Summary
Harris Corporation's 2012 10-K filing reveals a company with a strong presence in defense and government communications, alongside growing commercial segments. The company reported total revenue of $5.45 billion, a slight increase from the previous year, driven by growth in Integrated Network Solutions and Government Communications Systems, though partially offset by a decline in RF Communications revenue. Income from continuing operations saw a decrease of 6.8% to $558.7 million, impacted by changes in the defense market and acquisition-related integration costs. Despite these challenges, Harris demonstrated robust operating cash flow and continued its commitment to shareholder returns through dividends and share repurchases, increasing its quarterly dividend for the eleventh consecutive year. The company is actively managing its business portfolio, including plans for divesting certain operations, and continues to invest in research and development to maintain its competitive edge in rapidly evolving technology markets.
Financial Highlights
30 data points| Revenue | $5.45B |
| Cost of Revenue | $3.57B |
| Gross Profit | $1.88B |
| Operating Expenses | $940.90M |
| Operating Income | $558.70M |
| Interest Expense | $113.20M |
| Net Income | $30.60M |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 112.10M |
| Shares Outstanding (Diluted) | 114.80M |
Key Highlights
- 1Total revenue for fiscal year 2012 was $5.45 billion, a 0.6% increase year-over-year, primarily driven by acquisitions in the Integrated Network Solutions segment and growth in Government Communications Systems.
- 2Income from continuing operations decreased by 6.8% to $558.7 million, with income from continuing operations per diluted share increasing slightly to $4.80, reflecting impacts from market transitions and integration costs.
- 3The RF Communications segment experienced a revenue decline of 6.3% to $2.14 billion, attributed to market shifts in defense spending and a less favorable product mix compared to the prior year.
- 4The Integrated Network Solutions segment saw revenue growth of 8.7% to $1.57 billion, boosted by acquisitions and growth in Harris CapRock Communications and Healthcare Solutions, though operating income decreased due to integration costs and losses in Healthcare Solutions.
- 5Government Communications Systems reported a 3.2% revenue increase to $1.83 billion and a 12.9% rise in operating income, driven by favorable product mix and program performance.
- 6Harris returned a record amount of cash to shareholders in fiscal 2012 through dividends ($1.22 per share) and share repurchases ($473.5 million), continuing its eleventh consecutive annual dividend increase.
- 7The company's backlog at fiscal year-end 2012 was $3.06 billion in funded backlog and $3.93 billion in unfunded backlog, indicating a significant pipeline of future business.