Flir Systems's (FLIR) fourth-quarter earnings fell 7.3% on lower
margins and weak business in its government segment as procurement
efforts slow due to budget uncertainty.
The homeland-security company also predicted 2010 earnings of
$1.48 to $1.53 a share on revenue of $1.2 billion to $1.3 billion.
Analysts expected $1.55 and $1.22 billion, respectively, according
to Thomson Reuters.
The company also announced that Chief Financial Officer Stephen
Bailey intends to retire at the end of May. He has held the post
for a decade, and stategy executive Anthony Trunzo will be promoted
to succeed him.
Flir, which makes thermal imaging surveillance cameras, recently
introduced one of the first networked Internet Protocol video
surveillance systems in response to the growing demand from clients
for upgrades to such systems. The company's business has been
growing through the recession.
"We remain optimistic that our commercially developed, military
qualified model will drive growth in government systems in the
years to come," said President and Chief Executive Earl Lewis.
Flir posted a profit of $60.3 million, or 38 cents a share, down
from $65 million, or 41 cents a share, a year earlier, which
included a 4-cent gain from currency changes. Revenue increased 3%
to $311.6 million, mosting due to currency fluctuations.
Analysts surveyed by Thomson Reuters estimated earnings of 38
cents a share on revenue of $304 million.
Gross margin fell to 56.5% from 57.4%.
Revenue from the government-services division fell 1%, while the
commercial segment rose 34% amid strong growth across all product
lines.
Backlog of orders for delivery in the next 12 months was $563
million, down 15%, amid an 11% drop during the quarter in the
government division.
Shares closed Wednesday at $29.67 and weren't active
premarket.
-By Jodi Xu, Dow Jones Newswires, jodi.xu@wsj.com; 212-416-3037;