Offerings by Teledyne Technologies know no boundaries; they are critical to products that work on land, in the air, and under the sea. The company makes a slew of electronic components and subsystems, instruments, and communications equipment for both domestic and foreign commercial customers and US government customers. Its lineup ranges from digital imaging and software to data acquisition and communication tools for aircraft, monitoring and control devices for environmental, marine, and industrial projects, defense electronics, and energy generation, storage, and propulsion equipment.
Formed in 1960, Teledyne has distinguished itself by providing highly specialized products and services, not easily reproduced, to many of the world's giants in commerce and government. The US government, its agencies, and defense and aerospace contractors account for almost 35% of sales. Other customers include airlines, industrial manufacturers, and oil and gas exploration and production companies.
Among its contract wins, Teledyne contributes to the US government's space program. The company has developed software and engineering equipment used in NASA's Space Shuttle program and International Space Station. Teledyne also heavily supports the US military in areas of air, missle, and naval defense. In the private sector, the company designs and manufactures marine instrumentation devices that help to locate oil and gas reserves beneath the ocean floor. Its products also are used to monitor a range of negative environmental conditions, as well as collect digital flight data on airplanes.
For the fiscal year 2011, Teledyne enjoyed an explosive surge in profits and a considerable rise in revenue. From 2010 to 2011, the company's net income skyrocketed over 110%, from $120 million to $255 million. Revenues increased by 18% from $1.64 billion to $1.94 billion. Both 2011 amounts were the company's highest in at least 10 years. Strategic business acquisitions, and their rapid integration into Teledyne operations, have buoyed the company's earnings: The company estimates it derived almost $250 million in revenue from previous acquisitions. It also attributes the record-setting growth to organic growth across almost all its segments. It achieved particularly impressive 2011 results from its digital imaging segment. Revenue for these operations soared almost 190% from $123 million in 2010 to almost $350 million in 2011 (again, as a result of acquisitions within this division).
In 2012 subsidiary Teledyne RD Instruments acquired Seattle-based BlueView Technologies, which makes compact high-resolution acoustic imaging and measurement products for use on autonomous underwater vehicles, surface vessels, and other marine operations. Also in 2012, Teledyne increased its North American presence when it paid $34 million for Canada-based VariSystems, a provider of harsh environment interconnects to customers in the land-based energy and mining industries. To boost its business in analytical instrumentation, Teledyne acquired LeCroy, a supplier of oscilloscopes, protocol analyzers, and signal integrity test products, for about $291 million in mid-2012. The significant deal allowed Teledyne to recognize additional revenue streams by commercializing LeCroy's Indium Phosphide (InP) technology.
In 2011 the company previously sealed its transformation into a major electronics, digital imaging, instrumentation, and engineering systems contender. In its largest acquisition to date, it purchased Canada-based DALSA -- a manufacturer of digital imaging products and semiconductor wafers and components -- for C$337 million ($341 million). Renamed Teledyne DALSA, the subsidiary owns a majority stake in Optech, a manufacturer of laser-based survey and digital imaging instrumentation.
The year before, Teledyne obtained Intelek, a maker of electronic systems used for manufacturing in the satellite and microwave communications and aerospace sectors, for around $43 million. The company also snapped up optics and optomechanical assemblies maker Optimum Optical Systems for roughly $6 million that year.
Teledyne has also relied on divestitures as a means for growth. In 2011 it sold its general aviation piston engine operations for pretax cash proceeds of roughly $188 million.