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.
