21 Oct 10. FLIR Systems, Inc. (NASDAQ: FLIR) today announced financial results for the third quarter ended September 30, 2010. Revenue was $332.5m, up 16% compared to third quarter 2009 revenue of $285.6m. Operating income in the third quarter was $85.8m, compared to $89.3m in the third quarter of 2009. Third quarter 2010 net income was $63.0 m, or $0.39 per diluted share, compared with net income of $60.0m, or $0.38 per diluted share in the third quarter a year ago. Cash provided by operations in the third quarter was $85.1m. During the third quarter, Raymarine contributed $36.9m of revenue and $1.0 m of operating income. Corporate expenses were impacted by $2.5m in costs associated with the acquisition of ICx Technologies. The Company also reached an agreement in principle to settle all pending patent claims relating to a lawsuit dating back to 2007. This settlement resulted in an accrual of $3.0 m in the third quarter. Revenue for the nine months ended September 30, 2010 was $950.9m, up 14% compared to revenue for the first nine months of 2009 of $835.5m. Operating income for the nine months ended September 30, 2010 was $259.9m, up 1% from the same period a year ago. Net income for the nine months ended September 30, 2010 was $178.3m, or $1.11 per diluted share, compared with net income of $170.0m, or $1.07 per diluted share, in the same period a year ago. Acquisition-related expenses, including expenses associated with post-acquisition restructuring at Raymarine, totalled $8. m in the first nine months of the year. Cash provided by operations for the first nine months of 2010 was $209.9m. Revenue during the quarter from the Company’s Government Systems division was flat from the third quarter of 2009, at $163.2m. Revenue from the Company’s Commercial Systems division, excluding Raymarine, increased 8% from the third quarter of 2009, to $132.4m. Within the Commercial Systems division, revenue from Commercial Vision Systems increased 17% from the third quarter of last year, to $61.4m, reflecting strong growth in transportation, cores and personal vision systems. Revenue from Thermography increased 2% from the third quarter of last year, to $71.0m, with growth in gas imaging and test and measurement markets partially offset by weakness in Europe. The Company’s backlog of firm orders for delivery within the next twelve months was approximately $533m at September 30, 2010, an increase of $15m during the quarter. Backlog in the Government Systems division was $386m, up $10m during the quarter, due to strong U.S. government orders. Backlog in the Commercial Vision Systems division was $116m, up $12m during the quarter, while backlog in the Thermography division was $23 m, up $1m during the quarter. “We are very pleased with our third quarter results. Operating income was reduced by legal reserves and acquisition-related costs, but these costs were largely offset by a lower tax rate and our resulting margins were very strong. We continue to execute on our strategy and deliver strong operating performance. Our Government Systems division was able to grow backlog in an unclear political environment. The Commercial Systems division continues to grow rapidly while increasing profitability. Our initiatives to diversify our end-markets, reduce costs, innovate, and strengthen our financial position have positioned us very well for continued growth into the future,” noted Earl Lewis, President and CEO. Revenue and Earnings Outlook for 2010 Based on financial results for the first nine months of 2010, the recent Raymarine and ICx acquisitions, and the outlook for the remainder of the year, FLIR management is increasing its outlook for revenue and earnings per share for the full year 2010. Management currently expects revenue for 2010 to be in the range of $1.375bn to $1.4bn and net earnings to be in the range of $1.53 to $1.56 per diluted share.
15 Oct 10. Northrop Grumman Corp (NOC.N) said on Friday that it is still exploring option