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 operates through more than 60 principal operating facilities across 17 states and international locations in Canada, the UK, The Netherlands, and Denmark. It generates about 75% of its net sales in the US.
Teledyne divides its operations across four segments: Instrumentation (44% of total sales), Aerospace and Defense Electronics (27%), Digital Imaging (17%), and Engineered Systems (12%).
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 20% 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 three straight years of growth with revenues increasing by 10% from $2.13 billion in 2012 to peak at a record-setting $2.34 billion in 2013. Its profits also increased 13% from $164 million in 2012 to $185 million in 2013 due to a gain on discontinued operations.
The historic growth for 2013 was sparked by a 27% surge in instrumentation segment sales which reflected incremental sales from recent acquisitions as well as higher organic sales for marine products. Teledyne was also helped by increased sales of test and measurement instrumentation products due to additional sales from the acquisition of LeCroy.
Mergers and Acquisitions
Throughout 2013 Teledyne spent $128 million on acquisitions. That year it purchased C.D. Limited (CDL) in order to obtain additional inertial sensing and navigation products and to accelerate the development of real-time motion sensing and communication systems for its subsea oil and gas customers.
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.