Summary
L3Harris Technologies (LHX) reported solid revenue growth for the three quarters ended March 28, 2003, with a 9.8% increase year-over-year to $1.51 billion. This growth was primarily driven by strong performance in the Government Communications Systems and RF Communications segments, which benefited from increased government defense spending and tactical radio demand, respectively. While overall net income saw a modest increase to $58.8 million from $56.0 million, investors should note a decrease in gross margin percentage, mainly due to a product mix shift towards lower-margin analog products in the Broadcast Communications segment. The company also recorded a significant gain from the sale of its interest in LiveTV, LLC, which boosted non-operating income for the period.
Key Highlights
- 1Revenue increased by 9.8% to $1,513.0 million for the nine months ended March 28, 2003, compared to the prior year.
- 2Net income rose slightly to $58.8 million for the nine months ended March 28, 2003, from $56.0 million in the prior year.
- 3Government Communications Systems and RF Communications segments showed significant revenue and operating income growth.
- 4Gross margin as a percentage of revenue declined to 25.4% from 26.1% year-over-year, impacted by product mix shifts.
- 5The company recorded an $18.8 million pre-tax gain from the sale of its minority interest in LiveTV, LLC.
- 6Total debt increased by 34.8% to $416.3 million, primarily due to the issuance of convertible debentures.
- 7Cash and cash equivalents significantly increased by 75.3% to $396.5 million.