Quarterly Revenue Snapshot Shows Average 9 Percent Decline
Boston, MA - May 22, 2012 - A snapshot of financials released in April from companies including General
Dynamics, Lockheed Martin and United Technologies paints a bleak picture for defense
industry quarterly revenue. The Strategy Analytics Advanced Defense Systems (ADS)
service report, "Defense Electronics
Industry Review: April 2012," provides a review of significant defense
industry news, including product announcements, milestones, contract activity
and defense industry financial performance.
“On a positive note, the companies
considered in this snapshot all achieved positive net income for the quarter,” noted
Asif Anwar, Director of the ADS service at Strategy Analytics. “However, budget
cuts continue to overshadow the defense industry outlook and this was reflected
in the financials being released for the first quarter of 2012. The challenge will be maintaining
profitability especially if quarterly revenues continue on the same trend.”
“Despite the
sagging statistics, contract activity across platforms, systems and component
technologies appeared to be robust,” observed Eric Higham, ADS Service Director
North America. “Textron won the competitive MEUAS (Mid-Endurance Unmanned
Aircraft Systems) II award and BAE Systems is upgrading Royal Saudi Air Force
F-15S electronic warfare capabilities.”
Other April highlights included:
·
ELTA Systems successfully demonstrated its new
wideband LTE Tactical Communication Network - the TAC4G
·
The continuing development of GaN technology
capabilities for use in military systems, including contract awards to Raytheon,
Rockwell Collins and TriQuint.
·
Herley Industries’ international division, based
in Israel, received an order for the production and supply of specialty
microwave products for a new missile platform.