Summary
Harris Corporation's fiscal year 2014 10-K report showcases a company with a strong presence in government and commercial communications and information technology markets. Despite a slight year-over-year revenue decline, the company demonstrated improved profitability, with income from continuing operations increasing by 15.7% and earnings per diluted share rising by 20.2%. This performance was driven by operational excellence initiatives, effective cost management, and a focus on innovation across its three segments: RF Communications, Integrated Network Solutions, and Government Communications Systems. The company's significant reliance on U.S. government contracts, representing approximately 67% of revenue, remains a key factor influencing its business. While government budgets were constrained, the company benefited from the Bipartisan Budget Act of 2013 which provided some spending relief. Harris continues to invest in research and development, focusing on new product development and technological advancements to maintain its competitive edge in dynamic markets.
Financial Highlights
28 data points| Revenue | $5.01B |
| Cost of Revenue | $3.31B |
| Gross Profit | $1.70B |
| Operating Expenses | $820.00M |
| Operating Income | $540.00M |
| Interest Expense | $94.00M |
| Net Income | $535.00M |
| EPS (Basic) | $5.00 |
| EPS (Diluted) | $4.95 |
| Shares Outstanding (Diluted) | 107.30M |
Key Highlights
- 1Revenue declined slightly by 2.0% to $5.0 billion in fiscal 2014 compared to fiscal 2013, primarily driven by lower revenue in the Integrated Network Solutions segment.
- 2Income from continuing operations increased by 15.7% to $539.8 million, with diluted earnings per share rising by 20.2% to $5.00.
- 3The company's reliance on U.S. government customers remains high, accounting for approximately 67% of total revenue.
- 4The RF Communications segment saw a slight revenue decrease of 1.1%, with Tactical Communications revenue up but Public Safety and Professional Communications revenue down.
- 5Integrated Network Solutions revenue decreased by 7.2%, largely due to lower revenue from U.S. government customers.
- 6Government Communications Systems revenue saw a modest increase of 1.0%, benefiting from higher revenue from classified customers and specific FAA programs.
- 7The company's commitment to shareholder returns is evident with a 13th consecutive annual increase in its quarterly cash dividend rate.
- 8Harris continued its share repurchase program, buying back approximately 4.56 million shares in fiscal 2014.