US-based technology company and defence contractor L3Harris Technologies has reported a revenue of $4.1bn in the first quarter of the year that ended on 1 April 2022.
The figure represents a 10% decline compared to the $4.57bn recorded in the corresponding period a year ago. On an organic basis, revenue fell by 5%.
The company attributed the fall to lingering supply chain disruptions, timing of contract awards, and airborne programme transitions.
L3Harris’ net income in the quarter increased to $475m, from $466m in the same period a year prior. Earnings per share (EPS) were $2.44 in Q1 2022.
Earlier this year, L3Harris announced the reorganisation of its operations and moved from four business segments to three.
The company’s Integrated Mission Systems segment posted a revenue of $1.72bn in the first quarter of 2022, declining marginally from the $1.75bn recorded in the same period last year.
Space and Airborne Systems’ quarterly revenue also fell marginally on a year-on-year (YoY) basis from $1.46bn to $1.45bn.
The other business segment, Communication Systems, reported a 13% drop in quarterly revenue, with figures dropping from $1.1bn in Q1 2021, to $963m in Q1 2022.
In a letter to investors, L3Harris Technologies vice-chair and CEO Christopher E Kubasik said: “Our first quarter results are consistent with our prior guidance of a back-half 2022 ramp in revenue and margins. Revenue declined 10% and 5% organically from continued supply chain disruptions, award timing, and airborne programme transitions.
“Segment operating margin declined 40 basis points primarily due to supply chain disruptions. EPS of $2.44 was up given the absence of non-recurring items and non-GAAP EPS of $3.12 was down due to the decline in revenue and margins, partially offset by tax rate favourability and a share count decline of 6% year-over-year from our ongoing share repurchase activity.”