Summary
L3Harris Technologies, Inc. (LHX) reported a significant loss from continuing operations for the three quarters ended March 30, 2012, primarily driven by a substantial non-cash impairment charge of $424.0 million related to goodwill and other long-lived assets within its Integrated Network Solutions segment, specifically impacting the Broadcast Communications business. This impairment, coupled with a planned exit from its cyber integrated solutions (CIS) operation, led to a net loss attributable to shareholders of $98.5 million for the nine-month period, a stark contrast to the $454.5 million net income in the prior year. Despite the significant impairment, the company's revenue showed modest growth of 2.7% year-over-year for the nine-month period, reaching $4.37 billion, driven by increases in the Integrated Network Solutions and Government Communications Systems segments, partially offset by a decline in RF Communications. The company also highlighted its ongoing share repurchase program and dividend payments, demonstrating a continued focus on returning capital to shareholders, although the substantial impairment charge is a major overhang for investors to consider.
Financial Highlights
52 data points| Revenue | $1.37B |
| Cost of Revenue | $879.80M |
| Gross Profit | $489.00M |
| Operating Expenses | $242.00M |
| Operating Income | $422.00M |
| Interest Expense | $28.70M |
| Net Income | -$353.20M |
| EPS (Basic) | $-3.15 |
| EPS (Diluted) | $-3.13 |
| Shares Outstanding (Basic) | 112.30M |
| Shares Outstanding (Diluted) | 112.90M |
Key Highlights
- 1Reported a net loss of $98.5 million for the first nine months of fiscal year 2012, a significant decrease from a net income of $454.5 million in the prior year's comparable period.
- 2Incurred a substantial non-cash impairment charge of $424.0 million ($406.5 million after-tax) related to goodwill and other long-lived assets in the Broadcast Communications business within the Integrated Network Solutions segment.
- 3Revenue for the first nine months of fiscal year 2012 increased by 2.7% to $4.37 billion, compared to $4.26 billion in the prior year's period.
- 4Announced a plan to divest its cyber integrated solutions (CIS) operation, which is now reported as discontinued operations.
- 5Repurchased $442.0 million of common stock in the first nine months of fiscal year 2012, demonstrating a commitment to returning capital to shareholders.
- 6The Government Communications Systems segment saw revenue growth of 4.7% and operating income growth of 16.1% for the nine-month period.
- 7The company's cash and cash equivalents decreased by $67.9 million to $299.0 million at the end of the third quarter of fiscal 2012.