Teledyne Technologies (TDY) 28 Jul 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Teledyne Second Quarter Earnings Call 2021. [Operator Instructions] As a reminder, today’s conference is being recorded. And I’d now like to turn the conference over to your host, Jason VanWees. Please go ahead.

Thank you and good morning everyone. Executive Teledyne’s and conference second VanWees, welcome like call. Jason to everyone quarter is Vice I’d President, to This earnings release before And earlier released we the morning of market our opened. course, this earnings

Al your course, Vice forward-looking Robert, are Melanie and today for results Cibik. In and will materially. Again, CFO, to Robert morning caveats and via President all release Executive Joining webcast may are Al avoid risks Counsel, in we order we get disclosures, Pichelli; and dial-in this Chief replay approximately ask a me potential Vice noted Senior being various Teledyne’s Senior webcast of Main; X Secretary, the be simultaneously by earnings assumptions, and SEC and General before this Mehrabian; Sue, call After Chairman, attorneys to will actual questions. made President month. remarks CEO, President, as for reminded have and Sue periodic tell Officer is and Compliance that you and started, differ subject statements our selective to and available filings me

Robert. is Here

you, thank joining earnings you morning good our Jason for and call. Thank and

a continuously improved worth noting liabilities. operations that over two of decades along milestone shareholder its It and piston all is portfolio compounded when and major returns. engine ago, now, occurred our we aviation associated our earnings, of just businesses, significantly For XX our financial way, our have we and the business and performance, cash divested years flow over

imaging instrumentation making increasingly our accelerated divestiture, businesses. within by earlier, significant our change immediately acquisitions initiated While that of we following and and successful digital pace

portfolio, more margin backbone FLIR resilient focused government while evolution primarily and a into technology attractive balanced predictable on time same recent acquisition company, accelerates maintaining markets, commercial with Teledyne’s our Our but higher of at the of industrial a businesses.

final U.S. commercial company as of we several FLIR financial costs while XX% and standards. forecasting weeks, and compliance end of and U.S. visibility to annualized second expect overhead, reporting, of significant Furthermore, from enhance have and were sales across of have increasing now international our service as as the XXXX, such approach of of continuing our before we in past to to sales other integrating sales the the the savings organization proxy. players’ XXXX a cost XXXX rapid derived in example, the $XX million corporate merger XX% as processes we third-party acceleration from customers target providers. Teledyne And made consultants result, quarter total achieve For of In government. and implementing by eliminated progress described

operating Turning acquisition-related excluding the fixed in volume all cost. FLIR’s contribution In X.X somewhat relative second to margin X results, amount of relative margin prior sales was current electronic legacy was of of weeks and for in the from that for total to disproportionate were XX% and FLIR, costs record margin record. should FLIR’s our all margins company, the operating from and with an given lack the resulting We with that second record only period. strong QX we equivalent of a from sales shipments, earnings, expenses. from quarter margin benefited nearly weeks essentially from increasing costs, transaction-related of a in sales to all-time note to very quarter quarterly operating significantly our of XX.X% costs, sales resulted the digital was all-time And instrumentation sales, non-GAAP imaging, and that’s Teledyne, second of margin excluding from XX% The I businesses non-GAAP linearity double-digit test measurement, cases, and half, relative year-over-year. normalized, to lower performance quarter. partially is, earnings with increased collectively an these achieved environmental second truly in growth organic FLIR

share of digital be FLIR. excluding which second we year will QX On second now we with FLIR its forecasted a $X.X expect and nearly EPS Teledyne led we partially contribute the QX, just reasonable connection for average the Collectively, in organic basis impact in the issued transaction, addition, sales full by of billion. to count of XXXX in half. quarter approximately now X.X%, In $X.XXX in billion and XXXX. a normalized first year to think outlook imaging, for sales only reflected the FLIR stock after approximately growth businesses’ With XX% strong sales expect the therefore, half, reported the in for legacy under in growth

above transactions, excludes as can outlook, the a acquisition-related legacy new our is comparable which provided be and earnings transaction expenses, which $X.XX outlook of purchase GAAP we follows. outlook. is approximately for businesses a accounting In $XX.XX, outlook Our earlier basis, April, about On Teledyne $XX.XX. current summarized

growth $X.XX in a divided $XX.XX. to increase $X.XX April points organic today X% our basis from pre-FLIR the pre-FLIR add Intangible in XX amortization increase asset basis improvement, count overall the in versus the guidance. to resulting outlook FLIR margin would by X.X% XX share resulted Given of points earnings, transactions, that’s around in our and additional to prior from

per year unusually and will who comment I over on in outlook non-GAAP full strong now turn call business including excluding XXXX, Now, to of over of thus, and performance partial Al the QX its period transaction $XX.XX. costs, our will in the $X share is to accretion our results current performance $XX.XX incorporating FLIR, segments.

