L-3 Communications

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Not to be confused with Level 3 Communications.
L-3 Communications Holdings Inc.
Public
Traded as NYSELLL
S&P 500 Component
Industry Aerospace, Defense
Founded 1997; 19 years ago (1997)
Headquarters New York City, New York, United States
Key people
Michael T. Strianese
(Chairman, President and CEO)
Products AVCATT, numerous specialized components
Revenue
  • Decrease US$ 12.629 billion (2013) [1]
  • US$ 13.146 billion (2012) [1]
  • Decrease US$ 1.258 billion (2013) [1]
  • US$ 1.351 billion (2012) [1]
  • Decrease US$ 778.0 million (2013) [1]
  • US$ 810.0 million (2012) [1]
Total assets
  • Increase US$ 14.009 billion (2013) [1]
  • US$ 13.791 billion (2012) [1]
Total equity
  • Increase US$ 6.098 billion (2013) [1]
  • US$ 5.543 billion (2012) [1]
Number of employees
>38,000 (2016)
Website l-3com.com

L-3 Communications Holdings is an American company that supplies command and control, communications, intelligence, surveillance and reconnaissance (C3ISR) systems and products, avionics, ocean products, training devices and services, instrumentation, space, and navigation products. Its customers include the Department of Defense, Department of Homeland Security, U.S. Government intelligence agencies, NASA, aerospace contractors and commercial telecommunications and wireless customers.

L-3 is headquartered in Murray Hill, Manhattan, New York City.[2]

History[edit]

L-3 was formed in 1997 to acquire certain business units from Lockheed Martin that had previously been part of Loral Corporation. These units had belonged to Lockheed Corporation and Martin Marietta, which had merged three years before in 1993.[3] The company was founded by Frank Lanza and Robert LaPenta, who had both served as executives at Loral and Lockheed, in partnership with Lehman Brothers.[4]

L-3 continued to expand through mergers and acquisitions to become one of the top ten U.S. government contractors.[5]

On November 4, 2010 L-3 issued a part purge notification to prevent future use of Chinese counterfeit parts, but did not notify its customers whose display systems suffered from much higher than expected failure rates.[6]

Acquisitions[edit]

1997
2000
  • Training & Simulation Division of Raytheon Systems Co., based in Arlington, Texas. This company was formerly known as Hughes Training, Inc., and part of the Hughes Aircraft Defense Group purchased by Raytheon from General Motors two years earlier. The division traces its ancestry to the original company formed by Edwin Link, inventor of the airplane simulator, and accordingly was renamed Link Simulation and Training.[7]
2002
2003
  • Ship Analytics, Inc.[9]
2005
2006
  • Advanced System Architectures, a company based in Fleet, Hampshire, United Kingdom. L-3 ASA has core capabilities in the development and through-life management of complex information systems, data fusion and tracking solutions, and interoperable secure communications systems.
  • Crestview Aerospace, a company based in northwest Florida. Crestview Aerospace provides aircraft structures, major airframe assemblies, and military aircraft modifications for leading prime contractors and OEMs in the aerospace industry.
  • Nautronix and MariPro, based in Fremantle, Australia and Santa Barbara, California, respectively, from Nautronix Plc in Aberdeen, Scotland. Nautronix and MariPro provide acoustic ranges and hydrographics to commercial and defense markets.
  • TRL Technology, a specialist defense electronics company based in Gloucestershire, United Kingdom. TRL Technology is internationally known for development and innovation in the fields of interception, surveillance, electronic warfare, and communications.[11]
2010
2012
2015
  • CTC Aviation Limited, a company based in Southampton providing training and resourcing to many international airlines, most notably through its 'CTC Wings' ab-initio flight training program which successfully places many cadets within a vast network of partner airlines. As well as providing MPL courses for airlines such as Qatar Airlines, easyJet and Flybe, CTC Aviation also trains pilots on the British Airways Future Pilot Program. The aviation academy has a 98%[13] employment rate with various airlines including Ryanair, FlyBe and many more. CTC also has locations in Hamilton, New Zealand, Phoenix, Arizona and Gatwick Airport in London.[14]
2016
  • MacDonald Humfrey (Automation), a Luton, UK based checkpoint security and automation company. [15]

Business organization[edit]

As of 2016, L-3 is organized under three business segments:

  • Electronic Systems
    • Advanced Programs
    • Aviation Products and Security
    • Integrated Sensor Systems
    • Power and Propulsion Systems
    • Precision Engagement and Training
    • Warrior Systems
  • Aerospace Systems
    • Aircraft Systems
    • ISR Systems
    • MAS
    • Vertex Aerospace
  • Communication Systems
    • Advanced Communications
    • Broadband Communications
    • Space and Power
    • Tactical SATCOM

Management[edit]

Frank Lanza, CEO and co-founder, died on June 7, 2006. CFO Michael T. Strianese was named as interim CEO, and was appointed Chairman, President and CEO of the company on October 23, 2006.

