ITT Exelis is a leader in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) related products and systems
and information and technical services, which it supplies to military, government and commercial customers in the United States and globally.
Exelis provides mission-critical systems in the areas of integrated electronic warfare, sensing and surveillance, air traffic management,
information and cyber-security, and networked communications. Exelis also has growing positions in composite aerostructures, logistics and
technical services. Exelis' primary customers are the U.S. Department of Defense (DoD), including the Army, Air Force, Navy, Marine Corps, and the DoD's prime contractors,
as well as U.S. Government intelligence agencies, National Aeronautics and Space Administration (NASA), Federal Aviation Administration (FAA),
allied foreign governments and domestic and foreign commercial customers. As a prime contractor, subcontractor, or preferred supplier,
Exelis participates in many high-priority defense and non-defense programs in the United States. Exelis conducts most of its business with the U.S. Government,
principally the DoD.
INFO on the ITT Spin-Off: On January 12, 2011, ITT Corporation (ITT) announced a plan to separate its Defense and Information Solutions (now ITT Exelis) segment from the remainder of its businesses. On May 4, 2011, ITT Exelis was incorporated in Indiana and the spin-off from ITT Corporation was completed on October 31, 2011. According to Exelis, the spin-off has allowed the company to improve strategic planning, increase management focus and streamline decision-making by providing the flexibility to implement unique strategic plans and to respond more effectively to customer needs and the changing economic environment.
Exelis Inc. was incorporated in Indiana on May 4, 2011 and is headquartered in McLean, Virginia. The name of the company was changed from ITT DCO, Inc. to Exelis Inc. on July 14, 2011.
ITT Exelis operates in two principal business segments:
• C4ISR Electronics and Systems
• Information and Technical Services.
The following table highlights ITT Exelis' sales from 2010 to 2012 by segment:
A description of the business of each of the company's segments is set forth below.
The C4ISR Electronics and Systems segment had revenues of $2.5B, $2.8B and $3.6B and operating income of $350M, $385M and $563M
for the years ended December 31, 2012, 2011 and 2010, respectively, and accounted for 45%, 48%, and 61%, respectively, of total revenues.
Revenue from the C4ISR Electronics and Systems segment was $2,487M in 2012, a decline of $330M or 11.7% as compared to 2011. The decrease in revenue was primarily due to volume declines in surge-related products, including Night Vision products of approximately $175M, SINCGARS products of approximately $173M, and Counter RCIED Electronic Warfare (CREW) 2.1 and special purpose jammer products of approximately $36M. The decrease in revenue was partially offset by higher revenue from the sales of Exelis' Band C Upgrade kits for legacy CREW products of approximately $82M and the company's other counter–IED systems of approximately $24M.
Operating income at the C4ISR Electronics and Systems segment decreased $35M or 9.1% in 2012, compared to 2011. Operating income as a percentage of revenue was 14.1% in 2012 as compared to 13.7% in 2011. The increase in operating margin was primarily due to lower R&D and SG&A expenses as a percentage of product revenue, partially offset by higher cost of product revenue as a percentage of product revenue.
The C4ISR Electronics and Systems segment consists of the following major product lines:
IEWS is a leader in Electronic Warfare Countermeasures (ECM) and an emerging leader in space microelectronics, mine-defense solutions and antennas. With a history spanning more than 50 years, IEWS is a leading producer of ECM solutions for tactical and strategic aircraft. IEWS develops, produces and sells electronic warfare solutions to all major DoD services, classified customers and to allied nations. IEWS is a key player on platforms such as the F/A-18, Special Operations Forces (SOF) MH-60, and MH-47, and also holds prominent electronic warfare positions on the B-1B Lancer, B-52 Stratofortress, CV-22 Osprey, C-130, and F-16 (International) platforms. Exelis is a key provider of mechanical and combined influence mine sweeping devices to the U.S. Navy. IEWS is also a leader in Airborne Electronic Attack (AEA), fielding systems on the B-1, B-52, F-16, F/A-18, SOF C-130s and the EA-6B Prowler. Exelis has pursued cutting-edge technology with all of the U.S. services and agencies including DARPA. The company currently has over 25 development contracts underway that could advance electronic warfare, including a family of very light electronic warfare payloads for the ever growing array of unmanned vehicles.
