11 Feb 10. FLIR Systems, Inc. (NASDAQ: FLIR) today announced financial results for the fourth quarter ended December 31, 2009. Revenue was $311.6m, up 3% compared to fourth quarter 2008 revenue of $302.3m. Excluding the effects of currency translation, revenue for the quarter increased by 1%. Operating income for the quarter was $89.9m, up 2% from $88.1m in the fourth quarter of 2008. Net income for the quarter was $60.3m, or $0.38 per diluted share, compared with net income of $65.0m, or $0.41 per diluted share, in the fourth quarter a year ago. Fourth quarter 2008 earnings per share benefited from other income arising from currency gains of approximately $0.04. Cash provided by operations during the quarter was $72.3m.
Revenue from the Company’s Government Systems division decreased 1% from the fourth quarter of 2008, to $169.7m. Revenue from the Company’s Commercial Vision Systems division increased 34% over the fourth quarter of last year, to $57.0m, reflecting strong growth across multiple product lines. Revenue from the Company’s Thermography division decreased 4% from the fourth quarter of last year, to $84.8m.
Revenue for the year ended December 31, 2009 was $ 1,147.1m, up 7% compared to $1,077.0m for the year ended December 31, 2008. Operating income for 2009 was $347.3m, up 22% from $284.5m during 2008. Net income for 2009 was $230.2m, or $1.45 per diluted share, compared with 2008 net income of $200.9m, or $1.28 per diluted share. Cash provided by operations during the year was $271.8m.
The backlog of firm orders for delivery within the next twelve months was approximately $563m at December 31, 2009, a decrease of $45m during the quarter, and a decrease of $100m, or 15% compared with backlog at December 31, 2008. Backlog in the Government System’s division was $433m, down $54m during the quarter, as U.S. procurement activity slowed due partly to late approval of government budgets. Backlog in the Commercial Vision Systems division was $103m, up $10m during the quarter due primarily to strong demand for its cores and components and security and surveillance product lines. Backlog in the Thermography division was $27 million, down $1 million during the quarter.
Revenue and Earnings Outlook for 2010
FLIR also announced today that it expects net revenue in fiscal 2010 to be in the range of $1.2bn to $1.3bn, an increase of approximately 9% compared with 2009, and net earnings to be in the range of $1.48 to $1.53 per diluted share, an increase of approximately 4% compared with 2009.
Management Changes
FLIR announced today that Stephen M. Bailey, Senior Vice President and Chief Financial Officer, intends to retire at the end of May, 2010. Mr. Bailey has served in his present position since 2000, and effective June 1, 2010, will be succeeded by Anthony L. Trunzo, who has served as the Company’s Senior Vice President for Corporate Strategy and Development since 2003.
“We are pleased with our financial performance in 2009, as we recorded our ninth straight year of record revenue, operating income and earnings per share, and achieved the highest operating income margin and cash flow from operations in the Company’s history,” stated Earl Lewis, President and CEO of FLIR. “We are well positioned for long-term growth as we continue to execute on our strategy to drive down the cost of infrared technology. Our 2010 outlook anticipates solid growth from the newly formed Commercial Systems and slower growth in Government Systems as a result of the anticipated decrease in deliveries under BETTS-C and related programs. We remain optimistic that our commercially developed, military qualified model will drive growth in Government Systems in the years to come. I’d also like to thank Steve Bailey for his decade of contributions to FLIR. The transition from Steve to Tony has been well planned and I am confident it will go smoothly.”