THOUSAND OAKS, Calif. — (BUSINESS WIRE) — August 3, 2017 — Teledyne Technologies Incorporated (NYSE: TDY):

• Record sales of $671.1 million
• Record GAAP earnings per diluted share of $1.66
• Results include pretax charges of $4.0 million ($0.08 per share) related to the e2v acquisition, offset by net discrete tax benefits of $4.6 million ($0.13 per share)
• Raising full year 2017 GAAP earnings outlook to $5.60 to $5.70, an increase from the prior outlook of $5.20 to $5.30
• Raising full year 2017 adjusted earnings outlook to $6.15 to $6.25, an increase from the prior outlook of $5.76 to $5.86 per diluted share. Adjusted earnings, a non-GAAP measure, exclude estimated non-recurring charges of $0.55 per diluted share related to the e2v acquisition
• Recently acquired assets of Scientific Systems, Inc. (“SSI”)

Teledyne today reported second quarter 2017 sales of $671.1 million, compared with sales of $539.7 million for the second quarter of 2016, an increase of 24.3%. Net income was $60.1 million ($1.66 per diluted share) for the second quarter of 2017, compared with $46.9 million ($1.33 per diluted share) for the second quarter of 2016, an increase of 28.1%. The second quarter of 2017 included pretax charges of $4.0 million related to the acquisition of e2v technologies plc (“e2v”) and net discrete income tax benefits of $4.6 million. The second quarter of 2016 included pretax charges totaling $11.7 million for severance, facility consolidation and asset impairment expense. In addition, the second quarter of 2016 included a pretax gain of $17.9 million related to the sale of a former operating facility.

“Sales growth accelerated in the second quarter, as revenue increased organically in each segment and across all major product lines. In addition, Teledyne e2v performed very well in its first full quarter, and the acquisition integration is progressing as planned,” said Robert Mehrabian, Chairman, President and Chief Executive Officer. “Our strong results largely reflected exceptional growth in our digital imaging segment, coupled with strong execution and margin improvement across all of Teledyne. Over the last four years, Teledyne endured significant declines first in our defense markets and then in our offshore energy businesses. In the absence of major market headwinds, our second quarter results demonstrated Teledyne’s strong, and consistent, underlying business performance. We also continued our record of prudent capital deployment, recently acquiring Scientific Systems. SSI is a great fit, both strategically and culturally, with one of Teledyne’s strongest performing environmental instrumentation businesses.”

Review of Operations (Comparisons are with the second quarter of 2016, unless noted otherwise.)

Instrumentation

The Instrumentation segment’s second quarter 2017 sales were $233.8 million, compared with $220.1 million, an increase of 6.2%. Second quarter 2017 operating income was $30.8 million, compared with $20.1 million, an increase of 53.2%.

The second quarter 2017 sales increase resulted from higher sales of environmental instrumentation, marine instrumentation and test and measurement instrumentation, as well as the contribution from recent acquisitions. Sales of environmental instrumentation increased $9.1 million and primarily reflected higher sales of air monitoring instruments and $4.3 million in incremental sales from recent acquisitions. Sales of marine instrumentation increased $3.2 million and primarily reflected higher sales of sensors for energy exploration. Sales of test and measurement instrumentation increased $1.4 million and included $0.7 million in incremental sales from recent acquisitions. The increase in operating income was primarily due to greater sales and lower severance, facility consolidation and asset impairment expenses within marine instrumentation.

Digital Imaging

The Digital Imaging segment’s second quarter 2017 sales were $188.5 million, compared with $99.4 million, an increase of 89.6%. Operating income was $26.4 million for the second quarter of 2017, compared with $10.7 million, an increase of 146.7%.

The second quarter 2017 sales included $71.9 million in incremental sales from recent acquisitions, primarily from e2v. The second quarter 2017 sales also reflected higher sales of machine vision cameras for industrial applications and micro electro-mechanical systems (“MEMS”). The increase in operating income in the second quarter of 2017 reflected the impact of higher sales, favorable product mix and incremental operating profit from e2v, partially offset by acquisition-related charges of $3.7 million.

Aerospace and Defense Electronics

The Aerospace and Defense Electronics segment’s second quarter 2017 sales were $172.8 million, compared with $158.0 million, an increase of 9.4%. Operating income was $32.4 million for the second quarter of 2017, compared with $28.0 million, an increase of 15.7%.