Communication Systems and Force Protection Systems (CFPS) is a leader in the design and manufacture of radio frequency (RF)-based systems. The business has fielded more than 25,000 state-of-the-art CREW Vehicle Receiver/Jammer (CVRJ) systems, currently in use by the U.S. Army, Marine Corps, Navy and Air Force. Exelis also specializes in tactical, satellite, wireless and special mission communications systems; information assurance and cryptographic systems; Global Positioning Systems (GPS); mobile ad hoc networking (MANET) solutions; and integrated C3 solutions for U.S. and allied forces, as well as many government agencies. Products include SINCGARS, the most widely deployed military tactical radio program in the world with more than 650,000 units in use in more than 35 countries. CFPS is also the developer of the Soldier Radio Waveform (SRW), one of the key enablers for Joint Tactical Networking (JTN) applications. Exelis has developed advanced technology to implement the SRW waveform at lower size, weight, power and cost (SWAP-C), and will be a strong competitor for future tactical radio programs.
IS is a leading designer and producer of aircraft-armament suspension and release equipment, weapons interface systems, and advanced composite structures and subsystems for military and commercial customers. IS has built a strong leadership position and worldwide recognition in the weapons carriage and release area, having produced well over 22,000 systems during the past 45 years. This strength comes from the company's sole source position on many of the major airframes utilized by DoD and international forces, including the F-15, F-22, F-35 Lightning II, F-16, F/A-18, P-8A Poseidon, AV-8B Harrier II and MQ-9 Reaper. IS is among the most technically advanced designers and manufacturers of lightweight advanced fiber-reinforced composite structures. Exelis provides solutions where reduced weight, strength and durability are critical to mission success, aircraft performance and efficiency. Exelis has supplied composites to most major aerospace prime contractors, including Boeing, Airbus, Lockheed Martin, Sikorsky (United Technologies), and BAE Systems.
Exelis' Night Vision and Imaging business is a leader in image intensification, sensor fusion and digital night vision technology, integrated power and sensing devices, and decision support software and services solutions that manage, exploit, analyze, visualize, interpret, and disseminate image related data. According to Exelis, it is the world's leading developer, producer, and supplier of Generation 3 image intensification technology for U.S. and allied military forces, as well as the federal homeland security market, and the company the single largest producer of high performance night vision products in the world. Exelis provides AN/PVS-14 and AN/PVS-7 ground night vision goggles and spare image intensifier tubes to the U.S. military and allies, via foreign military sales, and is the primary supplier to the U.S. military for the AN/AVS-6 and AN/AVS-9 aviation night vision goggle, which provides rotary- and fixed-wing pilots the ability to operate in extreme low-light situations. Exelis developed (and were the sole provider of) the Enhanced Night Vision Goggle Optical (ENVG(O)) system, which was the first production goggle to optically overlay traditional night vision imagery with long wave thermal infrared imagery. This allows the U.S. military to effectively operate in extreme low light conditions and obscured battlefield conditions. Exelis is currently a leading supplier of the 2nd generation ENVG(O) system, the Spiral Enhanced Night Vision Goggle (SENVG), to the U.S. military. Exelis is also a recognized innovator of night vision power supply technology and custom power supplies for commercial and military applications worldwide, including military ground vehicles, munitions, advanced countermeasures, radar systems and avionics. Additionally, Exelis offers integrated software solutions that scientists, defense and intelligence professionals, Geographic Information System users, researchers, and medical research professionals use to turn complex data into useful information. From remote sensors on UAVs, Exelis delivers streaming imagery and video data in an environment challenged by information overload, constrained bandwidths and multiple end-users. Exelis' capabilities span the geospatial intelligence chain for capturing, processing and analyzing, managing, and disseminating imagery and video.
