Teledyne Technologies (TDY) 27 Jan 222021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Teledyne's Fourth Quarter Earnings Call 2021. [Operator Instructions] And as a reminder, this conference call is being recorded. I would now like to turn the call over to your first speaker, Mr. Jason VanWees. Please, go ahead.

everyone. morning, Good VanWees, Jason of Teledyne. This Vice is Chairman everyone I Earnings Quarter Fourth like Release welcome would to to and Call. Teledyne's And Conference Full Year XXXX We the morning earlier released open. before our earnings market this

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

Robert. is Here

spectrum, unmanned land sensors, cameras, its simple margin support technology has adjusted operating was across Teledyne systems FLIR, decision call. in Thank of in year domains. you, earnings, Jason, We successful further and our businesses instrumentation, the never and cash of for sales global good more I've air acquisition specialty evolved you with for a software subsea, the defining XXXX and integration sensing with been pleased morning, our earnings portfolio provide a flow. thank and Teledyne description. joining into the and and algorithms and Teledyne Furthermore, and record with electromagnetic and company.

markets strong. remained industrial XX% business. with multiple commercial -- fourth execution of revenue, revenue business a resilient, achieved balanced the high-technology greater the portion end very remaining long-cycle increase government We across predictable operational In electronic of a are record especially commercial measurement We our FLIR. imaging instrumentation than X.X% Teledyne Sales contributed last growth in of strong sales was businesses. test growth driven and organic year, and our by XX.X% and quarter, by

In addition, per accounting compared to along government purchase last and segment with in aerospace. continued recovery commercial Aerospace our $X.XX GAAP quarter in Defense Electronics share space year. X.X% fourth only growth markets, ongoing Despite earnings significant decreased of saw noncash charges,

XX.X% earnings contributed sales which X.X% was specifically matters small million flow our from by acquisition. way, share, a -- charges, a to were earnings per in we foreign X.X, discrete repayment share from larger declined of our related also the share, about on to tax was had benefit excludes the of midpoint plus margins acquisition-related tax items, per $X.XX $X.XX increase roughly outlook basis fourth $X.XX an improved XXXX. was per $X.XX, increase Excluding October, quarter to of related a $X.XX Compared comparable the stronger all-time record, clear FLIR of the leverage the ratio Cash from results. appearing allowing quarterly $XXX X.X number and immediately in debt GAAP X after which to declined tax which,

limit favorable. demand supply Nevertheless, to remains shipments. Turning across businesses The constraints XXXX overall outlook. our to chain environment continue

$X company FLIR, equates billion Coupled is time at outlook X%. sales organic Given and from total $X.X revenue year between sales contribution this think, of growth a for of approximately this this, a X% full total billion. to we just with reasonable under

more to time. were able as at or increase to if supply inflation offset course, it's present Of ease than we pricing chain the challenges necessary,

the of growth performance to we where our the business on But year acquisition. outlook X%. strong did in vision we growth was organic our as XXX%, comment segments. commercial throughout organic government XX.X%. will achieved outlook industrial the increase XXXX, our in will at revenue to now of and systems. strongest In Digital combined businesses in our XXXX I of and Imaging growth to largely January of relative quarter imaging X% sales the X.X% fourth X and FLIR for full was initial revenue We also segment, increased very sensors Sales scientific year due

GAAP was test Sales XX% record accounting and analyzers, care and in were but the oscilloscopes had X.X% markets, sales increased and sales of versus adjusted quarter increased increased year. related systems, health measurement environmental XX.X%, and for the the quarter. In any costs, segment we being our revenue year-over-year period. Instrumentation discovery transaction very segment Sales instruments protocol addition, human sales margin than with quarter. record strongest and greater detection fourth was X.X% of Sales health instruments segment, year In increased last gas strong which X.X% XX.X%. with safety to pre-pandemic such purchase drug in electronic operating marine margin from of levels. to last as flame and and include

year. asset Electronics than in of with combined increased sales quarter operating GAAP in Defense products. growth points in increase profit points, In X XX.X% the X.X% Aerospace year quarterly intangible segment segment X.XX. basis the and quarter space or industrial profit driven quarter the defense, increased XXX with fourth of sales operating addition, excluding sales, XXX fourth commercial margin XXX Instrumentation points Overall, orders with XXXX, aerospace in fourth book-to-bill margin segment, basis increased XX.X%, operating in XX% XX% amortization. and X.X% increasing and greater were last years segment the and strongest last full In by basis

profit And fourth exited and Systems turbine revenue decreased XX.X% missile due lower in margin we operating cruise earlier segment, on Finally, quarter past higher-margin Engineered the engine year. since the this sales. business decline to also

Sue, Before turning remarks. to make I want few the concluding call over to a

tax We of a affirmed made court method determined an in back March court $XXX First, generally noted our in most as was tax This of estimated and dating first The expect pay recent an the ruling to XXXX. clear us quarter plan filing, million. X-K lower Sweden, XXXX. in associated noted in of as liability anticipated appeal a regarding yesterday's outcome XX-Q. court in appeals XXXX do was to and the by decision tax the the to not accrued liability

Finally, outgrow regarding environmental, would social Teledyne's than ESG, sustainability governance industrial and the years more efforts monitoring process for with began environmental that journey ago for demand instruments XX implementation. general belief

imaging Pollution and Labs Advanced were pollution acquisitions monitoring contaminants enable greenhouse companies to X X air our first analyzing in Monitor and Tekmar, Today, dedicated Instrumentation, and sensors gas water. space. from trace Our

data subsea. chemicals air ambient and vehicles and solidity underwater autonomous of particulates the and provide instruments environmental enable concentration the ocean the in surface of our Our deep and on to from temperature floats monitoring

highlighted CSR strategy responsibility X our While month, report. our last we an reports, and in next or annual we will products have corporate social inaugural publish

highlight call Here, gas now disclose diversity. workplace efforts well as to over employee regarding we as and and our further emission turn management targets reduction will matrices sustainability I'll Sue. the greenhouse safety and

cash I in Robert, XXXX. quarter and of good capital morning, with for flow our everyone. $XXX.X period will not outlook. then activities in In compared the fourth same activities quarter, flow, was and you, first for less the $XXX.X additional compared $XXX.X the cash quarter XXXX Robert, Thank I and XXXX. full operating from operating $XXX year flow the by some of was discuss of first with covered will discuss million fourth million expenditures, XXXX cash cash that Free million quarter million from is financials

$XX.X of with XXXX payments flow compared same excluding in For cash net million to cash of $XX.X the Depreciation FLIR amortization compared in transaction-related of million expense quarter $XX million fourth was $XX.X full $XXX.X million the the year tax. the for million was XXXX, expenditures period were for XXXX. free Capital quarter and fourth XXXX.

inventory XXXX, with net million. FLIR the ended XXXX $X.X expense billion from noncash $X.X quarter employees fourth step-up XXXX. That the same was restricted the addition, of million. of $X.X for period quarter option of approximately was of of in for was approximately acquisition, $XXX.X In stock FLIR the unit debt is million quarter quarter million to expense $X.X cash $X.XX We of compensation the compared for expense debt. XXXX. of million Resulting less for Stock the $XX.X fourth fourth billion

per year estimated now XXXX, that share non-GAAP Turning The share earnings XXXX pass per non-GAAP $X.XX quarter is And rate, earnings year on GAAP the be expected in the currently of believes range will $X.XX. our to outlook. Robert. items, excluding basis, for share I'll GAAP the to of be of full in to and XXXX earnings $XX.XX, call is range to discrete to the back to $XX.XX first in a Management $X.XX to with our XX.X%. $X.XX tax outlook $XX. full the per $XX.XX

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

Instructions] from first with Mike comes Maugeri Our [Operator question Research. Wolfe

little about level start at? deals how flex leverage deals again? What's you're with bit about where sort comfortable the again? leverage the Robert, that of you're of how of can more of those you And talk the doing thinking doing a size does with level your deals is

Thanks, Mike.

the are ratio we thinking rapidly leverage enjoy 'XX. of were number First, would by we really our bringing that happen that end X.X we the currently leverage is down.

