EXCELLENT RESULTS FROM FLIR Systems Inc.
07 Feb 08. On February 7th 2008 FLIR Systems, Inc. announced financial results for the fourth quarter ended December 31, 2007. Revenue was $242.6m, up 31% compared to fourth quarter 2006 revenue of $185.9m. Operating income for the quarter was $62.9m, up 14% from $55.1m in the fourth quarter of 2006. Net income for the quarter was $46.6m, or $0.30 per diluted share, compared with net income of $39.8m, or $0.26 per diluted share on a split-adjusted basis, in the fourth quarter a year ago.
Revenue from the Company’s Government Systems division increased 33% over the fourth quarter of 2007, to a record $114.3m, driven by strength across all served markets, including airborne, land, and maritime. Revenue from the Company’s Commercial Vision Systems division increased 38% over the fourth quarter of last year, to a record $37.9m, reflecting strong growth in the security and transportation markets. Revenue from the Company’s Thermography division increased 25% over the fourth quarter of last year, to a record $90.4 million. Excluding the impact of the Extech Instruments acquisition, which closed in the fourth quarter, Thermography revenue increased 18% for the fourth quarter, reflecting strong demand for the InfraCAM(TM), T-Series, and GasFindIR(TM) product lines.
Revenue for the year-ended December 31, 2007 was $779.4m, up 36% compared to $575.0m for the year-ended December 31, 2006. Operating income for 2007 was $191.8m, up 40% from $137.0m during 2006. Net income for 2007 was $136.7m, or $0.89 per diluted share on a split-adjusted basis, compared with 2006 net income of $100.9m, or $0.66 per diluted share on a split-adjusted basis.
Revenue from the Company’s Government Systems division increased 48% in 2007, while revenue from the Company’s Commercial Vision Systems division increased 39%, and revenue from the Company’s Thermography division increased 19% in 2007, 17% excluding the Extech acquisition.
The backlog of firm orders for delivery within the next twelve months was approximately $393m at December 31, 2007, essentially unchanged from the level at September 30, 2007 and an increase of $119m, or 43% compared with backlog at December 31, 2006. Backlog in the Government System’s division was $305m, down $11m during the quarter as a result of the reclassification of $22m of orders related to the ARH program from current backlog to long term backlog as a result of program delays. Backlog in the Commercial Vision System’s division was $68m, up $9m during the quarter, primarily due to strong demand in the more backlog intensive cores and components product line. Backlog in the Thermography division was $20m, up $2m during the quarter.
Cash provided by operations during the quarter was a record $55m. Cash used during the quarter included $40m for the acquisition of Extech Instruments, which closed on November 7. At December 31, 2007, cash and cash equivalents were $204m, compared with $139m at December 31, 2006.
Revenue and Earnings Outlook for 2008 FLIR also announced today that it expects net revenue in fiscal 2008 to be in the range of $1bn to $1.05bn, and net earnings to be in the range of $1.13 to $1.20 per diluted share. This guidance assumes stable margins and includes full-year revenue and earnings estimates for the Cedip and Extech acquisitions. This guidance also assumes a tax rate for the year of approximately 30% and an average diluted share count of approximately 160 million shares.