FLIR Systems 2002 second-quarter net earnings increase 70%

JULY 24--FLIR Systems Inc. (Portland, OR; www.FLIR.com) announced that its net earnings for the second quarter ended June 30, 2002, increased 70% to a second-quarter record $9.6 million, or $0.54 per diluted share. This compares to net earnings for the second quarter of 2001 of $5.6 million, or $0.36 per diluted share. Revenue increased 24% to a record $63.6 million from $51.4 million for the same period last year.

For the first half of 2002, net earnings increased 92% to $18.2 million, or $1.02 per diluted share, from $9.5 million, or $0.63 per diluted share, for the first six months of 2001. Revenue for the first half of 2002 increased 19% to $121.7 million from $101.9 million for the same period last year.

The increase in revenue for the second quarter of 2002 reflected higher sales of FLIR imaging products, particularly its ground-based and airborne imaging systems. Gross margins were 52% compared to 56% for the same period last year. The decline in gross margin is primarily due to changes in product sales mix and new product start-up costs. Earnings from operations increased 35% to $11.6 million, or 18.2% of revenue, for the 2002 second quarter compared to $8.6 million, or 16.7% of revenue, for the second quarter of 2001.

"In addition to strong revenue and earnings growth for the second quarter, there have been a number of very positive developments, including very strong orders, a number of new product introductions, our previously announced participation in the US Coast Guard Deepwater program, and the significant addition to our board of directors. All of which bodes well for the second half of the year," said president and CEO Earl R. Lewis.