FLIR Systems reports 3Q results

FLIR Systems said third-quarter revenue grew 6 percent.
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FLIR Systems said third-quarter revenue grew 6 percent, but the company reported a drop in profits because of a SkyWatch product-quality issue.

FLIR said revenue for the quarter that ended Sept. 30 was $405.2 million, compared with $381.9 million in the period a year earlier.

Year-to-date revenue of $1.19 billion was 6 percent above the prior year. Operating income for the quarter grew 6 percent, to $80.8 million, compared with $76 million last year.

The company said profitability in comparison to the prior year was negatively affected by a $2 million charge related to a previously disclosed SkyWatch product-quality issue.

Third-quarter 2016 net earnings totaled $58.6 million, or 43 cents a diluted share, compared with $73.1 million, or 52 cents a share, in the quarter last year.

The SkyWatch product-repair charge negatively affected third-quarter earnings per diluted share by 1 cent. The company said net earnings in the quarter last year included a discrete tax benefit of $17.4 million, or about 12 cents a diluted share.

Cash provided by operations in the 2016 quarter reached $88.6 million, FLIR's highest quarterly cash flow since 2013, and the company said it was driven by continued improvements in working capital.

Revenue from the maritime segment was $40.6 million, up 4 percent from the 2015 quarter.

FLIR’s overall backlog of firm orders for delivery in the next 12 months was about $644 million as of Sept. 30, an increase of $15 million, or 2 percent, during the quarter and an increase of $76 million, or 1 percent, from the $568 million balance at the end of the third quarter last year.

"Overall performance in the third quarter was in line with our expectations,” FLIR president and CEO Andy Teich said in a statement. “Profitability improvements in our Instruments and Surveillance segments helped drive significant sequential gross profit and operating income growth.”

The company expects continued softness in the security segment’s retail channels in the near term, but is enthusiastic about the segments’ “product roadmaps.”

“Our commitment to our mission of providing innovative intelligent imaging solutions to our customers in a way that delivers significant value to our shareholders is stronger than ever,” Teich said.

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