Harris Corporation Reports Strong Fourth Quarter and Fiscal 2018 Results...Well Positioned to Accelerate Growth

Revenue increased 8% for the quarter and 5% for the year, led by growth in Communication Systems and Electronic Systems. GAAP and non-GAAP EPS grew double digits for the quarter and the year driven by higher volume, operational excellence, higher pension income, lower share count and tax gains, partially offset for the year by a $36 million unfavorable impact from the ADS-B program transition in the first half of fiscal 2018. GAAP EPS growth also reflected, for the quarter, debt refinancing and other charges partially offset by adjustments related to tax reform, and for the year, other prior period items reconciled in the attached financial tables. Non-GAAP operating margin expanded 50 basis points to 19.6% for the quarter and remained strong at 19.2% for the year. Orders increased 18% for the quarter and 23% for the year, resulting in a book-to-bill of 1.1 and 1.2, respectively.

                       

Communication Systems

 
($ millions) Fourth Quarter Full Year
FY 2018 FY 2017 Change FY 2018 FY 2017 Change
Revenue $ 523 $ 449 16% $ 1,903 $ 1,753 9%
Operating income $ 162 $ 146 11% $ 571 $ 524 9%
Operating margin 31.0 % 32.5 % (150)bps 30.0 % 29.9 % 10bps

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