Strong margin performance and record adjusted earnings offset lower revenues
Wilsonville, Oregon-based FLIR Systems posted mixed results for its fourth quarter and 2018 full year, with lower revenues offset by record adjusted earnings on the strength of improved margin performance.
Revenue for the quarter ended December 31, 2018 was reported as US$448.5m, a level 9.4% lower than Q4 2017 revenues of $494.8m. Gross margin increased 270 basis points to 50.8%, compared with 48.1% for Q4 2017. GAAP operating income was reported as $85.9m, marking a year-over-year gain of 11.3% over the $77.2m reported for the previous fourth quarter. Fourth quarter net earnings were $98.5m compared with a net loss of $50.3m in Q4 2017.
For the full year, 2018 revenue was reported as $1,775.7m, down 1.4% from the $1,800.4m revenues of the previous year. GAAP operating margin was 17.9% in 2018, compared with 16.1% in 2017, representing a 180-basis point improvement. 2018 net earnings were reported as $282.4m, compared against $107.2m reported for the 2017 fiscal year.
“I’m proud of our team’s performance in 2018,” said FLIR president and CEO, Jim Cannon. “We achieved organic revenue growth and margin performance the company hasn’t reached in many years, and we delivered record adjusted earnings per share and operating cash flow. We are well-positioned for 2019 with strong bookings, numerous new product launches, and the recently announced acquisitions of Aeryon Labs and Endeavor Robotics, moving us forward in the execution of our unmanned integrated systems strategy.”