Raytheon Won More Than $900M in Classified Work in 2nd Quarter

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WASHINGTON — Raytheon’s Space and Airborne Systems division landed $563 million in new classified business during the second quarter of 2010, including $355 million on “a major classified program,” the Waltham, Mass.-based company said July 29.

Based in El Segundo, Calif., Raytheon Space and Airborne Systems builds optical, infrared and radio-frequency sensors for both satellites and aerial platforms. The division reported revenue of $1.2 billion for the quarter, up slightly from $1.1 billion during the same period last year, Raytheon said.

Raytheon’s Intelligence and Information Systems division, whose products include satellite ground systems and software, booked $371 million in new classified business during the three month period ending June 30, along with $80 million on the data network for NASA’s Earth observing satellites. Revenue for the division was down significantly during the quarter, from $812 million last year to $472 million this year, due to the cancellation of a U.K. Border Agency contract, the company reported.

The loss of that contract dragged down the company’s overall revenue for the quarter, to $5.973 billion from $6.125 during the same period in 2009. Profit during the period was also down, from $492 million during last year’s second quarter to $212 million this year, for the same reason.

“The Company believes that it performed well and delivered substantial capabilities to the customer under this program, and intends to pursue vigorously the collection of the unbilled receivables and damages and defend itself against the claims for losses and previous payments,” Raytheon said.

Overall, Raytheon booked $5.9 billion in new business for the quarter, including the classified programs. Although that figure is down from $7.6 billion last year, bookings for the first six months of 2010, at $12.4 billion, were close to the $12.8 billion figure reported for the first half of 2009.

Missile defense accounted for more than $500 million in new contracts during the second quarter, led by $234 million for the sea-based Standard Missile 3, which is produced by Raytheon Missile Systems of Tucson, Ariz. Revenue at Missile Systems was $1.4 billion for the period, which is roughly on par with last year’s second quarter.

Raytheon Integrated Defense Systems, meanwhile, landed a $317 million contract to provide its Patriot air and missile defense system to an unnamed international customer. Integrated defense systems reported revenue of $1.35 billion for the quarter, slightly above the corresponding 2009 figure of $1.34 billion.