So what range. should end 'XX, an I forward, in, by the we that say, having in moved be would I think of investment-grade

it look but at of Having in pursuing at that, X.X the said little at time, the acquisitions. larger leverage ratio a What we look because longer-term to months take goes present mean couple at large? do all XX time, are also X.X. year billion so takes long bolt-on term, by between even somewhere -- We a dollars Anything are is those would a to we beyond of time, close. to that I we can this acquisitions we our things takes

of to we be things. to shape these by get down all end the X.X in if do we'll XXXX, less or good So

you Can us there update for my And billion-dollar the put XXXX? And cash then follow-up. as XXXX? any that on there is you to number for free out update

Mike, Robert. Yeah. its

is our Mike, improve and what I CapEx able something go and organic $XXX expenses, might So, number that that's I the 'XX see a with as now also along. But over right other on will $X we see guess think growth to million. like still billion. what in over We little I we -- be 'XX range. about or be

Greg Our comes Konrad Jefferies. next with from question

your you are just margins little guidance, embedded a start, granularity could I maybe and one-timers how to around XXXX? in And you just just the Imaging given in about thinking some bit Digital margins? of mean, of give segment Maybe if

Digital Yeah, Imaging at little the Greg, we over a XX%. full-year ended

charges, 'XX. had their always If And hockey when not tough quarter. comp the for we during a in the is sales they I say stick reason one-time have a it's QX, you that us FLIR, exclude in acquired profile

costs we of as lot the they in product. third at a of enjoyed which So, the half they of And the the quarter, middle half quarter they increase close of quarter, of in was quarter, second on made after this beginning year transaction sold XX. second in the right the quarter May we out had the significant the what

away than XX%. pretty that, %, the cost which less is stripping XX% So said we're everything Having us we're one-time acquisition. with of it's that we FLIR our that implemented enjoyed intangibles. maintain are when there be think But intangibles, to margin. and close you And margins to result except reduced good we're able except a that after XX%, the little to still helped in for probably we the strip the structure XX fact charges those the out going all XX.X%,

they can think make think sales Now, with make price up where I I up our as increase. as -- been, for if we we -- our earlier, increase have said I better if our margins definitely as will and can inflation, robust increase, to

way in you mean, what price? drivers. about upside the impact maybe there? maybe kind then, kind could just And pricing, then be where some any Is as I to where chain can comment, seeing on terms impactful quantify you and and of get those that that if there a maybe supply just of you're or And most both improve follow-up price talked of

Yes.

on increase volume of had price and increase in the X%, overall In with for growth of start we about price organic the us. and that Let's average, 'XX, we X.X%. resulted X.X% increase

price had now it that. longer-term program current we top -- increases Right from I we new because increases the in And X% are strong projecting maybe can a more. be some some are outlook of said our with all and to offsetting X%, we turn be some us 'XX our On like growth pandemic. year were to an We in some with better suppliers was things the to going more in maybe a the up in than we procurement to going XXXX. little that as of I we supplies. ended with But instituted that X.X% should before the to our think out side, of to in X%, go the $X think billion be that did have that we from for to organic between we also Having you increase one said, X%. of up that, price and about the the that -- gave our that, we from suppliers. increases prices little buy I contracts Having various fortunate like down because are which with Teledyne, right good starting of own in just very them do price XXXX goes if now, our on we flip between and the better, contracts volume but that our X% XXXX increase X% we're go predicting price a X.X% working in

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

you about of there? challenges a we that how chain as as your revenue impact you're the outlook, think of supply wondering if I'm you're any think revenue sense Robert, seeing, some out are much about annual to anticipating,

do affect we're short-term, right $XX somewhere way the going I what In can now, only probably it, QX, it's about looking Jim. see. the million we at us to

hard we course, one. on Of very working that are

importantly company focused that that, east in for but specifically identify where across more We far you us. also using buyers on more globe, across our the have the buyers parts

let's we something say, we have, qualify us. to the -- if shortages use usually and they around to XX% So, XXX then, across about can of parts for them. find company, XX% have And something course,

at our same semiconductor also also They time. for the parts we looking us have manufacturers. Now are board for

now activity have we $XX that in we'll as far QX, certainly we in So million bake and in to at cooperative Right this we've us of as of that that so But I some kind our think decrements. XXXX. forward did on going has helped looking we're overcome projections. we go

don't does companies. us in going other to it I of chain is supply kill as some think So the

related could book-to-bill just business other And have of give it, provide to think margins you book-to-bill may opportunity about on expansion restructured, marine some you about some margin Digital operating be color we in some and some you you would on I some gave -- your booking Imaging, the missed there but of areas Did information the if -- business in it And the instrumentation. of comment those you've that would areas. segments? seem some nice like

