Flir Systems announces Q3 results

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Flir Systems reported third quarter revenue of $434.9 million, 6.4 percent lower than the same quarter in 2017, which had revenue of $464.7 million.

Organic revenue increased 3.1 percent over the prior year, excluding revenue from acquisitions and the previously disclosed divested security businesses, which included revenue of $43.4 million in third quarter 2017.

The company’s commercial segment experienced organic revenue growth of 6 percent in the same period, excluding revenue from acquisitions and the divestiture of the previously disclosed security businesses.

Strong results in maritime and intelligent transportation systems contributed to the organic revenue growth, the company said.

“Overall, I was pleased with the third quarter performance,” Flir president and CEO Jim Cannon said in a statement. “We delivered strong performance, reaching our highest quarterly gross margin, operating margin and operating cash flow in over five years. We also continued organic revenue growth despite challenging year-over-year comparables.”

The company’s GAAP gross profit in the third quarter was $222.1 million, or 51.1 percent of revenue, compared to $222.9 million, or 48 percent of revenue in the third quarter of 2017.

GAAP operating income in the third quarter increased 1.7 percent, to $88.6 million, compared to $87.1 million in the prior year, representing a 160 basis point improvement in operating margin.