LHX - Earnings call transcript Q4 2019 | L3Harris Technologies, Inc.

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Operator

Greetings, and welcome to the L3Harris Technologies, Fourth Quarter Fiscal Year 2019 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host for today, Anurag Maheshwari, Vice President of Investor Relations. Thank you.

begin. may You

Anurag Maheshwari

Good quarter Dena. and to welcome Thank XXXX morning, earnings fourth fiscal call. our you, everyone,

On the call Chris with me today is and Malave, Kubasik, Bill Jay CFO. COO; Brown, CEO;

will measures. words statements. on First, statements a financial Discussions few today non-GAAP and include forward-looking forward-looking

assumptions, uncertainties that involve to actual could and those from materially statements. risks statements cause results Forward-looking differ

more please see and filings. SEC information, the presentation For our press release, the

section measures available. on also of reconciliation non-GAAP Relations our A the included materials the quarterly will to a GAAP financial where in is comparable call Investor replay of website, this measures of be

As also businesses. the during of announced four Harris historical excluding LXand periods, divested for of together business supplemental combines as a combined newly Harris’ but vision night results operated information basis the and if investors, will include business prior LX’s the the structure operating which segment operating had discussions financial results information, been selected on

it With turn that, you. Bill, I will over to

William Brown

Anurag, CFO Chief I’m earnings call. morning you who most United Technologies pleased welcome to Technologies X So, everybody. also July Officer, was LXHarris where welcome new Jay on our excited you our recently joined Malave, ever I’m of thank from good Carrier. Financial to first us he to

the spent of to Goodrich of businesses, including acquisition. United years Prior as Jay more integration at that CFO working and Technologies XX than the the aerospace Aerospace Systems

Technologies at the strong Chris he know me, Many I’m confident team. business rest United function you Jay to of and the of to Relations have leading from and partner time a onboard Investor thrilled his be will and management him the

on merger the fiscal we after Technologies we establishing aware successfully June completed hit in XX, As minutes Harris’s transformative fact ‘XX, running. really we LXHarris and the ground ended you in are

activities the both top four working we that organizational our announced after focused new first headquarters mission companies. Harris the talent model, consolidated of creating day LX between and segments and closing, On combine

and with meeting multi-day Halls of XXX then week I second a our and the employees, and Chris first the completed senior in leadership of all XX% values were out then leadership held company extraordinary. vision, excitement level In Town plan. we our say shared touching the we energy week nearly executives and joint XXX the I and philosophy have initial that is across set operating to game with

So QX start a results in we and company. that fiscal But and by combined talk about a Harris’s half let then quarter and off Harris are followed me few on to and minutes. a first by begin and as guidance. good ‘XX combined first an results, with Jay LX, more with update fourth Chris Financials providing We’ll LX

top ended seen highest So on ‘XX Harris growth on the high quarter revenue we note non-GAAP growth earnings and in slide of with with XX%, per starting years. eight share fiscal fourth XX% of three, a we’ve at line

we expansion the accelerated $X.XXX Overall on record margin cap had points per of $X.XX, a segments. billion. and fourth share guidance up results margin company growth we XX which revenue and three the record an and a to of all XX.X%. delivered free year in in quarter exceptional in cash outperformed basis metrics, We flow expanded all XX% These earnings

growth continued funded contributed X.X, driven backlog toppling of Total expectations. setting XX%, exceed continued by our growth up us performance, All driving their which was strong and company book-to-bill for to segments line to three growth. top

the the to segment appendix. slide a detail of take me on in with five, few the some highlights recap the Let year and minutes four additional of

and XX% multiyear year and last SOCOM with upgrade terrific revenue from strong from a modernization cycle. Communication up ended XX% year, Army, on with DoD up in growth a revenue demand Systems Safety. solid DoD from Tactical the had year nearly Marine Tactical they Public of fiscal This was XX% million $XXX of and growth from Corps ‘XX. embark by driven as the

with momentum Radio order LRIP RFP. Order, HMS a us the awarding followed Manpack Leader continued in the second quarter the release Army in Channel of the X Modernization July with

continued on prototype airborne expanding also to Force’s to our strategy Radio awarded the Modernization High the we airborne. and were of adjacent penetrate ground phase execute HF is We Frequency Airborne well initial leadership our Air program, markets from

up and and program, International and counterterrorism as performed year, early support ongoing Australian products on in Modernization adoption expected driven Canada by the of Tactical was the Western revenue Europe X% ramp the multi-channel Africa. for in

the the billion. than for backlog growth trajectory $X.X up expected, initially supported international revenue and confidence combined book-to-bill X.X the term. continued budget ended increasing stronger the and Tactical year DoD Overall second with well This the on into the of expansion year Radios to Channel us in executing XX% with and in up medium demand request, of gives X for XX%, half Tactical adjacency

The in Rotary In growth sustained F-XX we Electronic technology B-XX was quarter year platforms as recently strong of upgrades all Systems, on X%. revenue revenue by Aircraft, increased ninth XX%, long and the collectively leverage driven growth at the digit of SOCOM and ramp and double F-XX, F-XX which production. performance and ending growth more consecutive by term grew

two-thirds our long the from strong solidify and and to relationships long avionics continue new standing warfare term on we platforms. at franchises position our customer booking, leverage to were Orders ES nearly in $X the billion as ending year in electronic with

In systems means across April for a F-XX contracts, we F-XX content which our supporting award increases production received now all under release term LRIP which and of Release multiyear $XXX medium avionics is XX-XX, Systems, million visibility.

Warfare bringing Upgraded programs $XXX million Platform, to value total over production million B-XX current received that billion against order the $X.X opportunity. Systems also deliver We a Electronic to Countermeasure the for $XX

innovation, along increased content electronic the drive warfare. in investments of cycle on avionics This in platforms order growth with platforms expansion multiyear momentum, a existing and our will next-gen and

mid-teens Space growth success mission continued positions above stronger solutions momentum new and by the we driven in and market strengthening quarter in our up penetrating expanding Order providing our for initial of even year, as to classified incumbent business classified revenue Intel, was X% and of business. end-to-end our the addressable and adjacency. saw In X%, by the expectation X% was well

our I’m our also the new drove despite of challenges segments, expansion relentless come pleased margin program the mixed starts. which on focus with excellence, operational that across with each

the driven total long-term basis program XX.X% operational net savings more that modernization HPX quarter called excellence and for of resulting space, the in in company of the Our XX.X% Tactical has year, productivity DoD on classified and margin expansion. points impact than margin revenue offset growth of margin XX for fourth dilutive platforms

days, capital working XLS a terrific last delivered on four has focus We year of ended improvement over at a day day improvement acquisition. multiyear XX our since results. the XX year capital with Similarly, working the

