FLIR Systems Inc. (FLIR, Financial) filed Quarterly Report for the period ended 2012-06-30.
Flir Systems, Inc. has a market cap of $3.21 billion; its shares were traded at around $20.94 with a P/E ratio of 13.6 and P/S ratio of 2.1. The dividend yield of Flir Systems, Inc. stocks is 1.4%. Flir Systems, Inc. had an annual average earning growth of 24.6% over the past 10 years. GuruFocus rated Flir Systems, Inc. the business predictability rank of 4-star.
Cost of goods sold. Cost of goods sold for the three and six months ended June 30, 2012 was $168.3 million and $334.0 million, respectively, compared to cost of goods sold for the three and six months ended June 30, 2011 of $186.1 million and $365.6 million, respectively. The year over year decreases in cost of goods sold primarily relate to the lower year over year revenues. In the three and six months ended June 30, 2012, costs of goods sold included restructuring charges of $3.4 million
Gross profit. Gross profit for the quarter ended June 30, 2012 was $170.0 million compared to $205.4 million for the same quarter last year. Gross profit for the six months ended June 30, 2012 was $352.8 million compared to $401.9 million for the same period of 2011. The decrease in gross profit was due to the lower revenue year over year. Gross margin, defined as gross profit divided by revenue, decreased from 52.5 percent in the second quarter of 2011 to 50.3 percent in the second quarter of 2012, and from 52.4 percent in the first six months of 2011 to 51.4 percent in the first six months of 2012. The decrease in gross margin was primarily due to the product mix and lower factory costs absorption in our Thermal Vision and Measurement segment and restructuring costs in the 2012 periods partially offset by the elimination of 2011 amortization expenses related to fair value adjustments on inventory acquired through the acquisition of ICx Technologies in 2010.
Research and development expenses. Research and development expenses for the second quarter of 2012 totaled $37.5 million, compared to $39.5 million in the second quarter of 2011. Research and development expenses for the first six months of 2012 and 2011 were $74.1 million and $77.1 million, respectively. While research and development expenses declined on an absolute dollar basis for the 2012 periods compared to 2011, as a percentage of revenue, research and development expenses increased to 11.1 percent and 10.8 percent for the three and six month periods ended June 30, 2012, respectively, compared to 10.1 percent and 10.0 percent for the three and six months ended June 30, 2011, respectively. Research and development expenses are expected to remain at the upper end of our anticipated long-term research and development spending relative to sales due to the current sluggish revenue environment. Over the five annual periods through December 31, 2011, our annual research and development expenses have varied between 8.0 and 9.5 percent of revenue.
Selling, general and administrative expenses. Selling, general and administrative expenses were $71.8 million for the quarter ended June 30, 2012, compared to $124.1 million for the quarter ended June 30, 2011. Selling, general and administrative expenses for the first six months of 2012 and 2011 were $149.7 million and $206.7 million, respectively. The decrease in selling, general and administrative expenses for the second quarter of 2012 was attributable to a $39.0 million litigation settlement incurred in 2011, decreased spending in each of our business segments, including lower expenses as a result of cost reduction efforts taken in the third quarter of 2011, and lower corporate legal expenses, partially offset by restructuring costs of approximately $3.4 million incurred in the second quarter of 2012. Selling, general and administrative expenses as a percentage of revenue were 21.2 percent and 31.7 percent for the quarters ended June 30, 2012 and 2011, respectively and 21.8 percent and 26.9 percent for the six months ended June 30, 2012 and 2011, respectively. Over the past five years, our annual selling, general and administrative expenses have varied between 19.2 and 23.8 percent of revenue.
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Flir Systems, Inc. has a market cap of $3.21 billion; its shares were traded at around $20.94 with a P/E ratio of 13.6 and P/S ratio of 2.1. The dividend yield of Flir Systems, Inc. stocks is 1.4%. Flir Systems, Inc. had an annual average earning growth of 24.6% over the past 10 years. GuruFocus rated Flir Systems, Inc. the business predictability rank of 4-star.
Highlight of Business Operations:
Revenue. Consolidated revenue for the three months ended June 30, 2012 decreased by 13.6 percent, from $391.6 million in the second quarter of 2011 to $338.3 million in the second quarter of 2012. Consolidated revenue for the six months ended June 30, 2012 decreased by 10.5 percent, from $767.5 million in the first six months of 2011 to $686.7 million in the first six months of 2012. Each of our operating segments reported decreases in year over year revenues for both the three and six month periods primarily due to continued reductions in demand for our products from the US Government and Middle East government agencies and weaker world-wide economic conditions.Cost of goods sold. Cost of goods sold for the three and six months ended June 30, 2012 was $168.3 million and $334.0 million, respectively, compared to cost of goods sold for the three and six months ended June 30, 2011 of $186.1 million and $365.6 million, respectively. The year over year decreases in cost of goods sold primarily relate to the lower year over year revenues. In the three and six months ended June 30, 2012, costs of goods sold included restructuring charges of $3.4 million
Gross profit. Gross profit for the quarter ended June 30, 2012 was $170.0 million compared to $205.4 million for the same quarter last year. Gross profit for the six months ended June 30, 2012 was $352.8 million compared to $401.9 million for the same period of 2011. The decrease in gross profit was due to the lower revenue year over year. Gross margin, defined as gross profit divided by revenue, decreased from 52.5 percent in the second quarter of 2011 to 50.3 percent in the second quarter of 2012, and from 52.4 percent in the first six months of 2011 to 51.4 percent in the first six months of 2012. The decrease in gross margin was primarily due to the product mix and lower factory costs absorption in our Thermal Vision and Measurement segment and restructuring costs in the 2012 periods partially offset by the elimination of 2011 amortization expenses related to fair value adjustments on inventory acquired through the acquisition of ICx Technologies in 2010.
Research and development expenses. Research and development expenses for the second quarter of 2012 totaled $37.5 million, compared to $39.5 million in the second quarter of 2011. Research and development expenses for the first six months of 2012 and 2011 were $74.1 million and $77.1 million, respectively. While research and development expenses declined on an absolute dollar basis for the 2012 periods compared to 2011, as a percentage of revenue, research and development expenses increased to 11.1 percent and 10.8 percent for the three and six month periods ended June 30, 2012, respectively, compared to 10.1 percent and 10.0 percent for the three and six months ended June 30, 2011, respectively. Research and development expenses are expected to remain at the upper end of our anticipated long-term research and development spending relative to sales due to the current sluggish revenue environment. Over the five annual periods through December 31, 2011, our annual research and development expenses have varied between 8.0 and 9.5 percent of revenue.
Selling, general and administrative expenses. Selling, general and administrative expenses were $71.8 million for the quarter ended June 30, 2012, compared to $124.1 million for the quarter ended June 30, 2011. Selling, general and administrative expenses for the first six months of 2012 and 2011 were $149.7 million and $206.7 million, respectively. The decrease in selling, general and administrative expenses for the second quarter of 2012 was attributable to a $39.0 million litigation settlement incurred in 2011, decreased spending in each of our business segments, including lower expenses as a result of cost reduction efforts taken in the third quarter of 2011, and lower corporate legal expenses, partially offset by restructuring costs of approximately $3.4 million incurred in the second quarter of 2012. Selling, general and administrative expenses as a percentage of revenue were 21.2 percent and 31.7 percent for the quarters ended June 30, 2012 and 2011, respectively and 21.8 percent and 26.9 percent for the six months ended June 30, 2012 and 2011, respectively. Over the past five years, our annual selling, general and administrative expenses have varied between 19.2 and 23.8 percent of revenue.
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