Exelis Acquisition Boosts Harris Corp Revenues
[Via Satellite 05-03-2016] Harris Corporation reported revenue of $1.91 billion for the third quarter of fiscal 2016, compared with $1.19 billion in the prior year. Income from continuing operations was $170 million based on Generally Accepted Accounting Principals (GAAP) and $182 million on a non-GAAP basis, excluding acquisition-related costs. In the prior year, income from continuing operations was $126 million on a GAAP basis and $139 million on a non-GAAP basis, excluding acquisition-related costs.
Third quarter results benefited from the acquisition of Exelis in the fourth quarter of fiscal 2015. Exelis is now part of Harris’ Space and Intelligence Systems segment, which brought in $489 million in revenue during the quarter. Operating income was $76 million. Orders included $37 million to provide an 18-meter unfurlable antenna reflector for Sky Perfect JSAT’s JCSAT 17 geostationary communications satellite, which Lockheed Martin is building, and $329 million from classified customers. The segment also won a six-year, $316 million follow-on contract with an initial $51 million order from NASA to provide weather payloads for the fourth and fifth satellites for the Joint Polar Satellite System (JPSS) program.
“Third quarter earnings were solid, continuing to benefit from the integration of Exelis and the capture of synergy savings,” said William Brown, chairman, president and CEO of Harris Corp. “Despite lower tactical revenue from the Middle East, total company orders and revenue in the third quarter were sequentially higher and book-to-bill was greater than one, driven by space and intelligence systems, electronic systems and critical networks.”
Harris’ revenue was $485 million from its communication systems segment, $393 million from its electronic systems segment, and $551 million from its critical networks segment.