Tag: harris corp.

Harris Corp. stock skyrockets as company posts record earnings

Shares of Harris Corp. stock on Wednesday spiked more 7 percent following the company’s report of record third-quarter earnings and double-digit revenue growth. In heavy-volume trading, Harris stock set a new 52-week high of $181.22.

For the third quarter ended March 29, Harris posted revenue of $1.7 billion, up 11 percent from $1.6 billion in the year-ago quarter. Net income for the quarter increased 24 percent to $243 million. GAAP earnings per diluted share were $2.02 for the quarter, topping Street estimates.

Analysts surveyed by Zacks Investment Research had expected earnings of $2.04 per share.

“We achieved double-digit EPS growth for the sixth consecutive quarter driven by our highest organic revenue growth and margin in the past eight years,” Harris Chairman, President and CEO William Brown said in a statement. “These results, combined with another quarter of strong free cash flow, continue our exceptional year-to-date performance and position us well to deliver on increased revenue, EPS and free cash flow guidance for the year.”

Harris’ Communication Systems grew revenue 19 percent to $568 million in the quarter. Operating income increased 19 percent to $172 million. The company’s Space and Intelligence Systems division posted sales of $514 million, up 7 percent from the same quarter last year. Operating income increased 5 percent to $87 million.

Some 3,600 of Harris’ 17,000 staffers are employed at five locations in Rochester, which includes its Communication Systems and Space and Intelligence Systems divisions.

Harris has been awarded a number of high-value contracts in recent months that include a $75 million order from the U.S. Marine Corps for upgrades to its Falcon III manpack radios, manufactured in Rochester; $195.9 million for the manufacture of critical components in the Wide Field Infrared Survey Telescope, or WFIRST; and a $3.9 billion contract for more than 1,500 of its most advanced two-channel handheld radios. That contract is split between Harris and another vendor.

In April, Harris and L3 Technologies Inc. received shareholder approval for a “merger of equals,” announced last October. The combined, $36 billion company will be known as L3 Harris Technologies Inc. and will be the sixth largest defense company in the U.S., as well as a top 10 defense company globally.

The company will be headquartered in Melbourne, Fla., where Harris has its headquarters. L3, which develops advanced defense technologies and commercial solutions in pilot training, aviation security, night vision and more, has roughly 31,000 employees worldwide.

The merger is expected to close midyear 2019, subject to regulatory approvals.

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Harris ships its largest observatory mirror

Harris LSST prior to assembly integration. (Photo provided)
Harris LSST prior to assembly integration. (Photo provided)

Harris Corp.’s Rochester-based Space and Intelligence Systems has shipped its largest mirror ever for a ground-based observatory that will produce the deepest, widest views of the universe.

As part of the National Science Foundation team assembling the Large Synoptic Survey Telescope (LSST) on the Cerro Pachon ridge in Chili, Harris is providing the 3.5 meter, 3,500-pound secondary mirror and associated ground support equipment. Harris also is delivering the cell assembly that stabilizes the mirror to offset the effects of gravity during operation.

It took Harris employees some five years to design, build, integrate, test and ship the LSST mirror and cell assembly.

“The Harris-built secondary mirror for LSST continues a 50-year legacy of designing and constructing high-end optical systems that meet challenging requirements,” said Murali Krishnan, vice president and general manager, intelligence, surveillance and reconnaissance for Harris Space and Intelligence Systems. “We can’t wait to see the science that will be discovered.”

LSST will conduct an unprecedented, decade-long survey of the entire visible sky, detecting billions of new objects and contributing to the study of dark matter and dark energy. LSST will seek to enable science in four areas including the understanding of dark matter and dark energy; cataloging the solar system; exploring the changing sky; and investigating the formation and structure of the Milky Way.

Operations are scheduled to begin in 2022.

Harris Corp. LSST loading team. (Photo provided)
Harris Corp. LSST loading team. (Photo provided)

“This achievement marks the successful conclusion of a great joint effort between LSST and Harris. Numerous challenges due to the mirror’s large size and convex shape were overcome with novel and custom fabrication and metrology solutions,” said LSST Telescope and Site Manager William Gressler in a statement. “The Harris team successfully completed and is delivering the world’s largest active secondary mirror system. We look forward to its delivery to the summit site in Chile and future telescope integration.”

