Teledyne Technologies (TDY) 25 Oct 232023 Q3 Earnings call transcript

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

morning, good and John, everyone. Thanks, VanWees, This to release and like Chairman, everyone is conference to earnings Jason welcome XXXX our I'd the Vice third call. quarter morning released the We earlier this earnings market our opened. before

Senior are X, Teledyne's SVP and are and role Vice Main; and Mehrabian CFO, today me Melanie who Senior Vice me will Chairman, and today Joining President joining of December Cibik Blackwood, CEO, currently CFO President Bob, Robert on and Steve also the Sue Secretary, CEO assume Vice will Officer will VPs General be X; on Executive Compliance President, roles and Counsel, Teledyne to who President respectively, COO, and January promoted Chief of of and the assume Edwin currently, X. January President on Roks, George Executive

will by your and for remarks questions. Robert Sue, ask After

get to of caveats and Of made may statements be [indiscernible] month. release our in this order avoid being course, results morning have our filings, for started, that and both you course, will all risks attorneys webcast X SEC available before In noted various tell to forward-looking and webcast disclosures, reminded we approximately is earnings and are subject this the as simultaneously via me dial-in, potential call a differ to replay, selective materially. and actual periodic

Robert. is Here

Teledyne. you, And thank for Thank These times good you and for morning, call. Jason. exciting joining our are earnings

earnings was Teledyne. earnings non-GAAP of XX.X% operating third ramp an share our GAAP record programs, say operations up, we non-GAAP and in for basis, operating an coming GAAP of new of we $X.XX leadership for the earnings. was Likewise, a do third our any earnings in, margin but resilience share. On we quarter per quarter and in record have achieved our quarter, per in continuity margin our We third meet record was record. which a all-time record would margin all-time was have ability $XX.XX a the quarter. also and was we per XX.X% operating we what share to as In and

GAAP XXX Compared per GAAP increased margins year, approximately and XX to points, last and and basis operating both non-GAAP XX%. earnings share respectively, non-GAAP increased and

Imaging quarter and our given such operational defense led growth businesses, in overall focus coupled certain markets Nevertheless, by generate third deterioration excellence, cost as sequentially automation margins segment, earnings. end aerospace helping both instrumentation. was, control. on increased however, medical, Digital with industrial Marine on laboratory and and record was operating performance and year-over-year digital Our our in Instrumentation certain some in There

repayment about debt continued through totaled September, Given which $XXX year-to-date. million

leverage ratio consolidated to environment. continued to declined pleased And Our measurement networks our perform in Xx. under and Zeno a to businesses we're which test to have well added challenging also finally, very just

of see total X% our outlook. little we now our or of terms for XXXX half In versus than less a outlook, about July growth sales the second

and laboratory the and With roughly $X.XX mentioned headwind in being industrial Approximately to instrumentation the translation being due in market incremental balance further change automation July from currency this is billion. incremental half of fourth now, to deterioration quarter earlier. sales

the prior a earnings midpoint the outlook given of strong $XX.XX to third achieved and margin outlook raising at in However, earnings non-GAAP from we're the $XX.XX. our quarter,

of will our now comment the on further performance I X segments.

marine of imaging sales offset but Sales detectors year. segment micro systems, lower quarter year-over-year sales systems electromechanical X-ray Sales unmanned were flat, ground software were surveillance to Imaging and of Third mes. commercial our last increased but in and compared or flat by system were declined hardware Digital of and infrared organically. products

Imaging a segments business year. across exceptionally last and whole, Digital and declined Finally, automation industrial Like market the geographies. well for cameras as sensors is to portfolio compared Teledyne balanced

performance revenue, offset to medical average that flat margins. overall to help consumer of improved and Despite and and with were acquisitions declines businesses in its the segment associated is spending. bolt-on the small and discretionary of our with portfolio of in record growth considerably portion markets, automation slightly our the than player industrial With levels collectively able margins defense higher -- we the

imaging due systems. to and the This [ marine increased increased marine Overall, and X.X%. X.X% systems, [ offshore ] energy acinoscopes, electronic also last Sales instrumentation test measurement of sales segment Instrumentation markets quarter recovery ongoing environmental in quarter, on press Turning ] measurement our Sales of which and instruments. and analyzers versus to primarily businesses. includes and in XX.X% year. consists instruments in greater increased third sales instruments, of collectively of digitizers segment protocol acoustic

We see Demand this But sales storage protocols and electronic devices by in offset application. and well data for of sales softness was center ] for as some wireless continue video strong of to celoscopes. analyzers of than as networking sales continued [ more this market. for to decline and Sales compared of slightly customers laboratory see and with instruments our environmental drug enhancing instruments. safety remain and some acquisition, very and last offsetting discovery healthy, of in analyzers the we in sales air offerings quality decreased gas Zeno year, plan high-speed

segment. on operating Instrumentation XX% XX%. with These third a all-time in non-GAAP GAAP segment records increased the quarter points XXX XX% XXX increasing operating over for and Overall, basis were basis to basis this margins profit points to

X.X%, points GAAP and driven in year. Electronics XX segment basis Defense greater increased Defense last both operating commercial with margins -- non-GAAP by XX.X% Third and increased quarter aerospace profit in aerospace growth our sales than Electronics Aerospace and products.

tough year third the product also in X.X%, given revenue the period. slightly, operating Systems a flavor Finally, but prior of Engineering quarter profit new with declined increased segment, comparison but risk, a

do those conclusion, challenging. pleased costs in margin cutting sales we with markets, we favorable in more to trends while where are know and businesses what protecting to continue best. and margins in market So are Gross businesses

same continues the acquire businesses. especially we leverage now At integrate time, complementary decline, our and should to that

will I service And finally, to XX Teledyne, I greatly the of of to I group executives Before want and call Sue? other years her the turning very executives very, announced the it. want are to her to the yesterday, we on for continue and congratulate more I leadership. miss talented and her well-deserved promotions wish Sue, well-earned same retirement. I our thank serve than delighted Teledyne's entire board to that

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

for $X.XX third were in Capital $XX.X million quarter approximately of net with Depreciation of quarter is $X.XX XXXX We compared $XX.X of expenditures was the the $XXX.X of the in billion $XX That XXXX. expense million debt ended quarter approximately debt. cash third less with XXXX billion amortization million. $XX.X million with of and compared million.

with million quarter stock-based XXXX in in expense compared third the million $X.X compensation XXXX. Our $X of was

$X.XX. of our of outlook. Management currently $X.XX believes GAAP XXXX the range range $X.XX to with to per fourth of in share in in Turning that the non-GAAP earnings quarter be share to earnings will $X.XX per the

and $XX.XX FLIR costs. the rate, $XX.XX Robert. non-GAAP XXXX fourth to non-GAAP estimated to year full outlook for are outlook excluding excludes is charges year I $XX.XX estimated expected be discrete full integration The call full XX.X%. further pass to now pretax the items, tax will for is back on quarter and a And GAAP $XX.XX. outlook to per now we both year raising And earnings the XXXX, to basis, share our our

you, Thank to now questions. Sue. Operator, we'd like take

ahead. If you're with proceed and answers, go to ready the please questions

we'll Instructions] to is go Needham from Ricchiuti One & Jim coming Company. first [Operator And with question our moment.

didn't One Jim. properly, please. Your line open second,

Go ahead, proceed. Okay. you may There go. you

congratulations, congratulations else. to By everyone and the way,

appointments. question maybe for new Robert, the a On you.

at booking from what's color did on level. overall You business the strength segment in FLIR you talked a last the bit I'm near-term quarter. as And more could the like follow-up, And and look wondering various about the a maybe bookings And Teledyne outlook little QX the level business? booking that provide if far bookings the clear at a of how standpoint?

We I segment. going to Jim. defense one say X.XX, moving would the to with present on time we're the specific, And X.XX at be over about that good improvements had in inflection really the any quarter the is defense some in the you, us Thank businesses we FLIR makes Defense. there up in and defense FLIR feel have that domain. second for good actually new awards

of book-to-bill to book-to-bill, to it orders Jim, the X.X overall because I the depending Going to or would increase on Systems might rest X.X big, dropping exclude a sometimes quarter. X.X, Engineered lumpy will

gaining are earnings why that, softness defense better in we the as are I will exclude think this health not in our present a I at But margins go is and And where So X.X time. that's be some over like markets have projecting we we're markets, improving care. big we certain concern we at forward. that because energy, if traction

Got update expect some And to relates to give FLIR moves can meaningful maybe do facilities of see it. realignment those benefits? you're already you you at as to it the when on on starting improvement these and margins an the or see

benefits. Yes. Jim, those we're seeing already

facility happen having March as margins at reduction reductions early the First of frame. we margin that that, digital we XX time will facility of this in frame. happen has imaging the of end have of happened flare time not little of one of both in done That will which in a margins the the all, But includes April in at turned decrement a of have of said to of The points. the perhaps closures, a to the [indiscernible] and The the coming because basis around. year. them also cost be everything another, businesses will last looking back QX really whole, force quarter, that because improved were most quarter, rest next mix majority and have transfer to

be for be up the basis We expect XX year points. margins to to

focus points XX points, cost. on because a the basis XX about improvement quarter of over basis So

Got it. I'll into the queue. And go back

This Ron on Bank Our next comes is for question America. Epstein Ron Jordan with from of

Could guys guys have you're any where program And to exposure had interest conflict? if changes quick coming the a just question. the heritage I any us flare through you increase seeing walk you Israel-Palestine from in of outlays. any

background. some have We

in in from orders to defense I the that. think we have some long term expect our basically, businesses

the used unfortunately, is the -- obviously, But of that contributed that We and are some have I defense I'm is. -- supplier, we that to but it mechanisms a think we what disclose, Israel. liberty conflict to think the by we have conflict not are

the also Israel, Europe. in part as businesses the other well of in will conflict of both is stockpiles that in because is The first refreshment a that conflict but the the happen there'll be that the as thing defense

a has themselves present also that but various subsystems Both obviously long-term into lot are our components program, opportunities. and these of Aerospace go defense And product. as Defense and that FLIR on segment

Next, Cowen. Joe Giordano TD we go with

Just X. in management if curious You just the like how on the now? like January the changes just have to terms business roll in report. structure Is any of there curious it just you changes org change in for of articulated up? structural going is Like COO are internally kind how to going -- there's a businesses real that any the

Yes.

I things. X think a that's good question, The -- Joe.

subsegment, instruments is one have businesses. we First, the in which

remember test refers to The to marine, and the in begin report and would already You consists Bob, instruments George measurement of reporting to environmental me. environment Those test January. George that Marine and measurement.

while George on more He Jason The running to Digital of months, at on. harmonizing all present not digital George more will others focused goes the but We'll a don't that and is learning we're Imaging sure has time. the our begin have with is work resilience happen and that all offset that together, Blackwood segment. X is imaging leading that orderly biggest the been been to to anywhere. course, [indiscernible] make our products Melanie segment, for our time as will businesses assignments changes next the which market like learning about this Steve and continue XX slowly of I'm the running and that of to going more also, any the about XX they over businesses continue running Edwin

see margins, worrying and but take to Joe continuum is more this also improve I allocate more how do both So have to as do one to in M&A capital and responsibility a our and with which I which something about Edwin to more continuously. we Jason, move

maybe on a of this I any If I investors quarter kind there DI I higher maybe going that's it there, of is benefits guys before there go we mean, focus to I anticipated was what we been think year, for been guys. to talking about And a Curious have to over consider you and than conferences pretty one-off type appreciate You're there. then color but substantially maybe into It target? get was recently reversing target early have at that time you next this now. margins, for next Is that out? area be quarter. obviously, people we good have going year. if kind XX% for

this kind be you up at If think year. XX almost is you're year this of for to going bps, XX%

target we much think conservative? that become that should not just does So about more that? How

That's to one. be The projecting we're a right. improved. XX.X%. now, 'XX the good full you're have margins Actually, for at year Right of

close So mentioned. you very to the that it's XX%

to Moving further going up, we're that's strive for. what of course,

as little done a out in take we've we're FLIR, to have We cost that EXB DALSA [ now. ] and doing more right in

vision declined is automation our example, finally, those batteries. some our imaging, are lithium-ion new back some like are for it markets affect would going the think that to and I then that part have of other we for markets inspection in that semiconductor, of systems, sensors the come digital And

You of a beginning most And guess remember back battery, be you ion North can to really quality flaw that we catastrophic. now, do some for America. can have manufacturing systems control. to good And switch lithium is

these have will market cameras, declines markets new of back. offset semi we come new will that But think some also I So the the now.

as of So improve. takes that I've place, margins outlined, obviously, all our if just should

and about on likely I If I delivering if orders say, Soluscope like if think you're business in last quickly one. But have just I [ I absent sneak orders, about delivery one near that don't is business, where you been of in into. that's term think that could your where this given all growing in very year, we -- backlog. If inflection now know backlog your just let's a year, ] and an declines think what is

No.

business. we feel T&M good very I think about our

continuously protocol said, is between oscilloscope. just are part has acquisition this way, little standards we've fast-growing in as of made The we see time, of the What of see been at in it out analyzers the remember, you business part it book-to-bill is standards. XX% we new is our First, declines. very forefront X.XX%, are And evolving because push the and protocols, that those really by Part digitizers acquisition. in our is XX%, protocols in where at X.XX%. a don't our

products but the now softened those. [indiscernible] have it will people also are known So that I doing fine. adapting is very look those exciting. may be are But while because that we a little know new for us. before, not offering it It's bit, market exciting as has

We will Greg to Jefferies. Konrad go with now

to I headwind for guidance automation terms and us is But half can industrial biggest you just the the where revenue. of was FX of the level said softening. year just mentioned you instrumentation set mean given that impact. Maybe you the in remind laboratory

segments the of for thinking the about the kind of Just year? rest

and mostly you July, instrumentation if meeting it looking look tailwind. digital what do our us in And get X%. a at deal like with it's market it's about have from there. Yes. to focused overall, But significantly our little versus The we and imaging it were in mentioned any said We'll that, is with year-over-year, softening deal that tightened things businesses. and here and Having July I today. at costing FX we tightened we

have up products if we getting where market, what there's margins. did, market, we our basically cut mean on we focus the beat good I where raise. can costs And and don't just do a improve

definitely comes the through. And operating discipline then

the you're pricing this? that markets into at year-end? of you equation thinking able into price say does that How maybe capture kind thinking Given to deteriorating. were those train does about all what did Just two about play

Yes.

been been in what for a have is we parts market environmental. increase prices the that doing example, strong successfully we have certain That the increased think and in to our environmental where that prices really we've I marine do on Defense Aerospace offsets not like to have prices. area. we time, businesses at increase able of or And present able are well, our businesses

we in So our board. prices down. successful and portfolio across changes raising generally, across But are up it the

that have turn happening this that's we than let's aspirations us we'll we year to We businesses going think increase year. our But say, forward last sustainability it. for allow around, prices more for. but do if have been versus will modestly And things

I'll leave it at that.

next, And Buscaglia with to ahead, we'll go please. Andrew BNP. Go

Robert.

you talked defense some new you over maybe heading as comment guys areas into markets Last talked in you're Robert, some around your which you can your digital And coming of well So like you mentioned new about into mentioned sounding the inspiring expectations year. heading or but you those QX. converting -- is on not some about just optimistic backlog wondering, I'm optimism materializing. too quarter, book-to-bill XXXX imaging, back. possibly more backlog into awards X.X

wondering, I'm new us Or year? can just are feeling how going heading So February? on you that January, change into book-to-bill into the

Yes.

I to healthy. the $X environmental also businesses especially is there as very slew market. the because an cycle, some There new backlog, that X.X, we does billion short products which that we cut not only a me coming still are to think are bother been area, over of example. have chase, to have in of short-cycle X.XX obviously

the We FLIR only is a which we feet. high going back X, twice back as take Black was can new Defense. go Hornet FLIR to going Hornet have, to one just XX,XXX drone just example, For which Black the introduced as called X nano

to last This can things. longer, other a XX,XXX be more go feet lot a to of up lot

where understanding artificial intelligence we to our other in have systems, just new We on some want thing bear. UAS. you call And for that to exciting us can to we're if starting that is is intelligence counter it, the programs traction also get bring

million sensors cameras being of just information. are to that benefiting being not have now from but intelligent $XXX about We that provide products $XXX million systems,

market, it semi-conducted semiconductor But XX%. a across So backlog. bother all certain It's parts because is primarily doesn't me less the inclusive is in of done. than decrement slight like Teledyne

it that leverage keep we've we and earnings are integrate is, increase So just bother doesn't products not what per and to thing bringing important think down done, new acquire, always do do can we acquisitions I more our is and share. make the our able the because

Yes.

you And thoughts into next is? M&A. back given dovetails what X-ish, around seeing just your pipeline are M&A on my leverage maybe then see next if repurchase Well, below now materialize, the what year? your question share With are where you Okay. in your for don't valuation

I'll answer the something ago is that We've shares fraction. you very I repurchase cap question. look only purchased that M&A I'm going haven't say, share When $XXX about mean we XX, XX or market done. at our to million. small versus years

our We're what or in looking potential I'll present X are acquisitions time the several pipeline. with think call at M&A midsize there. million I opportunities dollar X hundred smaller acquisitions at the

just we before next make actually the the our side, less we've pearls, acquisition. the was of have string to some by we acquisitions, and we ratio we and not year, The XXx. for looked be done acquisitions. people And smaller in what that's Europe both careful us. at. the here which don't than some If looking that paying FLIR of before, prices are any acquisitions along those make is X just about end we multiples on of really going sales that be one are Well, at call thing leverage the would of there's like they'll we've come outrageous acquisitions will and flip

And will cash be primary to our earnings, is help also acquisitions. going but our focus

go UBS. we with to Rob Jamieson Next,

and safe your maybe year? free you're on the expectations to that -- able and are we the net hit then of the flow couple. run organic of just what Is for a also, Can going to And for like cash kind above you produce margin segment embedding just Just segment assume to each in $X through billion 'XX? comment leverage be it there. guys in rest

our of and the question our answer plan the yesterday, yes. right the me planning We're our and Board cycle Let answer operating for last in made to middle presentations is first.

some year. that to our go a overall that's question me cleaning business, we're be you also going relatively asked to Fundamentally, in organically, for Let have not this to we're we'd flat digital back are percent up maybe going now but the stuff that down, organic partly imaging because profitable.

systems. have in and other in the have measurement organic in X% I similarly, almost of We're which, and Defense growth about is and our and we over On instrumentation hand, as Aerospace Marine. our X% to X% and environmental organic going engineered will said, growth businesses, test our

those are we're this for environment experiencing. all So healthy growth that very

And then guess just a measurement. specific test to I one

new product was September. to in You coming said that protocol had you a market

fourth uptake is and the could that what to how instrumentation to that reacting wondering benefit an -- customers And Just of in sliver incremental be that? are that is quarter?

