What is the company's overall financial performance for the quarter?

For the quarter ended December 31, 2009, L3Harris Technologies reported that income from continuing operations was essentially flat at $139.5 million, or $1.06 per diluted share, compared to the same period in the previous year. While overall revenue declined by 8.7%, the company experienced growth in its RF Communications segment and an improvement in its gross margin percentage.

Which business segments are driving revenue changes?

The Government Communications Systems and Broadcast Communications segments saw revenue decreases. However, the RF Communications segment experienced revenue growth of 5.6%, partly due to the acquisition of Wireless Systems. The company is integrating this acquisition, which is beginning to positively impact segment performance.

How is the company managing its cash flow and capital?

L3Harris Technologies generated strong net cash from operating activities of $321.4 million for the first two quarters of fiscal year 2010. The company maintains a solid liquidity position, with $310.2 million in cash and cash equivalents at the end of the quarter. They are also actively returning capital to shareholders through dividends and share repurchases.

What is the impact of the recent acquisition on the company's results?

The acquisition of Tyco Electronics' wireless systems business (M/A-COM) is contributing to the growth of the RF Communications segment. While the acquisition also incurred some integration costs ($2.7 million in the quarter), it is a key factor in the segment's revenue increase and is expected to contribute to future performance.

LHX 10-Q Filed Jan 28, 2010

Summary

L3Harris Technologies, Inc. (LHX) reported its results for the quarter ended December 31, 2009, with income from continuing operations remaining essentially flat year-over-year at $139.5 million, or $1.06 per diluted share. While revenue saw a decline of 8.7% to $1,217.7 million, driven by significant decreases in the Government Communications Systems and Broadcast Communications segments, the company's RF Communications segment demonstrated resilience with a 5.6% revenue increase, bolstered by a recent acquisition. The company highlighted strong operational cash flow generation of $321.4 million for the first two quarters of fiscal year 2010, a notable improvement from the prior year. Despite a decrease in overall revenue, a favorable product mix and operational efficiencies led to an expansion of the gross margin percentage. Management also emphasized the company's strong liquidity position and its ongoing commitment to returning capital to shareholders through dividends and share repurchases. The company's strategic acquisition of the Tyco Electronics wireless systems business (M/A-COM) is beginning to contribute to segment performance, particularly in RF Communications.

Key Highlights

1Income from continuing operations was stable at $139.5 million for the quarter, translating to $1.06 per diluted share.
2Total revenue decreased by 8.7% to $1,217.7 million compared to the prior year's quarter, primarily due to declines in the Government Communications Systems and Broadcast Communications segments.
3The RF Communications segment showed strength with a 5.6% revenue increase, benefiting from the recent acquisition of Wireless Systems.
4Gross margin percentage improved significantly to 36.1% from 30.6% year-over-year, driven by favorable product mix and operational efficiencies.
5Net cash provided by operating activities was robust at $321.4 million for the first two quarters of fiscal 2010.
6The company continues to return capital to shareholders, with cash dividends paid and ongoing share repurchase programs.

L3HARRIS TECHNOLOGIES, INC. /DE/ Quarterly Report for Q3 Ended Jan 1, 2010

Summary

Key Highlights

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