MissionCritical Communications, Radio Resource International, and Public Safety Report - wireless voice and data communications for mobile, remote and public safety operations

Share |

Raytheon Releases Second Quarter Financial Report (7/29/10)
Raytheon reported that second quarter income from continuing operations included a $395 million before-tax unfavorable adjustment due to a previously announced program termination notice received by Raytheon Systems July 22 from the U.K. border agency.

Executives said the company performed well and delivered substantial capabilities to the customer under this program and intends to pursue vigorously the collection of the unbilled receivables and damages and defend itself against the claims for losses and previous payments. Under U.S. Generally Accepted Accounting Principles (GAAP), Raytheon is required to recognize, in the second quarter 2010, the potential financial impact of the termination notice.

"Raytheon's underlying results during the quarter and execution of our strategy show continued growth for the year," said William H. Swanson, Raytheon's chairman and CEO. "We continue to be well aligned with our customers' needs, and we are well positioned for the future."

Net sales of $6 billion in the second quarter 2010 reflect the $316 million reduction for the U.K. border agency program termination. Net sales in the second quarter 2009 were $6.1 billion.

Network Centric Systems (NCS) had second quarter net sales of $1.205 billion compared with $1.197 billion in the second quarter 2009. NCS recorded $166 million of operating income compared to $170 million in the second quarter 2009. During the quarter, NCS booked $100 million on a command-and-control program for an international customer.

The company generated operating cash flow from continuing operations of $400 million in the second quarter 2010 compared with $512 million in the second quarter 2009. Operating cash flow from continuing operations in the second quarter 2010 included $73 million in higher cash tax payments.

Raytheon ended the second quarter with $2.4 billion in cash and cash equivalents and $2.3 billion in total debt. During the quarter, the company repurchased 8.6 million shares of common stock for $475 million, as part of its previously announced share repurchase program. Year-to-date 2010, the company repurchased 14.2 million shares of common stock for $775 million.

Your comments are welcome, click here.