FLIR Systems Inc. Q1 2009 Earnings Call Transcript

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2009-05-01 14:35:32.0

Tags: Margin, Call Transcript, Earnings, FLIR Systems Inc., BetSEA, Currency & Foreign Exchange, Business Structures, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Tim Quillin - Stephens Inc.

Tim Quillin - Stephens Inc

Maybe, I’ll try and sneak in two questions at once, but the first is regarding margin. Just wondering, if there is anything unusual or difficult to replicate margins in the first quarter because I think your full year guidance would require a lower margin to get to that number?

The second question is regarding the [BetSEA] program and your expectations for additional orders this year and what do you see for that program or similar rate variant programs in 2010? Thank you.

Earl Lewis

The margin question, certainly we had great margins this quarter. We have a good mix; that mix was very helpful of having the margins we did. As you pointed out, we don’t plan on margins be in this good for the whole year. At the same sense we have planned for slightly lower margins and seem to be able to produce a little bit better than we planned for. As of right now, though I would think those margins are a little high on average for the year. As far as BetSEA, maybe Bill, you want to pick that?

Bill Sundermeier

Sure. BetSEA is still running its great program for us. We’re right in the middle of them interested in doing a compete of course for the program of record as well as having our IDIQ opened and as well as our long-term service contract arrangement.

So, we continue to have a great partnership with them and as they determine what’s happening between Iraq and Afghanistan and whether or not they have enough systems to cover both, we may see more, but they also might determine that they have sufficient presently. So right now, we’re gearing up for competition for the program of record and anticipating that RFP to come out.

Earl Lewis

We still have significant head room on the IDIQ, though that we currently have, so how they dispose with that to be determined still.

Operator

Your next question comes from Peter Arment - Broadpoint Amtech.

Peter Arment - Broadpoint Amtech

Earl, maybe you just, I guess Thermography and excluding the foreign exchange, but the visibility around Thermography it sounds, initially encouraging that you’re seeing some slight improvement, but can you give us a little more color on what you view the visibility is into sort of inventory levels as various channels. I mean, how do we look at that?

 

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