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.
Teledyne generates 80% of its net sales in the US. Its operations reside in Canada, Mexico, the UK, and the US.
Teledyne divides its operations across four segments: Instrumentation (35% of total sales), Aerospace and Defense Electronics (31%), Digital Imaging (20%), and Engineered Systems (14%).
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.
Sales and Marketing
The US government, its agencies, and defense and aerospace contractors account for almost 25% of sales. Other customers include airlines, industrial manufacturers, and oil and gas exploration and production companies. The company sells its products through an internal sales force, distributors, and commissioned sales representatives.
Teledyne has experienced two straight years of growth with revenues increasing by 10% from $1.94 billion in 2011 to $2.13 billion in 2012. Its profits, however, fell 36% from $255 million in 2011 to $164 million in 2012.
The increase in revenues for 2013 was driven by higher sales in both the Instrumentation and Digital Imaging segments, partially offset by slightly lower sales in both the Engineered Systems and Aerospace and Defense Electronics segments.
The growth in Instrumentation was driven by the 2012 acquisition of LeCroy, as well as higher sales of both marine and environmental instrumentation products. The sales spike in the Digital Imaging segment was driven by incremental revenue from recent acquisitions as well.
The drop in profits was attributed to a decrease in income from discontinued operations during 2012. (It had previously earned around $114 million for the sale of its piston engine segment business in 2011.)
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 scooped up 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.
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.