DoD Tactical radio modernization momentum continued in the third quarter, with $83 million in orders from the U.S. Army and Marine Corps for next-generation HF manpacks, currently the only HF manpack meeting new NSA crypto-modernization standards. International Tactical received several key orders to support security force modernization, counter-terrorism and border control, including $71 million from a country in Eastern Europe for resilient command and control radios.
In addition, the company strengthened its position in integrated networked systems with the award of a $177 million production contract from the UAE Armed Forces for the Emirates Land Tactical Systems (ELTS) Full Operational Capability program. This contract follows the company's successful completion of the Initial Operational Capability program and an ongoing technical support and training contract, bringing the inception-to-date value to $437 million against a $1 billion-plus opportunity.
Key awards in the Broadband business included a $92 million award for ROVER® 6 transceivers for the U.S. Army Gray Eagle Aircraft, extending the company's position on unmanned platforms. In addition, the company received a $43 million order for advanced datalinks for the U.S. Army's Apache Manned/Unmanned Teaming Expanded Range program, increasing the total awarded value to $190 million.
Integrated Vision Systems received an additional $154 million in funding for phase one of the Enhanced Night Vision Goggle-Binocular program, a key milestone in a multi-year, $1.2 billion recapitalization opportunity.
Public Safety expanded its customer base with a $76 million award from Duke Energy to provide a multi-state, critical communications solution for one of the largest electric utilities in the U.S., supporting more than 12,000 users.
Year-to-date segment revenue increased 11% with a funded book-to-bill of 1.09. Tactical Communications revenue grew 17% and funded backlog increased by 17% to $1.1 billion. Segment operating margin expanded 100 bps to 21.9%.
Aviation Systems
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($ millions) |
Third Quarter |
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Year-to-Date |
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CY 2019 |
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CY 2018 |
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Change |
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CY 2019 |
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CY 2018 |
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Change |
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Revenue |
$ |
948 |
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$ |
953 |
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— |
% |
|
$ |
2,827 |
|
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$ |
2,818 |
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— |
% |
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Operating income |
$ |
127 |
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|
$ |
96 |
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32 |
% |
|
$ |
324 |
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$ |
276 |
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17 |
% |
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Operating margin |
13.4 |
% |
|
10.1 |
% |
|
330bps |
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11.5 |
% |
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9.8 |
% |
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170bps |
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