basis, and thus carries minimal backlog relative to revenue.
Cash flow from operations for the quarter was $34 million. At March
31, 2007, cash and cash equivalents were $153 million, up $14 million
from $139 million at December 31, 2006.
"Each of our three divisions had an excellent start to the year,"
noted Earl Lewis, President and CEO. "New product introductions,
expanding distribution channels and lower price points drove rapid
volume growth in our commercial businesses, while demand in our
Government Systems division remained strong. Based on the quarter's
results, and the expectations for the remainder of the year, we are
increasing our guidance for the year."
Updated Revenue and Earnings Outlook for 2007
Based on the financial results for the quarter, and the outlook for
the remainder of the year, the Company is increasing its revenue and
earnings guidance for 2007. The Company currently expects net revenue
in fiscal 2007 to be in the range of $690 million to $710 million,
and net earnings to be in the range of $1.58 to $1.63 per diluted
share, which includes stock-based compensation expense of
approximately $15.6 million, or $0.14 per diluted share. This
guidance assumes a tax rate for the year of approximately 28%, and an
average share count of approximately 80 million diluted shares.
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 www.FLIR.com. A replay will be available after 1:00 PM EDT at
this same internet address. For a telephone replay, dial (800)
642-1687, reservation #4918564 after 2:00 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 www.FLIR.com.
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in
the section captioned "Updated Revenue and Earnings Outlook for 2007"
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: changes
in demand for the Company's products, product mix, the timing of
customer orders and deliveries, the ability to manufacture and deliver
the products in the time period required, 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,
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.
Company Contact: SOURCE: FLIR Systems, Inc.
http://www.flir.com FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
Three Months Ended
March 31,
--------------------
2007 2006
--------- ---------
Revenue $ 161,363 $ 117,339
Cost of goods sold 71,541 56,491
--------- ---------
Gross profit 89,822 60,848
Operating expenses:
Research and development 18,016 15,229
Selling, general and administrative 35,824 26,753
--------- ---------
Total operating expenses 53,840 41,982
Earnings from operations 35,982 18,866
Interest expense 2,740 1,924
Other income, net (2,409) (701)
--------- ---------
Earnings before income taxes 35,651 17,643
Income tax provision 9,387 4,984
--------- ---------
Net earnings $ 26,264 $ 12,659
========= =========
Net earnings per share:
Basic $ 0.40 $ 0.18
========= =========
Diluted $ 0.35 $ 0.17
========= =========
Weighted average shares outstanding:
Basic 66,042 69,163
========= =========
Diluted 78,034 81,311
========= =========
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
March 31, December 31,
2007 2006
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 153,463 $ 138,623
Accounts receivable, net 153,727 167,502
Inventories, net 149,561 135,928
Prepaid expenses and other current assets 29,798 29,155
Deferred income taxes, net 15,641 15,262
---------- ----------
Total current assets 502,190 486,470
Property and equipment, net 95,790 92,156
Deferred income taxes, net 1,136 3,687
Income taxes receivable 2,030 --
Goodwill 159,486 159,802
Intangible assets, net 39,032 40,917
Other assets 14,967 15,116
---------- ----------
$ 814,631 $ 798,148
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable: $ 28,500 $ 45,500
Accounts payable 45,164 40,608
Deferred revenue 15,709 13,709
Accrued payroll and related liabilities 26,331 25,831
Accrued product warranties 5,262 5,174
Advance payments from customers 9,481 10,064
Other current liabilities 13,208 12,149
Accrued income taxes 1,685 17,331
Current portion of long-term debt 7 7
---------- ----------
Total current liabilities 145,347 170,373
Long-term debt 207,241 207,024
Deferred tax liability, net 4,867 2,392
Accrued income taxes 5,872 --
Pension and other long-term liabilities 19,868 19,607
Commitments and contingencies
Shareholders' equity 431,436 398,752
---------- ----------
$ 814,631 $ 798,148
========== ==========
Tony Trunzo
+1 503.498.3547
www.flir.com