Harris employs some 3,500 people in Rochester between its Space and Intelligence Systems and Communication Systems divisions.

“This federal National Science Foundation investment is leveraging Harris’ skilled Rochester workforce to bring the farthest reaches of the universe into focus,” U.S. Sen. Charles Schumer said. “A leader in Rochester’s world-class optics and photonics industry, Harris employees are making history by manufacturing the world’s largest terrestrial telescope active secondary mirror system in Rochester, N.Y. Their cutting-edge achievement will push scientific frontiers, enable new discoveries and chart the universe like never before.”

Schumer, a vocal proponent of both Harris’ local operations and the continued exploration of the cosmos, was in town last week to drum up support for federal funding for the National Aeronautics and Space Administration’s next space telescope, Wide Field Infrared Survey Telescope (WFIRST), which is being constructed largely by Harris’ Rochester workforce.

WFIRST will have the same image precision as the Hubble telescope, but will be able to see an area of space 100 times larger than Hubble can see.

Earlier this year, the Office of Management and Budget proposed cutting all fiscal year 2019 funding for the WFIRST project, however Schumer pushed his colleagues in the Senate to include $352 million in NASA funding for the telescope in their version of the Commerce Justice and Science Appropriations bill.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Harris audio system slated for NASA spacecraft

nasa_orion_harris-audio-system_071118Harris Corp.’s Space and Intelligence Systems will provide the audio communication system for NASA’s first human deep-space exploration mission, scheduled to launch in 2022 onboard the Orion spacecraft.

Orion is NASA’s first spacecraft designed for long-duration, deep-space exploration by humans. Harris was selected by Lockheed Martin, the prime contractor for Orion, to deliver the audio system for Exploration Mission-2, the first crewed flight for the Orion spacecraft.

“The Harris-built audio system will be a crucial communications tool for astronauts on board this and future Orion missions, such as flights to Mars and beyond,” said Murali Krishnan, vice president and general manager, Intelligence, Surveillance and Reconnaissance, for Harris’ Space and Intelligence Systems. “Being a part of NASA’s Orion program positions Harris for future crewed space flight work, as the U.S. government continues to deepen its commitment to space exploration.”

The system, which will enable astronauts to communicate with each other and NASA, will feature audio control units (ACU), audio interface units (AIU) and a speaker unit (SPU). The ACU provides central audio control and signal processing; the AIU is the push-to- talk interface clipped to the spacesuit or shirt sleeve; and the SPU transmits voice communications, as well as caution and warning alarm tones, in the cabin.

Harris’ Space and Intelligence Systems designs, manufactures and integrates systems for Earth and space observation and for satellite communications. The company’s technology has been on board every manned U.S. space mission.

The Melbourne, Fla.-based technology innovator and supplier of tactical, night vision and defense solutions has three segments: Communication Systems, Electronic Systems and Space and Intelligence Systems. Harris Communication Systems and Space and Intelligence Systems are based in Rochester. The company employs 17,000 people, including roughly 3,400 in Rochester.

Shares of company stock (NYSE:HRS) Tuesday morning were up 40 cents from Monday’s close of $149.57.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Harris wins $130 million Pentagon contract

harrisHarris Corp. has been awarded a five-year, up to $130 million contract to develop and deliver radios for the U.S. Air Force.

The indefinite delivery/indefinite quantity contract is for Hand Held Video Data Link (HH-VDL) radios that will significantly increase situational awareness and connectivity for warfighters. The HH-VDL radios will securely deliver data to and from multiple airborne assets, creating an expanded, mobile communication network.

The new radios will enable real-time intelligence, surveillance and reconnaissance (ISR) information, such as full-motion video, to be distributed from the air to troops on the ground, and will replace existing incumbent ground ISR terminals. HH-VDL radios will provide increased capability in a more mobile solution.

“This award reaffirms our commitment to tactical ISR and extends our networked handheld portfolio and waveform offerings,” said Harris Communication Systems’ President Chris Young. “The ability to securely link air and ground assets with full-motion video and data provides an augmented site picture for commanders and increases situational awareness for dismounted warfighters across the battlespace.”

Harris has been a mission partner with the Air Force for 70 years.

