Flir posts $1.66bn annual revenue; CEO Andrew Teich announces retirement
Flir Systems has posted annual revenue of $1.66 billion in 2016, up 7 per cent compared to 2015. Its fourth quarter 2016 revenue was $474.7 million, up 8 per cent over the same period in 2015.
The company’s OEM and Emerging Markets segment had $76.1 million of revenue in Q4 2016, an increase of 55 per cent over the prior year, thanks partially to the addition of the acquired Intelligent Imaging Solutions business – formerly known as Point Grey – as well as strong camera cores demand.
Revenue from the Surveillance segment was $158.5 million, an increase of 5 per cent from fourth quarter results last year. The Instruments segment contributed $96 million, down 3 per cent; the Security segment $73.1 million, up 7 per cent; the Maritime segment $38.3 million, an increase of 6 per cent; and the Detection segment contributed $32.7 million of revenue, a decline of 6 per cent versus the prior year.
Flir Systems has also announced that the company’s president and CEO, Andrew Teich, plans to retire after 33 years of service. Teich will continue to serve in his current roles until a successor is appointed.
‘Nearly 34 years ago, I saw my first thermal camera and I immediately knew it would change the world,’ said Teich in a statement. ‘I feel incredibly fortunate to have had the opportunity to help pioneer the commercialisation and global adoption of this technology alongside some of the most talented people in the industry.
‘Having shipped over a half million thermal cameras in 2016, I am proud of all that we have accomplished and know that Flir is well-positioned for continued success,’ he added. ‘I look forward to continuing to lead the company in the near-term and working with the board to ensure a seamless transition.’
Teich joined Flir in March 1999 after it acquired Inframetrics, where Teich worked since 1984. He has served as president and CEO of Flir since May 2013 and as a member of the board of directors since July 2013.
During his tenure as CEO, Flir grew annual revenue to more than $1.6 billion by introducing new product platforms across Flir's six segments; completed five strategic acquisitions that expanded Flir's product portfolio and capabilities; developed new technologies and successfully brought them to market; and significantly increased its intellectual property portfolio.
Commenting on Flir’s earnings, Teich said: ‘We are pleased with the progress we have made in building our core business, the addition of the new business areas through the four acquisitions we completed this year, and our strong operating cash flow growth. While we are disappointed with this quarter's results from a margin perspective, we are confident in our ability to drive continued growth and improve margins in 2017.’
Flir expects revenue in 2017 to be in the range of $1.78 billion to $1.83 billion and adjusted earnings per diluted share to be in the range of $1.81 to $1.91. This represents 7 per cent to 10 per cent growth in revenue and 7 per cent to 13 per cent growth in adjusted earnings per diluted share.