Revenue increased for the seventh consecutive quarter, up 6%, primarily from growth in Avionics on increased F-35 production and in Electronic Warfare from the F/A-18, F-16 and rotary platforms. Operating income grew 21% to $117 million, and margin expanded 230 bps to 19.0% driven by operational excellence and the absence of prior-year contract adjustments in Mission Networks. Orders were up 12% in the quarter resulting in a book-to-bill of 1.13.

Harris continued to strengthen its position in electronic warfare and avionics on long-term platforms. The company received contracts totaling $115 million to upgrade electronic warfare systems on international F-16s for Poland and Iraq. These awards are under the previously announced $400 million sole-source IDIQ and follow similar awards received for Turkey and Morocco. The company also received $71 million in orders for F-35 avionics components under LRIP 12-14.

In addition to awards on long-term platforms, Harris leveraged its expertise in avionics open systems and was awarded a contract to develop the mission processor for a large military unmanned aerial vehicle and a new trainer aircraft. Each of these awards comes with significant follow-on opportunity.

First half segment revenue was up 7% driven by double-digit growth on F-35, F/A-18 and F-16 platforms. Operating margin expanded 90 bps driven by strong execution. Segment book-to-bill was strong at 1.18.

Space and Intelligence Systems
	($ millions)				Second Quarter													First Half
					FY 2019					FY 2018					Change			FY 2019					FY 2018					Change
	Revenue				$	513				$	462				11%			$	1,001				$	928				8%
	Operating income				$	92				$	80				15%			$	178				$	167				7%
	Operating margin				17.9		%			17.3		%			60bps			17.8		%			18.0		%			(20)bps

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