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PORTLAND, OR, Oct 25, 2007 (MARKET WIRE via COMTEX News Network) -- FLIR Systems, Inc. (NASDAQ: FLIR) today announced financial results
for the third quarter ended September 30, 2007. Revenue was $191.1
million, up 43% compared to third quarter 2006 revenue of $133.2
million. Operating income for the quarter was $51.8 million, up 53%
from $34.0 million in the third quarter of 2006. Net income for the
quarter was $34.8 million, or $0.45 per diluted share, compared with
net income of $27.1 million, or $0.36 per diluted share, in the third
quarter a year ago.
Year-to-date revenue for the nine months ended September 30, 2007 was
$536.8 million, up 38% compared to $389.1 million for the first nine
months of 2006. Operating income for the first nine months of 2007
was $129.0 million, up 58% from $81.9 million during the first nine
months of 2006. Net income for the first nine months of 2007 was
$90.1 million, or $1.18 per diluted share, compared with net income
of $61.1 million, or $0.80 per diluted share, in the first nine
months a year ago.
Revenue from the Company's Government Systems division increased 70%
over the third quarter of 2006, to a record $96.9 million, driven by
strength across all served markets, including airborne, land, and
maritime. Revenue from the Company's Commercial Vision Systems
division increased 29% over the third quarter of last year, to $34.2
million, reflecting strong growth in the security and transportation
markets. Revenue from the Company's Thermography division increased
21% over the third quarter of last year, to $60.0 million, due to
strong demand for the InfraCAM™ and GasFindIR™ product lines
and the introduction of the new T-Series product line.
The backlog of firm orders for delivery within the next twelve months
was approximately $393 million at September 30, 2007, an increase of
$82 million from $311 million at June 30, 2007. Backlog in the
Government System's division was $316 million, up $71 million during
the quarter, due to orders for a wide variety of products for both
U.S. and international customers. Backlog in the Commercial Vision
System's division was $59 million, up $5 million during the quarter.
Backlog in the Thermography division was $18 million, up $7 million
during the quarter, primarily due to orders for the company's
GasFindIR™ and new ThermaCam™ T-Series products.
Cash provided by operations during the quarter was $31 million,
primarily due to the net income earned during the quarter. At
September 30, 2007, cash and cash equivalents were $170 million, up
$18 million from $152 million at June 30, 2007.
The Company announced today it has entered into an agreement to
acquire the stock of Extech Instruments Corporation, a supplier of
test and measurement equipment based in Waltham, MA, for $40 million
cash, subject to certain closing adjustments. For the year ending
December 31, 2006, Extech reported revenue of $39.2 million. The
addition of Extech will expand FLIR's access to key distribution
channels for its emerging low-price Thermography products and provide
access to low-cost manufacturing in Asia. The transaction is subject
to various standard closing conditions and is expected to close in
the fourth quarter, and be neutral to earnings in 2008, and accretive
in subsequent years.
The Company also announced today that its Board of Directors has
approved a two-for-one split of its common stock. As a result of the
stock split, shareholders will receive one additional share of common
stock for every share held on the record date of November 12, 2007.
The additional shares will be distributed on or about December 10,
2007 by the Company's transfer agent, Mellon Investor Services.
"Q3 was another outstanding quarter for the Company, as we set
quarterly records for orders, backlog, and revenue," noted Earl Lewis,
President and CEO. "Demand was excellent across all three divisions,
backlog increased by $82 million, and operating income improved to
27%. In addition, we have recently announced two strategic
acquisitions that augment our existing business and position the
Company for growth in key markets. 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 $755 million to $770 million,
and net earnings to be in the range of $1.73 to $1.78 per diluted
share. This guidance assumes a tax rate for the year of
approximately 29%, and an average share count of approximately 80
million diluted shares.
Conference Call
FLIR has scheduled a conference call at 9:00 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, Conference ID# 18377731 after 1:00 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, the statements
regarding the acquisition of Extech Instruments Corporation, and its
expected effect on the Company's financial results for 2008 and
subsequent years, 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: the possibility that the
Extech transaction will not close or that the closing may be delayed,
the possibility that the Company will experience difficulties in the
integration of the operations, employees, strategies, technologies
and products of Extech if the transaction does close, the potential
inability to realize expected benefits and synergies from the Extech
transaction, 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 Company's
continuing compliance with US export control laws and regulations,
the timely receipt of export licenses for international shipments,
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.
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 Nine Months Ended
September 30, September 30,
-------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Revenue $ 191,104 $ 133,212 $ 536,763 $ 389,101
Cost of goods sold 84,081 57,501 240,772 178,631
--------- --------- --------- ---------
Gross profit 107,023 75,711 295,991 210,470
Operating expenses:
Research and development 15,692 13,928 51,623 44,323
Selling, general and
administrative 39,508 27,816 115,400 84,265
--------- --------- --------- ---------
Total operating expenses 55,200 41,744 167,023 128,588
Earnings from operations 51,823 33,967 128,968 81,882
Interest expense 2,245 2,266 7,549 6,143
Other income, net (957) (1,448) (4,535) (4,874)
--------- --------- --------- ---------
Earnings before income taxes 50,535 33,149 125,954 80,613
Income tax provision 15,770 6,079 35,840 19,473
--------- --------- --------- ---------
Net earnings $ 34,765 $ 27,070 $ 90,114 $ 61,140
========= ========= ========= =========
Net earnings per share:
Basic $ 0.51 $ 0.40 $ 1.35 $ 0.89
========= ========= ========= =========
Diluted $ 0.45 $ 0.36 $ 1.18 $ 0.80
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 67,565 67,478 66,788 66,577
========= ========= ========= =========
Diluted 79,768 79,052 78,946 80,256
========= ========= ========= =========
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
September 30, December 31,
2007 2006
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 169,943 $ 138,623
Accounts receivable, net 177,834 167,502
Inventories, net 174,352 135,928
Prepaid expenses and other current assets 60,688 29,155
Deferred income taxes, net 15,684 15,262
-------------- --------------
Total current assets 598,501 486,470
Property and equipment, net 113,885 92,156
Deferred income taxes, net 2,600 3,687
Goodwill 163,038 159,802
Intangible assets, net 36,450 40,917
Other assets 17,723 15,116
-------------- --------------
$ 932,197 $ 798,148
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ -- $ 45,500
Accounts payable 53,302 40,608
Deferred revenue 19,453 13,709
Accrued payroll and related liabilities 34,347 25,831
Accrued product warranties 5,597 5,174
Advance payments from customers 7,868 10,064
Other current liabilities 14,383 12,149
Accrued income taxes -- 17,331
Current portion of long-term debt 7 7
-------------- --------------
Total current liabilities 134,957 170,373
Long-term debt 207,672 207,024
Deferred tax liability, net 4,667 2,392
Accrued income taxes 7,677 --
Pension and other long-term liabilities 20,823 19,607
Commitments and contingencies
Shareholders' equity 556,401 398,752
-------------- --------------
$ 932,197 $ 798,148
============== ==============
Tony Trunzo
+1 503.498.3547
www.flir.com
