FLIR - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the FLIR Systems First Quarter 2019 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Jay Gentzkow, Head of Investor Relations for FLIR Systems. sir. ahead go Please

Jay Gentzkow

& and earnings joining slides press call the on everyone, www.flir.com\investor. note referred call. that this Events under available our release are section thanks morning of the for Please to Presentations Good and presentation

Jim are and Words to and I XXXX our reconciliation identify press facts discussing materially quarter on my Securities materially. we speak historical earlier GAAP from adjusted believes, that that circumstances call a results of consistent earnings to undertake such you description Cannon, that results comparison facilitate cause intended that, between forward-looking basis. actual it's and differ as Litigation ongoing measures press as of this the and not refer and These and do could expressions could update Systems. can Private risks time. today we CEO turn to the statements on pleasure operating our information over within A such for cause We'll Reform obligation non-GAAP Before the differ to this need statements expectations. of President the expects, With FLIR an earnings enhance to useful, We issued any other full Please core statements understanding is over to to are today, statements release. today. results be we to factors after is of call are morning's adjusted in reflect for subject estimates, events statement make occurring primarily of or it on we today forward-looking to results believe based that those of intends, our non-GAAP to any because current similar remind and statements. begin, results uncertainties of Act than are The actual made and anticipates, the forecasts. meaning and the forward-looking words release

Jim Cannon

President With me Commercial thank Business and first Good are our and of upon Merrill, Lowe, will Jay Defense On Carol for Thank our you, of of earnings joining and Travis morning, Business today's FLIR's everyone, today Frank three Business President Jay. CFO; you David call. Unit; quarter XXXX we call Unit. Ray, & Government key focus Pennisi, Unit; our messages. President Industrial our

achieve First, growth to historically bookings business our high objectives. the position XXXX

The on to steady finally, margins. in improvements enabling back maintaining team's the fuel, us harvest while to the commitment Second, to we and to And with the productivity foundation slide to gains focus color business feed in initiatives FLIR financial to review highlights. our business, strategic exciting of with progress the continue is the make on a of invest Method prepared remarks. creation. our as provide drive the start presentation later few quarter the Carol will value long-term more I'll X

As this Organic $XXX was of quarter X%. growth at announced earlier morning, in million. revenue with top we expectations line first our reported line

franchise our the momentum program exchange well negatively increasing Defense non-programmatic bookings quarter by both driven growth Historically, Units. and expectations Business Government XX% high exceeded in were wins X%. order growth Foreign impacted Organic year-over-year. & Industrial in by bookings the as as

XXX improved Business to Government XXX & favorable mix the operating current balance team's Notably to at on over XXXX. XX% the income the Defense to margin basis since quarter robust operating in gross initiatives efforts solid The adjusted Method. XXXX. quarter backlog with drive leverage Adjusted XX%, the consecutive productivity the to long-term Total quarterly end the basis growing gross to million earnings Unit. to XXXX. to share first over highest more and we quarter, also XX% Gross profit compared current $XXX XX% increased same quarter, XXXX. the with in increased points per objectives. X% first XX% through up flow our margin first we're of Adjusted of first gross Adjusted compared Adjusted was first the quarter by year. backlog $XX With due versus points increased up grew backlog XXXX. quarter over operating for XX%, than last million, track adjusted period. We company Total margins the of quarter Operating XX% expansion $XXX quarter comparison second financial FLIR our reached realized to margin XX-month in the cash improved bookings, the XXXX. million of increased

year full We're February. maintaining in communicated our to Turning XXXX expectations as outlook.

revenue continue full approximately of includes expect organic which XX%, to We X% of year X%. range to growth the in growth

call, fourth quarter second the As expect the versus revenue XXXX on we half half. last stronger first unlike year, we outlined growth

expect adjusted also We year continue $X.XX to per share of to full earnings $X.XX.

