This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

FLIR Systems Management Discusses Q2 2012 Results - Earnings Call Transcript

Let me now turn the call over to Earl Lewis, Chairman and CEO of FLIR Systems. Earl?

Earl R. Lewis

Yes, thank you, Wit. And welcome, everyone, and thank you for joining us this morning. As we indicated last week, our second quarter 2012 performance was below our expectations. Global fiscal uncertainty caused by weakness in our maritime predictive maintenance and building markets and our cores business within Commercial Systems was negatively impacted by order delays from several key customers.

The Government Systems divisions have better order flow but revenue and earnings were down compared with last year. In response to lower earnings, we made operational changes during the quarter that resulted in a pretax restructuring charge of approximately $7 million. The restructuring should reduce cost by approximately $17 million per year beginning in the fourth quarter of this year.

We generated $77 million of cash from operations in the second quarter and utilized some of that cash to repurchase 3 million shares of our stock. We also increased our backlog by over $40 million from the end of Q1. Our Commercial business generated about half of this increase and Government, the other half. Our unit volumes continue to grow and many of our systems markets did well, reflecting continuing progress on our strategy to continually lower the cost of ownership of infrared technology.

Given the results for the first half of the year and our re-forecast of the remainder of the year, we've adjusted our outlook for 2012 revenue to between $1 -- or between $1.4 billion and $1.5 billion, and earnings per diluted share between $1.40 and $1.50.

Our current order pipeline backlog and our efforts to streamline our operations indicate a return to growth in our fourth quarter. While there remains some significant unknowns in our markets, such as sequestration softness in Europe in the building markets, we believe this represents an attainable results.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs