Israeli semiconductor foundry TowerJazz said last Thursday that it will manufacture chips for FLIR Systems infrared technology for smartphone, security and industrial markets. TowerJazz claims to have developed an industry leading capability for advanced micro thermal pixel array production.

TowerJazz World Headquarters

These micro thermal pixel arrays include novel, high density pixels that enable FLIR to offer more powerful sensors with higher resolution in compact form factors. David Howard, executive director of TowerJazz, said: "We have rapidly implemented state of the art manufacturing at Newport Beach. The site can facilitate commercial, ITAR (International Traffic in Arms Regulations), and more recently Category 1A & 1B 'Trusted' services through our subsidiary, Jazz Semiconductor Trusted Foundry (JSTF), as accredited by the U.S. Department of Defense."

Tom Surran, chief operations officer at FLIR Systems, added: "When we combine the micro thermal arrays with integrated FLIR wafer level optics, software and MSX technology with TowerJazz process and manufacturing capability, we are able to deliver breakthrough product performance and value."

Earlier in February, FLIR announced fourth quarter and full year 2014 financial results showing growth of 155% and 14% respectively and announced a 10% Increase in quarterly dividend, as well as a New Share Repurchase Authorization.

Fourth quarter 2014 revenue was $434.4 million, up 9% compared to fourth quarter 2013 revenue of $400.3 million. Operating income in the fourth quarter was $87.4 million, compared to $37.8 million in the fourth quarter of 2013.

Operating income was negatively impacted by $1 million in the fourth quarter of 2014 and $31 million in the fourth quarter of 2013 due to pretax charges related to previously-announced restructuring initiatives and the settlement of executive retirement benefits.

Revenue from the Surveillance segment was $150.1 million, an increase of 8% from the fourth quarter results last year. The Instruments segment contributed $103.5 million of revenue during the fourth quarter, up 2% from the prior year.

The OEM & Emerging Markets segment had $58 million of revenue, an increase of 8% over the prior year. FLIR's Security segment recorded revenue of $56.4 million in the fourth quarter, up 35% from the prior year. Revenue from the Maritime segment was $40.1 million, and was down 6% over the fourth quarter of 2013. The Detection segment contributed $26.2 million of revenue, an increase of 19% from the prior year.