L3Harris CEO says company has submitted 14 combined proposals since merger

By Marjorie Censer  / October 30, 2019

Since merging four months ago, L3Harris Technologies has submitted more than a dozen proposals, mostly in electronic warfare and space sensing domains, that bring together Harris and L3 Technologies capabilities, according to its chief executive.

In a call with analysts today, Bill Brown said the newly combined company has turned in "14 revenue synergy-type proposals" worth up to about $3 billion over the programs' lifetimes. For example, he added, L3Harris bid on an Air Force F-16 electronic warfare modernization program, using Harris' EW technology and L3's digital signal receiver.

Brown said L3Harris has already been downselected on two of those submissions.

"I think the way these things will work, there's a bit of an incubation period -- the studies or the small awards you receive upfront that eventually lead into bigger opportunities over time," he added. "So I think in '20, probably minimal impact, getting to '21, maybe a little bit more and I think it should ramp a bit beyond that."

Brown also told analysts that while there have been 14 submissions, "there's about 80 total ideas that we're tracking here."

"They broadly . . . come into mostly right now electronic warfare and space sensing domains, mostly relative to leveraging complementary technologies," he said.

Meanwhile, Brown said today the company is not ready to discuss potential divestitures.

"We're moving quickly on a number of different businesses," he said. "We'll announce the transactions as we go forward . . . but I think it would be premature to give you any sort of a target point."

He also said L3Harris anticipates growth in its international sales. About 22% of its revenue today is from international work.

"We should expect that to come up over time," Brown said. "We're underpenetrated internationally. Combined, we've got a great position in five or six different markets, and through that combined strength in those markets, we do believe we can provide better offerings."

He told analysts the company is still developing its specific strategy, but that a boost in international work would "offset what might be a DOD flattening, if you will, in the next couple of years."