Flir revenue, profits up in Q3

Infrared systems maker Flir Systems Inc. reported a 45-percent increase in third-quarter revenue on a 60-percent increase in profits, compared with the same quarter last year.

With nine-month revenue at $774.6 million, Wilsonville-based Flir (NASDAQ: FLIR) is on track to exceed $1 billion in revenue this year, pushing it into rare territory for an Oregon company.

Flir reported third-quarter revenue of $276.7 million, up from $191.1 million in last year’s third quarter.

Income was $55.6 million, or 35 cents per share, up from last year’s third-quarter net income of $34.8 million, or 22 cents per share.

Analysts polled by Thomson Financial expected earnings of 32 cents per share.

For the first nine months of this year, revenue increased 44 percent from $536.8 million last year. Income for the year to date is $138.4 million or 87 cents per share, up from $90.1 million, or 59 cents per share, in last year’s first nine months.

Flir said it expects to close the year with revenue of $1.075 billion to $1.1 billion, and net earnings of $1.21 to $1.25 per share.

For the third quarter, Flir’s 45-percent revenue growth was driven by the company’s government systems business, which sells to the U.S. military and other national military services. Revenue for the division was $151.7 million, nearly 55 percent of Flir’s total revenue for the quarter, and up 57 percent compared to last year’s third quarter.

That growth outpaced Flir’s other divisions, even its fast-growing commercial vision systems business. Commercial systems grew 34 percent during the third quarter, compared to a year earlier, to $45.8 million.

Thermography, a business that yields high profits, increased 32 percent over last year’s third quarter, to $79.2 million. This division was bolstered by two acquisitions made during the year: Extech Instruments and Cedip Infrared Systems. Without those acquisitions, thermography’s revenue would have grown 7 percent during the third quarter.

Orders increased almost 14 percent, to $650 million by the end of September compared to the end of June. Order growth, like revenue growth, was driven by government systems. Orders for that division increased almost 18 percent during the quarter, to $547 million.

Flir added more than $29 million in cash and equivalents to its balance sheet during the quarter, despite spending $22.9 million on stock repurchases and $5 million on purchasing property, plant and equipment.

The company’s stock has been one of Oregon’s strongest performers over the past two years. Shares of Flir were trading at $28.40 around the middle of the trading day Thursday, following its earnings announcement, up from a close of $27.47 on Wednesday.

Shares of Flir have traded between $23.68 and $45.49 over the past year.