First half revenue increased 3%, with growth across all three segments. GAAP EPS was up 3% due to the absence of Exelis acquisition-related charges incurred in the first half of fiscal 2017, partially offset by the non-cash charges incurred in the second quarter of fiscal 2018. Non-GAAP EPS was up 15% on increased volume, benefit from tax reform, higher pension income, strong program execution and year-over-year integration synergy savings, partially offset by a $36 million unfavorable impact from the ADS-B program. Non-GAAP operating margin was strong at 18.9%. Orders grew 24%, resulting in a book-to-bill of 1.3.
Communication Systems |
|||||||||||||||||||||||||||||
($ millions) | Second Quarter | First Half | |||||||||||||||||||||||||||
FY 2018 | FY 2017 | Change | FY 2018 | FY 2017 | Change | ||||||||||||||||||||||||
Revenue | $ | 489 | $ | 413 | 18 | % | $ | 899 | $ | 843 | 7 | % | |||||||||||||||||
Operating income | $ | 144 | $ | 121 | 19 | % | $ | 262 | $ | 239 | 10 | % | |||||||||||||||||
Operating margin | 29.5 | % | 29.3 | % | 20bps | 29.1 | % | 28.4 | % | 70bps | |||||||||||||||||||