DOW JONES NEWSWIRES 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;