In first book-to-bill. me your Well, of is the part let the start which area, instrument Right. with is about X.XX. question, book-to-bill

of think both you Research was business Lei, was are for Aerospace lumpy category segment, fourth X. have includes to fine. is And -- Digital big the businesses, X.XX, of things, their projecting In and of about the doing the of that's along Engineering businesses Deputy instrument they and our which at business was who the we that -- X.XX, it is which we going was like anticipate. The QX is there our have all than And management X.XX. In enjoyed of and healthy. historical pretty is X.X. is average by System, primarily defense Engineered ratios the FLIR of higher, was, the Defense. Defense programs, way, So reason Nevertheless, X. it strongest well. Research over that and why in under know, course, X, Imaging but Digital Imaging for also to out that fairly Department And AD&E, we are the it time the all marine. there in lumpy come over in about our In there Acting programs over which JihFen this instrument there It's close quarter That's by was being in healthier that really have less we and Engineering eXv as kind Deputy segment X. in -- in programs restructured is X.XX. the for other

So the averaged which And number. XXXX at you then, end total say I part overall, question healthy talking this pretty margins. us to of your that's the think, over if X.XX, at had at about time do a for of XXXX, go I'd with look let me we're second the company, to which

in businesses fairly improvement Systems our margin significant have flat in We of 'XX. except in all Engineered

as Let start that and grow. maintain 'XX me as move margins with into trick to the because is those we we

basis from 'XX points points increase margins to basis XX.X%. and 'XX, XX First, to to increased another expect our XXX in that Instruments, we

we basis improve As of to another did Maybe But basis XX, and engine I care the we Systems may points but turbine margins we some we're and that. of as that improve Aerospace we Imaging, XX% margin toughest XX I a XXXX. course our overall Defense, XXXX comp Engineered in and to mentioned, XX, and In bit think points. decline points, our margins have increased revenue expect think of going there. business that Digital because maybe exit XXXX XXX%, should XX the our basis just XX the in company. tough have between little we and comps, we shrinkage some pricing, it's had is take

growth up margins about were So, total points improve overall, now I company go X% enjoy we and that right like projected think I will little our to X%, think, with increases margins and margins the then basis revenue between did more XX total organic company I will just the up, XX.X%. But as I goes accordingly. price it if said if a our before, our can 'XX,

helps. I think that

from Stanley. comes with question Kristine Liwag next Morgan Our

trends and availability supply improve mentioned seeing to on and that parts seeing more issues seen the the are in Robert, you're you chain, widespread you affected? starting potentially or are issue the shortage parts more more

There have overall, build Kristine, times pockets waiting And for are cameras. not certain say, improving. on the soon trick to especially you're where our improved. would that sure are like them the becomes things increased ready is, part move That secure important part. as the to I are single products you build the of a shelf you make and products be parts, those course, lead little a things something Basically, bit. and or as in X that put

We can because the efforts, And buyers of the as Far out have specifically arrives. go of that world, Kristine, looking thousands soon East, the able for with mentioned for to offset those. in we're parts for looking dedicated for as across part that the cameras I before, us, especially people

overall, areas important and portfolio, certain like certain shortages parts and that -- the think, I part across defense in Digital our not of are Imaging. aerospace

of the designed, that that the some for Digital example, is products supply us also make the that various customers. people For our people products semiconductor that Imaging, our we they're

bit goes a bit comes enjoy there, is around. a around we in leverage there of -- that little So a what of little

leverage. that enjoy we So

but not other So are companies from. suffering matter, I as say would serious as the serious it's

question, that X% And a suppliers ultimately, a seeing off on their top we're increases I to like to any the from one about pass you that? also of accomplish, which from And you is maybe competitors but place for easy environment price X% passing more mean, it able Can margin in this follow-up your and a you of pricing and potentially feedback to I your industry more. to on pretty very be that bit efforts thing doing? competitive get as overall mid-single talk sounds low And digits. is getting in the X% customers seems inelasticity? about mean, are to your the pricing a the mentioned, little versus what X% got on you've increases

were never we increases superior is it happening price Kristine, What it's to -- I've a easy can't us our get that have world. got easy, products different where performance. to would we'd admit because if then we enter is

where increases. very people. that's a got So application, we're way price can their the we positions, analyzers requirements if protocol In our oscilloscopes, increases. and can price provided, is going someone have very camera, of significant we enjoy to ahead then and enjoy buy curve unique specific we other on for we

have and a and product interested the market advantage if for hand, the they monitoring ambient then making a with and other paying to as in dictates. China, much in a the what or you're product are in air On Chinese, really you price emphasizing that price that's they're you're high ambient not compete by you superior don't particulate have really and

competitive. Fortunately, and for can some so the diverse, you across -- markets you have our as are increases across enjoy places end products, travel because places get our portfolio, us, of price that of get company because really where serious portfolio balanced you our Kristine, to you some stay

do just is operations. focus manufacturing So on focused what costs, on you you improving cutting

