FLIR Systems
Encyclopedia
FLIR Systems is a thermal imaging (infrared
) systems manufacturer based in Wilsonville, Oregon
, United States. Founded in 1978, the company makes thermal imagers, thermal imager components, as well as larger systems containing thermal imagers along with other sensors, for both commercial and military applications. FLIR is a component of the S&P 500
index with annual revenues in excess of USD 1 billion annually as of 2009. The company has had several accounting scandals
concerning back dating of stock options and claims of fraudulent accounting. As of 2009, Earl R. Lewis is the chief executive officer
, chairman of the board, and president of the company that employs 1,900 people worldwide.
systems, and developed from 1978 to 2004 through product development and acquisitions of related companies. Originally based in Tigard, Oregon
, the company relocated to Portland
in the mid-1990s. FLIR teamed up with Hughes Aircraft Company in 1990, with Hughes taking part ownership of FLIR.
The company became publicly traded in a June 1993 IPO
. The IPO raised $11.5 million for the company with shares offered at $12.50. In 1994, the company had grown to sales of $47 million annually. The next year J. Kenneth Stringer III was named as president of the company. The company bought Sweden's Agema Infrared System in 1997, which doubled the size of the company. Acquisitions continued the following year when they purchased Inframetrics Inc. of Massachusetts
for $48 million.
President and chief executive officer Kenneth Stringer III was fired by the board of directors
in May 2000 due to errors in the company's accounting practices. In September 2002, the Securities and Exchange Commission (SEC) sued FLIR over accounting irregularities. The next year three executives at the company were charged with fraudulent accounting in related to the SEC case that included claims of inflated sales. Sales at FLIR grew to $311 million in fiscal year 2003. In 2004, the company bought a building in Wilsonville from Mentor Graphics
for $10.3 million to serve as a new headquarters.
Beginning in 2005 the company began supplying BMW
with imaging technology for use on the luxury automaker's vehicles. Also in 2005, FLIR was named the 55th fastest-growing company on CNNMoney
's list of the 100 fastest-growing tech companies. In 2006 FLIR was listed as the 83rd best small business by Forbes
. The previous year they were ranked 39th. That July they announced a seven-year contract worth up to $250 million with the United States Army
for cameras to be installed on helicopters.
In March 2007, the company reported that they would restate its financial statements for the period from 1995 through 2005, primarily to record non-cash charges for compensation expense relating to past stock option grants. FLIR was also sued by investors over these same allegations.
The company purchased Extech Instruments Corp. in October 2007 for $40 million. The next month FLIR executed their first stock split
. FLIR made another acquisition in April 2008 when it purchased Ifara Tecnologias of Spain for about $11 million. For the 2008 fiscal year, the company recorded $1.1 billion in sales, a record for the company. On January 1, 2009, FLIR was added to the S&P 500
stock index, replacing National City Corporation
. FLIR was named as the Northwest's top company by the Seattle Times in 2009, marking the third time the company was at the top (2002 and 2003). They sold off Extech Data Systems, a division of Extech which made portable printers, in December 2009, and bought security hardware maker Directed Perception that month for $20 million. FLIR continued to grow via acquisitions when they purchased bankrupt Raymarine in May 2010 for $180 million.
The Thermography division focuses more on analytical equipment that has uses in both the industrial and commercial fields. Example products include hand-held cameras used for home energy audits and veterinary thermal imaging. The commercial vision portion of the company manufactures products from infrared
sensors to infrared news cameras for use on aircraft. Markets include private security and the automotive industry. FLIR's largest division, Government Systems, sells products to a variety of government entities with products ranging through weapon sights to perimeter surveillance systems to low light cameras to laser illuminators. Products developed not merely for military applications are also sold to commercial customers, sometimes through CVS.
Infrared
Infrared light is electromagnetic radiation with a wavelength longer than that of visible light, measured from the nominal edge of visible red light at 0.74 micrometres , and extending conventionally to 300 µm...
) systems manufacturer based in Wilsonville, Oregon
Wilsonville, Oregon
Wilsonville is a city primarily in Clackamas County, Oregon, United States. A portion of the northern section of the city is in Washington County. Originally founded as Boones Landing due to the Boones Ferry which crossed the Willamette River at the location, the community became Wilsonville in...
, United States. Founded in 1978, the company makes thermal imagers, thermal imager components, as well as larger systems containing thermal imagers along with other sensors, for both commercial and military applications. FLIR is a component of the S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
index with annual revenues in excess of USD 1 billion annually as of 2009. The company has had several accounting scandals
Accounting scandals
Accounting scandals, or corporate accounting scandals, are political and business scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations...
concerning back dating of stock options and claims of fraudulent accounting. As of 2009, Earl R. Lewis is the chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
, chairman of the board, and president of the company that employs 1,900 people worldwide.