Robotics call, fourth EPS of XXXX Labs Endeavor As approximately quarter our adjusted dilution acquisitions. communicated Aeryon on the and outlook from the includes $X.XX

the realize that quarter of high-growth in of businesses second We into of these second majority as expect the dilution year. scale half to the XXXX, the

per of we will a XX. X on to May June quarterly dividend be of shareholders payable which Finally, share, announced $X.XX of record

FLIR a Method on In integrator X. Defense began or progress providing to the a Unit the like quarter, development platform the Upgrade to awarded & year detailed few million full-scale gain developer from we and to Reconnaissance Soldier Along for evolution or as Defense's IDIQ a program program a its deliver won programs Also as million of the key manned where developments. & Unit will the Systems call, MTRS, SBS; contract Business are We'll franchise to a was and deliver Man Reconnaissance the wide Sensor or programs X, of Biological, $XX phase and Turning Business examples scale with be two in of feed these Systems million in We near-term Department $XX slide provider. the year-end on the advanced this fuel, Suite Robotic Hornet program Defense System Nuclear, solution U.S. selection Transportable in Increment for Vehicle quarter lead $XXX on on Government the NBCRV. focus of the modernization Personal the fuel with capabilities and business. unmanned solid for our with Chemical with Army's to clear franchise Defense our opportunities the application. Black program Ministry business priorities The highlight II many IDIQ foundation. PRS. the start or French of slide our Borne solutions; the Hornet $XX to to Black strategic first next FLIR I'd U.S. the Government million quarter,

Black global contributors interest for Army demonstrating million Hornet in solid offset a Additionally, Government Hornet PRS, first awarded solutions helped we the strength also were deliver franchise $X British bookings Allied and Defense sun quarter Black militaries. XXXX important to successfully contract wins from setting programs. were the program from to &

Commercial advance in programs connected While forward & Industrial traction. you continue not and around intelligent traffic smart at continue gain and to programs. the Business the cameras, coming Units premium the to Defense our cities Neutrino vision and updating on systems wins to Government Wins cooled look cores, franchise scale quarters. And of handhelds, machine we

X. slide Turning to

earnings few. imaging cameras FLIR exciting Our for Industrial oil call. launched gas organic gas visualizes several highlight the OGI and and distances. optical camera OGI introduced In new we Business a I'd of detects inspectors to since emissions volatile And safely to last This greater and leaks or of our scan thousands from products thermal industry. cooled like best-in-class two Unit highest-resolution February, thermal GFXXX camera. components gases hydrocarbon other is and allowing compound effectively our The handheld

to emissions environment. first safer uncooled industry's the GFXX, providing differentiated FLIR reduce technology, significantly the cooled infrared gas other core access ensure more uncooled a methane-detecting and cost introduced compared also work the oil to We professionals camera. cameras Using and OGI OGI to lowers

and The we and KX for the total a darkness provides software rugged technology and their will and a first teams easily imaging Research and studio with of priced awareness thermal community R&D collection, designed to camera camera our FLIR situational affordable new provide thermal KX and April, point. fire announced FLIR detects investigators. in FLIR R&D visibility images. through Also smoke Additionally, launched multi-platform responders collaborate is science price for imaging The data is analysis engineering FLIR Studio thermal two This at to sharing and we competitively keep more compact software lifesaving software improve on first in month, this more responders This most for camera heat professionals. products. safe.

Engineered imaging for FLIR In thermal thermographers, addition, cameras FLIR cameras. we sets Thermal videos. tools enhancing use is introduced thermal possibilities software thermal capabilities unmanned and advanced FLIR to Thermal productivity. these large Studio. analysis to cameras We're designed Studios' of and who Thermal cameras, work software to and systems experience increase are our and customers images with manage automation OGI and handheld thermal designed bring Studio processing excited a the about reporting efficiency two with

to Turning X. slide

trajectories the strategic share investments. strategic to exciting feed that made to early-stage continue Starting in our investment large with pilot with a We businesses network. targeted company long-term surveillance unmanned provides growth through DroneBase. left access we in on a unmanned is minority an April, recent developments DroneBase side, opportunities aerial