Our comes Please ahead. Grenfell from next with BofA. Elizabeth question go

margins was should more X just how you I to over or this of -- next but year, through, progressing not think the medium about could hoping them years? years operating call X-plus the speak we it, your term, so

Well, best-in-class. ourselves I margin closed the the X you, over we can gap last very against our years. tell significantly We've measure

We have margins about improved points. basis XXX

closed I'll years, be the XX it'd We've going now, improve points another gap XX a great. to forward we here fast. sit very Now say if where I can year, basis X

things we do the have than better our now, gone hand, our that. sitting other past, XX XX the basis if On points here seems go way looking way, to say, But forward. I'd which right to could in

with Buscaglia Berenberg. Andrew from comes question next Our

main little record sales And you could what exceeded you that about talk But segment? health care imagine saw -- Digital hoping had you quarter. an you driver. so definitely more into was I made a just within the expectations, that's level sales. comment Imaging interesting dig the can It Can a of bit you in I my that

to Andrew. Yes. it, parts There are two

new imaging, legacy our Of course, clear. and digital acquisition our there's there's

if me revenue cameras, And machine XX%, between XX%. segment. year. was there at increase XX.X% then in Systems, Without in our to our And some Micro Mechanical the factories, our in X forward, And over about also during was the talk forgive year scientific XX%. bear as vision And enjoyed sensors, fourth quarter, I'd well. 'XX we've did were care, separate was this quarter, the Electro you look million X.X%, that, historical Overall like was it we with as and that 'XX, for fourth then start Imaging. year. let you aerospace we're about -- if Health We about course, source as And the make would So XX.X%, me. in well But It XX.X% the $X.XXX components x-ray we and going going fabs from cancer the defense treatment. to -- minute. then, enjoyed acquisitions, a if with and which ever, as of the Digital quarter $XXX we as had XX.X% then our me, -- one. MEMS, x-rays in and X.X%. for Fourth XX.X% cameras, to know, about year billion. quarter, it it you in and for really had in within we increased fourth quarter last our and you had growth about that QX know, XX.X%. best for And

million. We a but $XX little was our only that had decline portfolio. quarter very that's It's fourth a a in So part small J-S great of quarter. ratio,

$X or lot would it didn't million $X So of look essentially money, like but grow a million year-over-year.

segment a this for looking while. again, to stay -- Now -- going with I'm

than billion. we're A that something that $X.X XXXX, various year, time, to caution varies And next this domain. forward can't in to project we far increases things moderated about can't in we too XXXX. again, of this growth to me forward go that the for projecting it's products. X.XX% see at the more -- But across And to about let I X.X% higher much see had much Looking beginning X%, the year.

their in million FLIR go $XXX really of Overall, the about year contributed which was for the about a billion. And that products, they of acquired revenues Let's revenue. FLIR, we enjoyed second. $X.XXX skin that course, temperature to elevated XXXX, their before to

go up you post-acquisition XXXX add FLIR, you year through $X.XXX revenue was whole If and for and pre-acquisition it billion. the for

$XX million, about down of means temperature, down segment $XX businesses, decrement in the the million which went that we that was elevated million. it $XXX made primarily which skin most were that in we reflected up industrial also So saw about which

increase year, Next Gray Defense if businesses $X year. of industrial year. pickup into or to to a we're are And increase We from great where business X.X% projecting $X almost 'XX. projecting cetera, those almost the to overall, total we're you today, about of, improve Gray then businesses and diverse X%, the billion. X.X%. to track Marine, et -- X% we Marine And from by to to had course, another moderate about increase think billion segment, next some the That's but to million XX.X%. it $XXX XXXX part in 'XX, enjoyed X.X% $XXX going defense million

all increases -- in areas. So and almost

overall businesses, more an no. both billion a combined will our over So be which maybe revenue, which in total, think X%, be of about imaging sum would increase -- that all this about of No, digital we little $X.X be in is those This year. would

Yes. very Yes, helpful. Okay.

we is aerospace a picking A&D up of Or -- I up electronics of have you said couple where in this received up. So activity XX%. How surprised is much easy that think? do see picked sign the to of really comps? maybe now quarters And things real just of was you just believe this switching over gears, is I area,

me let first, the go aerospace Well, part. into

fraction just about million. we and that overall took margins our of significantly businesses it therefore, always most -- come large And down But look out, of do. we business and business, the the as It's a are our at -- small the went into that's 'XX over We XX% is and that's business always and commercial hit vision, our $XXX of et took the by easy a course, million, aerospace cost have machine revenue new as small $XXX some That we surveillance, the other geospatial, fact because year. lower were a improve from thermal, million. have cost comps, grown to we to of unmanned, $XXX the like real We care, cetera. bottom even year-over-year. of But a portfolio. health overall the aerospace, digital we emphasize 'XX, portfolio. portfolio, has I that's 'XX, cost our between imaging out, like portion components, we of that the about balanced from what in tilted portfolio aerospace, -- Of and kind bidding kept balanced towards XXXX to

to businesses hurt. of back aerospace And point the none get defense. these So and

to the The that other thing hard defense that's in very margins our worked part business. improve happened is of we

look you the we margins to 'XX answers 'XX another went 'XX. And respect Defense think year-over-year, increase XXX basis to can basis The your if Aerospace question. that year margin the from with 'XX, business hope XX increased I in in we our and overall good So of it because XX.X% points to and

Our Cowen. with Giordano next question comes from Joe

does anything inflecting as higher? feel of look Does high? it's guys. off of kind and feel -- moving like across the anything all you does clearly -- business, conversely, different levels anything Hey, unsustainably your and parts of Or

would you ask that, Boy, Joe.

to kind right? singles I park. causes I the it would say, the ball tougher, out nothing hit up hit the you I be comps of go sustaining bat to imaging. think mentioned the looks you no, again, out about now of than of digital only When a you thing little the park, the rather hit might just

book-to-bill that's bonds. to going I be later enjoying instrument marine our in keep marine our have our moving, -- going ratio the to good. are businesses and we're And it's think Aerospace, best businesses. the we And is cycle of in businesses like Some in

going at maybe $XXX to again, million business, overall about gas from this defense that's underwater back, it's to $XXX all, Marine significantly. look ranges go It's portfolio. and But next million a So million, going you oil, which vehicles, $XXX our year. chunk some we big overall, think our up over year, of not

goes up it very doesn't it if down much. or XX%, So us XX%, affect

getting of we're we There benefits. I So if I do the some significant areas think out don't that whack. going to things, he's are right see enjoy

Let you X give me example.

is is in vehicle on our portfolio. About and million ground, of drones It's have about FLIR. from is we million that million unmanned got $XXX $XXX We the business $XXX $XXX underwater. million

over those together, can faster can of we businesses I the on can business own any we couple combine capabilities if those much their run, then of that if So technologies, some than long grow stand-alone. the think

we of that this me of and talking and time. kind of excites things -- that's the Can get the those you're kind put kind together So about? at that stuff base

pitch Yes. want or That overall when where go do does this going of do -- of the does applications? in that synergies like my you certain kind help with kind portfolio? the question. market revenue you anything was to think terms -- going where to you be you FLIR, scale I of like this think know an Like, talk but don't or you're Like, how of next can to bidding

next and we relatively this between let we now take FLIR. But talked nature, by And just year as significant a cost me that, took amount by much have conservative. cost we say combined. Well, to take this as that year managed we from of year

management, did We're not in going or is And took top corporate So course, all zillions that stabilized. budget, we anymore. the management, our And of of own don't which have important. that lot public just now business need. We cost increasing the, without that we to out company. business a then squeeze whole they that of is consultants

So where have we do else synergies.