$X.XXX of exceeding Our acquisition the $X with capital reduction, XLS billion record XXXX. by post combined working goal growth free cash resulted of in earnings billion, flow

targets we we record Overall, exceeding building go market and EPS margin cash had the margin continued drive outstanding expansion growth, free LXHarris term generation, an year accelerating long to set cash ourselves, expansion revenue our shareholders. and momentum continue and value flow, of for forward we’ll for as above we growth, as creating this on and

LX to now the it me half. first over quarter the and Let Chris results to discuss for Chris? turn

Chris Kubasik

everyone. morning Bill Okay, thank and you good

up everyone’s take for times of Today’s hard a and both and to me Harris past leading their the quarter. merger. this this and work due focus the teams from the moment companies Let historic congratulate uncertain to close to results LX thank are

at day signage new seamless. and to launched globe mentioned, new Harris Bill that to sites. our addresses the website email We all across As was employees, new installed portal largest one rolled employees connected a LX and out XX,XXX XX

to RFPs towards and spend On of goal. our nearly the cost work supplier $XXX to in totaling in the combined enterprise the operational synergies first side, XX million we leveraging purchasing our power week base start to issued annual the

we earnings LX the Shifting free discussed flow, quarter, second now solid margin results, we to by quarter consolidated our second on our May highlighted outperforming a call. cash both had and guidance

XXX points These X% to strong to up X% growth. caped free to basis $X.XX XX% was flow $XXX expanded with on growth. EPS revenue up revenue XX.X% half EPS results and Non-GAAP on up first XX% Margins XX% was million. a cash

Total working XX%. resulting to reduction improvements resulted free Orders backlog months. were million XX in a XXX flow $XXX the last over day and half, XX of book-to-bill year’s increased a basis cash first in XX.X% points capital up X% company or Xx past that as on executed funded margins expanded and was we X.XX

including the systems segments slide a by six, grew program. to on the and Peregrine ISR Aircraft accelerated, recapitalization Australian the revenue missionization driven and turret our the X%, ISR several WESCAM programs Turning up key of in business, as Presidential strength ramp

with was points expansion This by vision income savings. operating LXXX of In deliveries XXX XX% due growth of contract ISR expansion XX.X%. margin volume, lower to was XX%, and operating first export partially and XX%, revenue and This up improved points basis to up basis products performance higher to XX.X%. timing the was due was half to income in margin of grew resulting offset XXX night

In Communication Segment higher volume by the in Integrated quarter product Communication in for sectors. volume production and was the Maritime lower revenue the with flat System offset UAV Microwave

XXX basis Undersea investment X.X% Programs in and continued to from Margins of Unmanned the dilutive impact mix points declined by Vehicles. the Developmental the Maritime

up half, first basis X% X.X%. expansion points revenue of to the was with segment For margin XX

in more Display the the Systems Security business, Simulator in X% Systems strong and Commercial than and which of volume last second contract F-XX lower Engagement was Flight year’s up growth Segment the Defense Training Electronics the Airport fuzing Solutions expected to Lastly training competitive Precision offsetting C-XX includes the quarter Equipment, loss sales. headwind revenue with ordnance from due and

and in of had the and above of expansion disclosed X% the margin points first in SX. basis Margin tracking up points Overall the first with beginning half, revenue XX.X%. to strong expanded at half XX set a year was segment of guidance amounts ahead XX the XX.X% basis the the LX to

Cutting greater announced further LX to into and to across costs and operations we group Looking to on across domains. and missions that business growth, slides, drive efficiency. July achieving operational these to technologies capabilities while have webcast and functions compete in development, us excellent and appendix organized and segments, forward, segments, we program multiple X have programmatic four the allow as the detailed we Harris

We we excited assembled I’m to merger new to on in ahead. the have the October organization. the be the and seasoned of have structure worked since and lead work it outstanding, to part collaborative forward and announced look team an

to over it With turn that, Jay. will I

Jay Malave

honor investor Chris, everyone. an look I community team Thank working forward It’s with the and once good you, to and the LX to join Harris morning again. analyst

calendar start guidance, the LX for moment and I XXXX context reporting. discuss will Harris will and support the and for to I’ll order guidance half a at LX year calendar to I a XXXX, first transitioned half year in reminder, Similarly of compatible provide on combined But year the drivers comparisons various those the year-over-year the to the financials the through which guidance note In basis described the as in year calendar Harris Harris discussion have we second call in walk in period included beforehand, prepared LX and of and for of prior financials. are comparisons combined we Anurag results. the all also

In X% to on XX.X%. increased Okay, starting revenue margin with resulting results. efficiencies, volume XXX operational in the quarter and higher EBIT points up expansion XX% of and second was basis

by to and above cash billion, year. grew from slightly free $X EPS XX% XX% than up flow $X.XX last more was

book-to-bill half X.XX. First was

including ISR Turning Systems revenue and $X.XX Imaging Aircraft growth continued strong was the eight, Australian driven on business, quarter Mission strength in up to billion, structure Airborne our the X% Missionization Systems segment integrated Peregrine Electro-Optical program. new in by the slide for

higher the and program XXX for was income expanded performance. XX.X%. points margin million from to XX% volume up Operating to $XXX Operating improved segment basis

was income of and half, XX points For XX% operating the to up expansion increased XX% first margin revenue XX.X%. with basis segment

First half X.XX. book-to-bill was

warfare, $X.X nine, by Next ramp the driven Systems as term strength production in aircraft and platforms, contact on quarter in digit XX%, in from and growth Space and on Airborne avionics electronic continued well space. long double billion, new was classified as up slide a revenue for

points XXX Segment program volume, XX.X% operating from income increased stronger operational basis higher margin efficiencies. expanded and performance and $XXX to million XX% to

margin operating and income half, of the XX% was with segment first increased revenue XX% XX.X%. For up

First half X.XX. book-to-bill was

capability of revenue was System the program. quarter vision to from the Switching timing the LX Tactical Systems impact XX, operational night in transitional growth slide to X% and to Public deliveries full and Tactical strong partially due for DoD Safety, offset products Land UAE lower on Communication of up by

execution Segment offset and margin points XX.X%. impact XX%, from Tactical XX Radio program A basis expanded operating Modernization up mix income programs. ramp in strong was to the the

XX.X%. first XXX the XX% revenue For up to increased segment margin income and half, XX% was operating points expansion basis with of

in X.XX was a book-to-bill coming book-to-bill and half X.XX off last six XXXX. of the of First that’s months

engagement, slide And as the was on in last Defense was volume training due year’s growth contract programs Commercial precision Training lastly X% to headwind offset expected partially and lower in in Flight and up the Systems FAA C-XX security the Aviation of by equipment revenue Solutions Simulators. for airport XX, for quarter loss

XX Segment operating margin and income basis was points from expanded cost up management. XX% better

segment to half expansion first XX.X%. and up X% income points with the revenue For increased X% margin basis of XX operating was

First half book-to-bill was X.XX.

