FLIR Systems Unveils 2 Novel Test & Measurement Tools
FLIR Systems, Inc.FLIR recently deployed its proprietary Infrared Guided Measurement ("IGM") technology to launch two innovative test & measurement instruments, namely, CM174 Imaging Clamp Meter and MR176 Imaging Moisture Meter Plus. With these new products, the company aims on strengthening its Instruments segment's Test & Measurement business line.
Both the new offerings are based on FLIR System's "Lepton thermal camera core" that uses a visual technique to determine temperature differences, thereby allowing easy detection of anomalies on part of electrical professionals. CMI74 comes with an "all-in-one" electrical clamp meter with an in-built thermal imager, which sets it apart from peers. This will enable clients to quickly detect even the slightest of problems, thus helping them avert major issues that can crop up later.
Similarly, MR176 Imaging Moisture Meter Plus is designed for detecting moisture-related issues by using thermal images. This, in turn, will allow electrical professionals to improve their meter readings by offering more details like four-color imaging modes and "field-replaceable" temperature/relative humidity sensor.
Of late, FLIR Systems has been strategically focusing on using its exclusive Lepton and IGM technology to grab a greater market share in its Instruments segment. Last month, the company launched the T1K series of premium HD thermal inspection cameras to expand its customer base in newer markets.
We believe the thermal imaging market's expected Compound Annual Growth Rate ("CAGR") of 6.6% (as per Markets and Markets report), for year 2015-2020, is one of the key factors that drives FLIR Systems to frequently come up with innovative products. Increased adoption of thermal imaging in a broad spectrum of applications, ranging from military to personal hand-held cameras and Smartphones, continue to fuel growth of this market. Moreover, cost-effective and easy deployment features of these cameras, coupled with continuous price slashes, are adding to the growth.
Nevertheless, despite its long-term potential, FLIR Systems faces stiff rivalry from players like Danaher Corp. DHR , L-3 Communications Holdings Inc. LLL and Raytheon Company RTN , to name a few. During the second quarter of 2015, a harshly competitive pricing environment triggered a 12% fall in the company's operating margins. Moreover, poor economic conditions across FLIR Systems' key operating regions, along with unfavorable capital investment, are making things worse for this Zacks Rank #4 (Sell) stock.
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