FLIR Systems (NASDAQ:FLIR) has delivered impressive performance but the sluggish global and domestic economic recovery, little chances of increase in defense expenditure, competitive pressure and problems in higher margin operations will continue to hurt the business.
FLIR Systems (FLIR) is a designer, manufacturer, and marketer of thermal imaging and threat detection systems. The 35 year old company is the global leader in infrared detector cores and thermography equipment markets, the biggest player in North America's DIY security systems market, the third biggest player in the global recreational boating electronics market and the fourth largest provider of military infrared equipment. In short, FLIR Systems is the global leader in the development of highly advanced, proprietary sensor systems and calls itself "the world's sixth sense." Analysts at CRT Capital have recently upgraded the company to a buy but I think you should steer clear of this stock. So let's dig deeper.
Diverse Product Portfolio
One of the key strengths of FLIR Systems is its diverse product portfolio that enables the company to serve a wide variety of customers.
The business produces a wide variety of products that are sold to a diverse range of customers that range from government agencies and defense contractors to residential security providers to recreational boaters. The company's business is organized in two divisions; Commercial Systems and Government Systems divisions, which are further divided into five reporting segments.
In the commercial systems division, the company designs and manufactures products for commercial customers. This division is further divided into two operating segments; the Thermal Vision and Measurement (TVM) segment through which FLIR provides products that enhance vision during night or adverse weather conditions and products that capture and analyze temperature; and the Raymarine segment which … read full article at Seeking Alpha.