L-3 Not Awarded Linguist Contract
Reaffirms 2007 and 2008 Financial Guidance
NEW YORK--(BUSINESS WIRE)--Dec. 7, 2007--L-3 Communications (NYSE: LLL) announced today that the U.S. Army's Intelligence and Security Command (INSCOM) has not selected the company to continue providing translators and linguists to support the U.S. military operations in Iraq.
"We are obviously disappointed with INSCOM's decision regarding the linguist contract award," stated Michael T. Strianese, President and Chief Executive Officer of L-3. "L-3 personnel will continue to perform the tasks outlined during any transition period. L-3 is proud to have had the opportunity to support the U.S. and Coalition efforts in Iraq."
The company noted that the loss of the linguist contract has no impact on its previously announced financial guidance for the years ending December 31, 2007 and 2008, which included the linguist contract through December 9, 2007, and as a result, the company is reaffirming its guidance for both periods as summarized in the table on the next page.
2007 2008 Financial Guidance Financial Guidance ------------------ ------------------ ($ in millions, except per share data) Net Sales $13,700 $14,000 to $14,200 Operating margin 10.5% 10.9% Diluted earnings per share $5.86 to $5.90 $6.41 to $6.55 Net cash from operating activities $1,260 $ 1,330 Less: Capital expenditures, net 160 180 ------------------ ------------------ Free cash flow $1,100 $1,150 ================== ==================
Headquartered in New York City, L-3 Communications employs over 63,000 people worldwide and is a prime system contractor in aircraft modernization and maintenance, C(3)ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, systems and subsystems. The company reported 2006 sales of $12.5 billion.
To learn more about L-3, please visit the company's web site at www.L-3Com.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "could," "guidance" and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-looking Statements included in the company's recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.
CONTACT: L-3 Communications Karen Tripp, 212-697-1111 Vice President, Corporate Communications or FD Investors: Eric Boyriven, Alexandra Tramont Media Contact: Evan Goetz 212-850-5600
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