Harris is a $6 billion corporation with headquarters in Melbourne, Fla. The company employs 17,000 people and does business in 100 countries. Harris’ Communication Systems manufacturing center is on Jefferson Road in Henrietta, while its Space and Intelligence Systems segment, formerly Exelis Geospatial Systems, is in Rochester Tech Park in Gates. The company employs more than 3,600 people here.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Harris employees assemble hygiene kits for donation

Harris Corp. employees assembled 5,000 hygiene kits to assist those in need in the Rochester region this week. (Photo provided)
Harris Corp. employees assembled 5,000 hygiene kits to assist those in need in the Rochester region this week. (Photo provided)

More than 150 Harris Corp. staffers took time Thursday to assemble 5,000 hygiene kits to assist those in need in Rochester.

The company donated the hygiene kits—which contain items such as hand sanitizer, mini first aid kits, deodorant, soap, laundry detergent and a toothbrush—to Baden Street Settlement, Charles Settlement House, Community Place and the Veterans Outreach Center.

The event is part of Harris’ company-wide service initiative called Harris Employees Actively Responding Together, or HEART. Thursday’s hygiene kit initiative kicked off the company’s 2018 United Way of Greater Rochester Inc. campaign, as United Way celebrates its 100th anniversary this year.

“We congratulate the United Way on 100 years of service to our Rochester community,” said Adam Histed, vice president, human resources of Harris Communications Systems. “We are proud to support such a wonderful organization, which does so much for the community where we live and work.

Harris has two business segments in Rochester, including Communications Systems and Space and Intelligence Systems, and employs more than 3,600 people here.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Harris plans employee enhancements in wake of new tax law

Harris corpHarris Corp. plans to contribute an additional $300 million to its employee pension fund as a result of the passage of the federal tax reform bill.

In addition, each of the company’s 17,000 non-executive employees—including the roughly 3,400 employed in Rochester—will receive 10 shares of Harris common stock that will vest over two years. The grants have a current market value of roughly $1,470 each, or $24 million in total.

Harris also will invest an incremental $20 million in technologies to accelerate innovation and affordability initiatives for its customers. Company officials said the R&D investment will leverage and enhance Harris’ engineering talent, strengthen its position and help it capture new market opportunities in areas such as small satellites, software defined electronic warfare systems, open systems avionics, robotics and air traffic management solutions.

“We are pleased to share the benefits of our strong performance and the recent tax reform legislation with our employees,” said William Brown, chairman, president and CEO. “This represents an investment in Harris’ greatest asset and differentiator – our talented employees. Coupled with our innovation and technology investment, we are using this opportunity to further strengthen the company and position Harris for future success.”

The investments are expected to occur during the company’s fiscal 2018.

The Melbourne, Fla.-based technology innovator and supplier of tactical, night vision and defense solutions has three segments: Communication Systems, Electronic Systems and Space and Intelligence Systems. Harris’ Communication Systems and Space and Intelligence Systems are based in Rochester.

Shares of company stock (NYSE: HRS) were up more than 3 percent at $151.72 in late morning trading Tuesday.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Harris Corp. wins $40M contract from U.S. Dept. of Defense

Harris corpHarris Corp. has won a $40 million contract from the U.S. Department of Defense to equip the new Security Force Assistance Brigade with its radio systems. Harris expects to add 30 to 40 new jobs in the region as a result.

The Melbourne, Fla.-based company’s Communication Systems segment is based in Henrietta. The division produces mission-critical communications solutions including tactical communications, night vision and public safety and professional communications.

The Department of the Army announced the creation of the SFAB in February. It will consist of highly-trained, highly-qualified senior officers who will support security forces abroad. Rep. Louise Slaughter, D-Perinton, helped allocate funding for the new SFABs earlier this year.

“I’m proud to announce this new contract that will allow Harris to equip the Army’s new Security Force Assistance Brigade with their radio systems. The advise and assist mission of these brigades is vitally important to our success abroad and will help us support and train our allies and partners,” Slaughter said in a statement. “I’ve worked to provide the funding necessary for this new brigade and I am honored that they will be using Rochester-made radios in their mission. This contract will sustain thousands of local jobs while equipping our brave men and women in uniform during their important missions abroad.”

