Flir Announces Preliminary 2012 Q2 Revenue

FLIR Systems announced preliminary revenue and earnings per share results for the second quarter of fiscal year 2012. FLIR expects to post revenues of approximately $338 million and earnings per share of approximately $0.26 for the three months ended June 30, 2012. Excluding the net after tax impact of severance costs, earnings per share for the three months ended June 30, 2012, is expected to be approximately $0.30. The Company's second quarter performance reflected in these preliminary results was negatively impacted by weakness in several markets including predictive maintenance and building, cores and components, and recreational marine, particularly in Europe. Delays in customer delivery schedules negatively impacted revenue during the quarter, particularly in the cores and components line of products in the Thermal Vision and Measurement (TVM) segment. Margins during the quarter were negatively impacted by product mix and factory absorption due to lower than anticipated revenue.

Total bookings for the quarter were approximately $375 million, resulting in an increase in backlog of approximately $41 million compared to the first quarter of 2012. The TVM, Surveillance, and Detection segments each increased segment backlog during the quarter. Operating cash flow was approximately $80 million in the second quarter.

Management has re-evaluated its previously announced revenue and earnings outlook for the full year 2012 and now expects revenue to be in the range of $1.4 billion to $1.5 billion, a decrease of approximately 3% to 9% compared to 2011, and net income to be in the range of $1.40 to $1.50 per diluted share, an increase of approximately 1% to 9% compared to 2011. Supporting the second half outlook are the increase in backlog during the second quarter and a stronger outlook for orders in the second half of the year.

"We are disappointed in our second quarter performance," said Earl Lewis, President and CEO of FLIR. "These results caused us to make additional reductions to our cost structure that will be reflected in improved profitability in future periods. Most importantly, we are confident that the second half of 2012 will be significantly better than the first half, and we expect to see a resumption of meaningful earnings growth in the fourth quarter."