MCLEAN, Va. - Exelis reported that second quarter 2014 revenue dropped 11 percent to $1.12 billion, compared to $1.25 in the second quarter of 2013. Net income for the quarter was also down at $61 million compared to $78 million a year ago.
"New business, which included contracts in several of our strategic growth platforms, remained strong in the second quarter and we continue to work toward the spin-off of Mission Systems, which we expect to complete later this summer or early fall," said Exelis CEO and President David F. Melcher. "While encouraged by our business performance, we continue to see significant contraction in our Afghanistan programs, and as a result, we are adjusting our full-year expectations to account for this trend."
Exelis is currently working through regulatory and legal requirements for the scheduled spin-off of its current Mission Systems business into an independent, publicly traded company that will be known as Vectrus.
INDUSTRY SEGMENTS
C4ISR Electronics and Systems
C4ISR Electronics and Systems second-quarter 2014 revenue was $523 million, up one percent from $518 million during the same period in 2013 due to sales of airborne electronic warfare equipment and counter-IED jammer products, partially offset by volume declines in domestic tactical radios. Segment adjusted operating income for the quarter was $64 million, an increase of 60 percent from $40 million in the second quarter of 2013, due to improved revenue mix and lower restructuring and pension expenses.
Information and Technical Services
Information and Technical Services second-quarter 2014 revenue was $594 million, a decrease of 19 percent from $733 million during the same period in 2013, driven by lower customer activity on U.S. government contracts in Afghanistan, partially offset by an increase in professional and engineering services programs. Second-quarter adjusted operating income for the segment was $47 million, down 46 percent from the $87 million posted in same period in 2013, primarily due to favorable contract modifications in 2013.
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