to Okay, half performance on half the the now that continue year-to-date gives year. slide outperform the of for The guidance us in to second will turning confidence markets XX. we back strong

follow-on high top-line, sales expect strong be visibility with all and growth by across to XX.X% to the This up coverage revenue we half range the our from high of supported probability with second Starting backlog opportunities. is segments. in X.X%

higher up approximately expected to basis range $X.XX, reflects operational will of over and efficiencies the higher to be $X.XX the points from cost in EBIT profit total synergies. which be repurchases XX.X% half XXX Second margin days. next to EPS to expected share is few and volume, we is which company initiate

on $X.X billion Board $X dollar billion of a has program the next announced the and which share X, will a As over repurchase we XX% XX increase dividend utilize authorization July months. approved

earnings capital we half to of day expect the half. $X.X from or billion the reflecting to In expenditures second are Capital in billion, $XXX flow second a and June in of reduction cash X% expected higher be generate to working $X.XX revenue in two to million XXXX. one free range

expected to in revenue the the with to $X.XX XX.X%, year approximately and up margin XX.X%, EPS range is of Full in flow range year free range in expected be is of full $X.X the of to X.X% billion. $X.XX. the of For to EBIT be billion $X.XX cash to

half partially of EPS Turning increase efficiencies higher cost $X by EPS second the about and XX to bridges volume of $X.XX, midpoint XX, slides on the by driven across a the reflects impact of synergies, expected higher operational of the at and segments, an four rate tax offset XX%.

the of synergies, improvement a intangible coming EPS $X.XX elimination LX by midpoint total $X.XX a driven from full with lower year at $X.XX tax and and $X.XX the operational and partially $X.XX cost of pension reflects an offset Expected a share interest of additional by and count, amortization headwind. increase

in be the Integrated in margin Mission segment we driven Systems revenue Systems up in growth by Maritime approximately Platforms operating half, XX.X%. Imaging ISR the to and XX.X% In expect strength to Airborne Aircraft Switching outlook: second with Missionization continued and of approximately

Full classified operating digit XX.X%. year and approximately revenue approximately XX.X% with expected to XX.X%. Airborne to revenue in in growth and segment electronic half, operating is up approximately year expected be margin strong in segment driven XX.X% margin continued to approximately expected grow space. avionics of is second expected approximately Segment approximately revenue growth warfare Full XX.X%. to is operating and up of with the Space XX.X%, by double be margin Systems be is

up revenue sectors operating XX.X% growth Full the revenue range approximately X.X% half, with XX.X%. is second strong approximately approximately in be of segment across XX.X%. Systems Communication to up expected all of operating in with the expected driven by margin is to margin year be

expected Lastly, be to and productivity I’m from revenue continued largely second the precision second. up in X% is XX% Aviation is Systems improvements – be to margin be digit Operating sorry, half, to in expected up growth expected across engagement. double driven approximately EDD approximately in the initiatives by

Full margin approximately revenue about with of is expected year segment grow X% XX.X%. to operating

over half to to strong to in synergies, from momentum benefit cost the addition in a the to half resulting first summarize, So XXXX. expect second carry the we

remarks. here and turn Bill to I’ll over back it for stop closing

William Brown

a lot and that’s Jay you take in. to thank Well,

wrap budget few priorities going let on a forward. with strategic our comments up So me and the

to the ranging BCA next removing In regard and very budget, recent the years the the bipartisan deal of thread over the I’m sequestration. encouraged two by caps

are security well we to term. outlays of core the We in House budget demands, continuing expect budget continue our increased will With to which lag support the believe national meet medium to to momentum the continue growth funding aligned franchises. appropriations, with Senate

on run now with cost being expect Chris accelerating and leadership aligned priorities, and and ago few I capture top to the $XXX million us ’XX, on XX% A of strategic track foremost putting gross gross savings our of to exceed the weeks our of integration rate first hit We calendar million meet team or of by end XXXX. calendar $XXX or our synergies. in

growing consolidations to and supply increasingly are We a calendar are off quarter and activities, synergies exceeding head million confident segment $XXX gross we on in ‘XX. start cost and chain great

our both program new and include, driving on new a in of the excellence performance Everywhere Other building investing aggressively establishing priorities culture, EX: Everyday, called smartly Excellence technology to operational companies, to and will high on reshaping to increase be technology margin, portfolio maximizing that shareholders through returned businesses dividends. high share, our repurchases grow and growth, flow and cash revenue focus differentiated strengths to

and feel exceeded has progress and value. and days XX alignment the strategic to combination, shareholder Overall even ability our confident deliver in in the the more our first expectations, we

let for that, operator So me line turn the open to the with to questions.

Operator

Thank you. Instructions]. [Operator

Our Stallard you Caller, proceed. Partners. first Robert question of from Research Vertical comes may

Robert Stallard

so Good morning. much. Thanks

Bill Brown

Hey, Robert. morning good

Robert Stallard

Maybe for at and might the I a quick was on thought or any wonder post-merger further development commentary, first combined Show, question company Air if looking some the disposals been be that had there front? Paris some There Bill.

William Brown

do a about Well to team. terms strategic. management mix fresh we combined what before of consider longer venues, portfolio take for an gives at talked no in Rob, fit, opportunity optionality that for fits, call other what key mentioned of in businesses company look and priority this about something’s think doesn’t the with really broader and closing businesses to thanks gives us a us the an certainly on as as a the priorities definitely Yeah, top question. Certainly it’s my remarks I we’ve

of we is, share through couple at a win, to we We business Can gain metrics. differentiation? what and on good technology and have were deliver continue lenses. evaluate etcetera, look based Certainly to does different Can businesses this we required the that’s those grow one returns? going are by

we on this Chris I to We working hard new on and this, are continue board very dialogue, well. as have our are this engaging

not decisions us it’s to are and discussions really of public, going mind in We to top deliberate but Rob.

Robert Stallard

many off then beyond? free and I XXXX in follow-on In welcome of be and $XXX around and as back. themselves million won’t these a adjustments thanks, wondering one Thanks. the maybe that’s of and Jay worth XXXX cash guidance, how flow and repeating Okay items for was

Jay Malave

Are back about the you talking half, Rob.

Robert Stallard

the the in for to a it’s reconciliation XXXX free the got year. Yeah, the cash release. XXXX to guidance then There’s of X.X adjusted to of year. full adjustments gets and the We’ve flow for X.XX number you

Jay Malave

of capital we’ll two Right, we that taxes. days half to in an a so at me integration basis. one you related a to cash into improvement, see net or There when benefit you it expect that, the try within a take the be we’re expect cash hold to back we because outflow income. will of flat to year of next our know a you to look and still going continue going we’ll bit up-tick second flow, little working but cash an some from of But free see bit will just in costs, let little

about half, going specific So we next what feel year. second see question to your in terms the of we good

expect that restructuring I don’t be the repeat some be going items, and type other to significant costs but mentioned type those there that beyond I integration, to of costs continued related will there items level As forward. will of

Bill Brown

million are be back $XXX had cash million $XX I think integration year or cost. half. for just in deal first to I will in cots; by million the We so of and free impact half. XX be the that’s in deal $XXX us that be a Rob, to going from About nutshell, the The about million $XXX of behind mean going QX.

and You as ‘XX little know well. costs drag integration forward we’ll integration into the costs some is on balance calendar see

Robert Stallard

That’s Thank you. very helpful.

Operator

comes question Jefferies. of Our Sheila Kahyaoglu from may proceed. Caller next you

Sheila Kahyaoglu

welcome and and Good Thanks. Jay. morning Chris Bill

return your deal the may be target free guys dividends, cash shareholders? repurchases flow you overall On you in to your thinking share closing about are increased targeting and how

Bill Brown

as this cash to, I generation. in was you alluding Well, feel about Jay good think know terms of year we

We ramp years calendar that’s are still we’ll certainly that. targeting to $X ’XX, out, billion three

of a I we’re first the to we So really start in off half. think in cash good generated the terms

You know to going we this LTM are cash, do what year.

pretty know, good. you So looking all that’s

sheet. on balance with ended proforma a of We basis billion $X.X June

You generate less to $X.X or know say about we more are XX in months. going the billion next

available that’s us more So for about billion puts $X.X or cash of less deployment.

million enacted in increase we reevaluate know here about is be that dividend about in including that X dividends. July that’s on we’ll that $XXX million, our will announced August, You we XX% million the did, $XXX in January, $XXX and

to that the of million We about worth spoke integration XX what we deal fund that over of compensation programs, $X [ph] and just have and We but costs, period leave that the that billion $XXX differed about time. means, surf next about you over months. had

For balance capital things $X.X be about because the working that normal do, on $X.X billion billion is on what held to going we for buyback require that’s that’s needs. sheet, Sheila, and just

Sheila Kahyaoglu

of Thanks from forma about just the Sure. the guidance much half. the synergies how that second margins XX over you maybe a implies can just first then moving total maybe the half profitability? the underlying business pro margins, coming up is decent points for pieces, But are versus and basis acceleration, talk company margin on the

Bill Brown

a so basis XX half you’re XX.X. basis Sheila, second up as pro on up XXX, half it’s right well, first so the up forma Yeah, points, the subsequently

margin trajectory. good deal a when XX in the so so of we about better the together had points about though we year the feel expansion, XXX bit than For basis the little we too, SX, put

synergies. a $XX map cost amortization absence LX the on pension the half You intangibles million we coming bridge $XX on from EPS $XX There’s road another call on which the indicates back back know in and as mentioned the for about is million. million the of net

operational a it’s in all to that excellence us we investments the back an couple see in back half XXX savings of calibrated. EDD. mix, businesses which in year-over-year feel We and half, some gets which some operational about pretty from improvement We the well of see grow LX offset including

Sheila Kahyaoglu

Thanks. Very precise as always.

Operator

of comes question Carter may Melius Copeland Caller, proceed. you next Research. Our from

Carter Copeland

Hey, good morning gentlemen.

Bill Brown

Good morning.

Carter Copeland

Just know you’ve ones. fiscal for pro basis maybe didn’t because you out year know One, a know the we you I But on like hard it a, couple there. forma looks guide for the a it’s sort a realize of quick Harris pro have next, the on forth that and half line ahead top verify a help been put second is you we have basis of Can forma size bit you us coming a where it. little just that may in.

go And about a so of terms there notable points wondered follow was what this where are? guys. or know of but decisions that us want on, in and your useful behavior then as of you getting that sort not necessarily will know the in a closed as anything deal of you made things you emphasis driving incentive you you help that speak Thanks I you you know to layer down as on the where understand, many for not, executive out part team, the like and compensation, shook

Bill Brown

Yeah, thanks. sure Carter,

really better So basis. on calendar in versus SX the and of a bit bit a all point, first feeling ‘XX a Harris the on is our combined terms company backtracking, of little first

‘XX better. billion calendar about are $X.X we For a

in we mentioned but the know the we SX together strategic which were envisioned it’s year related to as over than last bit stronger earlier the that again put late the a you put summer. out time, SX, year So at quite was we when plans

so a feel we when calendar good opportunities, than about know where strategic at in better, we we the a want some guide ’XX, You bit bit started. better are we markets

the pretty beginning you XX%. at the the funded good strong at as know with as well is You know the a ‘XX a – looking backdrop, up of backlog midpoint certainly year, budget,

tracking this of really lot I think for top progress. line a So good

we terms program, know forward, know short longer term a you know but On with and what term I, comp we the going Chris you Board in do of there’s obviously and you discussions in a plan. are plan still our

cash, op-income know will and cash ago impotence revenue a there’s and improvements, On of some much we know all the working since basis we combination term cash, number towards tilt of short the a probably of free years capital like of be you driving did free slight generation, Harris. at it importance the

You’ll Chris last big step a Xx about over cash mention first the in free year. up half first note and the half generation, the of

know get I comp executives of LX you free short you results. on incentivize all and came for the when something think XX% cash, we term the for

So term of that’s basis. tied to a based thinking what will targets be are be are kind term equity, know owners. it that short with on will we Longer we you share discussing performance the

Carter Copeland

Okay, great. Thanks.

Bill Brown

You bet Carter.

Carter Copeland

question may you from Baird. Caller, proceed. Peter of next Our Arment comes

Peter Arment

Chris, of question Yeah the you thanks. of Jay. Good for half morning guess A Bill, I second Jay, year, the X% $XXX on million CapEx mention about revenues.

go longer period integration about of we off about the X% about as term to forecast thinking that think sales? and over Just number thinking your period, is still of good a

Chris Kubasik

basis, this X% million $XXX half, in full $XXX mean half. in I second year Peter, on is $XXX year first it that’s a million million, believe I the Yeah the

the should where and I to I growth, is it to think place fund think that’s forward feels with. right X% go be be for going the like we and prepare yeah,

Peter Arment

thinking up. about follow or quarterly anything guidance about not XQ on versus you’d that the Thanks. you second quick just a modeling street? just thinking are EPS regarding from talking but flow, half you here, out. as put I free call the perspective guidance just cash and Okay, a know Is for out either there the XQ

Bill Brown

non-GAAP earnings expenses, charges QX some integration a should share, but Nothing and material growth all There’ll versus the look Peter. additional pretty on reported stable, be of of per revenue deal because QX, in non-GAAP QX.

Peter Arment

Thank you for color. the

Bill Brown

You bet.

