01—Abstract
Summary
Summary of the 10-K filed August 29, 2011. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb share repurchase program, underscoring its solid financial foundation and confidence in future prospects.
02—Key points
Key Highlights
- Revenue 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.
- Income from continuing operations rose by 4.7% to $588 million, demonstrating operational efficiency and growth.
- The 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.
- A new $1 billion share repurchase program was approved, indicating a commitment to returning capital to shareholders and confidence in the company's financial health.
- The quarterly cash dividend was increased from $0.25 to $0.28 per share, marking the tenth consecutive annual increase and signaling consistent shareholder value.
- The RF Communications segment showed robust growth with a 10.7% revenue increase, supported by demand for tactical radio communications and public safety systems.
- Government 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, L3HARRIS Technologies, Inc. kept $0.11.
- Revenue$5.42B100.0%
- Cost of revenue−$3.53B65.2%
- Gross profit$1.89B34.8%
- Operating costs−$1.29B23.7%
- Operating income$599.6M11.1%
- Interest, other & tax−$11.6M0.2%
- Net income$588.0M10.9%
Where FY2011 revenue went
$5.42B- Cost of revenue: $3.53B, 65% of revenue
- Operating costs: $1.29B, 24% of revenue
- Net income: $588.0M, 11% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed August 29, 2011Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $5.42B$4.72B | +14.7% |
| Cost of Revenue | $3.53B$3.05B | +15.7% |
| Gross Profit | $1.89B$1.87B | +0.8% |
| Operating Expenses | $890.90M$723.20M | +23.2% |
| Operating Income | $599.60M$581.00M | +3.2% |
| Interest Expense | $90.40M$72.10M | +25.4% |
| Net Income | $588.00M$561.60M | +4.7% |
| EPS (Basic) | $4.63$4.31 | +7.4% |
| EPS (Diluted) | $4.60$4.28 | +7.5% |
| Shares Outstanding (Basic) | 116.10M126.30M | −8.1% |
| Shares Outstanding (Diluted) | 126.30M130.00M | −2.8% |
05—Questions
Frequently Asked Questions
What were the key financial highlights for L3Harris in fiscal year 2011?
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.
Which major acquisitions did L3Harris complete in fiscal year 2011, and how did they impact the company?
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.
How did the company's business segments perform in fiscal year 2011?
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.
What is the company's outlook regarding its dependence on U.S. Government contracts?
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.
06—Continue