Summary
L3Harris Technologies, Inc. (LHX) filed its 10-K for the fiscal year ending June 27, 2019, detailing its performance as Harris Corporation prior to the significant L3Harris Merger that closed on June 29, 2019. The company operates across three key segments: Communication Systems, Electronic Systems, and Space and Intelligence Systems, with a strong reliance on U.S. government contracts, accounting for approximately 77% of its revenue. The report highlights a transformative fiscal year for Harris Corporation, marked by robust revenue growth of 10% and a significant increase in income from continuing operations, up 36%. This growth was driven by strong demand in tactical communications, avionics, electronic warfare, and classified space and intelligence programs. The most critical development disclosed is the completion of the merger with L3 Technologies, creating a larger, more diversified aerospace and defense entity. The company is focused on integrating L3 and capitalizing on the combined scale and technological capabilities. Proceeds from the planned divestiture of the Night Vision business are earmarked for pre-funding pension plans and returning cash to shareholders. Despite the significant merger activity, the company maintained strong financial discipline, including increased dividends and share repurchases, positioning it for future growth and operational efficiency.
Financial Highlights
29 data points| Revenue | $6.80B |
| Cost of Revenue | $4.47B |
| Gross Profit | $2.33B |
| SG&A Expenses | $1.24B |
| Operating Expenses | $1.24B |
| Operating Income | $1.45B |
| Interest Expense | $169.00M |
| Net Income | $949.00M |
| EPS (Basic) | $8.03 |
| EPS (Diluted) | $7.86 |
| Shares Outstanding (Basic) | 118.00M |
| Shares Outstanding (Diluted) | 120.50M |
Key Highlights
- 1Revenue for fiscal year 2019 increased by 10% to $6.8 billion compared to fiscal year 2018.
- 2Income from continuing operations surged by 36% to $953 million in fiscal year 2019, with a corresponding increase in income from continuing operations per diluted common share to $7.89.
- 3The company's operations are heavily weighted towards U.S. Government customers, representing approximately 77% of total revenue in fiscal year 2019.
- 4L3Harris Technologies, Inc. was formed by the merger of Harris Corporation and L3 Technologies, which closed on June 29, 2019, after the end of the fiscal year.
- 5The company is planning to sell its Night Vision business for $350 million, with proceeds intended for pension plans and shareholder returns.
- 6The company demonstrated a commitment to shareholder returns by increasing its quarterly cash dividend rate to $0.75 per share, an annualized rate of $3.00 per share.
- 7Funded backlog stood at $5.8 billion at the end of fiscal 2019, with expectations to recognize revenue for approximately half within the next twelve months.