Operator

Barclays. proceed. you from Caller, Strauss Our may David next question of comes

David Strauss

Thanks morning. for the information Jay. Good all Thanks. welcome and

Jay Malave

David. Thank you,

David Strauss

Harris the to are by since showed half segment, you beyond that term the outlook if at combined offer in to if margin deck ’XX. company I of kind on growth see to used look wanted going we segments to the a you also the – second slide the what opportunity, you for how had I we’re medium have would to might offer, your from and of Bill, you want looking segment. see relative thoughts the new forward so rates other might among a each

Jay Malave

David, to the Well together it early. just we enormous a took it��s put obviously bit put mean I work half. pro company still together in I back guidance the and mean forma

maybe little out some that, segment level to here. without beyond it’s the getting premature by looks So comments into bit high a segment but just get

for in You to looking in, us, I in year, growth special. be know calendar pretty XX% the happened industry it’s mean at that a

the us, You space. follow others you follow in

half feels at looking XX% pretty as know in back the You good well.

is dated. So a the little you know mentioned SX I

lot than billion the a stronger doing this better are year. SX, We $X.X about

So we’re starting point. coming a off stronger

You I numbers growing know X% range. the think to LX in in were X% that at SX

We are that. little a higher bit a bit, than

know I ‘XX and to that. beyond little high grow to us see into continuing single maybe You a bit that range digit mid in

from comes budget know deal. a It bipartisan good you

know X% and topline year budget but features after, very, much, that growing that It the F-XX, provides, then tactical, we there, flat outlays. look that see a is positive. that are the You the exceeding very billion the and other are out of $XXX business the that not worth funding certainty good basically lines very plays the appropriations affect that

all should term feel is know This in boats outlays we system the medium and about catch those the keep, of moving lot to of you up. good that the dry-powder So in water a have the pretty outlook. well

result. at On the ending be XX.X this look margins a will year side, great

getting $XX front that’s points. this basis synergies. several to XXX end on we’re million ramp at the another $XXX of million out, our XXX, years year know You Only

we quickly to of and run could get a to that can. and So ramp the few if you math years quickly pretty XX% as as we’ll out, kind

think out So into you the too. pretty feel back good and in looks the year outlook know the ‘XX I look calendar great of end also we we as

David Strauss

Okay, that’s helpful.

I this beyond the cadence ask about As cash a flow wanted free follow-up to year.

know flow to adjusted cash you So billion. you $X full the are billion, guiding year free around $X number

You’ve got target XXXX. guess counter XXXX, this $X billion I for

there? you growth help a You there, what less synergies. little talking that, a know just light and and from CAGR Can between little seems XX% between and it’s which applies why just are a a you working capital rate square like and not opportunity here higher given than upside here about

Bill Brown

look, four we for couple we months really data I last feel a was over on about know of mean than, of you LTM good the on Harris better by working and know ended just points. XX days You cash basis referencing where capital. an

a day than two XX, So we or ago. went from XX thought months couple to we better a

LXs days year-over-year the XX quarter. results better, June ending in were

we are know You so making good progress.

balance year of the the the looking June year. the day end of Over between are and or we at two another only back

starting of our You pro end at know we are but days forma XX June. from the

sitting know You Harris XX. is at

trying through what know certainly ahead at accelerated, couple of out us, I cash that’s the to quarters, a sure on guidance of we’re gets figure next to ’XX, got certainly think I get a the give and we over Chris you calendar You do. opportunity know to lot we’ll all as Jay, make let’s you of trying and look way we’re

Chris Kubasik

in keep working grow to to the going volume. David, with in increase mind, the want capital is

over flat capital out So that hold our and to of period is challenge in working going be it productivity to time. the take

Chris Kubasik

chime just clearly You we on David. in, focused this know are I’ll that

You’ve inventory, progress outstanding. coming good of is the as day is of Bill little news that of a a XX out mentioned, the lot sales bit days. The seen out

So we haven’t focused on the levels. payable even really

targets to and knows are these down we’re the manager level. what allocating So as they working program teams need to to hard the achieve Everybody right do targets.

David Strauss

everyone. Great! Thanks

Operator

Gautam you question may proceed. Khanna next Caller, comes Cowen. of from Our

Gautam Khanna

is of terms size? deal have closed in some in you. follow-up. but sales, I Bill thank have it, now Yes, you I that expect of then maybe could you and divestments a Maybe about may what sort of by the talk missed ballpark

Bill Brown

going talk process that what do is, I I’ll that to the we done. the about process. front you have done end because get we know something and before to know when Chris done It’s of than is going time rather work before, alignment, I’ve it think do, talking that at and sort I’ll Gautam has know, aren’t yet to you of we take made No, some don’t the decisions to you I as are size what we’re know about are done the

few to ones So technology make on strategic, win is in do. and team coming is working the last got that and We for returns Chris up of time months on we have the driven, we we that at weeks we’re in we great are looking what a predetermined boards; a business don’t have Again a a I are focused meeting couple the we’ve on spent our this. can are what want trying of sure target lot is, management this. to with

So decisions we until divestiture might really are on much it, but I’m we around around get that. not some the making going to be size to how

Gautam Khanna

that. appreciate I

pipeline, around. pretty domestic if look flavor tactical can commentary any could XX you follow XX a the on you know to us some just book-to-bill give wondering the was up, give months international Just comp, and you I outlook, strong. quick

Chris Kubasik

and lot. Yeah, but remains shape its the billion a the international at good look, of not I pretty about pipeline $X.X mean changed

finish on but year basically So flattish QX, international, X%. we on good about we a a good had had

little around billion, You pipeline $X.X a up know bit. DoD is it’s so

seeing size and about would modernization, and fiscal stopped now is interesting grow is modernization, It’s now outlook. is what pipeline good back in as budget tripled course of is by What’s between ’XX. terms basically we modernization expected, that mix. half the The pretty in have starting we’re XX/XX base a that’s It of to modernization. over the

such tell the got we guys good a a I So to where intact, you great had year did job. Gautam,

’XX. were You about know we calendar XX% year this up in

know DoD XX% grow XX%, double You to well. to be pretty going you to in is half. digit going about so, know or low the back it’s continue

mid-single you end in the the in the the we low beyond business to and budget. momentum it digit international, When see range, back I’m based seeing know see goes so continued what this on we of year

business well is tactical expected. the very as performing know you So

Gautam Khanna

any next from over me, Thank And Bill months. one recompletion major last XX you. the monitoring

Bill Brown

call major maintenance sensor do to question? where That’s around to it really bidding, we nothing the XX the to I work, there, see was that last million recompete. Exelis program. revenue, Okay, under a we opportunities what sites over the what recompetes, a there’s we $XXX a out mind think significant. that year major the going are all and out places the know recompetes, we of you mean The was if really our In it’s $XXX legacy one to comes that’s is always there’s but program million lot are a of for months. there’s ground I telescopes, based

programs way when those customer. good I very quarter reputation very feel around XX% it But closed XX%, back we the very, about it’s From bought one on XX%, strongly Exelis was of XX% the with about. time We delivery.

