FLIR Systems announces financial results and a strategic alliance

Oct. 20, 2005
OCTOBER 20--FLIR Systems Inc. (Portland, OR; www.flir.com) has announced that revenue for the third quarter, ended September 30, 2005, increased 2% to $113.0 million from $110.8 million in the third quarter of 2004.

OCTOBER 20--FLIR Systems Inc. (Portland, OR; www.flir.com) has announced that revenue for the third quarter, ended September 30, 2005, increased 2% to $113.0 million from $110.8 million in the third quarter of 2004. Earnings from operations increased 3% to $26.3 million, or 23% of revenue, from $25.7 million, also 23% of revenue, for the third quarter of 2004. Net earnings for this year's third quarter increased 3% to $17.3 million, or $0.22 per diluted share, compared to net earnings for the third quarter of 2004 of $16.8 million, also $0.22 per diluted share.

For the first nine months of 2005, revenue increased 4% to $352.3 million from $338.9 million for the same period last year. Earnings from operations for the first nine months of 2005 increased 7% to $79.8 million, or 23% of revenue, from $74.7 million, or 22% of revenue, for the first nine months of 2004. Net earnings increased 19% to $56.6 million, or $0.73 per diluted share, compared to net earnings of $47.4 million, or $0.63 per diluted share, for the first nine months of 2004. All per share amounts have been adjusted to reflect the 2-for-1 stock split that was effective on February 2, 2005.

Revenue from the company's thermography division increased 5% over the third quarter last year, as weakness in certain European countries offset strong growth in the Americas and Asia. Revenue from the company's imaging division was virtually unchanged from the third quarter of 2004. Imaging revenue was negatively impacted by lower than expected book and ship revenue at the end of the quarter and the delay of certain orders under existing delivery contracts. The backlog of orders for delivery within the next twelve months increased by 22% in the third quarter, from $170 million at June 30, 2005 to $207 million at September 30, 2005.

In other news, FLIR and Pelco, a video-security-equipment manufacturer, will jointly develop, manufacture, and distribute security cameras. Under their agreement, FLIR and Pelco will combine their respective resources to design, manufacture, and distribute a series of new thermal and visible-light security surveillance systems throughout the world. FLIR and Pelco will each manufacture selected products exclusively for each other, and both companies will distribute these products through their extensive worldwide distribution networks. The products will be compatible with Pelco's range of video control systems.

"We are delighted to team with Pelco, a recognized leader in the security industry, to jointly address the large market for integrated video surveillance. We believe the combination of FLIR and Pelco will offer commercial and government customers a compelling cost effective solution to their security needs," commented Earl R. Lewis, president and CEO of FLIR Systems.

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