technology be part inspection provider will services. for As of of our DroneBase's thermal FLIR the product investment, exclusive

establishes Center. network pilot it FLIR's for as through the training FLIR In Training UAS enterprise their official addition, Infrared partner

the division make Robotics. on Unit. they've decisions. and the Our actionable investment two Business to Unmanned Solutions call about quarter fourth Integrated the but and Endeavor these bring the in capabilities & excited We recent in expand technology, We about real-time two valuable, Labs FLIR acquisition detail provide companies within of more imaging DroneBase unmanned successfully spoke adoption is Systems of progressing in thermal Aeryon acquisitions Endeavor on platform. FLIR's and only Government as the with the will closed not planned joined to Defense users our the information better we're Integration and quarter Aeryon

unmanned in traction. leading makers of approximately solutions received first growth introduction XXXX. to including We're Business our future quarter bookings about We're and technology units Commercial support across continues recent unmanned the January, collaborations resulted our its boat $XX of gain compared in million about developments the business DockSense with groundbreaking platform and all DockSense's has potential. docking Boston engine significant potential. encouraged The and to industry its momentum manufacturer Whaler; since long-term enthusiastic strong Raymarine in Beneteau a Finally, assisted increase of for Unit's Marine. the Mercury We've

play FLIR we already thermal will long-term as the lives delivered that Business automotive of thermal this to and ADK developer a gathering early are investments gain significantly opportunity. to We ADAS year. Unit's autonomous of critical to side X. slide FLIR data second-generation believe the The saving traction. introduced in cameras number vehicle to units and XX and fleets ADK thermal installed on manufacturers' over increase in expect kit or strategic continues QX have the role Industrial made market vision Moving for develops right position

a we've in potential As for in to the ADAS come. prepare additional of investments result, facility to unit made higher FLIR's years volumes the

funnel in to also discussions over partnership underway. XX with We continue FLIR's customers with developments exciting advance the ADAS

featuring XXX-degree introduced Finally cameras. successfully events FLIR's several actively thermal LiDAR, vision demonstrating key autonomous in participated visible integration with emergency and since ADAS vehicle already January. radar We've thermal's miles capabilities and braking automatic industry in logging is

now Carol? of me Let over turn Carol quarter her the to review for highlights. call first the financial

Carol Lowe

slide growth non-GAAP is quarter of see revenue nearly on divested GAAP financial basis. included first financials revenue $XXX On was X% in businesses. Consolidated X, Organic flow, Please the data a increase all our the also of acquisition first year-over-year. filed Jim. from million, results. you, quarter Thank exception the the Security a quarter revenue to of X% note summary increased a these cash Reconciliation offset XXXX with by you'll for are with appendix.

a we've growth began as negatively including first quarter year-over-year the Revenue Foreign X%. strong exchange in expectations all by begun comparable was of challenging performance units that with by growth XXXX. line to impacted business lap in our

in mentioned, the Bookings both proportion as growth organic Defense by program Business the Jim quarter XX% we outperformance the as XXXX, second non-programmatic half In bookings strong wins XXXX. driven of in drove a to higher of Industrial Units. we Government As over historically was XXXX. and strong increasing well contrary orders first growth & quarter, expect franchise first of the

million, was share operating prior $X.XX year. higher from points $XX quarter Adjusted of XXX of the margin XX%, X% than earnings created to the XX% quarter in up quarter adjusted net solid operating XXXX. last per first higher leverage First than year. was basis the leading We adjusted income

the During same flow from million, a we year, cash driven growth. of for In XXX,XXX over XX% $XX operations the repurchased the generated last quarter, quarter, approximately solid earnings $XX increase we representing million. period shares by

shareholders of dividends. also We through $XX returned the million payment to

recent the of our $XXX $XXX was quarter the million, to impact In a acquisitions. refinancing credit the end rate. capacity facility includes us while our to increase million enabling the balance the current cash and to of March, Our of effective interest facility completed we syndicated reducing