accounting, increased as Sales level organic instrumentation were to decreased was was the XX.X% segment, operating electronic Thank of for and XX.X% margin test versus just were slightly sales second exceptionally Segment second Sales due increased sales purchase XX%. increased year-over-year acquisition, growth high and year. lower adjusting sales Sales quarterly strong you, and mentioned marine record Instrumentation our XX.X% when XX.X% categories to last pandemic. although segment, of product quarter total costs X.X% transaction largely and instruments XXX.X%, levels. our but our In Sales earlier. the peak environmental FLIR year. was unusually in systems than In overall measurement Imaging increased last increased Robert. XX.X% Digital COVID the the this of quarter of quarter. from most Robert and before

the However, last in strongest quarter over basis or with segment operating orders five asset with profit with intangible operating XX.X%, points quarters Overall, were amortization. segment without the X.XX. XXX Instrumentation the of margin increasing second increased book-to-bill

than Aerospace flat segment, year-over-year sales as missile margin earnings and products regarding more than turbine year the when manufacturing combined in an the last of sales, the Electronics segment Defense with sales offer X.X%, manufacturing electronic year. to Engineered our Systems will driven with XX.X%, the In engines XXX revenue industrial and due the second segment decreased missile slightly quarter business the sales GAAP sales to some we quarter additional offset lower exited points first with cruise primarily growth call greater services last XXXX turn second and full end increased increased sales, Moving slightly I greater outlook. year. now defense space commentary third products. basis margins commercial marine Sue profit and X.X% programs quarter compared operating to increased by profit and from and segment, by operating defense, at aerospace X.X%, who of the engine lower will of quarter. Despite

from morning additional good the activities for and and discuss and was third operating Al you, covered by quarter the quarter financials flow then will I not Al everyone. will quarter, XXXX discuss cash some all and full acquisition-related. second In first million, I including year Robert our $XXX.X Thank outlook.

the from cash quarter operations second was less $XX.X with of compared with of Capital XXXX. Excluding of expenditures compared $XXX.X the amortization acquisition-related cash capital for for operating million activities quarter $XX.X to quarter expense with $XX cash were Depreciation cash XXXX. million period million same million compared of $XX.X in for was is the XXXX. in that was excluding same tax, the second compared Free expenditures flow, $XXX.X acquisition-related of of XXXX XXXX. from million costs, costs, in second and million in $XXX.X flow XXXX the million cash $XXX.X net million period

of of the XXXX. FLIR billion XXXX. to was cash Resulting for expense XXXX FLIR million. with the debt In non-cash $X.XX XXXX cash the that included is less period of approximately quarter the XXXX step-up fund million was $XX.X for for for acquisition. We second July the addition, the balance debt the $X.XX portion debt Stock debt compensation employees $X.X incurred option from The second quarter higher of $XXX.X quarter net of the ended stock quarter million same of was FLIR inventory $X.X of X, approximately billion the to in of million expense unit restricted acquisition, million. $X.X expense second at compared

And outlook a for excluding is the basis, share rate, to $XX.XX. to $XX.XX XXXX year Turning earnings XXXX, per to share, estimated the on believes the earnings $X.XX share that XXXX and be to discrete will with full outlook, range The per third year $X.XX in is earnings of $X.XX management our per of expected tax $X.XX of quarter non-GAAP range GAAP in our GAAP non-GAAP currently XX.X%. the items, $X.XX. to full $X to in be

tax addition, back discrete in pass with to currently XXXX the now I XXXX. Robert. will call In less items expect we compared

ahead. with ready Operator, Sue. take now proceed your you, We go questions. would the and Thank are like please questions to if answers, you to

you. first with question Instructions] Our Maugeri Wolfe [Operator comes thank Please Mike Yes, Research. ahead. go from

bit the the time. just You it morning. some a weeks, just versus add performance? Can around that Digital X with some for at but operating of good Hey, color Thanks X can in the weeks touched you you Imaging? color on legacy the performance

