FLIR posts strong Q2 results, cuts '09 outlook

JULY 27, 2009--Imaging and camera system developer FLIR Systems reports that its operating profit is up by 31% and earnings per share are up by 21%.

Jul 27th, 2009

JULY 27, 2009--Thermal imaging and camera system developer FLIR Systems (Portland, OR, USA; www.flir.com) has announced financial results for the second quarter ended June 30, 2009. Revenue was $278.0 million, up 7% compared to 2Q08 revenue of $261.0 million. Excluding the effects of exchange rates, revenue increased by 12% in the second quarter. Operating income in the second quarter was $84.7 million, up 31% from $64.7 million in 2Q08. Second quarter 2009 net income was $55.7 million, or $0.35 per diluted share, compared with net income of $44.6 million, or $0.29 per diluted share, in the second quarter a year ago. Cash provided by operations during the quarter was $57.7 million.

Revenue from FLIR's Government Systems division increased 22% over 2Q08, to $160.4 million, with strength in stabilized gimbaled systems. Revenue from the company's Commercial Vision Systems division increased 4% over the second quarter of last year to $50.8 million, reflecting growth in the cores and components markets. Revenue from its Thermography division decreased 17% from the second quarter of last year to $66.8 million, primarily due to changes in exchange rates and lower demand for high-value products for the predictive maintenance market. Excluding the effect of exchange rates, thermography revenue decreased 9% in the quarter.

FLIR Systems' backlog of firm orders for delivery within the next 12 months was approximately $598 million at June 30, 2009, a decrease of $19 million during the quarter. Backlog in the Government Systems division was $467 million, down $37 million during the quarter. Backlog in the Commercial Vision Systems division was $108 million, up $13 million during the quarter, and backlog in the Thermography division was $23 million, up $5 million during the quarter.

"We are pleased with our performance in the second quarter. Gross and operating margins remained at record levels, operating cash flow remained strong, and backlog in our commercial businesses increased significantly. We achieved this performance through continued solid execution in a difficult economy, as all three divisions once again improved gross and operating margins over the prior year," notes Earl Lewis, president and CEO.

Based on its financial results for 1H09 and the outlook for the remainder of the year, FLIR announced that it is revising its outlook for revenue and earnings per share for the full year 2009. Management currently expects revenue for 2009 to be in the range of $1.1 billion to $1.15 billion, a reduction of $100 million compared with the previous outlook. In 1H09, the effect of currency rates reduced revenue by approximately $33 million; such effects are expected to continue in the second half. As a result of lower revenue, management has narrowed its earnings-per-share outlook to the low end of its previous outlook and currently expects net earnings to be in the range of $1.40 to $1.44 per diluted share, compared with the previous outlook of $1.40 to $1.47 per diluted share.

-- Posted by Vision Systems Design, www.vision-systems.com

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