our expands maintaining our still to current debt this are While committed capacity, profile. we total investment-grade

mentioned, growth of revenue half. regarding growth revenue we full second range includes organic X% the of expect with XXXX in continue Jim As growth stronger versus to the half which outlook, to approximately XXXX year first XX% X%

year We from approximately outlook $X.XX. the second our these majority includes share per of and dilution half adjusted also of high expect Adjusted as XXXX the of scale earnings second year. continue $X.XX EPS quarter businesses dilution that to full realize recent we expect into to growth the to $X.XX in the acquisitions of

gas for from prior to & XXX was first of growth Unit Defense X% industrial quarter UAS, from $XX XX% acquisitions operating the income Method. also business to favorable quarter each was the in the compared industrial, Turning and Operating year-over-year of year. Beginning strength our cores, related improved in by of gains strength the margin XXX million, dates. including X% growth & UAS Unit, Operating revenue by and FLIR million, thermal driven acquisitions products. income Robotics of saw driven first basis primarily year-over-year, productivity and announced their Industrial points, Government than driven product Operating XXXX, basis increased with margin Endeavor Government points imaging under contributions first mix $XXX to will slide surveillance due the closing from highlight was up quarter the Defense & and higher expenses Government QX. Business declined optical systems. by revenue The X% in cooled, XXXX. units. X, I from Business operating Defense Aeryon respective to the performance Labs

of QX XX% current Defense's won from businesses non-programmatic quarter on over Business recently X.X SBS end a book-to-bill down including plan. first broad-based program, During $XXX program, NBCRV over against XX% are XXXX. negative as strategic & times, first million growth. grew our over quarter XXXX quarter, Government reached the effects. Combined revenue Unit our the Bookings exchange orders QX with Commercial from the we first quarter to revenue increase XXXX year-over-year to the backlog quarter, the of security XX% execute and first well as was The the well-positioned foreign divested

in and X% been restructuring quarter impacts, decreased XX% year-over-year. have first declines in impacts, declines or effects. year-over-year. OTS, systems This improved import these business U.S. would due mix result decrease Excluding negative XXXX margin and year-over-year income foreign expense tactical revenue basis primarily commercial We experienced product $XX to million, points OTS, exchange to and outdoor was operating management. XX the our for down tariff due of Operating continued impacts. Operating

back the for Jim. the to persist, now commercial it I exchange While in quarter challenging restructuring a and headwinds opportunity was OTS call will of growth pass foreign year. the see second although and solid half we

Jim Cannon

and Thank kicked-off in in solid see efforts mission bookings, and of to speed, We operating our And we another Operator? to for a These they the I'll sixth a be In continue to the daily of remind values world-class you, our commitments world's lives achieved with strong Carol. I culture. bold, results. for be winning purpose integrity livelihood. to save our on to We be up values are become we're a to operate open integrity, and financial FLIR our putting Overall, and center company I'm the sense FLIR us task; we XXXX. innovation, be growth. innovate Method at want pleased those with Q&A. ambitious. to and quarter starting our call in to exceed of ready, closing, brave, position order with everyone advance the now how B materialize and drive

Operator

Thank coming session. from [Operator today you. is SunTrust. first We'll be now Michael Instructions] question question-and-answer conducting from Our Ciarmoli

Your line is now live.

