FIRST TIER SUPPLIERS CONTINUE TO ADVANCE
24 Jul 08. The defense and aerospace reporting season continues to show improvements in all sectors in the Primes and First Tier suppliers across the board
FLIR Systems, Inc.
FLIR Systems, Inc. (NASDAQ: FLIR) announced financial results for the second quarter ended June 30, 2008. Revenue was $261.0m, up 42% compared to second quarter 2007 revenue of $184.3m. Excluding the impact of the previously announced acquisitions of Extech Instruments Corporation and Cedip Infrared Systems, revenue increased by 32% compared to the second quarter of 2007. Operating income for the quarter was $64.7m, up 57% from $41.2m in the second quarter of 2007. Net income for the quarter was $45.4m, or $0.29 per diluted share, compared with net income of $29.1m, or $0.19 per diluted share on a split-adjusted basis, in the second quarter a year ago.
Revenue from the Company’s Government Systems division increased 46% over the second quarter of 2007, to a record $131.6m, driven by strength in airborne and land-based applications. Revenue from the Company’s Commercial Vision Systems division increased 32% over the second quarter of last year, to a record $48.8m, reflecting strong growth in the security and maritime markets. Revenue from the Company’s Thermography division increased 40% over the second quarter of last year, to $80.6m. Excluding the impact of the Extech Instruments Corporation and Cedip Infrared Systems acquisitions, Thermography revenue increased 16% during the second quarter, due to strong demand for the T-Series, i5, and R&D product lines.
The backlog of firm orders for delivery within the next twelve months was approximately $572m at June 30, 2008, an increase of $101m compared with backlog at March 31, 2008. Backlog in the Government System’s division was $464m, up $93m during the quarter due to strong order activity both in the U.S. and internationally. Backlog in the Commercial Vision System’s division was $86m, up $6m during the quarter. Backlog in the Thermography division was $22 million, up $2 million during the quarter.
Cash provided by operations during the quarter was $8.2m. In addition, the Company received $30.8m from cash receipts and tax benefits from the exercise of stock options. Cash used during the quarter included $16.1 million for strategic acquisitions and investments and $6.1m for property, plant, and equipment. At June 30, 2008, cash and cash equivalents were $177.0m, compared with $159.1m at March 31, 2008.
“The second quarter was another outstanding quarter for the Company, as we set quarterly records for orders, backlog, revenue, and operating profit,” noted Earl R. Lewis, President and CEO. “Demand was excellent, particularly in our Government Systems division, and backlog at the end of the quarter was again at a record level. Based on the quarter’s results, and the expectations for the remainder of the year, we are increasing our outlook for Revenue and Earnings Per Share for the year.”
Revenue and Earnings Per Share Outlook for 2008
Based on the financial results for the quarter, and the outlook for the remainder of the year, the Company is increasing its revenue and earnings guidance for 2008. The Company currently expects net revenue in fiscal 2008 to be in the range of $1.05bn to $1.1bn, and net earnings to be in the range of $1.18 to $1.25 per diluted share. This guidance utilizes a planned tax rate for the year of approximately 31%, and an average share count of approximately 162 million diluted shares.
Goodrich Corporation (NYSE: GR) announced results for the second quarter, and increased its outlook for full year 2008 net income per diluted share.
Commenting on the company’s performance, Marshall Larsen, Chairman, President and Chief Executive Officer said, “Goodrich enjoys the benefit of having excellent positions on the newer, more fuel-efficient airplanes currently in service. These