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PORTLAND, OR, Jul 25, 2007 (MARKET WIRE via COMTEX News Network) -- FLIR Systems, Inc. (NASDAQ: FLIR) today announced financial results
for the quarter ended June 30, 2007. Revenue was $184.3 million, up
33% compared to second quarter 2006 revenue of $138.6 million.
Operating income for the quarter was $41.2 million, up 42% from $29.0
million in the second quarter of 2006. Net income for the quarter
was $29.1 million, or $0.38 per diluted share, compared with net
income of $21.4 million, or $0.28 per diluted share, in the second
quarter a year ago.
Revenue from the Company's Government Systems division increased 45%
over the second quarter of 2006, to $90.0 million, driven by strength
across all served markets, including airborne, land, and maritime.
Revenue from the Company's Commercial Vision Systems division
increased 49% over the second quarter of last year, to $36.9 million,
reflecting growth across all major product lines. Revenue from the
Company's Thermography division increased 11% over the second quarter
of last year, to $57.4 million, primarily due to strong demand in
both the upper and lower ends of the market.
The backlog of firm orders for delivery within the next twelve months
was approximately $311 million at June 30, 2007, an increase of $31
million from $280 million at March 31, 2007. Backlog in the
Government System's division was $245 million, up $29 million during
the quarter, primarily due to orders for stabilized, multi-sensor
systems for the U.S. military. Backlog in the Commercial Vision
System's division was $54 million, up $2 million during the quarter.
Backlog in the Thermography division was $11 million, flat with the
prior quarter. The Thermography division operates primarily on a
book and ship basis, and thus carries minimal backlog relative to
revenue.
Cash used in operations during the quarter was $4 million, as net
income for the quarter was offset by tax payments and increases in
accounts receivable and inventory. At June 30, 2007, cash and cash
equivalents were $152 million, down $1 million from $153 million at
March 31, 2007.
"Overall, the successful start to the year we experienced last
quarter continued throughout the second quarter," noted Earl 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 at $311 million.
Based on the quarter's results, and the expectations for the
remainder of the year, we are once again 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 $730 million to $750 million,
and net earnings to be in the range of $1.64 to $1.70 per diluted
share, which includes stock-based compensation expense of
approximately $15.2 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 #4675050 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 Six Months Ended
June 30, June 30,
-------------------- ---------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Revenue $ 184,296 $ 138,550 $ 345,659 $ 255,889
Cost of goods sold 85,150 64,639 156,691 121,130
--------- --------- --------- ---------
Gross profit 99,146 73,911 188,968 134,759
Operating expenses:
Research and development 17,915 15,166 35,931 30,395
Selling, general and
administrative 40,068 29,696 75,892 56,449
--------- --------- --------- ---------
Total operating expenses 57,983 44,862 111,823 86,844
Earnings from operations 41,163 29,049 77,145 47,915
Interest expense 2,564 1,953 5,304 3,877
Other income, net (1,169) (2,725) (3,578) (3,426)
--------- --------- --------- ---------
Earnings before income taxes 39,768 29,821 75,419 47,464
Income tax provision 10,683 8,410 20,070 13,394
--------- --------- --------- ---------
Net earnings $ 29,085 $ 21,411 $ 55,349 $ 34,070
========= ========= ========= =========
Net earnings per share:
Basic $ 0.44 $ 0.31 $ 0.83 $ 0.49
--------- --------- --------- ---------
Diluted $ 0.38 $ 0.28 $ 0.73 $ 0.45
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 66,742 69,109 66,394 69,136
--------- --------- --------- ---------
Diluted 78,913 80,801 78,402 81,001
--------- --------- --------- ---------
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
June 30, December 31,
2007 2006
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 151,624 $ 138,623
Accounts receivable, net 173,556 167,502
Inventories, net 162,951 135,928
Prepaid expenses and other current assets 44,716 29,155
Deferred income taxes, net 15,578 15,262
-------------- --------------
Total current assets 548,425 486,470
Property and equipment, net 104,148 92,156
Deferred income taxes, net 1,811 3,687
Income taxes receivable 1,988 --
Goodwill 159,710 159,802
Intangible assets, net 40,375 40,917
Other assets 14,583 15,116
-------------- --------------
$ 871,040 $ 798,148
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 22,000 $ 45,500
Accounts payable 47,100 40,608
Deferred revenue 17,446 13,709
Accrued payroll and related liabilities 28,340 25,831
Accrued product warranties 5,408 5,174
Advance payments from customers 8,312 10,064
Other current liabilities 12,026 12,149
Accrued income taxes 501 17,331
Current portion of long-term debt 7 7
-------------- --------------
Total current liabilities 141,140 170,373
Long-term debt 207,458 207,024
Deferred tax liability, net 4,816 2,392
Accrued income taxes 5,778 --
Pension and other long-term liabilities 20,271 19,607
Commitments and contingencies
Shareholders' equity 491,577 398,752
-------------- --------------
$ 871,040 $ 798,148
============== ==============
Tony Trunzo
+1 503.498.3547
www.flir.com