Michael Ciarmoli

tackling strong the any quarter nice you points margins, mean question you can the sounds I the think more this for just up for good I Carol blocking guys. to getting just industrial mean and Thanks It in or seemingly industrial first Jim basis second and Hey should level one, like weren't I taking really productivity. more added there. half Maybe maybe strengthens? you guys for hinted morning Just there leverage and color? there mix anomalies basic year-over-year any real we quarter. expect But give even XXX as really of impressed on that Carol here. margins

Jim Cannon

is our Unit particularly it efforts. our facility. the No, the strong Industrial to underway, and those President we're Industrial that several probably serving FLIR OEM point quarter, been that demand components the have of Unit a producing the lines product have They're Method would is another customers we well we you key called accelerated with term principles the with mix efforts the from those Santa color? lot Unit. the manufacturing that They proud make the mix before Business for work along longer Frank, they're They've furthest years continuing. And to. Industrial lean of Business of particularly providing some and practicing in really cooled like throughout we're Barbara FLIR add But programs that see to really aside Business had Method

Frank Pennisi

Jim. Yes

offerings more lot the coupled in time. mix say You've well up as gas large A summed of skewed quarter. attribute But that's margin cooled well. a it a productivity quite mix. lot The that to the really TFM for we've our products, over pretty bit optical are it of products, it sustainable would as also portion which of a I high drones, with product

Michael Ciarmoli

for on side. helpful. a then that's Ray David the follow-up Defense maybe And it, Got just

quarter. had seeing fiscal but view D.C. the you the perspective? like Or stronger? budget, general out funds obviously, XXXX guess a can has up guys of defense? pipeline from of Are a XX%, gotten I bookings I flow really you looks government strong the you on given of it mean of a Just what's U.S. was going the release even the give

David Ray

Yes.

the FLIR I is So, starting to think really budget up aligned the with strategy shape well.

on the our ago align a on Board we're of needs on the customers' to at is and One where really came to about things half I then tuning to how Board, strategy focus when Jim year were. came

the ways reflective DoD customers that's business our be budget. in of to as in I think that think with gain I aligned still we're ensure outcomes the align we priorities. terms think begin in go there. to you're bookings a I -- the more continuing we're of to bookings of going there's progress the strong we've we're QX, really that some of those of had. seeing priorities But to to success DoD to aligning fidelity in more with I believe And markets, with making total, the solid

and beyond XXXX starts as the of business XXXX we our come customers are have Even there to that priorities long-term. the be aligned priorities think the to in and base we pressure the budget, in

Operator

you. Thank

question Sullivan Seaport Josh next Global. today is Our coming from from

Your line now live. is

Josh Sullivan

morning. good Hey

Carol Lowe

Good morning.

Josh Sullivan

Have an Method, on point us FLIR lift? where think you versus you the of the in on can tent. one update I Just where the there's at give a inventory pole needle mostly large the heavy moved hit was that? the the you targets more

Jim Cannon

business to past some drive a on as investments while the margins. absolutely. improvement to engine we Yes, the of principally need make wanted we This in fuel lean maintaining continuous year we productivity manufacturing focused and to

to augmented we we move video self sure make investments fund and solutions, to analytics, around more develop artificial intelligence, sensors expand to from we more to intelligent ultimately could wanted muscles sensing have margins. But we those reality. continue As and

where was wanted visual and particular about the see management efforts And undertake around FLIR method and some underway to opportunity put we're source out We've really one and In take turns times lean improvement, cases, for focus year, I'm with business. with margin proud lot accelerate place, a do of improvement. mappings integration folks the an generate more the we've improvement. now the across right that continuous the lot can gain to rates and capital we're as cash. some those In education, other not it but and FLIR, mixed well just some in that's in lot So is other we opportunities acquisition to identify at string to more add we lot elements the area some you This near-term. working our to continuous a that. efforts, the metric began really more That's scale discipline, leverage of we I'd of And of and And company now so mentioned us global like about efforts to work success; efforts. manufacturing turns a team's talent and initial because had And actions been do. in areas, in in areas focus, those we a evolving Carol several were waste. to particular additional want to to say two it's performance. building of a them color? educating influence lean hard

Carol Lowe

Yes.

we So and good commitment customer still challenging and it's inventory still needs inventory out move question. The certain Josh lot most XX-month ourselves measure place our the in month-to-month. opportunity we're eking terms a operations of serve FLIR's improvement, to and there's robust it takes their addressing planning accountable is getting to there. modest hold and a how in But longer. meet of a because as our so we -- average We improvements

job it's greatest say our DSOs. addressing days of still fabulous to But opportunity. credit procurement our with respect with forward our present a But the team all as has team’s and Our done from we would here. sales upside move collection DPOs, inventory I