Last year, the Army selected Harris as one of three suppliers for its 10-year $12.7 billion Joint Tactical Radio System “manpack” radio contract. In 2015 the Army selected the company as one of two suppliers for its 10-year $3.8 billion JTRS “rifleman” radio contract.

“Louise Slaughter’s commitment to our Rochester employees ensures that we continue to deliver state-of-the-art technology solutions to the U.S. Army,” said Harris Chairman, CEO and President Bill Brown.

The new contract involves the PRC-117g, the PRC-152a and the ANPRC-117g radios made by Harris. The PRC-117g is a large “manpack” sized radio that typically is integrated into military vehicles. It provides wideband services and has been procured in the past by the Marines, United States Air Force, and Army. The PRC-152a radio is a handheld version of the PRC-117g while the ANPRC-160 is a new Harris high-frequency radio.

“This new radio order by the U.S. Army means dozens of new workers are now being hired by Harris in Rochester,” said Senate Minority Leader Charles Schumer in a statement. “You don’t need a Harris radio to hear loud and clear that these 30-40 new jobs are a shot in the arm for the Rochester economy. It is further indication that Harris’s Rochester workforce produces top quality radios that our troops rely upon to succeed in some of the toughest missions around the globe.”

Brown added: “Senator Schumer has again doubled-down in support of our Rochester employees with his strong leadership and knowledge that our employees deliver innovative technology solutions to the U.S. Army each and every day.”

Follow Velvet Spicer on Twitter: @Velvet_Spicer

Harris reports first quarter results

Harris corpMelbourne, Fla.-based Harris Corp. reported a sales increase in one local segment, while another posted a 5 percent decline in the first quarter.

For the first quarter ended Sept. 29, Harris’ Space and Intelligence Systems, formerly Exelis Geospatial Systems, had revenue of $466 million, compared with $453 million in the first quarter last year.

Income from continuing operations for the segment was $87 million, up from $79 million in the previous year first quarter.

Harris’ Communication Systems segment, based in Henrietta, reported a drop in first-quarter revenue to $410 million from $430 million a year ago. Operating income was unchanged at $118 million for the quarter.

Harris reported total sales for the quarter of $1.413 billion, down from $1.42 billion in the first quarter last year. Income for the quarter was up 11 percent to $272 million from $246 million a year ago.

GAAP earnings per share were $1.38, up 19 percent from $1.16 per share a year ago.

Analysts polled by Zacks Investment Research had expected earnings of $1.35 per share on sales of $1.42 billion.

Harris reiterated its fiscal 2018 guidance. The technology innovator and supplier of tactical, night vision and defense solutions expects full-year sales of $6.02 to $6.14 billion, with earnings in the range of $5.85 to $6.05.

Shares of company stock (Nasdaq: HRS) were up slightly at $137.08 in midday trading.

Follow Velvet Spicer on Twitter: @Velvet_Spicer

(c) 2017 Rochester Business Journal. To obtain permission to reprint this article, call 585-363-7269 or email [email protected]

Navy extends contract with Harris Corp.

Harris Corp. has received an extension on a $765 million deal with the U.S. Navy.

Sen. Charles Schumer, D-N.Y., announced this week that the local division of the Florida-based manufacturer will receive an Indefinite-Delivery/Indefinite-Quantity contract award to continue to supply radios to the Navy for the next five years.

“This well-earned extension will support jobs at Harris, in addition to boosting the entire Rochester-area economy,” Schumer said in a statement. “Harris has proved time and time again that they can make superior radios for the U.S. military and our allies around the world.”

In June, Schumer announced that Harris was awarded a $255 million contract through the U.S. Special Operations Command to manufacture two-channel manpack radios for the Special Ops Forces Units and for foreign partners. A year ago, Harris received a $1.7 billion contract to manufacture radios from the company’s RE-7800 family of tactical radios.

Locally, Harris’ operations include Communication Systems and Harris Space and Intelligence Systems, formerly Exelis Geospatial Systems. The company employs some 3,450 staffers here and ranks as the second largest manufacturer in the region, the most recent Rochester Business Journal list of manufacturers shows.

Shares of company stock (NYSE: HRS) closed Tuesday at $133.31, a 52-week high for the company.

Follow Velvet Spicer on Twitter: @Velvet_Spicer

(c) 2017 Rochester Business Journal. To obtain permission to reprint this article, call 585-363-7269 or email [email protected]