L3 Technologies Explained

L3 Technologies, Inc.
Former Name:	L-3 Communications Holdings
Type:	Subsidiary
Industry:	Aerospace, Defense
Predecessor:	Loral Corporation's business that was part of Lockheed Martin, Paramax Systems Corporation
Successor:	L3Harris Technologies
Founded:	^[1]
Fate:	Merged with Harris Corporation
Hq Location City:	New York City, New York
Hq Location Country:	United States
Area Served:	Worldwide
Key People:	Michael T. Strianese (Chairman/C.E.O.) Christopher E. Kubasik (CEO and President)
Products:	AVCATT, ISR systems, numerous specialized components, electronics, avionics
Revenue:	US$9.573 billion^[2]
Revenue Year:	2017
Operating Income:	1.020 billion
Income Year:	2017
Net Income:	986 million
Net Income Year:	2017
Assets:	12.73 billion
Assets Year:	2017
Equity:	5.15 billion
Equity Year:	2017
Num Employees:	38,000^[3]
Num Employees Year:	2017
Homepage:	www.l3t.com

L3 Technologies, formerly L-3 Communications Holdings, was an American company that supplied command and control, communications, intelligence, surveillance and reconnaissance (C3ISR) systems and products, avionics, ocean products, training devices and services, instrumentation, aerospace, and navigation products. Its customers included the Department of Defense, Department of Homeland Security, United States Intelligence Community, NASA, aerospace contractors, and commercial telecommunications and wireless customers. In 2019, it merged with Harris Corporation to form L3Harris Technologies.^[4]

L3 was headquartered in Murray Hill, Manhattan, New York City.^[5]

History

L3 was formed as L-3 Communications 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.^[6] The company was founded by (and named for) Frank Lanza and Robert LaPenta in partnership with Lehman Brothers. Lanza and LaPenta had both served as executives at Loral and Lockheed.^[7]

Acquisitions

1997

• Paramax Systems Corporation from Lockheed Martin. Loral had acquired Paramax in 1995

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 Link Trainer airplane simulator, and accordingly was renamed Link Simulation and Training (now known as Link Training and Simulation).^[8]

2001

• KDI Precision Products, Batavia, Ohio. Electronic fuzing, safe and arm devices.
• Litton Electron Devices from Northrop Grumman (renamed L3 Electron Devices)

2002

• Raytheon Aircraft Integration Systems (renamed L3 Integrated Systems; the Greenville, Texas facility is now known as L3 Mission Integration Division, while the Waco, Texas facility is now known as L3 Platform Integration Division)

• SyColeman Corporation, which came about from the joining of Sy Technologies and Coleman Research Corporation.
• PerkinElmer Detection Systems from PerkinElmer which became L-3 Security & Detection Systems.^[9]
• Wescam (currently named L3 Harris Wescam) developer of gyro-stabilized, EO-IR imaging systems.

2003

• Ship Analytics, Inc.^[10]
• BF Goodrich Avionics^[11]
• L-3 Communication MAS from Bombardier Aerospace.

2004

• Cincinnati Electronics, Mason, Ohio. Infrared detectors & systems, space avionics.
• Raytheon Commercial Infrared, Richardson Texas. Infrared detectors .

2005

• Titan Corp., after a failed buyout attempt by Lockheed Martin.
• L-3 Communication Combat Propulsion Systems, previously owned by General Dynamics Land Systems.
• L-3 Communications MAPPS, previously CAE's Marine Controls unit^[12]
• Electron Dynamic Devices from Boeing Satellite Systems.
• Applied Signal & Image Technology, Linthicum Heights, MD. Geo-location systems for RF emitters.
• Sonoma Design Group, Santa Rosa, CA. Stabilized EO/IR sensors.

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. (Sold in 2017 along with Vertex Aerospace and TCS.)
• 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, UK. TRL Technology is internationally known for development and innovation in the fields of interception, surveillance, electronic warfare, and communications.^[13]

2010

• Insight Technology, a company based in Londonderry, New Hampshire. Insight develops and builds optics, from night-vision goggles to weapon-mounted sights and lasers.^[14]

2012

• Thales Training and Simulation (partial), a multinational company which manufactures civil and military full flight simulators and provides related training and support services – a wholly owned subsidiary of the Thales Group. In August 2012, L-3 acquired Thales Group's civil fixed-wing flight simulation business, to form L-3 Link Simulation & Training UK.^[15]

2015

• CTC Aviation Limited (rebranded in May 2017 as L3 Airline Academy^[16]) a company based in Southampton providing training and resourcing to many international airlines.