Yes. that X. is usually is Gen The PCI of couple new of a life the years. protocol Express The cycle

think see that that next and from side gap Zeno bought, which some in our year. protocol next businesses, is the was very that protocols, later that I they just the network feel we flip business But we'll probably had the well. high-speed a gap year, benefit we protocol fulfilling is

hope So and we more love time on. as buy our of goes protocol can businesses we them that

to Next, with we Stanley. Kristine go Liwag Morgan

you I on means leadership changes some time. this change the hope get Congratulations free extra that Robert,

me, Thank have they but I shaking will. Yes. I too. leaders hope from I across hope the you, table their so, head, I new my Kristine.

to Teledyne. Well, done it's career wonderful what follow your great, and you've for and been

over leadership bigger I years mean, was sometimes So maybe changes with than there's focus ago. also change Teledyne XX strategic company a broader in it is the a and and much

But and do that of Teledyne? out for the to scope direction strategic as from think earlier buybacks. Like how XX years about priority that is X, the is guess a we too broad And over where question mentioned You next for this or look maybe a XX still I M&A here? a call. share little we even

question. answer ideas the let of Teledyne M&A The the in me a way is Well, lot first we current first, from operate businesses. come the our

are change looking will instrumentation time, from imaging. comes not digital one large at it and and are It are we of businesses but taking have A&D. And over proactive. we from responsible marine because that the At Now these we're any a areas comes are leaders that X that that fund for.

things don't having the helps Jason said the will a capital that, term, Also will probably of on make allocation here. So term, think businesses And I short change. course, still as focus be going we forward. I'm the lot at we in But in more least, of commercial short decisions. to go

we And we but our grow defense they businesses are some beyond get would don't businesses, defense want today. to where

Middle balance a commercial, have defense countries half and or XX% not colleagues expanding almost XX% think the also XX% I it our We're change is East that, We but of we something healthy NATO I from some today of that commercial having is in want what businesses said the my overseas. to are and business defense not portfolio do sustainable. our that to

market, in in whole we some on see, then you company that down while focused one can tolerate as areas, singularly when our and takes suffers, portfolio strength is changes the have to you're our have other weakness our market certain If balanced and areas. it resilience we ability

have in growth engineered systems. We instruments in A&D

don't I change. that so And will think

Now I'm years. X talking about

It changing If critic world depend in really strategy -- happens I you it's beyond much right difficult mean can't environment will our and some the what that, such I go because is on a then now. so evolve. is cases.

again. Congratulations

time. in We're ahead. at We have to Please Poponak. now queue this one more Noah [Operator going go Instructions]

to back on to to I new everybody want the the margin. responsibilities. seats DI Congratulations or go Robert, just

in a that the sounds an that seeing explanation get years. majority said You you incremental performed you you you're like would to It printed out. previously for X of that number is cost just the

just here? back would the pull level the And kind margin driver sustain why that therefore, wouldn't so in if margin that's from And of you that that from the reported?

margin XX.X% at happened in the facilities than of is is that the was which just as higher of of it What consolidation quoted the important our it's is well. it's BI, because mentioned I has year not in cost people, basis for the XX end QX. out the I what QX,

export fixing focused We're done on somewhat. all We were liabilities. not tax working have our our on that. control first, at fixing issues, We still liabilities tax

that it's digital machine imaging, are But have time, back. is sooner the getting related to And it's getting to present at FLIR, worse what's is at happening business while defense vision, better. the come specifically going

little in about that was there's could year these there. about these over the was like margins and XX.X%. cannot our so to XX% margins, when margins margins XX.X%, reason for reason I our the maybe this be And get year no we're I in with asked predicting Aerospace long the XX.X% term, and Defense, our next which stayed that a cautious businesses no I be There's with and not but improve or instruments

