Slide 1: Fiscal 2015 Second Quarter Earnings Call Presentation
Fiscal 2015 Second Quarter Earnings Call Presentation harris.com | Fiscal 2015 Second Quarter Earnings Call Presentation |1
Slide 2: Forward-looking statements
Forward-looking statements Statements in this presentation that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor pro
Slide 3: 2Q fiscal 2015 summary
2Q fiscal 2015 summary • EPS of $1.32… solid operating results plus benefit from lower taxes • Revenue down 1% • Good execution and lower costs while still investing in higher R&D… R&D up 3% to 5.3% of revenue • Higher revenue in Government Communications Systems, international tactical radios, and
Slide 4: 2Q fiscal 2015 results
2Q fiscal 2015 results ($million, except per share amounts) 2Q 2014 2Q 2015 Orders $ 1,473 $ 1,112 % increase -24% Revenue 1,223 1,206 % increase -1% Income from continuing operations 137 140 % increase 2% Operating margin 18.2% 17.5% Earnings per share from continuing operations 1.27 1.32 % increas
Slide 5: RF Communications
RF Communications ($million) 2Q 2014 2Q 2015 Orders $ 512 $ 356 Tactical Communications 387 263 Public Safety and Professional Communications 125 93 Revenue 455 432 Tactical Communications 320 316 Public Safety and Professional Communications 135 116 Operating income 142 125 Operating margin 31.3% 2
Slide 6: Government Communications
Government Communications ($million) 2Q 2014 2Q 2015 Revenue $ 433 $ 454 % increase 5% Operating income 66 78 Operating margin 15.4% 17.1% • 5 consecutive quarters of y/y revenue growth • Customer diversification and leveraging strong core franchises in space and intelligence, avionics, air traffic
Slide 7: Integrated Network Solutions
Integrated Network Solutions ($million) 2Q 2014 2Q 2015 Revenue $ 366 $ 340 % increase -7% Operating income 33 28 Operating margin 8.9% 8.4% • High single-digit growth in CapRock more than offset by wind-down of two major IT Services programs • Commercial CapRock up 15% – prior year Carnival win and
Slide 8: 2Q fiscal 2015 financial highlights
2Q fiscal 2015 financial highlights ($million) 2Q 2014 2Q 2015 Cash and cash equivalents $ 334 $ 470 Depreciation and amortization 50 54 Capital expenditures 52 38 Cash flow from operations 107 142 Free cash flow 55 104 Effective tax rate 32.6% 26.3% Reference non-GAAP reconciliation on the Harris i
Slide 9: Fiscal 2015 guidance
Fiscal 2015 guidance Guidance Revenue EPS and op margin FY 14 Previous FY15 Revised FY15 FY 14 Previous FY15 Revised FY15 Harris Corporation $ 5.01B -1 to -3% -1 to -3% $5.00 $ 4.75 – 5.00 $ 4.95 – 5.05 Other information RF Communications 1.83B flat to -3% flat to -2% 30.7% 30% – 31% 30% – 31% Gover