2016

• MacDonald Humfrey (Automation), a Luton, UK–based checkpoint security and automation company.^[17]
• ExMac (Automation), a Droitwich, UK based automated material handling company.

2017

• Open Water Power, a Somerville, Massachusetts–based battery startup spun out of MIT. Its novel aluminum-water battery technology promises a tenfold improvement in the endurance of Unmanned Underwater Vehicles.^{[18] [19] [20]}
• Ocean-Server Technology, a Fall River, Massachusetts–based small business specializing in lithium-ion battery, sensor, and robotic mini-sub (UUV) products^[21]
• ASV Global, a Lafayette, Louisiana–based business with international offices in Portchester specializing in Autonomous Surface Vehicles for commercial and defense markets.^[22]

2018

• In October 2018, L3 announced an all-stock "merger of equals" with Florida-based Harris Corporation, to be closed (subject to approvals) in mid-2019.^[23] The merger was completed on June 29, 2019, and the new company, L3Harris Technologies, Inc., is based in Melbourne, Florida, where Harris was headquartered.^[4]

Business organization

As of 2017, L3 was organized under four business segments:

• Electronic Systems
  • Advanced Programs
  • Aviation Products and Security
  • Power and Propulsion Systems
  • Precision Engagement and Training
• Aerospace Systems
  • Aircraft Systems
  • ISR Systems
  • MAS
  • Vertex Aerospace
• Communication Systems
  • Advanced Communications
  • Broadband Communications
  • Space and Power
  • Tactical SATCOM
• Sensor Systems
  • Space & Sensor Systems
  • Maritime Sensor Systems
  • Worldwide Surveillance & Targeting Missions
  • Warrior Sensor Systems

Management

Frank Lanza, CEO and co-founder, died on June 7, 2006. CFO Michael T. Strianese was named as interim CEO, and was later appointed Chairman, President and CEO of the company on October 23, 2006. In 2015, former Lockheed Martin executive Christopher E. Kubasik was named president and COO, with Strianese remaining as chairman and CEO.^[24] On July 19, 2017, Strianese announced that he would retire as CEO on December 31, 2017, to be succeeded by Kubasik, but would remain as board chairman.^[25] As of January 1, 2018, Christopher E. Kubasik became chief executive officer and president of L3 Technologies.

Naming

L3 Technologies was originally named L-3 Communications 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 L3 Technologies, formerly known as L-3 Communications, and networking provider Level 3 Communications, whose name is often abbreviated "L3" in informal industry communication.

On December 31, 2016, the company changed its name from L-3 Communications Holdings, Inc. to L3 Technologies, Inc. to better reflect the company's wider focus since its founding in 1997. The company's website changed from L-3com.com to L3T.com, but the company's NYSE ticker symbol of LLL remained the same.^[26]

Products

• L-3 ProVision, Millimeter Wave Airport Passenger Screening System
• L-3 eXaminer SX, 3DX, and XLB, Airport baggage scanning systems
• L-3 OptEX, Trace level explosive detection system
• AVCATT, a mobile aviation training simulator
• Orchid,^[27] Total Development & Simulation Environment (Power, Marine)
• EOTech, Holographic weapon sights
• L-3 Sonoma EO, Electro Optical Imaging Systems, 1508M Dragon Eyes, 1205MD, 2111X, 2514X, & 2711G
• OMNI, an encryption device that adds secure voice and secure data to a standard analog telephone or modem connected computer, made in "Standard" model with a 56 kbit/s limit and "OMNIxi" with a 15 Mbit/s limit^[28]

Controversies

Federal contract suspension

In 2010, it was announced that L3'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^[29] ended the temporary suspension on July 27, 2010.

Counterfeit parts

On November 4, 2010, L3 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.^[30]

EOTech defective holographic sights lawsuit

In 2015, L3 Technologies agreed to pay $25.6 million to settle a lawsuit with the U.S. Government. L3 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.^[31]

The civil fraud lawsuit was filed by Preet Bharara, in the Southern District of New York. The lawsuit alleged L3 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, where the point-of-aim would shift when the sights were exposed to temperature extremes, 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 the 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.^[32]

See also

• Top 100 Contractors of the U.S. federal government

External links

• • • News: Farnborough: L3 rolls out new Commercial Aviation branding . 14 July 2018 . Murdo Morrison . Flightglobal.