Josh Sullivan

this you could typically to in as guys are the far then And production point. at progressed volumes it's auto talk curious XX capacity, and opportunity. your given over level investment interest last you of for capacity just just just as OEMs the And Great, great. be the Frank very on where about color ADAS concerned see Can one the months? just the that. have Appreciate what then interested on how with

Frank Pennisi

Yes, absolutely.

firms per they're won't thermal of Another off But we've and it the they're that to the heard are. of ADAS working qualitatively with getting car the them, them fact feedback start-ups best a have data is that naming we're we're already all on of six come installed So feedback also the point they cameras of of. determined one that are to couple provides Because that is lot image of they've point? NDAs, from this be who points most go you've qualified supplier gotten point I the our a of basically couple the piece to ramping and where FLIR as already of that capacity. to cars and that quality area, their And of fleet well making that be point that of as since so can a two that cases. best this in in cameras? the quality, eliminates they're They're they up and camera? finding they in get getting technology one lot to that is ensuring see when Is in point the see kits production investments the at Is confident reliable XXX,XXX quantifying that the able current and their we're space. they they we'll it quantities to determine it factory, to auto handle be

Operator

you. Thank

Needham Company. Jim Our Ricchiuti next & question is from from coming

live. now is Your line

Jim Ricchiuti

the orders or of and the to backlog identified, thank wins you've in the if franchise is Hi, you Or the talk little about Government the year Good can in you're from of that half these? other strong & in this some is reconcile some of a wondering against second back anticipating was I delivery morning. recovery half of the the Defense anticipating part could business you're the just business? the areas growth bit -- you. coming I in that

Jim Cannon

first and are have that awarded as those well, then and there. others from MTRS in certainly. proceed Yes, the there been deliveries we've II, XH franchise Well, of begin several that second year. programs example, for bulk to programs, the in of begin half the deliveries announced

much programs QX visibility those to have we known in and QX. grew of again starts. we then compare year, comps So half program in the more Last delivery this certainly organically if last digits we first difficult. are Also double year, year and

So performance as lap that we half, got we've the into that. second

business a international success see We that as, military well Armed of opportunities non-programmatic of well build had part whole as that we particular, and with PRS non-programmatic, the on non-programmatic continuing French work expanding defense some U.K.'s as Hornet our Allied in we've a with we mentioned is As as opportunities with with that Forces. Black in as large government to nations. capability well so continue still as of to in mentioned relationship myriad the MOD

just front just much we tied more This as So other year, ship that customers, look not programs OEM more Government normal happening Unit past is half. then has & it you half are Industrial Last a past to our stronger our second work typical was arbitrage years other we in that are it as than that's we with to Business similar back for the compare cycle half. stronger first and to typically at the our year if a But of seasonality. well year those than us of Defense, all the year half than FLIR Last leads kind of as different that. that as loaded. that in see being phenomenon’s will into bit back half in

Jim Ricchiuti

see Particularly out also things view the that. And Got deck to area. vision industrial surprising there's calling -- was still it. that think in in was interested pickup mobile some are Jim wins pretty you're But I that machine phone hear I there. this in thanks the seeing some the soft it to for where market

some the had some seeing pickup sounds easier in looking to are out you the like So business. it I you that of second half. know comps that in area

Jim Cannon

tough the has you with mentioned past really And vision know year. and such comps, prior right. machine after last That's flattish years phone production you this as mobile year the been market largely throughout

a whole and We back now translates we example, And adopting that or application range are hope more the from of opportunities food processing in half. a vision, are into that's coming pickup certainly different industries showing different though machine for booking more production. a seeing stronger bookings are beverage

production softer. semiconductor a is Now bit

traditional any more at time, work Firefly, got it IIS as is we're machine innovate. analytics product strength. integrators great vision and and seeing We team others not to with where continued vision, we're ago the into to different of has edge, on try launched Some to working have. our that's really specific the same the the for not they But And to industries we've long places making a much wider had adoption easier needs address seeing machine product. which

this So, and throughout beginning have some of to get to last momentum of products market. came that course those new year year now the

Operator

Thank you.

is next question William coming Blair. Our from Dipalma from Louie

Your now line live. is

Louie Dipalma

morning. Good

Jim Cannon

Good morning, Louie.