that’s more mind on that’s a but that jumping my Gautam. certainly So and off got eye recompete nothing it, only the than I my as one

for thanks So question. the

Gautam Khanna

you. Thanks

Operator

Our you comes next Michael Caller proceed. from question Ciarmoli SunTrust. of may

Michael Ciarmoli

guys. and nice for Hey, good a morning Thanks questions taking result. the

Just pretty second the at got think you versus of on the know in strong half year. looking second are the half aviation you’ve know margin XX% I the you XX.X%. They margins, expansion specifically segment,

You on what’s driving but specific little margin you gave a bit in there that, more comments segment? initial some that expansion on the can be sharp

Chris Kubasik

this a an see couple drivers. Yeah, main We up is ramp Chris. from of

we you in compared recall for If tough to ‘XX compare a course business there, have the of EDD which is ’XX.

in the points we we XX a about having don’t improvement, from So January significant we same that of to basis ’XX. EDD earlier ‘XX an have had which not talked in expect issues

and and All specifically pretty million we the some, are we execute gave. that sector, guidance in an opportunities that ordinance pretty those road to have avionics the addition you $XX we savings significant commercial to some higher that using EX in the know growth range upon to in path has opportunities. good contributes a aviation some have We have margins

Michael Ciarmoli

know look now, the Navy I potential I you at implementing. Got a see budget. on of for we but could risk it, sort budget like core Do or take this process the be process? we’ve you know opportunity but any it lines saw picture as Air the viewing mark how got be on know know Force legacy, look the defense modernization, now bigger taking two business, night now wondering pipeline into just that you this then seems that as the and place of versus year just are funding guys expansion to thoughts deal, what’s at of guys know Army looks the and expanding know you with us good you what a place you you and

Bill Brown

still what he Well very look, was very it’s did I very It productive. Secretary confirmed when only Army actually a think recently, was early. but was positive, through he very

things they know weren’t and move that it’s on think critical. prioritize with he you start together that key Chief to where limited the focus with dollars want McCarthy, got spend I from all and priorities, really notable Ryan army and to that away

does do, combined what LX we The basis. fact between think on I what is a

think very army now we is the work process. know the to across same up working on. fact and programs important DoD the envision I doing through You is on what I’d for well ended thing going

they going you think the So you that the up and be, looking things to we to on spend of know at discipline strong being want on, dollars think pretty I here. end important are to were where based are going would know is we working I

Michael Ciarmoli

guys. Thanks good. Sounds

Bill Brown

You bet.

Operator

Our Shapiro proceed. you George Research. next Caller, from Shapiro comes of question may

George Shapiro

breakdown because budget, Hi, investment the of budget? if had O&M from a O&M good morning. wondering, LX your the could percentage a you revenues and was provide I Bill budget high between the

Bill Brown

and XX%, we procurement. about versus Yeah, O&M the so on no, are it’s DoD XX% DoD side, XX/XX not

George Shapiro

are budget, any share with the than businesses you of might others then growth gained cycle the shorter in better there and quickly rate your keep somewhat some that we can going think you Okay the with concern quickly cycle with than enough flattening you on have growth slow that of businesses longer or that or that and is industry more rates.

Bill Brown

we became business even that has Certainly a of was you we know business overall of like XX%, as the not Harris. so the smaller part other it smaller George segment it around the company. companies, merge piece talked with the improved have Harris XX% we the Exelis, mean really is I short tactical in know legacy radio of the the LX past and you Yeah cycle in become, really that when about

have is in it’s the but bit is, than few it been different relatively gotten today know would more have turn business, it that a more we quick past. into of modernization, a it and turn lot by fact little these quick today O&M a but funded business But would years ago. orders visibility the You the driven is there’s than lot modernization, a

that very strong back ’XX it’s would naturally I’m really a bit healthy in XX%. had the ’XX. or had We concerned, still growth, we of slow mitigate Well, calendar calendar a not in half north So of itself but of extraordinary half, Tactical. very, terribly DoD down from very a fiscal first little

front So it’s contract the here a multiyear believe look, end of we’re George. of different a the vehicles, all across platforms, all on great what different we services ramp the business, is

George Shapiro

much. very Thanks good. very Okay,

Bill Brown

bet. You

Operator

comes from Our Rob next Spingarn question Caller, you Suisse. proceed. of Crédit may

Rob Spingarn

morning. good Hi,

Bill Brown

Rob. Good morning

Rob Spingarn

the half is Jay really for anybody, you guidance just or just decrease to back revenues, If this a look be is slight have the but I on we guidance like deal. go this in on in gave. the Is and else it but going wanted at could second there to growth. anything Congrats comps I the looks there? everything that AS,

Jay Malave

of you’re Systems year XX% are Yeah around kind up slight hairs. business were In some XX.X%, significant talking, there. rates, Rob, real so in Mission know XX%. in pretty In you half growth some of we’re it We is to had comps. but last a to the last of the System splitting you’re XX%, X.X% there, going growth we expecting close nearly reduction it the Communication first be we half, was Integration

but else, XX% the still back support And significant the pretty so pretty rates half. anything than yeah, I’d substantial compares in to more say and the growth are

in comments, visibility high backlog. my the said with I As

to have into the visibility feel backlog half next the going XX% we about We months. back in good this so and six really

Rob Spingarn

that I growth does or Chris AS, are there some to made programs And things then this guess increase in comments there? ramping go the back the just new for about in

Bill Brown

called It Engagement the the seeing, half. bit Precision in front first half. It the in a really nicely back half business. the what are ramps grew you than We more Systems Chris know

work team and on, themselves solidify have it’s pretty You and know high. Chris even the of stronger of that classified back business his [inaudible] a fusing a lot munitions in that plus and is for lot there just

but the carries the that’s We’re there’s a training commercial better, loss half. F-XX training defense the to going bit comps wins the a the business help better on back little bit full looks year, happened C-XX mitigate also know business, for getting the little in have C-XX you that

it half. better seeing all the in where growth across back AS are half pieces better we that’s the front really know the you just So than of and get

Rob Spingarn

night happened? just clarification, op-cash the just the think and sale, LX to year? a just the proceeds Is that you this from toward, pre-funding guidance the has I direct in that on Okay, that were going proceeds pension vision then those flow for

Bill Brown

The that. happen You going with we’re still proceeds to net so is on million. know what’s will about track be $XXX

review in We pension. get deep process expect [ph] the sypheus its used and that in to through will the QX, the be prefund to

contributions any into years know through on would the pension cash next mitigate all three of couple calendar basically that You the sides the ’XX.

