Flir Systems has reported revenue of $464.7 million and net earnings of $63.5 million for the third quarter of 2017, up 15 per cent and 8 per cent respectively compared to the same period last year. GAAP operating income in the third quarter grew 8 per cent to $87.1 million, and adjusted operating income was $101.1 million, up 14 per cent.
The Surveillance, Instruments, and the OEM and Emerging Markets segments continued to be the largest contributing sectors to the firm’s revenue, as was the case earlier this year. Bookings during the quarter have also driven the firm's backlog of orders to higher than ever before.
Flir's OEM and Emerging Markets segment had $87.2 million of revenue, an increase of 39 per cent over the prior year, and was primarily 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 Surveillance segment was $146.8 million, an increase of 8 per cent from the third quarter results last year. The Instruments segment contributed $91.4 million, up 11 per cent over the prior year.
The Security segment recorded revenue of $65.7 million in the third quarter, up 16 per cent from the prior year. Revenue from the Maritime segment was $42.3 million, which was 4 per cent higher than the third quarter of 2016. The Detection segment contributed $31.4 million of revenue, an increase of 19 per cent over the prior year, and was driven by timing of DR-SKO programme shipments.
Flir's backlog of firm orders for delivery within the next 12 months was approximately $709 million as of 30 September 2017, an increase of $64 million, or 10 per cent, during the quarter.
‘Bookings in the quarter drove our backlog to its highest level in our history,’ said Cannon. ‘This positions us well as we realign our businesses and deploy The Flir Method for continuous business improvement, initiatives that we expect to drive organic growth, increase profitability, and generate ample cash for us to deploy in ways that enhance shareholder returns.’
Based on financial results for the first nine months of the year and the outlook for the remainder of the year, Flir expects revenue in 2017 to continue to be in the range of $1.775 billion to $1.825 billion, and adjusted net earnings per diluted share to now be in the range of $1.83 to $1.88 per diluted share.
Flir has also elected Robert Tyrer to its board of directors, bringing the number of board members to 11. It has appointed Carol Lowe as executive vice president and chief financial officer.