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PORTLAND, OR, Apr 26, 2006 (MARKET WIRE via COMTEX News Network) -- FLIR Systems, Inc. (NASDAQ: FLIR) announced today that revenue for
the quarter ended March 31, 2006 increased by 8% to $117.3 million,
compared with revenue of $108.3 million in the first quarter of 2005.
Earnings from operations declined 11% due to the impact of expensing
stock based compensation, higher selling and marketing costs related
to certain new product introductions, and higher research and
development expenses related to accelerated efforts on certain
program developments. Net earnings per fully diluted share declined
by 11% to $0.17, compared with $0.19 in the first quarter of 2005 due
to the above factors and a higher than anticipated tax rate.
Revenue from the Company's Thermography Division increased 10% over
the first quarter last year, primarily due to strong demand for
InfraCAM®, the Company's new low price thermal imaging camera.
Revenue from the Company's Imaging Division increased by 7% as strong
sales of large airborne systems and good demand from OEM customers
offset delays on certain program shipments. The backlog of funded
orders for delivery within the next twelve months was $201 million at
March 31, 2006, compared to $193 million at December 31, 2005.
Cash generated from operations totaled a record $34 million for the
first quarter of 2006, due to strong collections following high fourth
quarter 2005 revenue. At March 31, 2006, the Company had cash and
cash equivalents of $127 million.
Imaging Division Reorganization
The Company also announced today it has reorganized its Imaging
Division into two new units, Commercial Vision Systems, and Government
Systems.
The new Commercial Vision Systems Division will focus on emerging
commercial markets for infrared imaging technology such as commercial
security, OEMs, automotive, marine, airborne and first responder
markets. Andrew C. Teich, currently co-President of the Company's
Imaging Division, has been appointed President of the Commercial
Vision Systems Division.
The Government Systems Division will be responsible for government
end users in such applications as surveillance, force protection,
border patrol, drug interdiction, search and rescue, special
operations and target designation. William A. Sundermeier, currently
co-President of the Company's Imaging Division, has been appointed
President of the Government Systems Division. Revenue and Earnings Guidance for 2006
The following statements are based on current expectations. These
statements are forward-looking, and actual results may differ
materially.
Based on its financial results for the first quarter of 2006, and the
outlook for the remainder of the year, management today is
reiterating its outlook for revenue and earnings per share for the
full year 2006. Management currently expects revenue for 2006 to be
approximately $590 million to $600 million and net earnings in the
range of approximately $1.20 to $1.30 per fully diluted share.
"We met our internal EPS budget in the first quarter, with the
exception of delayed shipments out of Boston. However, given our
strong backlog and the market response to our new products, we remain
comfortable with our outlook for the year," commented Earl R. Lewis,
Chairman, President and CEO of FLIR Systems. "Further, we are very
excited about today's reorganization announcement and the
opportunities to further grow our Imaging businesses. The Commercial
and Government Imaging markets have developed distinctly different
characteristics, largely as a result of our success in reducing the
cost of Infrared technology. By separating these two businesses we
will be able to focus on different market and product development
strategies for each division," he concluded.
Forward-Looking Statements
The statements in the revenue and earnings guidance section above,
including the comments by Earl R. Lewis 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 of the Company to manufacture and deliver its
products within the time period specified in the contracts it
receives, the impact of competitive products and pricing, the
Company's continuing compliance with US export control laws and
regulations, 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. Further, such statements are subject to the risks inherent
in acquisitions of technologies and businesses, including the timing
and successful completion of technology and product development
through volume production, integration issues, unanticipated costs
and expenditures, changing relationships with customers, suppliers
and strategic partners, potential contractual, intellectual property
or employment issues, accounting treatment and charges, and the risks
that the acquisition cannot be completed successfully or that
anticipated benefits are not realized. 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.
Conference Call
FLIR has scheduled a conference call at 11:00 am EDT today. A
simultaneous Web Cast of the conference call may be accessed online at
www.CompanyBoardroom.com or www.FLIR.com. A replay will be available
approximately one hour after the Web Cast at these same Internet
addresses. For a telephone replay, dial (800) 633-8284, reservation
#21288517 beginning at approximately 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.
Company contact: SOURCE: FLIR Systems, Inc.FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
Three Months Ended
March 31,
---------------------
2006 2005
---------- ----------
Revenue $ 117,339 $ 108,317
Cost of goods sold 56,491 49,731
---------- ----------
Gross profit 60,848 58,586
Operating expenses:
Research and development 15,229 13,255
Selling, general and administrative 26,753 24,196
---------- ----------
Total operating expenses 41,982 37,451
Earnings from operations 18,866 21,135
Interest expense 1,924 1,995
Other (income) expenses, net -701 -734
---------- ----------
Earnings before income taxes 17,643 19,874
Income tax provision 4,984 5,167
---------- ----------
Net earnings $ 12,659 $ 14,707
========== ==========
Net earnings per share:
Basic $ 0.18 $ 0.21
========== ==========
Diluted $ 0.17 $ 0.19
========== ==========
Weighted average shares outstanding:
Basic 69,163 69,554
========== ==========
Diluted 81,311 82,556
========== ==========
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
Mar. 31, Dec. 31,
2006 2005
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 127,302 $ 107,057
Accounts receivable, net 119,083 142,782
Inventories, net 111,256 103,837
Prepaid expenses and other current assets 36,072 33,153
Deferred income taxes, net 18,724 18,709
---------- ----------
Total current assets 412,437 405,538
Property and equipment, net 68,174 59,479
Deferred income taxes, net 8,032 8,415
Goodwill 158,326 158,065
Intangible assets, net 45,749 46,901
Other assets 15,909 15,981
---------- ----------
$ 708,627 $ 694,379
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 37,204 $ 34,477
Deferred revenue 9,615 10,297
Accrued payroll and related liabilities 18,094 20,374
Accrued product warranties 4,603 5,059
Advance payments from customers 7,695 5,013
Other current liabilities 10,237 11,626
Accrued income taxes 2,394 3,148
Current portion of long-term debt 32 56
---------- ----------
Total current liabilities 89,874 90,050
Long-term debt 206,372 206,155
Deferred tax liabilities 10,713 10,779
Pension and other long-term liabilities 18,659 18,413
Commitments and contingencies
Shareholders' equity 383,009 368,982
---------- ----------
$ 708,627 $ 694,379
========== ==========
Anthony Trunzo
FLIR Systems, Inc.
(503) 498-3547
www.flir.com
