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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 www.FLIR.com. 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 www.FLIR.com. 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. SOURCE: FLIR Systems, Inc.
FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(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
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FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands) (Unaudited)
March 31, December 31,
2008 2007
------------ ------------
ASSETS
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
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LIABILITIES AND SHAREHOLDERS' EQUITY
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
www.flir.com
http://www.flir.com
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