Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) reported a significant increase in revenue for the quarter ended October 2, 2015, reaching $1.811 billion, a 56.8% jump from $1.155 billion in the prior year's comparable quarter. This substantial growth was primarily driven by the acquisition of Exelis Inc. in the fourth quarter of fiscal year 2015, which integrated Exelis's operations into Harris's financial results. Net income also saw a healthy increase of 18.4% to $148 million, though diluted earnings per share remained flat at $1.18, reflecting the increased share count post-acquisition. Despite the overall revenue growth and improved net income, investors should note the decrease in net cash provided by operating activities, which fell by 20% to $64 million. This was attributed to factors such as increased inventory, pension contributions, and reduced accounts payable, partially offset by lower accounts receivable. The company also reported increased net interest expense due to higher debt levels incurred to finance the Exelis acquisition. The company highlighted strong performance across its four reporting segments, all of which saw significant revenue increases, largely due to the Exelis integration.
Financial Highlights
50 data points| Revenue | $1.81B |
| Cost of Revenue | $1.22B |
| Gross Profit | $591.00M |
| Operating Expenses | $329.00M |
| Interest Expense | $48.00M |
| Net Income | $148.00M |
| EPS (Basic) | $1.20 |
| EPS (Diluted) | $1.18 |
| Shares Outstanding (Basic) | 123.50M |
| Shares Outstanding (Diluted) | 124.70M |
Key Highlights
- 1Revenue increased by 56.8% to $1.811 billion for the quarter ended October 2, 2015, largely due to the acquisition of Exelis Inc.
- 2Net income grew by 18.4% to $148 million compared to the prior year's quarter.
- 3Diluted earnings per share remained stable at $1.18, indicating the impact of increased share count from the Exelis acquisition.
- 4Net cash provided by operating activities decreased by 20% to $64 million, impacted by changes in working capital and pension contributions.
- 5All four business segments (Communication Systems, Space and Intelligence Systems, Electronic Systems, and Critical Networks) showed substantial revenue growth, primarily driven by the Exelis integration.
- 6Net interest expense increased significantly due to debt financing for the Exelis acquisition.
- 7The company repurchased no shares under its repurchase program in the current quarter, compared to $100 million in the prior year quarter.