Recently, FLIR Systems Inc. (FLIR) was awarded a contract to support the U.S. Coast Guard for the Coast Guard's Electro-Optical Sensor System configuration of FLIR's commercially developed military qualified Talon 9-inch stabilized multi-sensor gimbal system. The Electro-Optical Sensor System will be installed on Coast Guard’s helicopters. The contract is valued at $23 million. The shipment of the order is expected to be completed by the end of 2013.
Prior to this, FLIR received a two-year blanket purchase agreement from the U.S. Army to support the MEDEVAC program. The agreement is also for the purchase of FLIR’s military qualified Talon product, a stabilized 9-inch multi-sensor gimbal system. The contract is valued at $81 million. As per the terms of this agreement Talon MMS will be installed on the Army's fielded and new MEDEVAC Blackhawk helicopters. The U.S. Army has already paid an initial delivery amount of $19 million. Initial order delivery is expected to be completed by 2014.
Both the orders for the Electro-Optical Sensor System are expected to be carried out at FLIR’s Billerica, Mass. facility. These contracts will be a part of the Detection segment, included under the Government Systems division. This division produces sensor instruments that detect and identify chemical, biological, radiological, nuclear, and explosives threats for military force protection, homeland security, and commercial applications. In 2012, the Detection segment had a backlog of $24 million with revenues of $63 million.
FLIR is a world leader in sensor systems that enhance perception and awareness. The company currently has a Zacks Rank #3 (Hold). However, other companies that are wroth considering at the moment are Pall Corporation (PLL), Honeywell International Inc. (HON) and ITT Corporation (ITT), all having a Zacks Rank #2 (Buy).
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