Mike. Thanks Right.

the intangibles, year, And legacy if last Digital add standalone, On you of back were margins XX.X%. the margins the that were business the XX.X%. Imaging

So margins improved XXX Digital the Imaging, legacy basis points. about in the

great. just any or drove initiatives some cost And was of were what Okay, color? it sort that’s other that, there of sort mix,

Both.

machine one maintained from cost year-over-year increased had and labor better has highest the our and flat were costs margins. which other XX% of sales mix was – We the mix margin. a vision, Our

can add discuss should expect behavior, priorities or you debt in any if Thank balance shift there? your sort And can of sort you. it. then FLIR, the Got that’s capital higher deployment you because whether your we of color of post that any

Yes.

capital objective in reduce Mike, is we this fast as can. debt deployment primary to as year, Our our

the projected debt of X.Xx year more by about ratio have rest debt-to-cap year than in what generate this of the and We cash we net expect end terms that anticipate better EBITDA. would we of be year, to – or our to we

the for is expect us. the what also to feel we we of high reduce which by is end that We end EBITDA to that comfortable X.Xx, can net debt XXXX where of at

that acquisitions cash, down have historically generate bolt-on immediate the all down our would such we debt. we that to and done that, debt if So, Having arise. have do pay task do we to said – make capacity is pay opportunities of smaller

Great. Thank you.

Mike. you, Thank

next Our Please with question comes Joe go ahead. Giordano Cowen. from

guys. Hey Good morning.

Good morning, Joe.

to you $XX basis know rate how start talk in starts on on can thinking some I – a us savings full a about early year we thoughts into just next we give high-level So to once but it’s normalized year? look FLIR XXXX, if contribution run for million

Well, let if me I year, may. start with we have this Joe, what

$X.XX. from will cost this able year, we mentioned to we experience enjoy an to where can the we in momentum to that I basis, that may count. say that only is I full be of think earnings. benefit will we year’s with As $X.XX for of year $X – The of probably before, dilution next I would the would full If $X.XX year terms upside from share that and about a non-GAAP high reduction, we as say on increase $X the as we have reason maintain

QX, count QX in shares. was XX share Our XX.X%, million

have will Next year, this year. a share as we QX, full plus million QX count year, have in will XX of we

right other next The that. consultants. reductions enjoy to over the related our there cost costs spoke but expenses, there’ll is haven’t of that year is we weeks to and internal we it side can about It’s it’s third-party These cost some to generally all the really hard inside to little expenses, had that were predict of put I a FLIR yet. in. that and be going So be hope – ‘XX, opportunity other And only for opportunities of X we to employee an reduction now. frankly, corporate expenses

pretty X basically. So in there on that deal? from like your you it’s million term years, thoughts still I the brought to thoughts revenue What and on upside $XX maybe target? synergy but on are potential longer know early, the

say $XXX some $XXX Yes. at I Joe, areas I carefully, million that synergies. raise would from haven’t the from intend looked that to we would there are $XX upside. would but to that enjoy a very revenue say, million we I to on million synergies,

as you and marine example, pretty for gray business. strong FLIR a thermal Specifically, business has, marine know, products

UAVs sonar very of a we There synergies products, portfolio revenue our both in is should as marine is portfolio underwater ground-based We be be have think and some FLIR there of broad have synergies unmanned also going be vehicles. well other so a so there. in and as to course, very there. for strong And tremendous vehicles, synergies of of underwater might we us there unmanned products.

own now. So might through of for FLIR finally, kind some – products some be able does extremely I’d some that’s have of at the say channels. our an we’re products, good enjoy to of those of And our we which beginning, in it infrared right looking channel their

for sensing what with know in do like had FLIR, COVID? in I And over What think – you that comps if the owned growth you year. if rate – mentioned me. this we full a normalized does you for year, get the do the think you $X.X last just organic XXXX? thermal sales expect is then it FLIR for is you once like from more billion what you take And

