FLIR Systems announced financial results for the first quarter ended March 31, 2017.
FLIR Systems announced financial results for the first quarter ended March 31, 2017. First quarter 2017 revenue was $406.8 million, up 7% over first quarter 2016 revenue of $379.5 million. GAAP operating income in the first quarter grew 3% to $59.1 million, compared to $57.4 million in the first quarter of 2016. Adjusted operating income was $69.6 million in the first quarter, which is 12% higher than adjusted operating income of $62.2 million in the first quarter of 2016.
First quarter 2017 GAAP net earnings were $42.6 million, or $0.31 per diluted share, compared with GAAP net earnings of $1.1 million, or $0.01 per diluted share in the first quarter a year ago, which was negatively impacted by a $40 million tax reserve. Adjusted net earnings in the first quarter were $49.6 million and $0.36 per diluted share, which were 13% higher than adjusted net earnings per diluted share of $0.32 in the first quarter of 2016.
Cash provided by operations in the first quarter reached $75.1 million, an increase of 64% over the first quarter of 2016, and was driven by improved use of working capital.
Revenue from the Surveillance segment was $118.7 million, a decrease of 4% from the first quarter results last year. The Instruments segment contributed $77.9 million of revenue during the first quarter, down 2% from the prior year. The Security segment recorded revenue of $45.1 million in the first quarter, down 4% from the prior year. FLIR's OEM & Emerging Markets segment had $84.8 million of revenue, an increase of 77% over the prior year, and was partially driven by the addition of the Integrated Imaging Solutions line of business from the fourth quarter 2016 acquisition of Point Grey Research. Revenue from the Maritime segment was $48.6 million, which was down 6% from the first quarter of 2016. The Detection segment contributed $31.8 million of revenue, an increase of 9% over the prior year.
FLIR's backlog of firm orders for delivery within the next twelve months was approximately $608 million as of March 31, 2017, an increase of $16 million, or 3%, during the quarter.
"Overall, we are pleased with our first quarter results. Improvements in our product mix, processes, and overhead absorption drove a nearly 200 basis point sequential increase in adjusted gross margins," said Andy Teich, President and CEO of FLIR. "We experienced good growth in our revenue and backlog during the quarter, both of which were bolstered by recent acquisitions and several new product launches in our existing businesses. We expect to see an uptick in organic growth in the second quarter and the remainder of the year."
Revenue and Earnings Outlook for 2017
Based on financial results for the first quarter and the outlook for the remainder of the year, FLIR continues to expect revenue in 2017 to be in the range of $1.775 billion to $1.825 billion and adjusted net earnings per diluted share to be in the range of $1.81 to $1.91 per diluted share.
Dividend Declaration
FLIR's Board of Directors has declared a quarterly cash dividend of $0.15 per share on FLIR common stock, payable June 9, 2017, to shareholders of record as of close of business on May 26, 2017.