FLIR Systems reports 4Q, year-end results

FLIR Systems said that president and CEO Andrew Teich will retire after 33 years with the company.
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FLIR Systems said today in conjunction with its fourth-quarter and 2016 earnings report that president and CEO Andrew Teich will retire after 33 years with the company, but continue until a successor is appointed.

"Nearly 34 years ago I saw my first thermal camera, and I immediately knew it would change the world," Teich said in a statement. "I feel incredibly fortunate to have had the opportunity to help pioneer the commercialization and global adoption of this technology alongside some of the most talented people in the industry. It has been a deeply rewarding experience, both personally and professionally.

“Having shipped over a half million thermal cameras in 2016, I am proud of all that we have accomplished and know that FLIR is well positioned for continued success,” Teich added. “I am confident that our next CEO and the rest of the outstanding leadership team will continue to build on the important progress we have made. I look forward to continuing to lead the company in the near term and working with the board to ensure a seamless transition.”

Fourth-quarter 2016 revenue was $474.7 million, up 8 percent from $437.6 million last year, the company said. Operating income for the quarter, which ended Dec. 31, was $92.3 million, down from $93.5 million in the year-earlier period.

Net income was $61.5 million, or 45 cents a diluted share, compared with net income of $70.2 million, or 51 cents a share, in the quarter last year.

Cash provided by operations in the quarter reached $97.1 million, which FLIR said was its highest quarterly cash flow since 2013, driven largely by continued improvements in working capital.

Revenue from the maritime segment was $38.3 million, up 6 percent from the quarter last year. Revenue from the surveillance segment was $158.5 million, an increase of 5 percent from last year, and the security segment was up 7 percent, at $73.1 million.

For the full year, revenue was $1.66 billion, up 7 percent from $1.56 billion last year. Adjusted operating income for the year was $324.7 million, compared with $325 million last year.

Net income for 2016 was $166.6 million, or $1.20 a diluted share, compared with $241.7 million, or $1.72 a share, last year.

"We are pleased with the progress we have made in building our core business, the addition of the new business areas through the four acquisitions we completed this year and our strong operating cash flow growth," Teich said in a statement. "While we are disappointed with this quarter's results from a margin perspective, we are confident in our ability to drive continued growth and improve margins in 2017.”

“During 2016 we expanded our market share in nearly all of the markets we serve and built a strong backlog as a foundation for 2017,” he added. “We look forward to the launch of several new product platforms in the first half of the year, which should drive further growth."

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