Yes.

the full $X.XXX I think, as year, you know, revenue last year was billion.

it, remain billion, billion, $X.XX $X.XXX to a expect flat about on year at $X.X billion. basis, We full

elevated you So essentially gone we million temperature year, big Joe, flat. as have year, that enjoyed disappeared. FLIR they in sales. that’s year-over-year Teledyne product Having is that, headwind This said that away, about of last $XXX mentioned, the skin

we’re making businesses. of and systems some of up solutions of integrated So it it the business, in business, especially the in some other with some the products, in unmanned marine that it defense in

sets said to to mean So of going Having that being I – am year, look in the that, enjoying tone ESP. forward year-over-year enjoyed of we but headwind growth of $XXX the offset no ESP. excluding the that able of million kind growth UIS in kind this just I same to

If the of organically. take about the of out that X% you $X.XX the rest billion, grew portfolio

expectation would if and be that we enjoy my truck, being next no will that off that year. able So come the wheels be equal to everything else

queue. back I will thanks. in Alright, jump

Sure.

& Our Company. question ahead. next from Jim comes Needham go Ricchiuti Please with

Hi, good morning.

Good morning, Jim.

gross we of this forward could FLIR. the on through as about Robert, I integration about think Congratulations a wonder move combined really quarter you the bit might first if how going talk the process? with little margins company you

very question. a good that’s Well,

let answer see if can So it properly. me I

around gross it was This Our non-GAAP year, company, margins costs. a XX% a on XX% as Last as quarter standalone year And the basis, – Teledyne, quarter, XX%. up one-time XX.X%. historical margins second have first was been to excluding XX.X%.

about FLIR. can we safe year. with this maybe XXXX the a that in do the going that improvement if be this think would forward margins, best think at gross margin what’s say in to at to That’s at take X%, XX. nice And gross I happen that ours it’d be time you XX%, Teledyne to X% can I up move XX.X%. I

about looking XX% it will future. the of let happen thing. nature the what in Again, was lower now like for the XX%, It SG&A between average QX it of to Because more back be at one go and should was an FLIR, me and right really at are revenue emphasize QX hockey should the in XX%. significantly We be. than normalized stick

So those this that’s factoring in time. I’m at

then just bookings And you company? you question, hockey back into combined give from I’ll Al, Thank look could stick for what can the a if for how to in QX? queue, you. Got may, What flavor if the it. just FLIR or That’s you any performance your us I jump And helpful. that? about this contributed say and

Sure, Jim.

stick First, the hockey nature.

last a have last in the last I think of the been in say, And should weeks month. the FLIR. of weeks X the X I Teledyne weeks X year. practice that’s of the weeks at the They the of shipped historical always than X quarter, first more in month the

totally our revenues the the month-over-month, linearize are to say linear, – over Now bookings the very, ourselves. report weekly. and exactly within hard but years revenues blameless everybody very I We and can’t to within has we’ve month we’re our quarter, the on not worked totally revenues

issue practices, an work come or shipped of outstanding of going very end that our pager with hard the you’ve to that down is The overnight the FLIR is to to of you But or and that really something that doing have doesn’t get this we’re execs, way, working introduce linearize some get So month doesn’t suffered. the an quarter, sub-segment execs, the answer. own end by segment are really the which, something now happens the shipment. of

revenue, in earnings. You suffered in you suffered

So on we’re that. going to work

back go asked. book-to-bill, the to me Let you question

I’d Teledyne, Teledyne of terms what point. this first, call In stand-alone legacy at

one That our think orders be in In about second I in above expect instruments, in book-to-bill and includes excluding X.XX We below mentioned, be will Imaging, strong Digital will FLIR, was in FLIR it – third I quarter. the that in X.X. especially X. about But it marine, QX. as very is

So we slightly X.X. lumpy is book-to-bill is QX Teledyne Systems, X X.XX. X.XX, by the Aerospace which and over be Defense X.XX. Engineered is good think about combined, very will orders about bookings, we in in

we’re X.XX, X So over in maybe say, to going Teledyne X.XX. overall, including QX, I’d be FLIR,

Got much. it. Thanks very

Jim. Sure,

Jefferies. Our Please next go question comes Greg from ahead. with Konrad

Good morning.

Good morning, Greg.

year Just from QX. X.X, the in of up to mean, you on forecast which bit organic to saw bit growth. is start the for acceleration I little brought a you a what

back half different talk changed expectations where Digital and that in and of Imaging. is growth the maybe the and for You year? But gave color some maybe there organic how around maybe you segments, opportunities can about risks

were you of growth about organic say, growth about moved of organic X%. of improving X.X%. with we what project X.X%. projected overall things net in if Teledyne XXXX, excluding the back we’ve that up Greg, January to And FLIR would In X.X%, this earnings legacy April, the started Sure. That’s that I to first, go acquisition.

If you businesses. fastest about something the said, instruments, aerospace we slight see Systems components, rest as Digital Engineered have now, Defense, especially X.X%, almost in little the we’re order will with think recovery year, seeing break the year. don’t and into Aerospace down the be We that more the And that’s XX% our Imaging, Al X.X%, XX.X%, in a some about we moving We – engines there, X.X%. that its anticipate risks primarily a business. for turbine of in decrease the for X.X%. we of because, of think in

You up roll that X.X%. up you end out X.X%, with of

about if Digital Now best and revenue to it’s XXXX, without the that the somewhat. improve in to ability economy project, especially at about of about continues Imaging a could projecting we’re year with the for going, right FLIR improve that businesses, now, we XXXX. our Instrumentation our to pace and FLIR, on But –

a but That’s a of marine then I Was kind little margins, out? think very mean, helpful. about obviously, bit. was margins that you very do margins on also – quarter. how I there? mean Instrumentation And impressive little you you those down do Imaging mix? was and the gave Digital color mean, in how see I playing

is the almost doing margin overall. we but to And I groups. be was GAAP basis. intangibles Instrumentation let revenue. XXX Yes, expect And start non-GAAP do with have to pretty compare down if XX.X%. and it is improvement, XX.X%, XXX year intangible of of it I margin that in finish distribute healthy This would me that a businesses overall point non-GAAP, these little XX%, fact at overall, year-over-year, this improvement we QX XXXX. come The margins would basis to a The all a on basis are the – over mix Instrumentation point Well, Last good. was reason excludes do year were mean I’m some Teledyne amortization. that the year, non-GAAP legacy QX, I which was very down, in in Instrumentation marine

really superior. are those our which businesses doing have because of well margins environmental high are Our oscilloscopes and, and our margins T&M our protocols, very of businesses, course,

of of is – Digital In that. again, XXX year’s legacy we’re good So margins of the last improvement our very in QX Instruments margins about in Teledyne We year, slightly XX%, QX, XXX that had end improvement year’s year-over-year really versus we to course, point an of almost XX.X%, is were just FLIR, anticipate versus QX XX.X% happy excluding so over. margin a including FLIR, of tremendous basis margin, with basis XX.X%. XX.X%, for Marine at Imaging, last XX.X% points.

I XX% closer down the will the on before. I hockey that on as come described based stick year nature goes think that to

overall, FLIR. Teledyne end this about year about so And up XX.X% should Imaging Digital with

XXX but Our end took which about flat. of year, some over up, but segment lot cost basis, a versus a expect Aerospace XX.X% we reiterate that last but margins basis well, year XX. Defense on think in we expenses, and know improvement year, the margins, the businesses perspective, we be will XX% XX.X%. enjoy you which one-time points relatively Roll of now, doing will the we end improvement. of should that’s we out at right versus of basis, in Engineered that XX.X% charges, corporate we points on last a based Aerospace non-GAAP up the point comparisons XXX And margin throw I side that nevertheless, over we are improvement help? of business, non-GAAP basis to a really I a of last basis year again, XXX took X% from last in Systems everything almost year-over-year if should is And year, margin. – on I Does is all

changing biased to me, I And growth been each just enterprise? mean, questions year you mean, with, margin has think FLIR let’s XXXX. that’s get upside, last one one Yes, the whether I mean, that’s how the of for kind about lot always I expansion cycle. acquisition – a the do through Teledyne the I about big organic or this of consistent say, picture. perfect.

expansion it from annual go kind organic synergies whether of change growth opportunity does of it’s set, How You forward? when or we first margin kind you the expected. pulled forward as already the

Well, let by don’t me saying start change. behaviors

going are the be same. We to

not are to change. We going

going in are conservative to be We our projections.

have better always the like more met Board try than FLIR President, Teledyne. improving cost, we three outstanding pay that they we gives risks will We reports margins, them us. Executive next executives down appropriate, team all focus the same the Edwin make were debt. Having We on do going working them Roks. said where behavior are and we expect our the line that. having our effervescent are they three I on And projections. in anticipate going to be too are to really change. and executive with by their don’t for They to on to don’t days, Vice of They being top small until as that, the of Focus and good. taking growing make presentations rest our to our acquisitions focus

keep will improving. We

Thank you.