The Intelligence, Surveillance and Reconnaissance (ISR) Systems business serves a broad array of government, civil and commercial customers with intelligence, surveillance and reconnaissance systems that enhance information superiority, contribute to the company's national security, provide actionable data, and protect property and human life. Exelis' specialized capabilities include, high reliability remote sensing payloads for ground, air and space, offering active and motion imaging, anti-jam signal generation data encryption, information processing and system performance modeling and simulation. Exelis also provides solutions that map and monitor the earth for a variety of commercial and governmental users. The company's imaging payloads or sensor systems have been at the heart of nearly every U.S. commercial remote sensing satellite system. Exelis' sensors currently provide all of the commercial high resolution space-based imagery in the United States, and the company is now expanding this expertise to pursue several international opportunities. Exelis' environmental systems monitor and evaluate the global environment with space and airborne remote sensing and ground data processing.
The Positioning, Navigation and Timing (PNT) business is a total GPS navigation systems supplier providing high-performance, reliable, cost-effective GPS payload, receiver and control solutions. Exelis has developed more than 50 GPS satellite payloads that have been on every GPS satellite ever launched and accumulated over 500 years of on-orbit life without a single mission-related failure due to the company's equipment. Today, new GPS technologies are being developed that will dramatically improve the accuracy and reliability of this global utility under the GPS III program. The next generation Global Positioning System Operational Control System (GPS OCX) will provide command, control and mission support for all current and future GPS satellites based on a modern, service-oriented architecture that will integrate a government and industry open system standard. Exelis is providing the key navigation processing elements and precision monitor station receivers during the current phase of the GPS OCX program that includes advanced anti-jam capabilities, improved system security, accuracy and reliability.
R2A provides high-performance, high-quality RF and acoustic surveillance sensors, integrated radar and Precision Air Traffic Control surveillance systems for both domestic and international customers, with a portfolio of related technology-based products in the commercial area. R2A's core capabilities include defense surveillance radars, air traffic control and management radars, command and control, acoustic sensors, sonar systems, tactical data links and synthetic aperture radars. The R2A business also provides electronic warfare and signal intelligence systems for reconnaissance and surveillance, with monitoring and signal processing systems and equipment for Electronic Intelligence (ELINT), Electronic Support Measures (ESM), Electronic Counter Measures (ECM) and Signals Intelligence (SIGINT) applications. Exelis has provided more than 1,500 ESM/ELINT systems to customers in more than 30 countries during the past 20 years. Capitalizing on its capability to produce highly engineered piezo electric devices, R2A has developed innovative applications of this technology to address the energy harvesting and healthcare markets.
The Information and Technical Services segment had revenues of $3.0B, $3.0B and $2.3B and operating income of $211M, $150M and $126M
for the years ended December 31, 2012, 2011 and 2010, respectively, and accounted for 55%, 52% and 39%, respectively, of total revenues.
Revenues from the Information and Technical Services segment were $3,035M in 2012, an increase of $13M or 0.4% as compared to 2011. The increase in revenues was primarily due to efforts to support the U.S. Armed services on the company's Afghanistan Programs, including the Afghan National Security Forces (ANSF) Facilities Support programs and the Logistics Civilian Augmentation Program (LOGCAP), which had revenue increases of approximately $63M and $38M, respectively, and efforts to support NASA under Exelis' Space Communication Network Services (SCNS) contract, which had a revenue increase of approximately $47M. The SCNS contract provides the communications and tracking services for a wide range of Earth-orbiting spacecraft, including the International Space Station. The increase in revenues was partially offset by lower revenue on the company's Technology and Systems Engineering Bridge (TSE Bridge) program of approximately $65M, and lower activity on its Kuwait-based Army Proposition Stock-5 (APS-5 Kuwait) contract of approximately $45M. The TSE Bridge program, part of the Advanced Information Systems business, ended in late 2011.
Operating income at the Information and Technical Services segment increased $61M or 40.7% in 2012, compared to 2011. Operating income as a percentage of revenues was 7.0% in 2012 as compared to 5.0% in 2011. The increase in operating margin was primarily due to lower cost of service revenues as a percentage of service revenues.
