FLIR Systems Tops Expectations

FLIR Systems, Inc. (FLIR) reported third quarter 2009 net income of $60.0 million or 38 cents per diluted share, compared with net income of $54.8 million or 35 cents per diluted share in the third quarter a year ago. This is higher than the Zacks Consensus Estimate of 35 cents.

Revenue was $285.6 million, up 3% compared to third quarter 2008 revenue of $276.7 million. Revenue from the company's Government Systems division increased 7% over the third quarter of 2008 to $163.0 million, with strength in stabilized gimbaled systems. Revenue from the Company's Commercial Vision Systems division increased 15% over the third quarter of last year to $52.6 million, reflecting growth in the security, cores and components, and maritime markets.

Revenue from the company's Thermography division decreased 12% from the third quarter of last year to $69.9 million, primarily due to lower demand for high-value products for the predictive maintenance market.

The company announced that it has acquired OmniTech Partners, Inc., a leader in the development and manufacturing of image intensified and fused image intensified / thermal imagers based in Freeport, PA, for $42 million in cash. OmniTech adds image intensified capability to FLIR's product line, and creates the opportunity to leverage the capabilities of both companies to expand in the growing market for fused image intensified / thermal imagers.

Total cash and equivalents at the end of the quarter stood at $403 million, with long-term debt at $60.2 million and shareowner's equity at $$1.1 billion.

FLIR Systems, Inc. is a leader in the design, manufacture and marketing of thermal imaging and stabilized camera systems for a wide variety of thermography and imaging applications. These include condition monitoring, 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. Major competitors are Lockheed Martin Corporation (LMT) and L-3 Communication Holdings Inc. (LLL).

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