Revenue during the quarter grew 8.48 percent to $474.74 million from $437.65 million in the previous year period. Gross margin for the quarter contracted 214 basis points over the previous year period to 45.23 percent. Total expenses were 80.56 percent of quarterly revenues, up from 78.64 percent for the same period last year. That has resulted in a contraction of 193 basis points in operating margin to 19.44 percent.

Operating income for the quarter was $92.28 million, compared with $93.50 million in the previous year period.

However, the adjusted operating income for the quarter stood at $103.27 million compared to $98.66 million in the prior year period. At the same time, adjusted operating margin contracted 79 basis points in the quarter to 21.75 percent from 22.54 percent in the last year period.

"We are pleased with the progress we have made in building our core business, the addition of the new business areas through the four acquisitions we completed this year, and our strong operating cash flow growth," said Andy Teich, president and chief executive officer of FLIR. "While we are disappointed with this quarter's results from a margin perspective, we are confident in our ability to drive continued growth and improve margins in 2017. During 2016 we expanded our market share in nearly all of the markets we serve and built a strong backlog as a foundation for 2017. We look forward to the launch of several new product platforms in the first half of the year which should drive further growth."

Flir Systems forecasts revenue to be in the range of $1,780 million to $1,830 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.81 to $1.91 on adjusted basis.

The company has spent $447.81 million cash to meet investing activities during the year as against cash outgo of $134.84 million in the last year. It has incurred net capital expenditure of $28.61 million on net basis during the year, down 32.82 percent or $13.98 million from year ago.

Cash flow from financing activities was $38.61 million for the year as against cash outgo of $166.54 million in the last year period.

Cash and cash equivalents stood at $361.35 million as on Dec. 31, 2016, down 23.57 percent or $111.44 million from $472.78 million on Dec. 31, 2015.

Working capital increases
Flir Systems Inc has recorded an increase in the working capital over the last year. It stood at $802.94 million as at Dec. 31, 2016, up 14.35 percent or $100.78 million from $702.17 million on Dec. 31, 2015. Current ratio was at 3.22 as on Dec. 31, 2016, up from 2.20 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 80 days for the quarter from 85 days for the last year period. Days sales outstanding were almost stable at 34 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 66 days for the quarter compared with 79 days for the previous year period. At the same time, days payable outstanding went down to 20 days for the quarter from 28 for the same period last year.