Revenue during the quarter grew 7.21 percent to $406.81 million from $379.47 million in the previous year period. Gross margin for the quarter expanded 20 basis points over the previous year period to 47.03 percent. Total expenses were 85.48 percent of quarterly revenues, up from 84.88 percent for the same period last year. That has resulted in a contraction of 60 basis points in operating margin to 14.52 percent.

Operating income for the quarter was $59.09 million, compared with $57.38 million in the previous year period.

However, the adjusted operating income for the quarter stood at $69.63 million compared to $62.21 million in the prior year period. At the same time, adjusted operating margin improved 72 basis points in the quarter to 17.12 percent from 16.39 percent in the last year period.

"Overall, we are pleased with our first quarter results. Improvements in our product mix, processes, and overhead absorption drove a nearly 200 basis point sequential increase in adjusted gross margins," said Andy Teich, President and CEO of FLIR. "We experienced good growth in our revenue and backlog during the quarter, both of which were bolstered by recent acquisitions and several new product launches in our existing businesses. We expect to see an uptick in organic growth in the second quarter and the remainder of the year."

For financial year 2017, Flir Systems Inc. expects revenue to be in the range of $1,775 million to $1,825 million. The company projects diluted earnings per share to be in the range of $1.81 to $1.91 on adjusted basis.

The company has spent $13.59 million cash to meet investing activities during the quarter as against cash outgo of $5.12 million in the last year period. It has incurred capital expenditure of $13.59 million on net basis during the quarter, up 165.66 percent or $8.48 million from year ago period.

The company has spent $28.80 million cash to carry out financing activities during the quarter as against cash outgo of $16.29 million in the last year period.

Cash and cash equivalents stood at $397.44 million as on Mar. 31, 2017, down 22.16 percent or $113.18 million from $510.61 million on Mar. 31, 2016.

Working capital increases
Flir Systems Inc. has recorded an increase in the working capital over the last year. It stood at $834.99 million as at Mar. 31, 2017, up 10.58 percent or $79.90 million from $755.08 million on Mar. 31, 2016. Current ratio was at 3.45 as on Mar. 31, 2017, up from 2.41 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 99 days for the quarter from 198 days for the last year period. Days sales outstanding went down to 70 days for the quarter compared with 75 days for the same period last year.

Days inventory outstanding has decreased to 81 days for the quarter compared with 179 days for the previous year period. At the same time, days payable outstanding went down to 52 days for the quarter from 55 for the same period last year.