Tactical Communications orders grew 27% driven by DoD modernization, content growth in the adjacent airborne market and international programs to counter evolving threats. Key awards included $75 million from the U.S. Marine Corps for MUOS software upgrades on 117G manpack radios and a $66 million order for Small Tactical Terminals supporting domestic and international airborne platforms.
Public Safety continued to strengthen its position with state and federal agencies and utilities with a $33 million order from Nevada as part of a $108 million program to upgrade the statewide shared radio system; a $23 million order from the Air National Guard as it continues to adopt Harris converged radios; and $25 million from American Electric Power, the third award in its $106 million multi-year modernization program.
First half segment revenue increased 12% from double-digit growth in all three businesses. Operating margin expanded 90 bps to 29.9%. Segment book-to-bill was strong at 1.28. Tactical Communications book-to-bill was 1.32 with funded backlog greater than $1.1 billion.
Electronic Systems |
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($ millions) | Second Quarter | First Half | ||||||||||||||||||||||||||
FY 2019 | FY 2018 | Change | FY 2019 | FY 2018 | Change | |||||||||||||||||||||||
Revenue | $ | 617 | $ | 582 | 6% | $ | 1,206 | $ | 1,123 | 7% | ||||||||||||||||||
Operating income | $ | 117 | $ | 97 | 21% | $ | 232 | $ | 206 | 13% | ||||||||||||||||||
Operating margin | 19.0 | % | 16.7 | % | 230bps | 19.2 | % | 18.3 | % | 90bps | ||||||||||||||||||