FLIR Systems announces first quarter 2016 financial results

FLIR Systems announces first quarter 2016 financial results
FLIR Systems announced the financial results for the first quarter ended March 31, 2016. First quarter 2016 revenue was $379.5 million, up 10 percent compared to first quarter 2015 revenue of $344.5 million. On a constant currency basis, first quarter 2016 revenue was up 12 percent versus the prior year. Operating income in the first quarter was $57.4 million, compared to $65.8 million in the first quarter of 2015. Profitability in comparison to the prior year was negatively impacted by product mix shifts, higher production costs, and unusually low corporate expenses in the prior year.

First quarter 2016 net income was $1.1 million, or $0.01 per diluted share, compared with net income of $47.9 million, or $0.34 per diluted share in the first quarter a year ago. Net income in the first quarter of 2016 was negatively impacted by the recording of $40 million of tax reserves related primarily to the previously disclosed ongoing dispute between the European Commission and the Belgium government over certain tax legislation. Excluding the tax reserve expense, earnings per diluted share were $0.30. Cash provided by operations in the first quarter was $44.9 million.

Revenue from the Surveillance segment was $124.2 million, an increase of 10 percent from the first quarter results last year. 

Revenue from the Surveillance segment was $124.2 million, an increase of 10 percent from the first quarter results last year. The Instruments segment contributed $79.4 million of revenue during the first quarter, down 5 percent from the prior year and down 3 percent on a constant currency basis. The Security segment recorded revenue of $47.1 million in the first quarter, up 21 percent from the prior year. FLIR's OEM & Emerging Markets segment had $47.8 million of revenue, an increase of 20 percent over the prior year. Revenue from the Maritime segment was $51.7 million, which was up 1 percent from the first quarter of 2015 and up 5 percent on a constant currency basis. The Detection segment contributed $29.3 million of revenue, an increase of 61 percent from the prior year.

FLIR's backlog of firm orders for delivery within the next twelve months was approximately $613 million as of March 31, 2016, an increase of $9 million during the quarter and an increase of $56 million, or 10 percent, compared to $557 million at the end of the first quarter of 2015.

"We are pleased with the growth we saw in revenue and backlog in the first quarter. Strength in our government businesses drove our backlog to its highest level since 2008," said Andy Teich, President and CEO of FLIR. "While our profitability was negatively impacted by product mix and increased manufacturing costs, we intend to improve our cost management as we move through the rest of the year. Our product development engine continues to deliver innovative solutions for improving overall safety, security, operational efficiency, and environmental protection. As demonstrated by our recent product introductions, our ability to increase the addressable markets in these areas continues to progress."

"We are pleased with the growth we saw in revenue and backlog in the first quarter. Strength in our government businesses drove our backlog to its highest level since 2008," said Andy Teich, President and CEO of FLIR.

Revenue and Earnings Outlook for 2016
Based on financial results for the first three months of 2016 and the outlook for the remainder of the year, FLIR continues to expect revenue in 2016 to be in the range of $1.6 billion to $1.65 billion and net earnings to be in the range of $1.60 to $1.70 per diluted share. This guidance excludes the impact of discrete tax items.

Dividend Declaration FLIR's Board of Directors has declared a quarterly cash dividend of $0.12 per share on FLIR common stock, payable June 3, 2016, to shareholders of record as of close of business on May 20, 2016.
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