FLIR Systems Announces Third Quarter 2008 Financial Results
FLIR Systems today announced financial results for the third quarter ended September 30, 2008. Revenue was $276.7 million, up 45% compared to third quarter 2007 revenue of $191.1 million. Operating income for the quarter was $76.7 million, up 48% from $51.8 million in the third quarter of 2007. Net income for the quarter was $55.6 million, or $0.35 per diluted share, compared with net income of $34.8 million, or $0.22 per diluted share on a split-adjusted basis, in the third quarter a year ago. Cash provided by operations during the quarter was $66.4 million.
Revenue from the Company's Government Systems division increased 57% over the third quarter of 2007, to a record $151.7 million, driven by strength in land-based and maritime applications. Revenue from the Company's Commercial Vision Systems division increased 34% over the third quarter of last year, to $45.8 million, reflecting strong growth in each served market. Revenue from the Company's Thermography division increased 32% over the third quarter of last year, to $79.2 million. Excluding the impact of the Extech Instruments and Cedip Infrared Systems acquisitions, Thermography revenue increased 7% during the third quarter, due to increased demand for the T-Series and i5 product lines, and reduced demand for high end products, including GasFindIR.
The backlog of firm orders for delivery within the next twelve months was approximately $650 million at September 30, 2008, an increase of $78 million compared with backlog at June 30, 2008. Backlog in the Government System's division was $547 million, up $83 million during the quarter due to strong order activity both in the U.S. and internationally. Backlog in the Commercial Vision System's division was $81 million, down $5 million during the quarter. Backlog in the Thermography division was $22 million, unchanged from the prior quarter.
During the quarter, the Company repurchased 681,000 shares of its common stock for $22.9 million, and expended $5.0 million for the purchase of property, plant, and equipment. At September 30, 2008, cash and cash equivalents were $206.1 million, compared with $177.0 million at June 30, 2008.
"The third quarter was another outstanding quarter for the Company, as we set quarterly records for orders, backlog, revenue, operating profit, operating cash flow, and earnings per share," noted Earl R. Lewis, President and CEO. "Demand was excellent, particularly in our Government Systems division, as we continue to expand our base of long term contracts. Based on the quarter's results, and the expectations for the remainder of the year, we are narrowing the range of our outlook for the year."
Revenue and Earnings Per Share Outlook for 2008
Based on the financial results for the quarter, and the outlook for the remainder of the year, the Company is revising the range of its revenue and earnings per share outlook for 2008 to the upper end of the previous range. The Company currently expects net revenue in fiscal 2008 to be in the range of $1.075 billion to $1.1 billion, and net earnings to be in the range of $1.21 to $1.25 per diluted share. This guidance utilizes a planned tax rate for the year of approximately 30%, and an average share count of approximately 163 million diluted shares.
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