Our next go Please with question Berenberg. Buscaglia ahead. comes from Andrew

morning Andrew. Good

Berenberg. That’s morning. Good

Robert... can hey, – So, you

sometimes. XXXX You Arabian are

add like be to the some where appreciate what has yes, are that Well, It you you And on bought you you, growth anything operating. you kind with right. whether these bad? expect Robert, you since talk last add that expect is seeing Anything about can the some of on sounds can surprising candidates how great. surprised are comment, you your where you it’s a vice of good of to or there – to little of surprised terms versa bit are didn’t you managers could you thanks I Yes, that the the in wondering, call. like was you case But there FLIR acquisition they would are be that disclose the see quality would FLIR. having or when initially you didn’t potential the made

look segment, of components the the at portfolio, the the the about segments we $X.X segment, Three OEM which billion segment $X.X segments be of comprise when Integrated FLIR made or out and the Systems are four which billion. would really Unmanned eight Solutions Well, businesses. there former of

leadership them Rickard has we They in that’s that we in fourth the X not because we development segments also multiple about Wells, three annually almost few segment some was the to pleased well happened which a have that three worked perspective, million. cash. have is something Lindvall, had that the that executive us we From years There much Paul been last surprised wasn’t were segment, with have Roger X pleasantly What’s healthy the $XXX what paid leadership issues. We for product for is business. – businesses. And is of and have visited attention years. with the have run cow back terms seen, personnel is done before acquisition. that Surveillance And – good Roger segments. but really in only before should. These the as case, UIS, businesses. with have brought they changes, Components last that kind to the milking new leading The for are OEM those there Clayton, to impressed and solution the Teledyne are Board I leading leading not they as they yesterday very In in their and to their that many many, just sub-segment I times of presentations, what one have done have superb. we years

ago. as Technology two and Research research of the weeks huge the and DoD’s We her business. executives be our all run regarded all to to year have is digital our groups. one to DoD government acting [indiscernible] technology JihFen She for laboratories, this the joined of this programs, up program surveillance ended business. businesses. She in to Lei, us name went of Teledyne She work the executive, to in She used the imaging just

bring the she the in know to going sub-segments the need been put and weeks. and leadership the will here I I Teledyne that was superb I which with two that can the her legacy we So, that, She combination fix with on able and there lead synergies on. [indiscernible] solve and footing. back with work – to with Having will a said And products segment Surveillance has a job will her to are we her she that to think and fortunate half healthy and is one with new companies, with all then four that then we the once be get enjoy.

We that aspirations have the combined for works great company.

helpful. with all you put, decisions why the and under possibility a I that up we are [indiscernible] exposure imaging, curious Okay, aerospace in that break What – with future? and the don’t have defense that’s you digital is your am

Yes.

running. going to a the are the think rock I segments possibility. you are But before thinking arrangements start about of you

is where So, and are it collaboration is it safe of then communication drawing keeping and now we doing. what lines

of things we have example, procurement last at done very the For X initiatives. successfully over years is our Teledyne one the

have significant of products. We products. $XXX million, another million bought out come that savings worth have about FLIR We buys of $XXX our billion $X.X procurement. of

to We initiatives are Eventually, we some procurement realignment, do introduce going now. not may there. our but right

targets of was that? some flow a thought Robert, be lastly, on how cash messy impressive Do provide realize these couple I I And Okay. you to if think free this it’s – could of there. quarters. you care debt-to-EBITDA year about it’s put to that what can or net color it hit out you kind

is. Yes, it

if up debt had there go-forward, at and look those be to $X is $XXX so we I over cash to can think basis, billion think I mentioned excluding million, million a we increase the $X $XXX didn’t what will else about We we go-forward if to do – because have be charges million want I that. charges. we equal. good we from our more I want QX, way we we feel to because were have it in number On $XXX I one pay-down is would billion, comfortable to year, maybe around we ‘XX, where to may of we now being going are number don’t get really so and available the end think nice million, Sue get $XXX think that can a some in everything in more is I if QX. ‘XX expenses be a healthier we ‘XX. where

Okay. That’s Thanks helpful. Robert.

you. Thank

with from Mike question comes Wolfe ahead. next Please Our go Maugeri Research.

