Flir Systems Inc. Q3 2008 Earnings Conference Call Transcript

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2008-10-24 01:39:09.0

Tags: Chairman, Call Transcript, Earnings, FLIR Systems Inc., Corporate Governance, Research & Development, Strategy, Business Operations, Corporate Law, Management, Seeking Alpha, Chairman, Call Transcript, Earnings, FLIR Systems Inc., Corporate Governance, Research & Development, Strategy, Business Operations, Corporate Law, Management, Seeking Alpha

Question-and-Answer Session

Yes sir. [Operator Instructions]. Your first question comes from the line of Tim Quillin with Stephens Inc.

Timothy Quillin - Stephens Inc.

Good morning.

Earl R. Lewis - Chairman, President and Chief Executive Officer

Good morning, Tim.

Timothy Quillin - Stephens Inc.

Nice results.

Earl R. Lewis - Chairman, President and Chief Executive Officer

Thank you.

Timothy Quillin - Stephens Inc.

Your prepared comments covered this quite a bit, but of course everybody's mostly interested in the economic sensitivity right now. And it sounded to me like both in the CVS and Thermography business, the international held up well, and while US saw some weakness, but it just seems like the rest of the world is catching the cold right now. So the question is, do you think that things get worse in both those businesses before they get better?

Earl R. Lewis - Chairman, President and Chief Executive Officer

One of the great things about this company is, one of the things we've talked about for years, is that we're in multiple markets, with multiple products, with multiple applications, with multiple distribution channels and strategies, etcetera. So to go your question and try to make too fine a point on it, I think what Arne said is important. Because, yes, the US was a little weaker than we expected it to be. Europe and the Far East were not particularly weak. But the issue for us more was our high end cameras that didn't sell in total as much as we thought they would in Q3. Our unit volumes were up substantially, Tim, in everywhere across the board. So this is our strategy, playing out relative to selling more and more units at more and more lower prices continually growing.

Where we got hit a little bit across the board was in the very high-end product line and that's what slowed that growth to 7%. It certainly wasn't in the low or medium range anywhere in the world. So we expect those products will continue to grow. I also think that Q3 is usually a little lax in those high end products. We expect Q4 spending on R&D and spending on things like GasFindIRs, etc, will probably be a little stronger. And our indications early on are that it will. No good hard-and-fast rules, I don't think, Tim.

Timothy Quillin - Stephens Inc.

That's helpful, thank you. And then in terms of the Government business, what is the outlook for bookings in the fourth quarter? And maybe on an unrelated note, when? or if do you expect to realize the remaining contract value on your $358 million Space and Missile and Defense Command contract, which I think there's $120 million left there? Thank you.

 

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