FLIR Systems Inc.
) received a $38 million indefinite delivery and quantity contract
from the U.S. Army to support its MEDEVAC program. The contract
involves supply of spare components for Star SAFIRE® II stabilized
multi-sensor systems installed on the Army's fielded MEDEVAC
All deliveries under the contract are expected to be made within
five years, with the first one worth $1.7 million already been
done. The contract will be executed from FLIR's facility in
Wilsonville, OR. With the receipt of this contract, FLIR will be a
part of an important program for the benefit of people. Number of
lives has been saved by the army under the MEDEVAC program.
Recently, the company was also received a $17.9 million order
for its SeaFLIR® maritime imaging systems from the U.S. Navy
Expeditionary Combat Command (NECC). From third-quarter 2012,
deliveries will be started and the contract will be executed from
FLIR's facility in North Billerica, MA. FLIR's imaging systems are
among the best in the industry.
Patrol Boats of the US Navy will be using these systems for
their search and rescue, interdiction, intelligence, surveillance,
reconnaissance and targeting applications. Further, SeaFLIR®
maritime imaging systems are designed to operate in the toughest
condition at sea. The contract is an add-on to the company's number
of contracts with the US Navy.
The company has a well-diversified business spread across
geographies, products and markets. FLIR System's core strength of
low price, highest quality products and service put the company in
good stead. Backed by worldwide acquisitions, client-wins, margin
management and operating excellence, the company hopes to drive
profitability going forward.
However, a competitive environment and economic disruptions
continue to hamper the smooth running of the business. Government
budgetary constraints and strict regulatory compliance remain as
headwinds. FLIR's Government Systems division revenue for
first-quarter 2012 declined by 19% year over year to $146.1 million
in the quarter.
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
customer requirements. Major competitors of FLIR Systems are
L-3 Communications Holdings Inc.
Lockheed Martin Corporation
We continue to maintain a Neutral rating on FLIR System for the
long term. The company has a Zacks #4 Rank (Sell recommendation)
over the next one-to-three months.
FLIR SYSTEMS (FLIR): Free Stock Analysis Report
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