PORTLAND, OR -- (MARKET WIRE) -- April 27, 2007 -- FLIR Systems, Inc. (
NASDAQ:
FLIR) today
announced financial results for the quarter ended March 31, 2007. Revenue
was $161.4 million, up 38% compared to first quarter 2006 revenue of $117.3
million. Operating income for the quarter was $36.0 million, up 91% from
$18.9 million in the first quarter of 2006. Net income for the quarter was
$26.3 million, or $0.35 per diluted share, compared with net income of
$12.7 million, or $0.17 per diluted share, in the first quarter a year ago.
Revenue from the Company's Thermography division increased 19% over the
first quarter of 2006, to $54.0 million, due primarily to strong demand in
the InfraCAM®, P-Series® and E-Series® product lines. Revenue from
the Company's Government Systems division increased by 52% to $81.2
million, driven by strength across all served markets, including airborne,
land, and maritime. Revenue from the Company's Commercial Vision Systems
division increased 42% over the first quarter of last year, to $26.2
million, reflecting growth across numerous product lines.
The backlog of firm orders for delivery within the next twelve months was
approximately $280 million at March 31, 2007, an increase of $6 million
during the quarter. Backlog in the Government System's division was $216
million, down slightly from $220 million at December 31, 2006, as
deliveries and orders were both strong. Backlog in the Commercial Vision
System's division was $53 million, up $11 million during the quarter due
primarily to strong demand for its security and surveillance product lines.
Backlog in the Thermography division was $11 million, down $1 million
during the quarter. The Thermography division operates primarily on a book
and ship basis, and thus carries minimal backlog relative to revenue.
Cash flow from operations for the quarter was $34 million. At March 31,
2007, cash and cash equivalents were $153 million, up $14 million from $139
million at December 31, 2006.
"Each of our three divisions had an excellent start to the year," noted
Earl Lewis, President and CEO. "New product introductions, expanding
distribution channels and lower price points drove rapid volume growth in
our commercial businesses, while demand in our Government Systems division
remained strong. Based on the quarter's results, and the expectations for
the remainder of the year, we are increasing our guidance for the year."
Updated Revenue and Earnings Outlook for 2007
Based on the financial results for the quarter, and the outlook for the
remainder of the year, the Company is increasing its revenue and earnings
guidance for 2007. The Company currently expects net revenue in fiscal
2007 to be in the range of $690 million to $710 million, and net earnings
to be in the range of $1.58 to $1.63 per diluted share, which includes
stock-based compensation expense of approximately $15.6 million, or $0.14
per diluted share. This guidance assumes a tax rate for the year of
approximately 28%, and an average share count of approximately 80 million
diluted shares.
Conference Call
FLIR has scheduled a conference call at 11:00 AM EDT today. A simultaneous
WebCast will be available from the Investor Relations link at
www.FLIR.com.
A replay will be available after 1:00 PM EDT at this same internet address.
For a telephone replay, dial (800) 642-1687, reservation #4918564 after
2:00 PM EDT.
About FLIR Systems
FLIR Systems, Inc. is a world leader in the design, manufacture, and
marketing of thermal imaging and stabilized camera systems for a wide
variety of thermography and imaging applications including condition
monitoring, research and development, manufacturing process control,
airborne observation and broadcast, search and rescue, drug interdiction,
surveillance and reconnaissance, navigation safety, border and maritime
patrol, environmental monitoring and ground-based security. Visit the
Company's web site at
www.FLIR.com.
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in the
section captioned "Updated Revenue and Earnings Outlook for 2007" above are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are based on current
expectations, estimates and projections about the Company's business based,
in part, on assumptions made by management. These statements are not
guarantees of future performance and involve risks and uncertainties that
are difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking
statements due to numerous factors, including the following: changes in
demand for the Company's products, product mix, the timing of customer
orders and deliveries, the ability to manufacture and deliver the products
in the time period required, the impact of competitive products and
pricing, the Company's continuing compliance with US export control laws
and regulations, the timely receipt of export licenses for international
shipments, constraints on supplies of critical components, excess or
shortage of production capacity, actual purchases under agreements, the
continuing eligibility of the Company to act as a federal contractor, the
amount and availability of appropriated government procurement funds and
other risks discussed from time to time in the Company's Securities and
Exchange Commission filings and reports. In addition, such statements
could be affected by general industry and market conditions and growth
rates, and general domestic and international economic conditions. Such
forward-looking statements speak only as of the date on which they are made
and the Company does not undertake any obligation to update
any forward-looking statement to reflect events or circumstances after the
date of this release.
FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
Three Months Ended
March 31,
--------------------
2007 2006
--------- ---------
Revenue $ 161,363 $ 117,339
Cost of goods sold 71,541 56,491
--------- ---------
Gross profit 89,822 60,848
Operating expenses:
Research and development 18,016 15,229
Selling, general and administrative 35,824 26,753
--------- ---------
Total operating expenses 53,840 41,982
Earnings from operations 35,982 18,866
Interest expense 2,740 1,924
Other income, net (2,409) (701)
--------- ---------
Earnings before income taxes 35,651 17,643
Income tax provision 9,387 4,984
--------- ---------
Net earnings $ 26,264 $ 12,659
========= =========
Net earnings per share:
Basic $ 0.40 $ 0.18
========= =========
Diluted $ 0.35 $ 0.17
========= =========
Weighted average shares outstanding:
Basic 66,042 69,163
========= =========
Diluted 78,034 81,311
========= =========
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
March 31, December 31,
2007 2006
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 153,463 $ 138,623
Accounts receivable, net 153,727 167,502
Inventories, net 149,561 135,928
Prepaid expenses and other current assets 29,798 29,155
Deferred income taxes, net 15,641 15,262
---------- ----------
Total current assets 502,190 486,470
Property and equipment, net 95,790 92,156
Deferred income taxes, net 1,136 3,687
Income taxes receivable 2,030 --
Goodwill 159,486 159,802
Intangible assets, net 39,032 40,917
Other assets 14,967 15,116
---------- ----------
$ 814,631 $ 798,148
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable: $ 28,500 $ 45,500
Accounts payable 45,164 40,608
Deferred revenue 15,709 13,709
Accrued payroll and related liabilities 26,331 25,831
Accrued product warranties 5,262 5,174
Advance payments from customers 9,481 10,064
Other current liabilities 13,208 12,149
Accrued income taxes 1,685 17,331
Current portion of long-term debt 7 7
---------- ----------
Total current liabilities 145,347 170,373
Long-term debt 207,241 207,024
Deferred tax liability, net 4,867 2,392
Accrued income taxes 5,872 --
Pension and other long-term liabilities 19,868 19,607
Commitments and contingencies
Shareholders equity 431,436 398,752
---------- ----------
$ 814,631 $ 798,148
========== ==========
Contact Information: Company Contact:
Tony Trunzo
+1 503.498.3547
www.flir.com