FLIR Systems 2010 EPS view trails Street; shares down

* Q4 EPS $0.38 vs $0.41 a year ago
* Sees 2010 EPS $1.48 to $1.53 vs est. $1.55/shr
* CFO Bailey to retire
* Shares fall as much as 8 pct
By Bijoy Anandoth Koyitty
Defense News ~ BANGALORE, Feb 11 (Reuters) - FLIR Systems Inc (FLIR.O), which makes thermal-imaging products and infrared cameras, posted a lower quarterly profit and forecast 2010 earnings below analysts' expectations, sending its shares down as much as 8 percent.
The company said it sees slower growth in revenue from government systems in 2010 due to an anticipated decrease in deliveries under the base expeditionary targeting and surveillance sensors-combined (BETTS-C) and related programs.
"The BETTS-C surveillance system was built for Iraq, and right now at least there is not much expectations for a big similar system for Afghanistan. The Iraq system was a meaningful contributor to revenue," Stephens Inc analyst Timothy Quillin told Reuters.
FLIR's government systems segment, which makes imaging products for the military, accounts for more than half of its overall revenue.
FLIR, which competes with defense contractors such as L-3 Communications Holdings (LLL.N), Raytheon Co (RTN.N) and Lockheed Martin Corp (LMT.N), however, said it expects growth from the newly formed commercial vision systems.
"The commercial business will continue to grow nicely and they just need to book new business to replace the drop-off in the defense program," Quillin said.
Revenue from government systems fell 1 percent to $169.7 million in the latest fourth quarter, while the commercial vision systems division revenue rose 34 percent to $57 million. Total revenue rose 3 percent to $311.6 million.
For the fourth quarter, the company reported net earnings of $60.3 million, or 38 cents a share, compared with $65 million, or 41 cents a share, in the year-ago period.
Analysts on average were expecting earnings of 38 cents a share, before items, on revenue of $303.7 million, according to Thomson Reuters I/B/E/S.
For 2010, the company forecast earnings of $1.48 to $1.53 a share, on revenue of $1.2 billion to $1.3 billion. Analysts were expecting earnings of $1.55 a share, on revenue of $1.22 billion.
The company also said Chief Financial Officer Stephen Bailey will retire at the end of May. Bailey will be succeeded by senior vice-president Anthony Trunzo.
Shares of the company were trading down 7 percent at $27.52 late morning Thursday on Nasdaq.
(Reporting by Bijoy Koyitty in Bangalore; Editing by Maju Samuel and Unnikrishnan Nair)


Analyst Research
Report Title
FLIR Systems Inc: Business description, financial summary, 3yr and interim financials, key statistics/ratios and historical ratio analysis.
Provider: Reuters Investment Profile ..... $20.00 Buy
FLIR: Risk/Reward Rating: Full Report: Cash Truth Behind the Reported Earnings
Provider: New Constructs, LLC ..... $10.00 Buy
FLIR SYSTEMS INC (FLIR=US) - REPORT FOR ACTIVE TRADERS
Provider: Pechala's Reports .... $25.00 Buy