FLIR Systems, Inc. Q3 2009 Earnings Call Transcript

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2009-10-21 14:23:08.0

Tags: FLIR Systems Inc., Call Transcript, Earnings, Stephens Inc., Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions). Your first question comes from the line of Tim Quillin with Stephens Incorporated.

Tim Quillin – Stephens Incorporated

Good morning.

Earl Lewis

Good morning, Tim.

Tim Quillin – Stephens Incorporated

Can you tell us when you are scheduled to complete deliveries of orders currently in backlog related to the BETSY program? And what are the prospects for additional orders with either the $40 million remaining value under the current contract or other new army or marine contract vehicles?

Earl Lewis

Bill?

Bill Sundermeier

Sure. Presently, our BETSY schedule is through Q1. And depending on their uptick, where they might go into the first part of Q2 as well. And right now, as far as we look into the remainder of the IDIQ, which is a little more than $30 million is left under that, we don’t see in the funnel right now any demand, although sparing does has happened over period of time and perhaps first part of next year some sparing orders that might appear to have consume the rest of that.

Both the army and the marine corp. are heading towards their program of record capabilities, so they are both thinking about doing that. They had – army have issued their RFP, maybe with the ending of the IDIQ, we might see that in the first part of next year. So marine core we believe is going to separate from the program and do their own program of record for their GBOSS program. And as General Cole has mentioned to us, we'll not necessarily BETSY becoming a program of record, but portions of BETSY becoming program of record and he specifically mentioned raid. So that’s our current status on the program.

Tim Quillin – Stephens Incorporated

Okay, thank you. And Bill, you had mentioned that 4Q orders are expected to be seasonally lower than 3Q and typically burn the whole backlog in the Government business. In 4Q, should we expect that again this year? Thanks.

Bill Sundermeier

I don’t know if you heard me.

Earl Lewis

Tim, he said, yes.

Tim Quillin – Stephens Incorporated

Okay.

Bill Sundermeier

Okay, sorry.

Tim Quillin – Stephens Incorporated

Thank you.

Earl Lewis

That’s our absolute quality. He said, yes.

Tim Quillin – Stephens Incorporated

That was definitive. Thank you.

Operator

Your next question comes from the line of Jonathan Ho with William Blair & Company.

Earl Lewis

Yes Jonathan.

 

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