Louie Dipalma

integration of with involved of and is like having synergies from perspective -- family? for Endeavor Labs? having the the Black what only a come Hornet from versus unmanned portfolio Aeryon What And the systems previously

Jim Cannon

question. Really Yes. good

just internal wheelhouse livelihood. better so First innovating purpose have, these And sensor decisions to technologies solutions, of of about that that's synergies can decision. a is all, in make save ultimate all some that lives help and practical their professionals professional right sort the of if unmanned deliver make I to talk some we of our a

products. Government our payloads, as capabilities. Aeryon, and as Endeavor, a robots have & detection on using has years some Unit sensor explosive example The So radiation a platform thermal thermal developed. our as for our core our our well as well long-established our from Fido and camera for been Business years other of products were been that Endeavor Defense sensor has with detection customer FLIR's example, of for products as

payloads customers non-line-of-sight that now the group detector, we Black And end But a and the a if X.X about that ultimately but nano engineer as range can about solution. talk solution really payload group that But with autonomous drone the course. helps principally there also there's many much a two we're military and complete we X-gram different military how mission. the up industrial from are challenge focused think us five the or applications sensor easy-to-operate can do So And even effective first-responder synergies a produce, if helps one capabilities solutions Hornet unmanned intuitive ISR those now just asset, got, larger first, that the more practical well. applications covert that pounds but also in of having we've suite then to of targets now we user. not

kilometers and that and/or actions able on objective by transported with really product an soldier individual to gather stand being other important. a is take intelligence off So be can the

on modernization capabilities. pushes more whole and more that DoD capable key being effort they units of a a that mission So call soldier with is organic SWaP-C and focused around range what smaller assets lethality again we're

which at As ground forward. modernization look et vehicles efforts going air a manned/unmanned ground/ground but you just to and cetera around all include manned/unmanned next-generation, ground, continue component of not a combat future component

or third to They sets because about different customers appropriate. think a unmanned search is for UAS a Or and need building practically ground a the a vehicle not sometimes or got mission the a access rooftop. to for just example. you an versa they've If story application work, into that deep our won't fourth undergo vice of hardened go ground target

disrupt making at and So sustainment at forward want really center with effort. having the move that as is of ISR forward, the air/ground and individual really, innovate and we suite capable really operator edge of is right to capabilities, and manned/unmanned teaming logistics of drive a we that battle what

beginning synergies technologies. we tremendous realize these continue to to that as So we're innovate just now

Louie Dipalma

shipments are Robotics Aeryon seeing lines, of those DJI. for Endeavor how as systems along But you there's first-responder And well? discussed demand existing with vertical in and your think partnered to first-responder customers Thanks. Labs, already anticipate should drones and UAS the I you we

Jim Cannon

Aeryon make where able of put we've serve market sky of an been whole Yes, systems. market payloads and that make aerial to with is has first the more responders' in asset the a helping how DJI as of to to Ones ours; be with some going for particularly they one markets. that scene partner of products also can has a communities. time. great firefighters and and original unmanned this quantify with first-responder on the great respond served as fire first-responder first-responder heat Endeavor, needs. their is host market enter that And to save served we're they they're plans lives more proud to long are

undertake their key that the ordnance mission sets of with is disposal. explosives they robots and One

serve. market EOD community. world but they that missions get just often first very a feedback day to our the users from do right we're We in So not proud civil market across military, is about those responders the every

even capability to itself. distances more dirty see hazardous So, first you'll market they more cetera trace materials, to and radiation Fido work et Robotics standoff for threats, continue on bombs first-responder us, explosives at our approach the robot or Endeavor detectors focus capabilities on like as heavily with responders greater with capable other that explosive make with sensors detector that potentially our

Operator

Thank you.

