Summary
L3Harris Technologies, Inc. (LHX) reported solid performance for the fiscal year ended July 2, 2010, demonstrating resilience amidst a dynamic market. The company's revenue saw a modest increase, driven by growth in its RF Communications segment, which benefited from the acquisition of Wireless Systems and strong demand for its next-generation Falcon III radios. The Government Communications Systems segment maintained stable revenue, supported by ongoing programs, despite the winding down of certain projects. The Broadcast Communications segment experienced a revenue decline, impacted by market softness, but showed improved operating performance due to cost management and a significant reduction in impairment charges compared to the prior year. Financially, LHX demonstrated improved profitability, with income from continuing operations significantly increasing year-over-year, largely due to the absence of substantial impairment charges recorded in the prior fiscal year and strong operational execution across its key segments. The company also managed its liquidity effectively, generating positive cash flow from operations and maintaining a strong capital position. Strategic acquisitions, including Patriot Technologies and SignaCert, were completed to bolster the company's capabilities in healthcare IT and cyber solutions, respectively. The subsequent acquisition of CapRock, a satellite communications provider, further expanded LHX's reach into new markets and capabilities, positioning it for future growth.
Financial Highlights
52 data points| Revenue | $4.72B |
| Cost of Revenue | $3.05B |
| Gross Profit | $1.87B |
| Operating Expenses | $723.20M |
| Operating Income | $581.00M |
| Interest Expense | $72.10M |
| Net Income | $561.60M |
| EPS (Basic) | $4.31 |
| EPS (Diluted) | $4.28 |
| Shares Outstanding (Basic) | 126.30M |
| Shares Outstanding (Diluted) | 130.00M |
Key Highlights
- 1Revenue increased by 4.0% to $5.2 billion, driven by a 17.4% increase in the RF Communications segment.
- 2Income from continuing operations surged by 79.8% to $561.6 million, significantly improved from the prior year, which included substantial impairment charges.
- 3Gross margin percentage improved to 36.0% from 31.7% in the prior year, reflecting favorable product mix and operational efficiencies.
- 4The company completed strategic acquisitions, including Patriot Technologies and SignaCert, to enhance its IT and cyber security offerings within the Government Communications Systems segment.
- 5Net cash provided by operating activities increased to $802.7 million, showcasing strong operational cash generation.
- 6The company maintained a strong liquidity position, ending the fiscal year with $455.2 million in cash and cash equivalents and a $750 million revolving credit facility.
- 7A significant post-year-end event was the acquisition of CapRock Holdings for $525 million, expanding the company's satellite communications capabilities.