24 Jul 14. FLIR Systems, Inc. (Nasdaq:FLIR) announced financial results for the second quarter ended June 30, 2014. Revenue was $369.4m, down 5% compared to second quarter 2013 revenue of $389.3m. Operating income in the second quarter was $59.4m, compared to $70.3m in the second quarter of 2013, and was impacted by $3.5m in pretax charges related to previously-announced restructuring initiatives. Second quarter 2014 net income was $44.8m, or $0.31 per diluted share, compared with net income of $50m, or $0.35 per diluted share in the second quarter a year ago. The net after tax impact of the restructuring charges in the second quarter was approximately $2.7m, or $0.02 per diluted share. Cash provided by operations in the second quarter was $70.6m. Revenue from FLIR’s Surveillance segment was $105.8m, a decrease of 28% from the second quarter results last year. The Instruments segment contributed $84m of revenue during the second quarter, up 5% from the prior year. The OEM & Emerging Markets segment had $59m of revenue, an increase of 21% over the prior year. Revenue from the Maritime segment was $55.2m, and was up 1% over the second quarter of 2013. FLIR’s Security segment recorded revenue of $44.7m in the second quarter, up 30% from the prior year. The Detection segment contributed $20.7m of revenue, a decrease of 12% from the prior year. FLIR’s backlog of firm orders for delivery within the next twelve months was approximately $548m as of June 30, 2014, an increase of $34m during the quarter and an increase of 12% since the beginning of 2014.
“Second quarter results were marked by double-digit growth in our commercially-oriented segments and an improved backlog overall,” said Andy Teich, President and CEO of FLIR. “These positive indicators, combined with the anticipated benefit from our restructuring and realignment initiatives, give us confidence in our outlook for the second half of 2014. We are excited about our recent and upcoming product introductions and the momentum being exhibited in many parts of the business.”
BATTLESPACE Comment: New broom Andy Teich has to prove that his restructuring and policy change in orienting FLIR to commercial away from its defense roots will work. There is a limit to what can be opined on ‘restructuring charges.’ Sources suggest that FLIR is pinning its future on the FLIR 1 APP Thermal camera but is this likely, given the marketing structure, to markedly boost dwindling sales in other sectors in the short term. Closing the Government Systems Segment may drop costs and suit the Teich management style, but when defense comes back as is looking likely, then he won’t have the people or the infrastructure to respond to clunky U.S. DoD Supplementals, the process which made his Commercial Sector what it was, through acquisitions, in the early 2000s.
24 Jul 14. The Board of Directors of Thales (Euronext Paris: HO) met on
24 July 2014 to review the financial statements for the first half of 2014. Commenting on the results, Jean-Bernard Lévy, Chairman and Chief Executive Officer, said: “During this first half-year, Thales recorded another increase of its results. Despite persistent pressures on Western defence budgets, the Group continues to strengthen its position in emerging markets and to improve its profitability. We therefore confirm all of our objectives for 2014 and the medium term.”
Key points
. Order intake: €5.22bn (-0.8%), up by 13% in emerging markets
. Sales almost stable (-0.6%) at €5.70bn
. EBIT5: €422m, an increase of 15%
. Adjusted net income, Group share5: €257m, up by 13%
. Objectives confirmed
New orders in the first half of 2014 totalled €5,220m, a decrease of 0.8% compared with the first half of 2013 (-1% on a like-for-like basis and at constant exchange rates1). At 30 June 2014, the consolidated order book amounted to €25,148m, nearly two years of sales. The book-to-bill ratio came to 0.92 in the first six months of 2014, unchanged compared to the firs