there. in We have costs some right synergies

purchasing area, up but because improved those to each have And areas synergies of to are the some in example. market is think together go coupling give our of powers numbers. Don't and important. they are then X add I of the other significant The you small

that flame sell already and gas from trying margins margins. high-end FLIR Last XX% detection those mid-market went we're cameras. the XX%. year, commercial products with and over The a visible trying camera it, good business. about It's thing a cameras. that we really some a lot we couple thermography And couple that gas coupled we're together. of it of had a FLIR goes cameras. have together, bought has it with in business the XM. the When FLIR our business had We enormous and same bought tour number to We to and

a we we're right cost have our trying revenue as with synergies But or think could So now, get improve stable baked billion. we the of to for so if going growth I there year increases that forward. about in that. I've that lot smacked X% slowly next we in are $X.X synergies. synergies of kind forward, overall far and to more our some But than don't reductions it so work keep then cost our go

going I to ex I missed of in And in Just is do own, everything have is if some you lot we And down fast you one things. numbers, in part totally stuff. bit then And know X the are in these of inorganic is through FLIR total was that totality you FLIR were a to because where of write 'XX? then How they think the legacy -- as the FLIR thing on a for organic Can segregate 'XX? clarify Teledyne? FLIR. do just are year. and little FLIR were like have where to grow organically they you think And 'XX? FLIR tricky trying where went I its

Yes.

Just didn't they that elevated primarily was billion, revenue billion. if that $X FLIR, a they in a X.X% the okay? all So were sales, $X.XXX. go have because of And about In the $X.XXX billion after temperature a take you and $X.XXX organic, to let projecting as skin XXXX, me that's 'XX position. acquisition, you 'XX, in They at before take starting down went basis, good to X.X% to back 'XX. if we're increase because

is always increase. up which can take billion I emphasize think XX.X% that went 'XX I mean this sustainable. We another to you At We from Imaging to Digital our time, go If think at time. X.X% this legacy they $X.X 'XX. from businesses, $X.XX billion, don't that's

X, in. about So Does X.X% you're combine in if increase you revenue, between all the organically, your somewhere about question? talking answer that

And margins? the FLIR

material earning above our in going that's than what are own QX. be Their going margins the good XX.X%, well bit of are little primarily -- most had mentioned going they the as because QX we really FLIR to were I be to that higher which, basis close is way, was And of produce don't XXX XXXX. you margin I points in know because to down there, by margins call legacy the to XX%. on before, go if a

may we going it's if points, margin, let's I in that pretty together, be basis think say, XX increase is can have So good. be a maintain basis, which and We overall tough. close little it reduction to to XX%,

digital instrumentation aerospace each. projecting as at I and very one in XX%. said, margins as called to XX% up another defense, to in we've imaging close Our almost in 'XX And our and are we're

with happy that I'm scenario. So

We go Poponak Instructions] with to [Operator now Noah Sachs. Goldman

of businesses, nowhere the I an you've had and quarters spend -- know growth I understand And XXXX. the rates? given It a could I those pieces on did, a the Robert, in easy. but you down in are mean, rate that much compares detail what that has sort easy, of legacy, FLIR, didn't know ex in why on more time here. that they're function few I exactly kind little Imaging such Digital step suddenly high of it's had the of not out each but trends for you've the growth draw

successes just on you that? could me If better are what driving the educate

part, on Sure. I'll he's not try brilliant here. Noah’s to sitting And management because emphasize

-- is Whatever the right answer

care cancer of were the No, let overloaded. of treatment even a took health couple hit, treatment selected the business me pandemic that. has X-ray hospitals significant of the suffered and our because a When a take lot pieces because hit

X-ray business a and -- up. up ticked As little X-ray things our eased went business both source bit, our

highest And enjoyed the so a was XX% that quarter, up That's XX.X%. the in it increase.

about So it XX.X%. averaged

surgeries of are have as then X, if at which in throughout inspection but significantly et cameras, started So year the up started which year the treatments, details went went important, very fast take In and the the up used fact was we quarter picking do. that was over cetera. looking having there our and including more scientific people they And machine it you business, all by vision we really And that cameras, kinds applications, sources, are also And on. it it picked up. called you driven of the by We okay, started very businesses our year. XX%.

we And So went as foundries we It have MicroLine of are independent scarcity along. a the a was top slow in of business. probably this it's the capability that in independent bought nothing that promo businesses MEMS suddenly. foundries, MEMS There's in a happened we those world. we all one MEMS, just unique increase both

coming And we customers so and happening they with are the can stuff are shortages where that them. where make get can

lot a increased QX. up -- XX% That year-over-year overall in but us almost helped too. that's XX% X.X% picked so And

back What of not And is we're give the as things any then to lot it's are thing, kind do are impressive, guidance just of you that it's So can to of detail to and up. chain compare, keep chain, worry to supply but you trying find business. have Do incremental 'XX I at about to the COVID of tough. resetting to items? normal you way all Or comps of penetration not these the that to issues. then and I that least adding a we for one a have there of trying they movement before, we're I little our around decent but of last or forever enough some gave the don't just today. these have a tip tough only hopefully then through said which guess some supply so is conservative mean impact those degree do the they because amount growing you numbers