Our is a Ciarmoli Michael next from question from follow-up SunTrust.

Your is now live. line

Michael Ciarmoli

color? give taking Commercial side region? of real seeing, for Carol, trends and Jim can bookings. Europe can on just or the guys. some by But follow-up. Hey, maybe what us Obviously, some Thanks sort us in the give geographies of you APAC Maybe the the strong especially Industrial you're you

Jim Cannon

-- about Industrial Yes. Commercial because talk see, unit. let dynamic you to business would different what Travis, Travis like each there's a a a I'll go from bit they Why we and by don't bit and first? Frank of

Travis Merrill

Thanks, Sure. Jim.

Jim As bit business Unit. the from different within business it Commercial little is Business to a even mentioned,

bit of other within our APAC our as region significant in a for of a bit positively seeing in trend. the Security see us don't global Middle softness softness a In ITS that's region. of we in so to general a is East U.S. and in markets be businesses. a of some verticals it CBU impacts that on for markets, opportunity continued And footprint, are where there's seems infrastructure kind The an of in a presents see many That little tremendous little area our We side in and really have We we a businesses. a investments increasing then of infrastructure in growth investments number growth the again Europe.

Frank Pennisi

we're not I and weaknesses. drones I as where pros of were people would strengths this of meaningful answers seeing give to lot worldwide is and buying you tailwinds to We're by we're as seeing where everywhere related drones are out cons everything and I that. relative the seeing are essentially where to it a sure break geography, I'm If Yes, Frank. were to you tell

have So spending. focused that more a the developed strength. those for to bit defense that markets Same be tend to on tend

related is lot like the headwind tailwinds. a tariffs Americas headwind in that a FX spent those -- Asia You're the we're Americas of the in China some spoke which a of on for are durable goods our And a that's that and driving lot here out Jim of that's of seeing side, electronics seeing when in growth. to parts predominantly of places a we mentioned where that's the And few market and semi-electronics spots places it's China, and the dropping and on driving Pacific the actually us. bit there being already infrastructure spending like semiconductor

the So slightly you put In it it up point. strength altogether it's Europe, us about Pacific. gives neutral in in this Asia at Americas

Michael Ciarmoli

debrief programs the the That's to maybe that program one a any you CRS it. more Got color Jim, know there? have negative you provide some iterations a behind can helpful. But it. there's since I bring one just And us then more Endeavor gotten And loss but acquisition? additional on up of had not guys

Jim Cannon

have We compete of from program on certainly is a got Yes, as a to course debrief Any want we loss win. you customary when we program sure. DoD.

had a MTRS program and on really we CRS-I. going up won focused CRS-I. production process It's larger ramping we than delivery for just were the the around As lower through a probability II. put win diligence with though, MTRS on We II frankly Endeavor

that go follow-on additional as cetera. on doubt having on focused programs coming for we're et we that's expectation go lessons. win -- had focused a a bit So won CRS-H And our we CRS-I. no the up learned now But of lower forward, or like

Operator

our back over session. turn the comments. to management further the to We end I'd any of floor reached for like question-and-answer closing

Jim Cannon

to Again, I thank interest company. well joining all the you today our call for your as want as in

passion As Thank We look to their quarter always results X,XXX the globe second our forward you want especially I on employees in you. our FLIR XXXX across continued financial over for thank to dedication. July. updating now and

Operator

That does today's webinar. teleconference you. conclude Thank and

your We participation your lines disconnect may and for wonderful this you thank time today. day. You have at a

Teledyne FLIR (FLIR) 24 Apr 192019 Q1 Earnings call transcript