So know that an of cash like a our offset. free the benefit of that’s there’s basis annualized some remember that night generated net and million, on side to $XX so $XX $XX a us you vision in in but On will cash, $XX cash, million, is sort guidance. million an bit improvement you if a million

Rob Spingarn

in is timing the guidance for year. The this

Bill Brown

as the It’s beyond. ’XX in Its not half. back are and in the into outlook getting we

Rob Spingarn

Okay, thank that. you

Operator

Caller, Research Buckingham next proceed. of question Safran Group. from you Our may comes Richard

Richard Safran

Jay Bill, morning, Thanks. how you? good Chris, are

Bill Brown

Good good morning. Rich,

Richard Safran

bit had I here. a top First level of question philosophy a kind of

You really commercial know of business been know better has the model a at term, for lack you of Harris. core

be to think provide are long you you model in it apply it might you about wanted how was think implementing any tangible I the combined to that might you to results? company? on we ask what long that? thinking before How could see So there how might new Just do color interested take

Bill Brown

and great tried do. financial a in more philosophical, a a less it’s to Well, what sense its we’ve question of

model were Rochester. commercial sort took years we a and us Exelis. back it to You know and our was now with that disclosures Wayne manufactured for radios we model moved and time, business. some to but cost full relate where normal that’s under It three ago Exelis of up with

nice business, WESCAM very do a great business, that’s model the very positions WESCAM, world, side. commercial in what size around a growing tactical profitable, had well, LX the we And the business much like

on, in through to to though to focused going that has performance our not commercial a we’ll a in wouldn’t LX are over needle be that SATCOM the through basic say something There’s to business years. margin excellence, to that’s something and going on. of couple that we driver It to key obviously to It’s synergy, but strong better take going It’s be very company. come It’s that time mover it’s come operational next going a expansion. I may model. migrate that possibility work it’s the was come the

So we certainly mean are it, on Richard. I

Richard Safran

that. Okay, thanks for

following on a on your you on generally remarks, F- know quickly the suppliers just know changes program, opening we’ve XX just the Now, F-XX see lot up program. you just of among

on to your that wanted could know know, possible opportunities are just content on in and discuss that program still there just you you platform incremental you for I So if how is evolved? there your out answer,

Bill Brown

to to This Yeah, sure. this. We going Anurag the legacy you I’m confirm to I’m know – and is quote number. Harris. now probably just looking Jay of

set $X.X like per there’s So million ship today.

million. do common So maddle we going several the That about about years. we million to release next so the $X.X to the we [ph] system, components, grow do $X.X do we is over know the systems,

, New Fresh You call pieces won the Tech what so different know we of one mission is they the called computer three ICP.

time $X.X together all unit, of as the PCD give and display, the well things Panorama add cockpit F-XX. over You aircraft is the system, know memory content to as billion for another us there electronic EU those

per ship is ramp, then it’s with it’s us for an going to going keep set one of about. to and important grow terms in So the why that’s also which grow to content talking

As grow, for a to the the company. growth, to the ship be driver to to plus continue growth set it’s going of continues number our content continue

Chris Kubasik

know And Richard as the set you per merger the on the we we about the benefits talked have as of you put scale. XXX Legacy we and we another XXX or display, when so together, think crypto, LX, ship the have know well of

the on would in expect the other were a one the and I bid we strategy our knowledge think we to suppliers. you to components given Martin be investments. ahead, and a years It of access Lockheed scale gives team would the top better part of management

Richard Safran

much; appreciate that. very Thanks

Operator

of Poponak comes you question Sachs. Our from Noah proceed. next Goldman may Caller,

Noah Poponak

Hey, good morning everybody.

Bill Brown

Morning.

Noah Poponak

the $X business underlying In year you free segment. what target, three, the is the billion, know three organic flow cash

in So the $X the putting line, rate combined capital anything you that year working core newly on assuming synergies, opportunity growth basis the are know three putting business you the the aside segment below just in EBITDA billion. that aside

Bill Brown

around that think cash little about X%, When I higher Yeah, is period. a over – than a we growth yields growth. EBITDA bit X%, $X.X it income, topline the incremental coming three of year on billion net incremental from

Noah Poponak

the – on so XX over a would of it should kind new of three to X% I but thinking years, to relative the Okay. I about XX% XX.X, that call so that, guess be XXX I CAGR.

Bill Brown

off cash a Yet like $X.X basis. billion $X.X billion was to free it

bit a about maybe So it’s range, that, it’s to going than that little X%. yeah be less in but X%,

Noah Poponak

much $XX synergy synergy maybe working clarify capital I run XX.X rate capitals I, in I was the of of maybe one thought this there? and sure Bill million then you working I Okay. days and XXX. $XX And the I to deck, year, then how just saying you off but million didn’t know the to if a like then that number. saw I heard just the of for in in two those correct, me? have Can make is working It XX to bridge sounded

Bill Brown

added net cash of by Yeah tax be after in terms net through as run million drop generating that in so the calendar an The into the the of year. the well there’s synergies synergies and back synergies XXX year will on is $XX full sure, basis. in half, rate costs

we that’s So million, it. which through, run $XXX rate calendar ‘XX be that’s can how confidence – be we so gross so about in that savings at dropping the talked us gives at we’ll

around a in Over basis of the forma on year, I the the June. course back think end we’re XX of days pro

As out, to so two anything around days. back Jay XX expecting sequentially the we’re one through improvement, of capital, XX, days of end pointed the working

Noah Poponak

$XXX it had so million after million in of – free the the bridge in net plus should that maybe that for of cash you maybe kind million energy the flow capital of happening call $XXX of efficiency, of is $XXX the tax $XXX I be XXXX. in Okay, million zone

Bill Brown

sure… sure. I each looking at mean I’m not not other here, we’re

Noah Poponak

be. that if million then of capital, days synergy $XX of working million one and guess, its $XX would Well, to two of I

Bill Brown

on two a capital million, – that year full the on of $XX is one million The probably $XX ways order working in of basis range.

of half So over of back the will the that course end be the year.

Noah Poponak

clearly the for Okay. synergy bigger margins, you business a margins but if the in underlying should the margin synergies. be achieve consideration you just before And then know the plans, on expand expansion picture know you giving we will

margins know the had fair business continue to expanding margins You incremental in LX Harris and are operations before Legacy model. kind independent the the of had synergies, of addition plans margins in from commercial improve to the synergies that? partially it to assume the the Is to deal. of then the

assume It’s Yeah, had margin expansion. independent businesses about fair to both that. talked

synergy point said forma is the that that be XX, We into here would we calendar on was about as the you’re the it which that know the a margins, to better pieces order get certainly around that XX. doing points you going than a back pro Obviously we’d we XXX organic starting talked on to around talked incremental basis of XXX XXX another both we points here. coming synergies that, XX of to through deal get basis was are in off know on you while You margin EBIT about basis, and know XX. first bit when growth basis had

So of Noah. synergies yeah, incremental is to it benefits the

Noah Poponak

much. Great. Thanks very

Bill Brown

bet. You

Operator

may Seth Our next you comes of Seifman proceed. Caller, JPMorgan. question from

Seth Seifman

remarks, the profitability Thanks on, it communications can as of risks going Maybe that you the you we and in very it I year forward? missed morning X%. path – at kind was were kind that, but good a if the like LX if business she kind lot nearly much what address last quarter, of the seemed presents going and there prepared is and in just everyone. I know know moving Apologize of in

Chris Kubasik

as Maritime was we the That Chris. by mainly the is this in Seth, driven put Yeah sector. prepared comments,

as have We on. there on, focus pretty on they some control cover are going column there’s programs and a strong them have sensors developments Maritime, but systems, focused we some a international steady in new cornerstone

and long track, undersea those will get we service new destroyer think development those year I slowed weapons. laser have and were in One, the programs to quarter the in lag investments XX Columbia Mandarin and Those that we and have by costs on to on programs the some going. for some and get XX once both requires additional and the

to So development it was your focused on Maritime answer question.

