Post by
miltechguy on Mar 24, 2011 8:25am
another example of bad judgement?
I just saw this on a news feed...
Falcon radio family facilities ramped up
Harris detailed a series of new complementary equipment packages at IDEX ranging from a video module for its Falcon Fighter soldier system to a full battle management system (BMS) and all drawing on existing communications systems. Starting at the individual level, the company announced that it had delivered its first Falcon Fighter soldier systems - from an order for 500 units - "to a nation in Asia" at the exhibition
Well, this Falcon Fighter system is CHI/OSI's DC4S and the BMS is C3Core that CHI/OSI developed. The typical price for these systems is around $4000 each so that gives a first sale of $2M. With a GM of 40 - 50 %, Harris just made $1M profit. Now 500 units is nothing in a market that has potential for huge sales. So it really looks like Harris got a steal when KK sold off the crown jewels. They should get their money back in under 3 years and then its all gravy after that.
The sale of the Soldier systems business was endorsed by the current Board, and people could argue that this speaks volumes for their seemingly enormous lack of vision, strategy and judgement. If this is not a good indicator that there needs to be sweeping changes, then I don't know what it will take to get this company straightened out.