Notes and References

1. Web site: Lockheed Martin forms company for non-core businesses. https://web.archive.org/web/20021128034829/http://www.bizjournals.com/washington/stories/1997/02/03/daily1.html. Washington Business Journal. November 28, 2002. February 3, 1997. March 6, 2024.
2. Web site: L3 TECHNOLOGIES, INC. ANNUAL REPORT ON FORM 10-K For the Year Ended December 31, 2016 . United States Securities and Exchange Commission . XBRL . February 23, 2017 . live . https://web.archive.org/web/20170910172716/https://www.sec.gov/Archives/edgar/data/1039101/000156761917000284/0001567619-17-000284-index.htm . September 10, 2017 . mdy-all .
3. Web site: L3 Technologies . Fortune . en-US . 2018-11-25 . February 9, 2019 . https://web.archive.org/web/20190209043821/http://fortune.com/fortune500/l3-technologies/ . dead .
4. Harris Corporation and L3 Technologies Set Closing Date for Merger . 3 July 2019 . Harris . 21 June 2019 . en.
5. "Company Profile ". L-3 Communications. Retrieved on March 10, 2010.
6. http://www.l1id.com/pages/209-robert-v-lapenta "Robert V. LaPenta" L-1 Identity Solutions
7. Web site: History of L-3 Communications Holdings, Inc. – FundingUniverse. www.fundinguniverse.com. June 25, 2017. live. https://web.archive.org/web/20170703080242/http://www.fundinguniverse.com/company-histories/l-3-communications-holdings-inc-history/. July 3, 2017. mdy-all.
8. Web site: History - L-3 Link Simulation & Training. L3 Link Simulation and. Training. link.com. June 25, 2017. live. https://web.archive.org/web/20171223042701/https://www.link.com/about#our-innovation-heritage. December 23, 2017. mdy-all.
9. News: L-3 Communications completes acquisition of PerkinElmer detection-systems business. VisionSystems Design. June 18, 2002. June 20, 2016. live. https://web.archive.org/web/20160629170505/http://www.vision-systems.com/articles/2002/06/l-3-communications-completes-acquisition-of-perkinelmer-detection-systems-business.html. June 29, 2016. mdy-all.
10. Web site: L-3 Communications Acquires Ship Analytics, Inc. - Free Online Library. thefreelibrary.com. June 25, 2017. April 13, 2014. https://web.archive.org/web/20140413160028/http://www.thefreelibrary.com/L-3+Communications+Acquires+Ship+Analytics,+Inc.-a096647948. dead.
11. News: COMPANY NEWS; GOODRICH TO SELL ITS AVIONICS UNIT FOR $188 MILLION. The New York Times. January 30, 2003. August 7, 2017. live. https://web.archive.org/web/20170807153334/http://www.nytimes.com/2003/01/30/business/company-news-goodrich-to-sell-its-avionics-unit-for-188-million.html. August 7, 2017. mdy-all.
12. News: L-3 MAPPS Company details. naval-technology.com. January 8, 2011. live. https://web.archive.org/web/20100908032153/http://www.naval-technology.com/contractors/consoles/l-3-mapps2/. September 8, 2010. mdy-all.
13. "Web site: L-3 Communications -> Divisions -> TRL Technology . 2016-02-08 . live . https://web.archive.org/web/20110611123145/http://www.l-3com.com/divisions/overview.aspx?id=175 . June 11, 2011 . mdy-all . ." L-3 Communications. Retrieved on May 24, 2010.
14. Web site: L-3 could spend $1 billion of cash on hand for M&A . Reuters . 8 June 2022 . https://web.archive.org/web/20220608200913/https://www.reuters.com/article/us-aero-arms-summit-l3-deals-idUSTRE6883ZM20100909 . 8 June 2022 . 18 April 2010.
15. "https://web.archive.org/web/20160208083058/https://www.thalesgroup.com/en/content/thales-completes-sale-civil-fixed-wing-flight-simulation-business-l-3-communications." Retrieved on November 24, 2014.
16. News: Goodbye CTC Aviation, hello L3 Airline Academy - Pilot Career News. 2017-05-15. Pilot Career News. 2018-07-11. en-GB.
