FLIR Systems announced financial results for the third quarter ended September 30, 2014. Revenue was $375.4 million, up 5% compared to third quarter 2013 revenue of $358.1 million.
FLIR Systems announced financial results for the third quarter ended September 30, 2014. Revenue was $375.4 million, up 5% compared to third quarter 2013 revenue of $358.1 million. Operating income in the third quarter was $70 million, compared to $63.5 million in the third quarter of 2013, and was impacted by $4.1 million in pretax charges related to previously-announced restructuring initiatives. Third quarter 2014 net income was $52.9 million, or $0.37 per diluted share, compared with net income of $46.5 million, or $0.32 per diluted share in the third quarter a year ago. The net after tax impact of the restructuring charges in the third quarter was approximately $3.1 million, or $0.02 per diluted share. Cash provided by operations in the third quarter was $33 million.
Revenue from the Instruments segment contributed $82.6 million of revenue during the third quarter, up 7% from the prior year. The OEM & Emerging Markets segment had $56.1 million of revenue, an increase of 2% over the prior year. FLIR's Security segment recorded revenue of$48.6 million in the third quarter, up 37% from the prior year. Revenue from the Maritime segment was $44.7 million, and was up 8% over the third quarter of 2013. Surveillance segment revenue was $119.1 million, a decrease of 6% from the third quarter results last year. The Detection segment contributed $24.2 million of revenue, an increase of 6% from the prior year.
FLIR's backlog of firm orders for delivery within the next twelve months was approximately $579 million as of September 30, 2014, an increase of $31 million, or 6%, during the quarter and an increase of $89 million, or 18%, since the beginning of 2014.
"We are pleased with our third quarter results. Our revenue expansion, improved margins, and strong backlog reflect the execution of our growth and cost reduction initiatives," said Andy Teich, President and CEO of FLIR. "The restructuring program we launched a year ago is proving to be successful from both a financial and organizational efficiency standpoint. Recent product introductions have generated interest in our technology at levels never seen before. Our product innovation continued in the third quarter and we are committed to investing in innovation into the future in order to create new and increasingly-affordable advanced sensing solutions."
Revenue and Earnings Outlook for 2014
Based on financial results for the first nine months of 2014 and the outlook for the remainder of the year, FLIR now expects revenue for the full year 2014 to be in the range of $1.48 billion to $1.53 billion and net earnings, excluding restructuring charges associated with the business realignment, to be in the range of $1.43 to $1.48 per diluted share.
Dividend Declaration
FLIR's Board of Directors has declared a quarterly cash dividend of $0.10 per share on FLIR common stock, payable December 5, 2014, to shareholders of record as of close of business on November 18, 2014.