The Information and Technical Services segment consists of the following major program areas:
The Air Traffic Management business has a 30-year history as a trusted provider of air traffic control navigation, communication and surveillance solutions. Exelis provides the FAA with engineering expertise and full system solutions in the development and implementation of a modernized air traffic system. The company's core program is the ADS-B system: the cornerstone program of the FAA's Next Generation Air Transportation System (NextGen) initiative to modernize from a ground-based system of air traffic control to a satellite-based system of air traffic management. As the prime contractor on ADS-B, Exelis is designing, building and operating a nationwide system of radio communications, telecommunications networks, information technology and software to deliver highly accurate, networked, real-time surveillance data to the automated systems of the FAA. In addition, Exelis is augmenting the ADS-B network with Multilateration surveillance technology, which provides a low-cost alternative ideally suited for remote regions and serves as a radar supplement or gap-filler, and a back-up to ADS-B. Exelis is currently developing leading-edge concepts under the Systems Engineering 2020 (SE2020) contract. The work spans all dimensions of a national effort to transform air traffic control including ground systems, avionics, aircraft, air traffic control rules and procedures, human factors, safety and security, environmental processes and standards. Exelis is extending its integrated network systems capabilities to the commercial aviation market by introducing a comprehensive, web-based application suite called Symphony, which enables key business functions for airports and airlines to improve efficiencies in their operations. This real-time, comprehensive flight tracking data is essential to improving airport stakeholders' operations, including flight information display systems, billing, auditing, resource allocation and situational awareness.
The Network Systems business provides NASA and the DoD with engineering, operations and modernization services in support of a broad range of communication systems and technologies that are the strategic and operational heart of critical national systems. The company designs, develops and supports large-scale ground communications networks by providing mission network planning and integration services, systems and network engineering, operations, maintenance, and development and sustainment engineering work across the United States and around the world. Exelis has supported NASA for more than 25 years as a leading provider of advanced engineering services for its space and ground communications networks. Exelis is the prime contractor on NASA's Space Communications Network Services (SCNS) contract for the Goddard Space Flight Center, which provides most of the communications and tracking services for a wide range of Earth-orbiting spacecraft, such as the International Space Stations and the space shuttle. Exelis is also the prime contractor for the Joint Spectrum Center's (JSC) Electromagnetic Spectrum Engineering Services contract, where it provides engineering systems support, technical analysis, test support, and long-term strategic planning as JSC meets national security and military objectives related to the use of electromagnetic spectrum.
The Advanced Information Systems business serves a broad range of federal customers in defense, intelligence and homeland security. Exelis serves critical missions in military and national intelligence, deterrence and defense against chemical, biological, radiological nuclear and explosive (CBRNE) threats, strategic programs and other core defense programs. Exelis' long history translates into a deep understanding of customer missions and challenges, and the company applies that expertise to provide its customers with innovative solutions for ever-changing needs. Exelis develops information-enabled solutions for U.S. Government customers that rely on the company's expertise to securely access, integrate and share sensitive data. By delivering a global data network that connects DoD and national agencies together into a collaborative, secure, services-oriented architecture, Exelis is able to help its customers connect to and discover information in real time to support tactical exploitation of intelligence on the network. These solutions integrate key capabilities in cyber defense, cross-domain information sharing, broad enterprise applications of information technology, and the implementation of leading edge network and systems architectures.
CYBER supports a variety of U.S. and Joint Forces military activities, as well as Federal civilian communications infrastructures worldwide, ranging from wideband satellite communications systems to diverse network operations and management services. CYBER's core capabilities include network management; mobile and fixed satellite communications operations and maintenance (SATCOM O&M); help desk support; switch, node and router support; database development; engineering; furnishing and installation of communications systems; information assurance of protected military networks; and field and depot level maintenance of communications equipment. As the prime contractor for the U.S. Army Network Command's Total Army Communications for Southwest Asia, central Asia and Africa program (TACSWACAA), CYBER maintains world-class operational availability and information security for network resources in the largest battlefield network ever deployed. For the U.S. Southern Command, it operates and maintains tethered aerostats that perform core drug interdiction and air sovereignty missions along the U.S. southern border. High-profile communications support includes operations and maintenance for missions such as the Defense Red Switch Network, which provides the President, Secretary of Defense, Joint Chiefs of Staff, combatant commanders and various agencies with secure communications technology and systems.
Middle East Programs (MEP) provides oversight and management for the company's teams working in that region. The core capabilities of the MEP include logistics, vehicle maintenance and repair, facility and utilities maintenance and repair services, civil engineering, minor construction, transportation services, base operations, guard services, and emergency fire and life support services. As a leading provider of U.S. Army wheeled and tracked vehicle maintenance, MEP has built a strong track record of innovation and new service development, using Lean Six Sigma capabilities to devise optimum methods to perform maintenance on war-damaged vehicles. MEP also maintains a diverse array of equipment, from small arms to Patriot missiles, performing maintenance tasks both domestically and overseas. Logistics services also include transport of soldiers and equipment for combat operations. The full range of logistics tasks, encompassing supply, mobilization, transportation, equipment maintenance, property accountability and other facility and utilities materiel operations are typically carried out by MEP employees for the Army Prepositioned Stock programs. The largest contract effort in the MEP program provides infrastructure and logistics support through the Kuwait Base Operating Support, Services and Security (K-BOSSS) contract. The effort supports the U.S. Army with the full spectrum of logistics, security, transportation, life support and facilities services at Camp Arifjan, Camp Buehring, Camp Virginia and a number of other critical military installations in the Kuwait area of responsibility. Exelis' largest vehicle maintenance and repair contract is the Kuwait based Army Preposition Stock-5 (APS-5 Kuwait) contract.
The U.S. and Europe Programs effort is primarily centered on logistics, base operations and infrastructure support to multiple military and governmental agencies in the United States and Europe. The business consists of supporting contracts with the U.S. Air Force and U.S. Army including bases in the United States (Fort Benning and Maxwell AFB) and Germany (Kaiserslautern). The company provides full spectrum base operating support, logistics, supply, maintenance and security to each of these installations. The U.S. and Europe programs effort also focuses on the comprehensive nature of surface, rail and air transportation services, all life support services, as well as civil engineering and minor construction services.
Afghanistan Programs (AP) consists of two contracts with the U.S. Army Corps of Engineers to provide facilities operations, maintenance and training services for the Afghan National Security Forces (ANSF) and the Combined Security Transition Command in both Northern and Southern Afghanistan (ANSF Facilities Support programs). Under these two contracts, AP provides operations and maintenance support for more than 300 ANSF facilities at a variety of sites in Afghanistan, while simultaneously training Afghanis to assume responsibility for the facilities at the completion of the contract. AP also supports the warfighter under the Logistics Civilian Augmentation Program (LOGCAP); under the Air Force Civilian Augmentation Program (AFCAP); and under the Department of State Counter Narco-Terrorism Program (CNTPO). These programs provide logistics and supply operations, airfield operations, air traffic control and transportation support to the U.S. warfighter and to the Afghanistan National Security Forces.
Revenues ('12): $5,522M -0.8%
R&D ('12): $67M -32.3%
Net Profit ('12): $330M +1.2%
CAPEX ('12): $119M +25.3%
Aerospace Sector:C4ISR; Communication Systems/RF
Electronic Warfare Countermeasures (ECM); Antennas; Space microelectronics; Mine-defense solutions; RF communications systems; RF and acoustic surveillance sensors; Radar and Precision Air Traffic Control surveillance systems; Aircraft-armament suspension and release equipment; Weapons interface systems; Advanced composite structures and subsystems; Night vision and imaging solutions; C4ISR solutions; GPS navigation systems; Air traffic control navigation, communication and surveillance solutions; Ground communications networks; Information systems; Wideband satellite communications systems; Network operations and management services; Systems engineering, lifecycle sustainment, logistic support, modernization, and operations and maintenance services, Vehicle maintenance and repair; Facility and utilities maintenance and repair services; Civil engineering, minor construction, transportation services, base operations, guard services, and emergency fire and life support services.
ITT Exelis' Major DoD Defense Programs:
| AV-8B Harrier II
| B-1B Lancer
| FAA ADS-B |
|Sales 2008-2012||Net Income 2008-2012||R&D Spending 2008-2012||# Employees 2008-2012|