History
FLIR took its name from the acronym for forward-looking infrared imaging systems. The company began in 1978 with airborne IRInfrared
Infrared light is electromagnetic radiation with a wavelength longer than that of visible light, measured from the nominal edge of visible red light at 0.74 micrometres , and extending conventionally to 300 µm...
systems, and developed from 1978 to 2004 through product development and acquisitions of related companies. Originally based in Tigard, Oregon
Tigard, Oregon
Tigard is a city in Washington County, Oregon, United States. The population was 48,035 at the 2010 census. As of 2007, Tigard was the state's 12th largest city. Incorporated in 1961, the city is located south of Beaverton and north of Tualatin, and is part of the Portland metropolitan area...
, the company relocated to Portland
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
in the mid-1990s. FLIR teamed up with Hughes Aircraft Company in 1990, with Hughes taking part ownership of FLIR.
The company became publicly traded in a June 1993 IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
. The IPO raised $11.5 million for the company with shares offered at $12.50. In 1994, the company had grown to sales of $47 million annually. The next year J. Kenneth Stringer III was named as president of the company. The company bought Sweden's Agema Infrared System in 1997, which doubled the size of the company. Acquisitions continued the following year when they purchased Inframetrics Inc. of Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
for $48 million.
President and chief executive officer Kenneth Stringer III was fired by the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
in May 2000 due to errors in the company's accounting practices. In September 2002, the Securities and Exchange Commission (SEC) sued FLIR over accounting irregularities. The next year three executives at the company were charged with fraudulent accounting in related to the SEC case that included claims of inflated sales. Sales at FLIR grew to $311 million in fiscal year 2003. In 2004, the company bought a building in Wilsonville from Mentor Graphics
Mentor Graphics
Mentor Graphics, Inc is a US-based multinational corporation dealing in electronic design automation for electrical engineering and electronics, as of 2004, ranked third in the EDA industry it helped create...
for $10.3 million to serve as a new headquarters.
Beginning in 2005 the company began supplying BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
with imaging technology for use on the luxury automaker's vehicles. Also in 2005, FLIR was named the 55th fastest-growing company on CNNMoney
CNNMoney.com
CNNMoney.com is the world's largest business website. The site is the online home of Fortune and Money, and serves as CNN.com's exclusive business site. The site, edited by Chris Peacock, together with the three titles, is part of the Fortune|Money Group, and attracts more than 10.8 million unique...
's list of the 100 fastest-growing tech companies. In 2006 FLIR was listed as the 83rd best small business by Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
. The previous year they were ranked 39th. That July they announced a seven-year contract worth up to $250 million with the United States Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
for cameras to be installed on helicopters.
The company purchased Extech Instruments Corp. in October 2007 for $40 million. The next month FLIR executed their first stock split
Stock split
A stock split or stock divide increases the number of shares in a public company. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur. Options and warrants are included....
. FLIR made another acquisition in April 2008 when it purchased Ifara Tecnologias of Spain for about $11 million. For the 2008 fiscal year, the company recorded $1.1 billion in sales, a record for the company. On January 1, 2009, FLIR was added to the S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
stock index, replacing National City Corporation
National City Corp.
National City Corporation was a regional bank holding company based in Cleveland, Ohio, USA, founded in 1845; it was once one of the ten largest banks in America in terms of deposits, mortgages and home equity lines of credit. Subsidiary National City Mortgage is credited for doing the first...
. FLIR was named as the Northwest's top company by the Seattle Times in 2009, marking the third time the company was at the top (2002 and 2003). They sold off Extech Data Systems, a division of Extech which made portable printers, in December 2009, and bought security hardware maker Directed Perception that month for $20 million. FLIR continued to grow via acquisitions when they purchased bankrupt Raymarine in May 2010 for $180 million.
Operations
Headquartered in Wilsonville, Oregon, the company also has manufacturing facilities in Portland, Massachusetts, Sweden and France. Worldwide, FLIR employs in excess of 1,900 people, with more than 1,200 located in the United States. As of the fiscal year ending December 31, 2008, FLIR had net profits of $203.7 million on revenues of $1.077 billion. Earl R. Lewis has been the president, CEO, and chairman of the company since 2000. The company operates three divisions; one for government business (Government Systems), one for commercial vision customers (Commercial Vision Systems, or CVS), and one for thermography (Thermography). With $569 million in annual revenue, Government Systems is the largest of the three.The Thermography division focuses more on analytical equipment that has uses in both the industrial and commercial fields. Example products include hand-held cameras used for home energy audits and veterinary thermal imaging. The commercial vision portion of the company manufactures products from infrared
Infrared
Infrared light is electromagnetic radiation with a wavelength longer than that of visible light, measured from the nominal edge of visible red light at 0.74 micrometres , and extending conventionally to 300 µm...
sensors to infrared news cameras for use on aircraft. Markets include private security and the automotive industry. FLIR's largest division, Government Systems, sells products to a variety of government entities with products ranging through weapon sights to perimeter surveillance systems to low light cameras to laser illuminators. Products developed not merely for military applications are also sold to commercial customers, sometimes through CVS.