Harris Corporation - Company Strategy & Performance Analysis
Harris Corp is one of the key players offering communication and information and technology solutions to the defense, maritime, energy, healthcare, public safety and transportation markets. The company provides tactical and land mobile radio systems, clinically integrated solutions, IT services, managed services, government communication systems, turnkey managed satellite communications services, and data, voice and internet services. It offers network solutions, products, services and systems to industries such as defense, civil government, energy, healthcare, maritime, utilities, national intelligence, public safety and professional communications, and transportation.
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Harris Corp reported a strong performance in the electronic systems segment:
The electronic systems segment is one of the major contributors to the company’s revenue stream. In FY2016, this segment accounted for approximately 20.3% of the company’s total revenue. The segment reported revenue of US$1,530.0 million, in comparison to US$584.0 million in FY2015, showing an increase of 161.9%. The increase in the revenue was due to the acquisition of Exelis in FY2015.
The communication systems segment reported an increase in the revenue:
Communication systems segment revenue increased in 2016 following the acquisition of Exelis. The revenues of this segment stood at US$1,864.0 million in 2016, in comparison to US$1,836.0 million in 2015, indicating a Y-o-Y growth of 1.5%. The increase in revenue in 2016 was due to the inclusion of Exelis’s segment operating results, which primarily included ground and airborne tactical radio, and night vision operations.
The company aims to optimize its product portfolio:
The company aims by optimize its business portfolio to drive its shareholders’ value. It is focusing on investments to strengthen its portfolio. For instance, the company completed the divestitures of HCS in the fourth quarter of FY2015, and of aero structures in the fourth quarter of FY2016. The company is utilizing proceeds from the aero structures divestiture to pay down its debt.
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