my to on. walk I'd think shoes, be do just I out we if as my shoes, we surprised don't conservative better of go

what the in with where And for provided the pretty the outlook you've basis was are and very FLIR Those transparent. then trending the there, helpful line in a numbers business. they were multiyear piece, and on

kind with know have we might haven't some happened, there might of stays So long pieces stuff profitability It in it aligned Teledyne I looks have and determined just you for Teledyne. the I sounds been thought flow. essentially some focus on didn't and FLIR roll like hasn't like cash as divested that you see all there that thought legacy of off you let anything, you've that right? quite with you Is term. that with a

between difference long a then little answer -- covered the And there's by -- for you Yes. way, time. is yes. Yes. a The

know that. this the -- I when revenues, them sure trends, I historically, they that, may am you I talk they about kind do. achieve than can revenues let's projected divestiture I robust of year-over-year. So we those But not said that feel in $X Having hit say so many probably Having businesses billion that, how said of issue. have better XXXX,

that we You they recall of business. businesses that businesses. Raymarine of their don't fit at have one that tightly a were we with thinking because huge selling number Well, time, marine

Marine and grow. whole well That should in then counting imaging the a has our effort have that's to for even we with business We we have done capabilities very And and we're XXXX, it projecting businesses, us. in underwater our LiDAR not that's all that go enjoy that domain. the in synergies

of frankly, see business to we a why any don't for price divest. that part So pay good That's that dear us we would portfolio. I a get It's it.

change though significantly might. revenue And significant. that the Defense the year, that just it that if seasonality. through year -- X Aerospace The last pretty quite segment and have one, even I And increased have margin doesn't Electronics doesn't isn't sequential last historically,

be isn't that about the -- I why year kind of business? in I it? that -- margin guess, Or why sustainable thinking why did the exiting So should

reasons, two Well, Noah.

revenue -- as took the any and the mentioned was First, before, the portion of that back just aerospace huge revenue business gross I out margins. came really because increase we cost

depressed did in depressed frankly, And tremendously. of that XXXX. That the increased because cost cutting portion we of was XXXX, versus in that So aerospace that was the that.

is portion really stabilized nice of thing that. that, the some on defense other we of We The programs. kind had

up have We good there. really new managers

be OEM little a then be get everybody while built we're a And we're instrument then enjoying we outside aftermarket. an coming that's in pretty OEM their margins have aerospace will less think, have are you good thing to you worry aircraft And good. for some was quality 'XX have We because nowadays about -- on product it's domain kind lastly, they when aftermarket in And an the good with back, have The is 'XX, of on year. is and the monitoring we new us. the aftermarket enjoy products think especially mentioned product the so is our that's exciting on-aircraft the that good. monitoring because we'd this, like in we And going think helped we've the aircraft very air part, the we than first that you coming our recall, that like really in products already businesses monitoring out airplane, on introducing. that of I may to -- And aircraft. products

Yes.

quarter, the fourth you have So costs you to the drop-through essentially the fourth relative in experienced to quarter? on to bring that back compared

so. think don't I No,

the the point we full and between increase year. think in the we I mix OEM said, expect aftermarket, But as market same. aerospace an defense about stay 'XX for the margin XX-basis overall margin 'XX and should in and between

is queue. additional questions clear. no The have we queue in And

to conference Thank you, I'll call. ask Jason our now John. conclude

again, morning. for And this us Robert. joining thanks, Thanks, everyone,

please earnings replay questions, you all releases follow-up earnings free have number available website. call release, the call, the could to the you. information? are you John, if conclude course, if our on on provide me and the mentioned the Thank feel Of will at

your conclude today. XXX-XXXX, XXXXXXX. at February gentlemen, listen those again, XXX-XXXX midnight. XX today, conference and code replay is and Conferencing. to and XX:XX you for using call from (XXX) and International the does Event numbers XXX-XXXX, for replay, for phone are the is Ladies may Once AT&T (XXX) XXXXXXX. for (XXX) international be a.m. XXX-XXXX. the will this access Pacific and Time dial To participation your available (XXX) dial code participants Thank enter access That call

disconnect. now may You