Harris Corporation Reports Fiscal 2018 First Quarter Results With Robust Orders Across All Segments

  • EPS from continuing operations up 19%, 8% versus non-GAAP, on flat revenue
  • Orders of $2.3 billion; book-to-bill of 1.6
  • Operating cash flow $95 million; free cash flow $72 million
  • Reiterated FY18 revenue, EPS and free cash flow guidance

MELBOURNE, Fla. — (BUSINESS WIRE) — October 31, 2017 — Harris Corporation (NYSE: HRS) reported fiscal 2018 first quarter revenue of $1.41 billion, flat compared with prior year. Earnings per diluted share from continuing operations increased to $1.38 from $1.16 (GAAP) and $1.28 (non-GAAP1). Operating margin expanded to 19.2% from 17.3% (GAAP) and 18.5% (non-GAAP1).

"We are off to a good start in fiscal 2018 with solid first quarter results, including record orders of $2.3 billion and a book-to-bill of 1.6,” said William M. Brown, chairman, president and chief executive officer. “In addition, our focus on productivity and program execution contributed to 8% EPS growth and drove 70 basis points of margin expansion. These results mark good progress against our strategic priorities and position us to achieve our guidance for the year."

Summary Financial Results

               
  ($ millions, except per share data)   First Quarter
      FY 2018   FY 2017   Change
  Orders   $ 2,305     $ 1,739     33 %
  Revenue   $ 1,413     $ 1,420      
               
  (GAAP to GAAP comparison)            
  Operating income   $ 272     $ 246     11 %
  Operating margin   19.2 %   17.3 %   190 bps
  Earnings per share   $ 1.38     $ 1.16     19 %
               
  (GAAP to Non-GAAP comparison)            
  Operating income*   $ 272     $ 263     3 %
  Operating margin*   19.2 %   18.5 %   70 bps
  Earnings per share*   $ 1.38     $ 1.28     8 %
               
  *Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.
   

Revenue was flat, as growth in Space and Intelligence Systems and Electronic Systems was offset by lower volume in Communication Systems. The improvements in GAAP operating income, margin and EPS were primarily due to Exelis acquisition-related charges incurred in the first quarter of fiscal 2017. Non-GAAP operating income grew 3% and margin expanded by 70 basis points (bps) from strong execution and program performance across all three segments and higher pension income, partially offset by a $14 million unfavorable impact from the ADS-B program transition from build-out to sustainment. The 8% EPS increase was driven by higher operating income and lower share count, partially offset by a less favorable tax rate. The 33% orders increase resulted in a book-to-bill of 1.6.

Communication Systems

                   
  ($ millions)       First Quarter
          FY 2018   FY 2017   Change
  Revenue       $ 410     $ 430     (5 )%
  Operating income       $ 118     $ 118      
  Operating margin       28.8 %   27.4 %   140 bps
                         

1 | 2 | 3 | 4 | 5 | 6  Next Page »



Review Article Be the first to review this article

Featured Video
Editorial
More Editorial  
Latest Blog Posts
Colin WallsEmbedded Software
by Colin Walls
Variable declarations in C – plenty of pitfalls
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
AUGER: Celebrating Our Users
2021 EDACafe PredictionsEDACafe Editorial
by 2021 EDACafe Predictions
Atmosic Technologies Electronics Design Industry Predictions
Jobs
ASIC Engineer for Amazon at seattle, Washington
Technical Product Manager- SISW-EDA 238452 for Siemens AG at Fremont, California
Senior Staff Field Application Engineer for Global Foundaries at Santa Clara, California
Senior HID Sensor Algorithm Architect for Apple Inc at Cupertino, California
Sr Engineer - RF/mmWave IC Design for Global Foundaries at Santa Clara, California
Staff SerDes Applications Design Engineer for Xilinx at San Jose, California
Upcoming Events
DVCon U.S. 2021 at Virtual - Mar 1 - 4, 2021
IPC APEX EXPO 2021 Goes Virtual at - Mar 8 - 12, 2021
ISQED'21 - 22nd International Symposium at POB 607 Los Altos CA - Apr 7 - 9, 2021
ADAS Sensors 2021 at The Henry Hotel 300 Town Center Drive Dearborn MI - Apr 7 - 8, 2021



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise