IT 100 Special Report 2006 >



L-3 Communications



In 2005, L-3 Communications' shopping spree continued apace, with the defense contractor bolting on 11 companies, including Titan, an IT specialist it bought for $2.6 billion, its biggest single deal to date. That deal contributed to a 42% rise in revenue for the New York company, to $10.4 billion. L-3 knows how to get its money's worth, too, posting a strong 11.6% return on equity. Of course, selling communications, simulators, and maintenance to the armed forces during two wars has helped. In 2006, the deals continue—for a total of six so far—but the sudden death of founding CEO Frank Lanza has left Wall Street speculating the company itself may soon turn into takeover bait.

Company Info

2005 Rank


($ Millions)


Sales Growth
(over prev. year)

42 %

($ Millions)


Return on Equity

11.6 %

Total Return on Sales (12-mo.)


Share Price
As of 5/31/06




No. of Employees


Industry Communications Equipment
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

L-3 Communications Holdings provides intelligence, surveillance, and reconnaissance (ISR) systems; secure communications systems; aircraft modernization; training; and government services. The company operates through four segments: command, control, communications, intelligence, surveillance and reconnaissance (C3ISR); government services; aircraft modernization and maintenance; and specialized products. The C3ISR segment provides strategic and tactical signals intelligence systems; secure data links; secure terminal and communication network equipment and encryption management; communication systems; intelligence solutions; technical and management services; and specialized fleet management sustainment and support, and maintenance for signals intelligence and ISR special mission aircraft and airborne surveillance systems. The government services segment offers communications systems support; and services, including engineering, information technology, teaching and training, and intelligence support and analysis services, as well as marksmanship training systems and services. The aircraft modernization and maintenance segment provides specialized aircraft modernization and upgrades, and maintenance and logistics support services. The specialized products segment offers a range of products, including components, subsystems, and systems; naval warfare products; naval power distribution, conditioning, switching, and protection equipment; security systems for aviation and port applications; antennas and ground based radomes; and airborne traffic and collision avoidance systems. The company also supports Homeland Security initiatives with products and services. Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies, and aerospace prime contractors. The company was founded in 1997 and is headquartered in New York City.

Data provided by Capital IQ
Michael T. Strianese

Michael T. Strianese

Interim Chief Executive Officer

Total Compensation


Michael Strianese has been interim chief executive officer of L3 Communications Holdings since June, 2006, and chief financial officer since March, 2005, he also serves as senior vice-president and corporate ethics officer. From 2001, until March, 2005, Strianese was senior vice-president, finance, of L3 Communications Holdings and served as its principal accounting officer. He joined L3 Communications in April, 1997, as vice-president of finance and was L3 Communications's controller until July, 2000. From April, 1996, when Loral was acquired by Lockheed Martin, until April, 1997, Strianese was vice-president and controller of Lockheed Martin's C3I and systems integration sector. From 1991 to the April, 1996, acquisition of Loral, he was director of special projects at Loral. Previously, he was with Ernst & Young. Strianese is a certified public accountant.

Executive Data provided by Capital IQ