Disclosure Case

The publicly traded company that is to be discussed in this paper is Exelis Inc. Exelis Inc. is a spinoff company originating from another company called ITT Corporation or International Telephone and Telegraph. Exelis Inc.’s name derives from the word “excel”, which means beyond or out in front. Just the origin of the name itself gives some description of what the company is aiming for. The name of the company also symbolizes spirit, commitment, exceptional foresight and strong communication to proactively anticipate and adapt answers to all customer’s most severe problems.

Exelis Inc. is divided amongst three divisions. These three divisions are a water technology company, a defensive segment, and continuation of ITT related business. Each division is a stand-alone entity. The descriptive analysis will be on the defensive segment called Exelis Mission Systems.

Exelis mission systems is a diversified defense technology and information solutions company. Exelis became a publicly traded company on October 3, 2011 led by David F. Melcher. The company trades on the New York Stock Exchange under the symbol of “XLS”. Exelis mission systems thrives on being a leader in command, control, communication, computers, intelligence, surveillance and reconnaissance related products and systems. The company’s main customers are governments and militaries.

Exelis mission systems releases three quarterly earnings financial statements a year. These financial records give great insight and vision on where the company has been and what the company is striving for. The statements are very detailed, and are reviewed by the chief officers of the company via conference call. During the conference call, the next quarter’s goals are discussed also.

The first quarter statements, which were revealed May 3, 2013 implicated that the company’s total revenue was at $1,185,000 by the end of March 31, 2013. The total revenue was actually down from the year before at the same period by $236,000. Operating income went down to $74,000,000 from $138,000,000. The organization’s net income was however, significantly down from the previous year by $26,000,000, dropping from $70,000,000 to $44,000,000. The mission systems division was able to reduce total current assets from $1,713,000 in 2012 to $1,638,000 in the first quarter of 2013.

Total non-currents assets were roughly the same, rounding out total assets to be $5,128,000, down almost a $100,000 from the year before. Current liabilities dropped by $78,000