On January 28th, Teledyne Technologies published its financial results for Q4 2020. These show that sales were lower although underlying profitability improved. During the quarter, total group sales reached $809.3m, compared with $834.2m during Q4 2019, a decrease of -3% year-on-year. Overall net income was $132.1m, compared with $115.7m during Q4 2019, an increase of +14.2% year-on-year. These results reflect the aggregated performance of the companies four reportable segments:
- Digital Imaging
- Aerospace and Defense Electronics
- Engineered Systems
The Digital Imaging Segment
During the quarter, sales from the digital imaging segment reached $262m, compared with $268.1m in Q4 2019, a decrease of -2.3% year-on-year. This took cumulative 2020 sales to $986m, compared with $992.9m in 2019, a marginal decrease of -0.7% year-on-year. The sales performance during the fourth quarter was driven by lower sales of x-ray detectors medical imaging and dental applications, partially offset by higher sales of infrared and visible detectors for space applications. From a healthcare perspective, the sale of x-ray detectors for dental applications were significantly lower due to the on-going negative effects of the coronavirus pandemic. During the Q4 earnings call, Robert Mehrabian, Executive Chairman commented: “x-ray [detectors] for dental imaging are recovering”…” x-ray [detectors] for cancer treatment is recovering a little slower”…”we’re seeing some recovery [in the demand for] CMOS image sensors”.
The digital imaging segment encompasses a portfolio of digital imaging products for use in industrial, government and medical applications. This includes sensors, cameras and systems, within the visible, infrared and X-ray spectra, such as it’s series of CMOS based X-ray detectors. The segment also includes its semiconductor business, analogue-to-digital converters as well as micro-electro-mechanical systems (“MEMS”). The digital imaging segment has principal operations in the United States, Canada, France, the Netherlands and the United Kingdom.
Outlook for 2021
During the Q4 earnings call, Robert Mehrabian, Executive Chairman commented: even though our revenue [from Digital Imaging] only went down 1% this year, we expect next year to recover and go up about 9%”. The expectation is that healthcare will see a recovery in the order of 6%.