Naming[edit]

L-3 Communications was named for the last initials of its founders Frank Lanza, Robert LaPenta, and Lehman Brothers. Despite the similarity in naming, there is no corporate connection between L-3 Communications and networking provider Level 3 Communications, whose name is often abbreviated "L3" in informal industry communication.

In December 2016, L-3 announced that, effective 31 December 2016, the company name would be changing from L-3 Communications Holdings, Inc. to L3 Technologies, Inc. to better reflect the company's wider focus since it's founding in 1997. The company's website will change from L-3com.com to L3T.com, but the company's NYSE ticker symbol of LLL will remain the same.[16]

Products[edit]

EOTech Defective Holographic Sights Lawsuit[edit]

In 2015, L-3 Communications agreed to pay $25.6 million to settle a lawsuit with the U.S. Government. L-3 was accused of knowingly providing the U.S. military with optics that failed in extreme temperatures and humid weather conditions. These sights were provided to infantry and special operations forces operating in Afghanistan and Iraq, as well as civilians and law enforcement.[18]

The civil fraud lawsuit was filed by Preet Bharara, in the Southern District of New York. The lawsuit alleged L-3 officials have known since 2006 that the holographic sights being sent to Iraq and Afghanistan failed to perform as advertised in extreme temperature ranges. The lawsuit alleges that the FBI independently discovered the thermal drift defect in March 2015 and presented EOTech with "the very same findings that the company had documented internally for years. Shortly thereafter, EOTech finally disclosed the thermal drift defect to DoD." According to court documents, EOTech had advertised that its sights performed in temperatures ranging from -40 degrees to 140 degrees Fahrenheit, and in humid conditions.[19]

In temperature extremes the sights exhibited thermal drift, which is when the sight's point of aim differed from its point of impact.[18]|

John Bailey, director of marketing at EOtech said,

Thermal drift is basically when you go from ambient temperature to temperature extreme there is going to be a point of impact shift...We have realized that our sight could shift … in those extremes, -40 and 122 Fahrenheit.

— John Bailey, "EOTech Breaks Silence over Defective Sights" military.com

The sights also suffered from reticle fading and parallax.

Federal contract suspension[edit]

In 2010 it was announced that L-3's Special Support Programs Division had been suspended by the United States Air Force from doing any contract work for the US federal government. A US Department of Defense investigation had reportedly found that the company had, "used a highly sensitive government computer network to collect competitive business information for its own use." A US federal criminal investigation[20] ended the temporary suspension on July 27, 2010.

See also[edit]

References[edit]

  1. ^ a b c d e f g h i j "L 3 COMMUNICATIONS HOLDINGS INC Current Report as of December 31, 2013 Form (8-K)" (XBRL). United States Securities and Exchange Commission. May 2, 2014. 
  2. ^ "Company Profile." L-3 Communications. Retrieved on March 10, 2010.
  3. ^ "Robert V. LaPenta" L-1 Identity Solutions
  4. ^ http://www.fundinguniverse.com/company-histories/l-3-communications-holdings-inc-history/
  5. ^ "2011 Washington Technology Top 100". Retrieved 10 December 2011. 
  6. ^ Rajghatta, Chidanand (30 March 2014). "Did IAF's 'US-made' C-130J Super Hercules that crashed have fake Chinese parts?". indiatimes.com. TNN. Retrieved 30 March 2014. 
  7. ^ https://www.link.com/about/pages/history.aspx
  8. ^ "L-3 Communications completes acquisition of PerkinElmer detection-systems business". VisionSystems Design. 18 Jun 2002. Retrieved 20 Jun 2016. 
  9. ^ http://www.thefreelibrary.com/L-3+Communications+Acquires+Ship+Analytics,+Inc.-a096647948
  10. ^ "L-3 MAPPS Company details". naval-technology.com. Retrieved 8 Jan 2011. 
  11. ^ "[1]." L-3 Communications. Retrieved on May 24, 2010.
  12. ^ "[2]." Retrieved on Nov 24, 2014.
  13. ^ "Flight Training News advert". 
  14. ^ http://www.l-3com.com/media-center/press-releases.html?pr_id=2054036
  15. ^ http://www.l-3com.com/press-release/l-3-acquires-macdonald-humfrey-automation-ltd
  16. ^ "L-3 Communications to Change Name to L3 Technologies, Inc." (Press release). L-3 Communications, Inc. December 6, 2016. Retrieved December 6, 2016. 
  17. ^ [3] Archived July 13, 2011, at the Wayback Machine.
  18. ^ a b "EOTech Breaks Silence over Defective Sights", Military.com, 21 January 2016. Retrieved on 8 November 2016.]
  19. ^ "US Optic Maker Settles Lawsuit Over Defective Rifle Sights", Military.com, 02 December 2015. Retrieved on * November 2015.]]
  20. ^ Hodge, Nathan, "Spotlight On Private Firms At Pentagon", Wall Street Journal, June 12, 2010, p. 4.

External links[edit]

Coordinates: 40°44′57″N 73°58′33″W / 40.7492°N 73.9757°W / 40.7492; -73.9757