I context. be outlays the helpful the That's what's market Okay. of at to been defense understood been level. volatility compared part in challenge to that end there's authorized

kind business defense of didn't through. And of higher come so your to just then were regard imaging, with digital inside you gearing for up that surprisingly defense revenue

through the guess, the in defense was quarter? Or growth rate, quarter? the come digital imaging of in I piece And did what in that third so the

unmanned we We have got QX. example. -- for ] nice large our of is systems Grasberg, was programs a with us award and large third above also thrones nano through that are came We've that quarter [ in vehicle content had moving now $XX for win in from some partner several some $XX million, there. that a into penetrated India. below nice million, We We the are things

have we program $XX award we a gimbal million. strengthened out and that to those some we vibration about now out, that's surveillance the our and Navy had We inherited. with issues strengthen our Also, and products of

QX. a Consolidate been able we is facilities expect to begin surveillance that grow many grew we've shouldn't and in our [indiscernible] newer to stuff-up. the So profitable do to in with non I been separate think QX. think drones define Overall, programs And products, will have with. we really what take

sensors, people so can things system. conflicts various our own the deliver that our incorporate in sensors, sensor -- other have on them can our systems Focus to we unmanned use our to up also systems that using but we happy unmanned we're set

inflection an there for positive BFS of kind So is that business think we it really the is in had has now. turning that DI

And then short enough one machine rate do What it DI. be the 'XX? Or that you does book That's what too in year expect is order or have for piece? Okay. now revenue cycle? And decline you vision have sense last for of one helpful. in in the to do just visibility to a the

of I an in increase going to part overall, [indiscernible] revenue see in think we're to be DI.

As which other would from as DI, the be part acquisition. much In of FLIR.

then we may X.XX to very have minor. was from that let's [indiscernible] decline, expect what X.XX slight We from last say, which is year,

where that Ray of in products Digital from well. weathering are are huge Marine, consumer see more the of -- But [indiscernible] decline that discretionary some in very don't I our commercial because Imaging other time. overall, at we we a downturn comes and this And products some

then of things revenue in in XX% good QX have in in care, markets, let's in, had really or increase we, where health that upside like course, area. even And some say, we almost

So it's balanced.

imaging that Sorry, are total revenue. digital comments -- those on

saying? You're

the Digital revenue. Imaging for It's Yes.

Okay. Digital was I so within Imaging. That's that. asking -- on machine I appreciate just clear. it's just -- I vision

vision. Or machine just

Yes.

mentioned bother intelligence in we're information to emphasizing add added might a some doesn't products be a together. much. ability down only market. parts machine me battery a be I'd up it have full FLIR. our were but little of But it. could machine in vision to I like X devices, as new more say, our Okay. in the inspection, [indiscernible] there's those There's and cameras, those X Not and vision X%. a at There's we higher, again, different and put move If together, that I I because, haven't before, year

well think is. little going I to down [indiscernible] So is growth positioned is this it turn. for a going going not market to turn those forever. where And not once bit. It's [indiscernible] we're to stay stay

It's interesting. different than the set. peer that's Yes, much

it seems yes, So well positioned.

right. Appreciate Okay. All it.

And in no we at time. additional have queue this questions

I'll Jason conference operator. conclude you, call. Thank note that ask to our

Thanks, Robert, thanks, today. us for and again, joining everyone,

this all replay you available me and on would any the If press give or release call, if of feel free that is are to replay. you e-mail earnings the of dial-in have questions, mean the follow-up the for I John, great. our on at be could the course, information as please the call numbers website end releases

been midnight and conference the Certainly. for replay, are domestic Ladies for XX AT&T XX, XXX-XXXX. access international XXX-XXXX. Thank dial will available code and And using enter that XXXX. (XXX)-XXXXXXX. and Conferencing. and a.m. International be participants, it's gentlemen, access Event (XXX)-XXXXXXX access at those this To Pacific is will XXX-XXX-XXXX dial conclude replay numbers today today. from your for your and November for participation recorded the call on Once and again, again code you XXX-XXX-XXXX through has for for call

You now may disconnect.