01—Abstract
Summary
Summary of the 10-K filed August 31, 2009. Cited figures are marked; the original filing is the authoritative source.
L3Harris Technologies, Inc. (formerly Harris Corporation) reported strong revenue growth for the fiscal year ended July 3, 2009, driven by its RF Communications and Government Communications Systems segments.
Despite an overall revenue increase of 8.9% to $5.0 billiona, net income from continuing operations saw a significant decline of 31.1% to $312.4 million, primarily due to a substantial $196.7 million after-tax impairment charge in the Broadcast Communications segment. The company also incurred charges related to cost-reduction actions across the business.
Strategic acquisitions in Wireless Systems, Crucial Security, Inc. (CSI), and SolaCom ATC bolstered capabilities, particularly in RF Communications and Government Communications Systems. The company maintained a robust liquidity position and increased its quarterly dividend, signaling confidence in its future performance despite challenging economic conditions.
02—Key points
Key Highlights
- Revenue increased by 8.9% to $5.0 billion for fiscal year 2009.
- Net income from continuing operations decreased by 31.1% to $312.4 million, largely due to a significant goodwill and long-lived asset impairment charge of $196.7 million (after-tax) in the Broadcast Communications segment.
- The RF Communications segment experienced strong revenue growth (16.8%) driven by international demand and the acquisition of Wireless Systems.
- The Government Communications Systems segment saw revenue grow by 9.3%, with contributions from programs like FDCA and classified intelligence initiatives.
- Harris made strategic acquisitions, including Wireless Systems, CSI, and SolaCom ATC, to enhance its product portfolios and market reach.
- The company increased its quarterly dividend by 10% to $0.22 per share, marking its eighth consecutive annual increase.
- Net cash provided by operating activities improved by 20.1% to $666.8 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, L3HARRIS Technologies, Inc. kept $0.01.
- Revenue$5.00B100.0%
- Cost of revenue−$3.42B68.3%
- Gross profit$1.58B31.7%
- Operating costs−$1.27B25.4%
- Operating income$312.4M6.2%
- Interest, other & tax−$274.5M5.5%
- Net income$37.9M0.8%
Where FY2009 revenue went
$5.00B- Cost of revenue: $3.42B, 68% of revenue
- Operating costs: $1.27B, 25% of revenue
- Net income: $37.9M, 0.8% of revenue
- Interest, other & tax: $274.5M, 5.5% of revenue
Kept 0.8% as net incomeNet income $37.9M · 0.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed August 31, 2009Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $5.00B$4.60B | +8.9% |
| Cost of Revenue | $3.42B$3.15B | +8.7% |
| Gross Profit | $1.58B$1.45B | +9.3% |
| Operating Expenses | $791.30M$746.50M | +6.0% |
| Operating Income | $312.40M$453.50M | −31.1% |
| Interest Expense | $52.80M$53.10M | −0.6% |
| Net Income | $37.90M$444.20M | −91.5% |
| EPS (Basic) | $0.28$3.29 | −91.5% |
| EPS (Diluted) | $0.28$3.24 | −91.4% |
| Shares Outstanding (Basic) | 133.60M— | — |
| Shares Outstanding (Diluted) | 133.00M136.20M | −2.3% |
05—Questions
Frequently Asked Questions
What were the key drivers of revenue growth in fiscal year 2009?
Revenue growth was primarily driven by strong performance in the RF Communications segment, benefiting from increased international sales and the acquisition of Wireless Systems, and the Government Communications Systems segment, supported by programs like the FDCA for the U.S. Census Bureau and classified intelligence initiatives.
What led to the decline in net income despite revenue growth?
The decline in net income was primarily caused by a significant after-tax impairment charge of $196.7 million in the Broadcast Communications segment due to the impairment of goodwill and other long-lived assets. This was compounded by cost-reduction charges across various segments.
How did recent acquisitions impact the company's performance?
The company made several strategic acquisitions in fiscal year 2009, including Wireless Systems, Crucial Security, Inc. (CSI), and SolaCom ATC. These acquisitions are expected to enhance capabilities and market presence, particularly in the RF Communications and Government Communications Systems segments, contributing to revenue growth.
What is the company's financial health and outlook based on this report?
The company demonstrated strong revenue growth and an improved operating cash flow, signaling resilience. While net income was impacted by a significant non-cash impairment charge, the company increased its dividend and maintained strategic investments through acquisitions, indicating management's confidence in its long-term prospects and financial stability despite broader economic challenges.
06—Continue