Harris Corporation announced unaudited consolidated earnings results for the second quarter and six months ended December 29, 2017. For the quarter, the company reported revenue from product sales and services was $1,535 million against $1,449 million a year ago. Operating income was $272 million against $277 million a year ago. Income from continuing operations before income taxes was $229 million against $235 million a year ago. Income from continuing operations was $139 million against $163 million a year ago. Net income was $139 million against $177 million a year ago. Diluted earnings per share from continuing operations were $1.15 against $1.30 a year ago. Diluted earnings per share were $1.15 against $1.40 a year ago. Non-GAAP diluted earnings per share from continuing operations were $1.67 against $1.38 a year ago. Net cash provided by operating activities was $278 million against $252 million a year ago. Capital expenditure was $20 million against $28 million a year ago. Non-GAAP operating income was $284 million against $290 million a year ago.

For the six months, the company reported revenue from product sales and services was $2,948 million against $2,869 million a year ago. Operating income was $544 million against $523 million a year ago. Income from continuing operations before income taxes was $460 million against $438 million a year ago. Income from continuing operations was $306 million against $308 million a year ago. Net income was $300 million against $337 million a year ago. Diluted earnings per share from continuing operations were $2.52 against $2.45 a year ago. Diluted earnings per share were $2.47 against $2.68 a year ago. Net cash provided by operating activities was $373 million against $295 million a year ago. Additions of property, plant and equipment was $43 million against $49 million a year ago. Non-GAAP diluted earnings per share from continuing operations were $3.05 against $2.66 a year ago. Non-GAAP operating income was $556 million against $553 million a year ago.

As a result of the company's strong first half performance and benefits from tax reform, the company has updated its guidance for fiscal 2018 to the following: revenue in a range of $6.08 - 6.14 billion, up 3 - 4% from fiscal 2017 tightened from previous guidance of $6.02 - 6.14 billion, up 2 - 4%. Gaap eps from continuing operations in a range of $5.78 - $5.98 and non-gaap eps from continuing operations in a range of $6.30 - $6.50, an increase from previous guidance of $5.85 - $6.05 gaap and non-gaap. Free cash flow of approximately $900 million tightened from previous guidance of $850 - 900 million. Tax rate of approximately 28% gaap; 23% non-gaap, a decrease from approximately 28.5% previously, including a half-year benefit of 5 percentage points from tax reform.