Summary
L3Harris Technologies, Inc. (LHX) reported its Q3 fiscal year 2011 results, showing a revenue increase of 6.3% year-over-year, reaching $1.41 billion. This growth was primarily driven by the acquisition of CapRock in the first quarter and strength in international sales within the RF Communications segment. However, net income for the quarter declined by 16.1% to $139.5 million, or $1.09 per diluted share, compared to the prior year. This decrease was influenced by a less favorable product mix in the RF Communications segment and increased interest expenses related to recent and pending acquisitions. The company has also realigned its business segments for better market focus, creating a new Integrated Network Solutions segment. Despite the quarterly net income dip, the year-to-date revenue increased by 13.5% to $4.26 billion, with net income also showing an 10.8% increase to $454.5 million. L3Harris demonstrated strong operating cash flow and maintained a healthy liquidity position, with cash and cash equivalents increasing significantly due to strong operational performance and recent debt issuances.
Financial Highlights
52 data points| Revenue | $1.41B |
| Cost of Revenue | $896.60M |
| Gross Profit | $516.20M |
| Operating Expenses | $281.00M |
| Operating Income | $461.70M |
| Interest Expense | $27.10M |
| Net Income | $139.50M |
| EPS (Basic) | $1.10 |
| EPS (Diluted) | $1.09 |
| Shares Outstanding (Basic) | 125.00M |
| Shares Outstanding (Diluted) | 126.00M |
Key Highlights
- 1Revenue increased by 6.3% year-over-year to $1.41 billion in Q3 FY2011, driven by the CapRock acquisition and international sales.
- 2Net income decreased by 16.1% to $139.5 million ($1.09 per diluted share) in Q3 FY2011 compared to Q3 FY2010, impacted by product mix and higher interest expenses.
- 3For the first three quarters of FY2011, revenue grew 13.5% to $4.26 billion, and net income increased 10.8% to $454.5 million.
- 4The company realigned its operating segments, forming a new Integrated Network Solutions segment, effective in Q3 FY2011.
- 5Net cash provided by operating activities was $556.8 million for the first three quarters of FY2011, though lower than the prior year's $635.3 million.
- 6Acquisitions, notably CapRock, Schlumberger GCS, and Carefx, are significantly impacting revenue and segment structure, with further acquisitions completed shortly after the quarter's end.
- 7The company maintained strong liquidity, with cash and cash equivalents increasing to $885.1 million at the end of the quarter.