17. Web site: L-3 Acquires MacDonald Humfrey (Automation) Ltd | L-3 Communications . 2016-11-27 . live . https://web.archive.org/web/20161201132337/http://www.l-3com.com/press-release/l-3-acquires-macdonald-humfrey-automation-ltd . December 1, 2016 . mdy-all .
18. Web site: L3 Acquires Open Water Power, Inc.. businesswire.com. May 22, 2017. June 25, 2017. live. https://web.archive.org/web/20170625174520/http://www.businesswire.com/news/home/20170522005738/en. June 25, 2017. mdy-all.
19. Web site: L3 Acquires Open Water Power, Inc. | L3 Technologies . June 18, 2017 . May 13, 2018 . https://web.archive.org/web/20180513081427/https://www.l3t.com/press-release/l3-acquires-open-water-power-inc . dead .
20. Web site: Batteries that "drink" seawater could power long-range underwater vehicles. mit.edu. June 15, 2017 . June 25, 2017. live. https://web.archive.org/web/20170624101318/http://news.mit.edu/2017/batteries-drink-seawater-long-range-autonomous-underwater-vehicles-0615. June 24, 2017. mdy-all.
21. Web site: L3 purchase of Ocean-Serer. April 4, 2017. https://web.archive.org/web/20171107025157/https://www.l3t.com/press-release/l3-acquires-oceanserver-technology. November 7, 2017. live. mdy-all.
22. Web site: L3 Strengthens Unmanned Maritime Capabilities With Acquisition of ASV Global. 2018-09-24. L3 Technologies. en. 2018-12-19. December 20, 2018. https://web.archive.org/web/20181220231043/https://www.l3t.com/press-release/l3-strengthens-unmanned-maritime-capabilities-acquisition-asv-global. dead.
23. Web site: Archived copy . October 15, 2018 . October 15, 2018 . https://web.archive.org/web/20181015231553/http://l3harris.mergerannouncement.com/wp-content/uploads/2018/10/Transaction-Press-Release-FINAL-1.pdf . dead .
24. L3 Chairman and CEO Michael T. Strianese Announces Plan to Retire; Board Elects Christopher E. Kubasik as CEO. L3 Technologies. July 19, 2017. live. https://web.archive.org/web/20170818091305/https://www.l3t.com/press-release/l3-chairman-and-ceo-michael-t-strianese-announces-plan-retire-board-elects-christopher. August 18, 2017. mdy-all.
25. Web site: L3 Technologies CEO to retire, COO to take over. Ahmed. Farhatha. July 20, 2017. Reuters. July 20, 2017. live. https://web.archive.org/web/20170720034728/http://www.reuters.com/article/us-l3-executives-idUSKBN1A504S. July 20, 2017. mdy-all.
26. L-3 Communications to Change Name to L3 Technologies, Inc.. L-3 Communications, Inc.. December 6, 2016. December 6, 2016. live. https://web.archive.org/web/20161215152520/http://www.l-3com.com/press-release/l-3-communications-change-name-l3-technologies-inc. December 15, 2016. mdy-all.
27. http://www.mapps.l-3com.com/orchid_power.html
28. Web site: Omni Secure Terminal . 2023-07-17.
29. Hodge, Nathan, "Spotlight On Private Firms At Pentagon", Wall Street Journal, June 12, 2010, p. 4.
30. Web site: Did IAF's 'US-made' C-130J Super Hercules that crashed have fake Chinese parts? . Rajghatta . Chidanand . March 30, 2014 . indiatimes.com . TNN . March 30, 2014 . live . https://web.archive.org/web/20140330202550/http://timesofindia.indiatimes.com/india/Did-IAFs-US-made-C-130J-Super-Hercules-that-crashed-have-fake-Chinese-parts/articleshow/32977838.cms . March 30, 2014 . mdy-all .
31. http://www.military.com/daily-news/2016/01/21/eotech-breaks-silence-over-defective-sights.html "EOTech Breaks Silence over Defective Sights"
32. http://www.military.com/daily-news/2015/12/02/us-optic-maker-settles-lawsuit-over-defective-rifle-sights.html "US Optic Maker Settles Lawsuit Over Defective Rifle Sights"