Flir Systems 3Q Profit Jumps 28 Percent

Flir Systems’ 3rd-Quarter Earnings Soar 28 Percent on Strong Growth Across All Major Divisions

PORTLAND, Ore.—Flir Systems Inc., which makes infrared vision equipment, said Thursday third-quarter profit increased 28 percent on strong growth across all major business segments. Shares notched a record high in morning trading.

The company reported income of $34.8 million, or 45 cents per share, compared with $27.1 million, or 36 cents per share, in the year-ago period.

Revenue for the quarter rose 44 percent to $191.1 million from $133.2 million in the same period last year.

Analysts polled by Thomson Financial had estimated earnings of 39 cents per share on sales of $181.1 million.

Operating expenses jumped 32 percent to $55.2 million.

Revenue from the company’s Government Systems division grew 70 percent over the third quarter of 2006 to $96.9 million, driven by growth across all markets, including airborne, land and maritime. Flir’s Commercial Vision Systems division posted a gain of 29 percent to $34.2 million, reflecting strong growth in the security and transportation markets, the company said. Revenue from Flir’s Thermography division rose 21 percent, helped in part by the introduction of new products.

Also on Thursday, Flir’s board approved a 2-for-1 stock split. Shareholders will receive one additional share of common stock for every share held as of Nov. 12. The additional shares will be distributed on or about Dec. 10, the company said.

Subsequently, Morgan Keegan & Co. analyst Brian Ruttenbur upgraded the stock to “Outperform” or “Buy” from “Market Perform.”

“Though Flir is not cheap, the company is an industry leader and is accelerating its growth,” Ruttenbur wrote in a note to investors. “We see momentum continuing for the company.”

Shares reached a new all-time high of $68.13 in morning trading, and recently gained $8.02, or 13.6 percent, to $66.94. Shares have traded between $28.26 and $61.26 in the past 12 months.