L-3 Communications Hldgs

L-3 Communications Hldgs is a publicly traded company having a good stock performance result. L-3 Communications Hldgs is a fortune 500 stock listed company trading under LLL.

In 1997, Frank C. Lanza and Robert V. LaPenta determined to form a business that could serve as a leading mezzanine company in the defense electronics and communications industry. They had each spent decades in the defense industry, serving as part of the executive team responsible for the exceptional growth of Loral Corporation. At the same time, there were massive changes in the industry, resulting from dramatic declines in the U.S. defense budgets since the mid-1980s.

Intelligence, observation and investigation systems, protect communications systems, training and government services, aircraft modernization, guidance sensors, scanners, fuzes, and navigation, data links, propulsion systems, simulators, avionics, electro optics, satellite communications, encryption, electrical power equipment, signal intelligence, antennas and microwave components.

On January 31, 2006 L-3 Communications announced strong results for the 2005 fourth quarter, including sales of 2,900.2 million dollars, operating income of 306.1 million dollars, diluted earnings per share of 1.24 dollars, net cash from operating activities of 267.3 million dollars and free cash flow of 287.0 million dollars.

Net cash from operating activities for the 2005 fourth quarter increased by 25.7percent to 267.3 million dollars from 212.7 million dollars for the 2004 fourth quarter. The 2005 fourth quarter included payments of 67.4 million dollars to settle Titan shareholder class action and derivative action lawsuits, which were assumed by L-3 as part of the Titan acquisition. Free cash flow for the 2005 fourth quarter increased by 98.9 million dollars, or 52.6percent, to 287.0 million dollars, compared to free cash flow of 188.1 million dollars for the 2004 fourth quarter. Free cash flow for the 2005 fourth quarter excludes the aforesaid legal settlement payments.

Consolidated operating income for the 2005 fourth quarter increased by 39.5percent to 306.1 million dollars from 219.5 million dollars for the 2004 fourth quarter. Consolidated operating income as a percentage of sales was 10.6percent for the 2005 fourth quarter, compared to 11.5percent for the 2004 fourth quarter. This decrease was mainly due to the Titan acquired businesses, which reduced consolidated operating margin by 60 basis points since Titan's business is largely performed under lower margin and lower risk cost-reimbursable type and time and material type contracts.