FLIR Systems Inc.
) released its third-quarter 2012 results before the market
opened today, reporting earnings from continuing operations of 37
cents; above the Zacks Consensus Estimate of 35 cents but below
the prior-year earnings of 40 cents.
Total revenue was $332.2 million, a decrease of 11% year over
year. Total backlog at the end of September 30, 2012, however,
was about $565 million, up $67 million during the quarter.
Commercial Systems division's revenue was $181.2 million in
the quarter, down 8% year over year. Within the Commercial
Systems division, the Thermal Vision and Measurement segment
revenue decreased by 7% to $149.5 million. Commercial Systems'
Raymarine segment revenue was $31.7 million, down 11% year over
Government Systems division's revenue came in at $151 million
in the quarter, down 14% year over year. The division was
affected by a difficult market environment. Within the division,
the Surveillance segment revenue declined 17% to $115.9 million.
Detection segment revenue was $15.4 million, down 27% while
Integrated Systems segment revenue was $19.7 million, up 40%.
Operating income for the quarter was $74.2 million compared
with $85.4 million in the prior-year period. Selling and general
expense was $69.5 million compared with $81.3 million whereas
research and development expense was $29.6 million compared with
Cash and Cash equivalents were $424.5 million at the end of
the quarter with long-term debt of $248.2 million and
shareholders' equity of $1.6 billion.
Cash flow from operations amounted to $46.4 million during the
quarter. The company repurchased 1.9 million shares for $19.96
With its earnings results, the company also declared a
dividend of 7 cents per share. The dividend is payable on
December 7, 2012, to shareholders of record as of November 19,
FLIR Systems expects earnings per share for 2012 to be in the
range of $1.42 to $1.47 compared to its prior guidance of $1.40
to $1.50. Total revenue is expected to be in the range of $1.40
billion to $1.45 billion, compared to the prior guidance of $1.40
billion to $1.45 billion.
Moving ahead, the company believes its planned acquisition of
Lorex Technology will be accretive to its 2013 earnings. The
acquisition is expected to close by the end of 2012.
FLIR Systems Inc. is a leader in design, manufacture and
marketing of thermal imaging systems. Its products are used in a
wide variety of applications in commercial, industrial and
government markets, internationally as well as domestically. It
offers a wide variety of system configurations to suit specific
The company's business is organized into three divisions:
Government Systems, Commercial Vision Systems and Thermography
Products. Major competitors of FLIR Systems are
L-3 Communications Holdings Inc.
Lockheed Martin Corporation
We continue to maintain an Underperform rating on FLIR System
for the long term. The company has a Zacks #3 Rank (Hold
recommendation) over the next one-to-three months.
FLIR SYSTEMS (FLIR): Free Stock Analysis
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