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24 Apr 15. FLIR Systems, Inc. (NASDAQ: FLIR) announced financial results for the first quarter ended March 31, 2015. Revenue was $344.5m, down 2% compared to first quarter 2014 revenue of $351.5m. Foreign currency exchange fluctuations negatively impacted revenue growth by approximately 5 percentage points year over year. Operating income in the first quarter was $65.8m, compared to $42.5m in the first quarter of 2014. Operating income was impacted by pretax charges related to previously-announced restructuring initiatives of $0.3m in the first quarter of 2015 and $8.4m in the first quarter of 2014. First quarter 2015 net income was $47.9m, or $0.34 per diluted share, compared with net income of $29.9m, or $0.21 per diluted share in the first quarter a year ago. Net income was impacted by after-tax restructuring charges of $0.2 m in the first quarter of 2015 and $6.4m, or $0.04 per diluted share, in the first quarter of 2014. Cash provided by operations in the first quarter of 2015 was $74.9m.
The Surveillance segment contributed $112.9m of revenue during the first quarter, down 8% from the prior year. The Instruments segment had $83.8m of revenue, in-line with the prior year. FLIR’s OEM & Emerging Markets segment recorded revenue of $39.8m in the first quarter, down 17% from the prior year. Revenue from the Maritime segment was $51 m, down 3% from the first quarter of 2014. Security segment revenue was $38.8m, an increase of 32% over the first quarter results last year. The Detection segment contributed $18.2m of revenue, an increase of 25% from the prior year.
FLIR’s backlog of firm orders for delivery within the next twelve months was approximately $557m as of March 31, 2015, an increase of $10 m, or 2%, during the quarter and an increase of $43m, or 8%, over the prior year.
“The results for the first quarter of 2015 were in line with our expectations. Despite strong movement in the U.S. dollar that created a headwind for our top line, we improved our margins and earnings per share significantly,” said Andy Teich, President and CEO of FLIR. “Since the end of 2014, we have introduced several new products that address the needs of customers in many existing and new markets, from the highest-end surveillance and R&D products to consumer-level home monitoring systems. Our cost curve continues to scale down and is creating opportunity for us to expand the markets for advanced imaging and sensing technology.”
Revenue and Earnings Outlook for 2015
Based on financial results for the first three months of 2015 and the outlook for the remainder of the year, FLIR continues to expect revenue for the full year 2015 to be in the range of $1.55bn to $1.6bn and net earnings, excluding restructuring charges, to be in the range of $1.60 to $1.70 per diluted share.
FLIR’s Board of Directors has declared a quarterly cash dividend of $0.11 per share on FLIR common stock, payable June 5, 2015, to shareholders of record as of close of business on May 22, 2015.
24 Apr 15. BAE May Sell Part of U.S. Intelligence and Security Business. Europe’s biggest defense contractor BAE Systems (BAES.L) has hired advisers to carry out a review of its U.S-based IT and analysis support businesses in a move that could lead to their sale. The British company said on Friday it had received a number of enquiries from potential buyers but there was no certainty a transaction would result from the review. The businesses are part of BAE’s Intelligence and Security divisions and mainly serve the U.S. government. The review does not include core services such as support for naval ships in the United States and Britain, or commercial services operations. Shares in the company rose 4 perce