I the change know that commercial just types a products. to contingent on those Do toward certifying demand but you. your sell point And Hi. post-COVID. ACES you seen have cabin gears of of the Thank in getting or aerospace Thanks indicators generally XXX then behavior and any manufacturers is that environment sort them with monitoring me now, [indiscernible]? It’s those back for have in you business in.

Right.

As even [indiscernible] we out aftermarket and coming Mike. the in airlines of controls products directly have a to decline

We have sensors. environmental cabin their major two testing airlines at least

have We for that. great folks

As which surveillance March of you have qualified in the we before bulk carriers. XXX A-XXX and the know of the was then we

do a to right and they free can are are going we those not use But to give We for it. that. introducing them now test it to just

high we So, have expectations for that.

years some these Just to year-over-year, Overall aerospace things quarter-over-quarter. like flat were were versions the in wireless are But there reduce on mean up. picking up many ground ago. quarter, this make ways the many are picking businesses

are the We bill. in to something that’s a book business for margin because also. seeing And quarter healthy very X.X like high second us that’s about orders

operation specially vaccine and becoming the with and optimistic Boeing initially this slowly, surely. business come profitable we back are their some putting airlines the other that will we but of are So,

Thanks.

Mike. Sure

go Giordano Please from question have a Joe Cowen. ahead. with You

it Hi guys. think going for Thanks me getting answered But you ask I just was flow. to on. ago. cash Robert I back a free question about

in think your will maybe going where but on through as you not you Can So, or are bunch you space excited you in about maybe about? a to just and finish the best just you where Space landscape. you commercial commercial with most NASA opposed launches European or what positioned excited the Agency maybe talk it’s whether going are like I on, space gives what’s in

visible do satellites. for think to I out a of or all and own job looking But moving like with the space. to space anything We [indiscernible] the practically now earth, the domain, big foremost, a We that the the it’s carbon chunk of environmental studies, detectors market. looking space-based lot we including to our whether in are classified supply really and both and Well, we working first observation, whatever. of

So, great space some classified imaging we have in programs. products the

Yes, right Now in of for some but that in in involved products want are to not travel call space that. now. – there color we as the whatever you terms we make equipment,

an and focus sensors have immediate future, us. OneWeb can some I [indiscernible] the information development. a wants know, sensors can. for have We as you our [indiscernible] we with of place I space for having products, technologies sensors, now to in can nobody I am visible would be other imagine. a the everybody communication satellites where if for remained program, and be And to piece and with make upside the that because see the – of FLIR that channels I has infrared don’t upon think infrared these we each based and we know advantage strategic our build cautious do commercial else with little you think on

when like ‘XX, in something And comment you. cash said is or operating definitely. was a for that cash that, flow cash billion quick you just clarification, free flow? ‘XX one that $X Yes, flow Thank

That’s free.

I thought. Thanks. That’s what

it you a minute moved the I free… said year

it. got I

any questions. other Thank you. Operator, are there

There else in is one queue. the no

conclude ask In so conference doing you. case, of toes. our kept you Jason? you. that my Jason to Thank on questions much for that homework Thank I thank would to want I to me And like to all call. ask

Robert. being everyone, our Thanks, thanks, And for again, call on today.

you earnings seek number me detail, as more in or other release. call you follow-up with the have always the questions usual If can

you if go very and the information. give you much. Amy, ahead replay So Thank would

XXXXXXX. code available August Thank you. today. X-XXX-XXX-XXXX and of This XX participation Thank is for access using dial-in for with replay you The for Pacific XX. on a.m. will an conference starting today does Event for be at AT&T through conferencing your midnight your service. conclude conference That number

You disconnect. may now