10-KPeriod: FY2011

L3HARRIS TECHNOLOGIES, INC. /DE/ Annual Report, Year Ended Jul 1, 2011

Filed August 29, 2011For Securities:LHX

Summary

L3Harris Technologies, Inc. (formerly Harris Corporation) filed its 10-K for the fiscal year ended July 1, 2011, showcasing a year of significant strategic acquisitions and growth. The company reported a revenue increase of 13.8% to $5.9 billion, driven by strong performance in its RF Communications segment, particularly international tactical communications, and contributions from newly acquired entities. Income from continuing operations grew by 4.7% to $588 million, reflecting a robust operational performance despite integration costs from acquisitions and increased interest expenses. The company highlighted its focus on leveraging technology, expanding into new markets through strategic acquisitions like CapRock, Schlumberger GCS, and Carefx, and optimizing operations for continued profitable growth. L3Harris also demonstrated its commitment to shareholder returns by increasing its quarterly cash dividend and approving a new $1 billion share repurchase program, underscoring its solid financial foundation and confidence in future prospects.

Financial Highlights

30 data points
Beta

Revenue

$5.42B

34.8% Gross Margin

Net Income

$588.00M

10.9% Net Margin

EPS (Diluted)

$4.60

Free Cash Flow

$521.80M

Financial Statements
Beta
Revenue$5.42B
Cost of Revenue$3.53B
Gross Profit$1.89B
Operating Expenses$890.90M
Operating Income$599.60M
Interest Expense$90.40M
Net Income$588.00M
EPS (Basic)$4.63
EPS (Diluted)$4.60
Shares Outstanding (Basic)116.10M
Shares Outstanding (Diluted)126.30M

Key Highlights

  • 1Revenue increased by 13.8% to $5.9 billion in fiscal year 2011, driven by strong international sales in the RF Communications segment and contributions from recent acquisitions.
  • 2Income from continuing operations rose by 4.7% to $588 million, demonstrating operational efficiency and growth.
  • 3The company successfully integrated three significant acquisitions in fiscal year 2011: CapRock, Schlumberger GCS, and Carefx, expanding its capabilities in satellite communications, energy sector services, and healthcare IT.
  • 4A new $1 billion share repurchase program was approved, indicating a commitment to returning capital to shareholders and confidence in the company's financial health.
  • 5The quarterly cash dividend was increased from $0.25 to $0.28 per share, marking the tenth consecutive annual increase and signaling consistent shareholder value.
  • 6The RF Communications segment showed robust growth with a 10.7% revenue increase, supported by demand for tactical radio communications and public safety systems.
  • 7Government Communications Systems segment revenue grew slightly by 1.7%, demonstrating stability, while Integrated Network Solutions saw significant revenue growth of 33.7%, largely due to acquisitions.

Frequently Asked Questions

In fiscal year 2011, L3Harris reported a 13.8% increase in revenue to $5.9 billion and a 4.7% rise in income from continuing operations to $588 million. The company also increased its quarterly dividend and authorized a $1 billion share repurchase program, reflecting strong financial performance and commitment to shareholder returns.

L3Harris completed three significant acquisitions in fiscal year 2011: CapRock Holdings, Inc. (satellite communications), Schlumberger's Global Connectivity Services (energy sector communications), and Carefx Corporation (healthcare IT interoperability). These acquisitions expanded the company's market reach, product offerings, and revenue base, primarily within the Integrated Network Solutions segment, although they also contributed to integration costs.

The RF Communications segment experienced strong revenue growth of 10.7%. The Integrated Network Solutions segment saw substantial revenue growth of 33.7%, largely driven by acquisitions. The Government Communications Systems segment showed a modest revenue increase of 1.7%, maintaining stable performance.

The company continues to derive a significant portion of its revenue from U.S. Government customers (approximately 72% in fiscal year 2011). While this represents a substantial revenue stream, it also exposes the company to risks related to government funding priorities, budget changes, and contract cancellations, as detailed in the risk factors section.