Seth Seifman

and thanks. growth around And pretty in and then it solid fiscal ton Harris, there’s budget. like book-to-bill Space Great, seems is but Bill in growth ‘XX Space of some also obviously the Segment, there, X.X, know you there’s Legacy probably for Intelligence a the the which good was

there, So and talk a maybe your know about the bit could guys are share little you you visibility confidence you if side? you fair have have taking the you that the on Space

Bill Brown

we feel space good about Seth very Yeah the business. look,

so trend one, there about up there’s fiscal in the business good. a the a over that little the we’ve is up teens I know or you course bit, consistently pretty the right, classified book-to-bill good is came of mean being a year the talked You’re ‘XX backlog looking in pretty with over and

in comes That When Space. different just businesses, about couple areas. talk a we classified not it’s

exquisite in the So maintaining admission components, it’s Space, SmallSat. lead has SmallSat you with there’s to great a end the opportunities while strong taking moving position the same time at done full on on as and exquisite both team job, know a solutions well as just

philosophy. it’s this that year. we expanding on has and that’s terrestrial end systems, you area in whether Again, well coming and and ability There’s to mission to full the to you solutions, up, the admission same business business subsystem very from business philosophy in the back and and other the be see they trajectory the moving compete providing near continues But water of are in our gone more full classified budgets that happening really domains relates system, know to components well. deep can shore solutions, are to go systems, end now also our

growth the business. classified see in continue to We strong

Chris Kubasik

time and I technology opportunities. spent of impressed amount the a the and just Bill I’ll was last that fair day business week I the with reviewing classified thoroughly and

classified going well. as So we’re other business the about excited forward and Space

Seth Seifman

Thanks very much everyone.

Operator

Raviv Jon from comes of question Citi. next Our Caller, you proceed. may

Jon Raviv

Hey, good morning, you. thank and

additional appreciated had others we of time bagging besides pass, sort that M&A know CFO? the nice you industry more taking on share. consider forward more on of Now to be would a do you increase perspective some and definition some be guys What by LHX by you to wins, as you impact market their going any probability talk of skilled investments

Bill Brown

[Cross Talk] Exactly.

So the them into let led start fact. you me as

Chris Kubasik

this quite we've ago, and started I of what a Chris I with think you a – time a mission prime so look, scale Well and we large solutions exactly long goal very done. conversation creating that's know

what well of but what that the positioned. of implication assess have I from we’re think a at, in very do, to created continue we're we company look space and people I just us; other ahead We the opportunities

scale scale, be places the we in were we different about scaled radios need of you scale becoming talk are in and the great. business, company we scaled. tactical feel I We lots so of in to scaling space where you When areas and know think

leader. technology a is company The

to invest You know strategy is aggressively and to innovation. significantly our in continue

continue been Iraq and we that in X% see to continue about up. You revenue to know we've our of go running

drive of and we've got know great set business business. technologists leaders great who are people You our to

to continue continuing of into what's You is win field technologies to into our the on to deployment well the the going for require us fighter to then as know market place, and accelerate programs. war a execute

in can what it's happens in You control do on we're and technology what keep in we we do, well, that know can to the a changes good no things the going execute, market a think focused what we that's matter structure, spot we're a way and so we John. the and the in I here

Jon Raviv

up thanks. Great, for it know keep I here. time I’ll since we’re one to

Bill Brown

Okay, thank you.

Operator

of Caller, Our Global final Seaport question Securities. comes may from Joshua you proceed. Sullivan

Joshua Sullivan

time the Thanks morning. taking last question good for for the Hey, here.

experience with little the talk has benchmark, success it's a that as maybe just to are maybe dynamic? similar and the the more so using about with been then You then where given maybe integration you how a can far combination Exelis that LX and

Bill Brown

and you lot it’s there's to that a operating built bigger Well, was M&A through a of scale has move a a the about years company journey. talked clearly holding lot company a server company Chris XX one desire we from over LX of much certainly to know complexity and within an and

very, a getting of getting across done consistently very, challenge, seasoned are So a you experienced, we’ve the integration got they've team; bit information, out but reality that people quickly; very before. is a it is great this businesses gauge know of the we've

you and is of very enthusiasm lot people the the We're There integration. good. Exelis know getting very company energy from across data are a quickly; the

gone better Exelis. would we did point You it's and know from have better vantage certainly than than we my imagined with

that You made was going That faster so time. is Exelis, segments supply too to ramp that decisions, Obviously an very time on here this with the headquarters important. which on area we up lot know we took a on a on those we’re little and we're chain. the one acting execute faster day

You know us significant, of that spending is are ahead quite very the something and encouraged. time on Chris revenue opportunities of we’re a lot

Keep to in of this probably faster we’re time on different mind sort market space, the excels. we're we going do different we're a than part in in a cycle. that with lot So get

and we're still know the weren’t cost effort know out sure budgets Chris so making what putting visibility you of and then focused coming fund strong, the are and much understand of sequestration. Exelis, on team revenue with are time opportunities Back and it’s and side. different, making we really sure more lot very a that you we them. time The into This the we

and a trajectory and the to synergies over a billion that hopefully optimistic want I'm deliver here know cost time clearly gross Josh. you than path $X.X great of we’re more on that about So we that bit

Joshua Sullivan

I’ll to you. appreciate as I keep that. well, thank one it

Bill Brown

wraps our up that call. So

closure as us the precision Chris very, the year. are getting of There's I thought to exactly and from created mid-October you we’ve be this on last company that we much. minute we you'd expect very this that would thank of that of merger the in a team. and So about very in excited historic in lot

working excited, all their updating want this on mentioned the to look importantly you employees we’re his end very hard very on of a owners, progress merger the to again for and we results, keep and customer having in October comments; next who but this we have company the forward deliver Chris the created their earnings value for lot we of thank We're of efforts them to XX,XXX at release. are the for and we're very, confident, focus

much. thank very So you

Operator

concludes today’s conference. Today's

at participation may You for your a lines have your time. disconnect this Thank you day! and wonderful

L3Harris (LHX) 31 Jul 192019 Q4 Earnings call transcript