Revenue up by 39% - issues revenue and EPS outlook for 2011.
FLIR Systems, Inc. (NASDAQ: FLIR) today announced financial results for the fourth quarter ended December 31, 2010. Revenue was $434.4 million, up 39% compared to fourth quarter 2009 revenue of $311.6 million. Operating income in the fourth quarter was $100.6 million, up 12% from $89.9 million in the fourth quarter of 2009. Fourth quarter 2010 net income from continuing operations was $70.3 million, or $0.43 per diluted share, compared with net income of $60.3 million, or $0.38 per diluted share in the fourth quarter a year ago. Cash provided by operations in the fourth quarter was $45.5 million.
During the fourth quarter, the Company closed its acquisition of ICx Technologies, Inc., and the segment contributed $46.1 million of revenue and $2.1 million of operating income. ICx fourth quarter operating income was impacted by $5.2 million of expenses associated with acquisition-related intangibles and inventory amortization, as well as by $1.4 million in force reduction charges. Additionally, FLIR corporate expenses during the quarter were impacted by $2.2 million in costs associated with the acquisition of ICx. Several ICx entities are anticipated to be divested and have been classified as discontinued operations, with combined net losses during the quarter of $0.5 million.
Revenue during the quarter from the Company's Government Systems segment increased 1% from the fourth quarter of 2009, to $171.7 million. Revenue from the Company's Thermography segment increased 18% from the fourth quarter of 2009, to $100.0 million, driven by growth in the Asia Pacific region and strong sales of both value and mid-priced cameras. Revenue from Commercial Vision Systems increased 35% from the fourth quarter of last year, to $76.7 million, reflecting strong growth in cores and security products. Revenue from Raymarine was $40.0 million with operating income of $3.9 million.
For the full year, revenue was $1,385.3 million, up 21% compared to $1,147.1 million for the year ended December 31, 2009. Operating income for 2010 was $360.6 million, up 4% from $347.3 million in 2009. Net income from continuing operations for 2010 was $248.6 million, or $1.54 per diluted share, compared with 2009 net income of $230.2 million, or $1.45 per diluted share. Cash provided by operations during the year was $255.4 million.
The Company's backlog of firm orders for delivery within the next twelve months was approximately $534 million at December 31, 2010, no change from the previous quarter, and a decrease of $29 million, or 5% compared with backlog at December 31, 2009. Backlog in the Government Systems segment was $325 million, down $61 million during the quarter, primarily due to delayed procurement by the U.S. government, offset by strong international orders. ICx backlog was $62 million as of December 31, 2010. Backlog in the Commercial Vision Systems division was $114 million, down $3 million during the quarter, while backlog in the Thermography division was $22 million, down $1 million during the quarter. Raymarine ended 2010 with $11 million in backlog of firm orders, an increase of $2 million during the quarter.
Revenue and Earnings Outlook for 2011
FLIR also announced today that it expects revenue in 2011 to be in the range of $1.63 billion to $1.73 billion, an increase of approximately 18% to 25% compared with 2010, and net income to be in the range of $1.65 to $1.75 per diluted share, an increase of approximately 7% to 14% compared to 2010.
"Each of our segments delivered growth in the fourth quarter, and 2010 finished as our tenth consecutive year of record revenue, operating income, and earnings per share. We intend to continue this success by relying on our commercial mindset, a strong innovation engine, our increasingly global customer base, our entrenched distribution channels, and a continually evolving line of leading products," noted Earl R. Lewis, President and CEO of FLIR. "Sustained superior financial performance while enabling a growing number of customers to benefit from the valuable information our sensors provide remains our driving goal."
About FLIR Systems
FLIR Systems, Inc. is a world leader in the design, manufacture, and marketing of sensor systems that enhance perception and awareness. The Company's advanced thermal imaging and threat detection systems are used for a wide variety of imaging, thermography, and security applications, including airborne and ground-based surveillance, condition monitoring, research and development, manufacturing process control, search and rescue, drug interdiction, navigation, transportation safety, border and maritime patrol, environmental monitoring, and chemical, biological, radiological, nuclear, and explosives (CBRNE) detection.