L3Harris is developing NOAA’s Advanced Baseline Imager for the GOES-R satellite series. Photo: L3Harris

L3Harris Technologies Communication Systems division continues to benefit from U.S. Department of Defense orders to modernize its tactical communications capabilities. The increase in military business drove a 2.9% year-over-year increase in organic revenues during L3Harris’ 2021 first fiscal quarter, but was offset by lower demand for public safety services and lower volume on legacy unmanned broadband communications platforms. Overall, the Communication Systems division reported $1.1 billion in organic revenue in Q1.

The division received several high-value orders in Q1, including: a $72 million follow-on production order under the U.S. Special Operations Command’s $255 million Next Generation Tactical Communications (NGTC) multi-channel manpack contract. The Communication Systems division also raked in $28 million in Q1 orders from the U.S. Navy to provide satcom terminals on surface warships and $24 million in orders to deliver its Hawkeye III Very Small Aperture (VSAT) terminals to the U.S. Army.

The division’s operating income increased 12% to $281 million, and its operating margin expanded to 25.3% compared to same period last year. L3Harris Communication Systems’ funded book-to-bill ratio stands at 0.92 at the end of the quarter.

Separately, L3Harris Space and Airborne Systems’ Q1 revenue increased 3.7% versus prior year and 4.1% on an organic basis, primarily due to a ramp on missile defense and other responsive space programs. Space organic revenue was $1.2 billion. During the quarter, the Space division won a $40 million award from the National Oceanic and Atmospheric Administration (NOAA) to develop a space weather command and control system that will serve as an extension of the Geostationary Operational Environmental Satellite (GOES-R) ground system.

Overall, L3Harris Technologies reported full company Q1 revenues of $4.6 billion, down 1.3% versus the prior year, and up 1.8% on an organic basis.

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