12 juin 2020 | International, C4ISR

Year two post merger, L3Harris looks toward $1B more in divestitures

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WASHINGTON — One year post merger, L3Harris is a third of the way to its goal of shedding roughly $1.5 billion of the company, with COVID-19 slowing progress, said its two top executives in an interview with Defense News.

About $500 million in business has been divested since June 2019, when Harris and L3 Technologies combined into a single, $17 billion company. That total came by way of three deals that shed the EOTech business, the night vision business, and the security detection and automation businesses.

“Out of the gates, we were really running at this,” said CEO Bill Brown, who noted in previous interviews the audacious goal for divestitures of 8-10 percent of total revenue. “We continue to make progress on others, but obviously with the COVID crisis and the financial impacts of that, it's moved some opportunities to the right.”

The sale of the security detection and automation businesses to Leidos for about $1 billion will ultimately be one of if not the biggest divestiture for the company, said Brown, who declined to point to any specific portions of business as currently up for sale or likely to be shed.

Thus far divestitures have been driven either by overlap created by the merger — which subsequently raised the alarm bells of regulators — or by a desire to focus the portfolio even more to become what Brown described as a “powerhouse C4ISR company.”

Brown stopped short of stating any intention to exit the commercial or federal business altogether — even as the former took a significant hit from pandemic fallout: Commercial revenues are expected to be down around 35 percent organically for the year.

Also likely to suffer from the COVID-19 pandemic is international business. Foreign sales, which account for 20 percent of total revenue, will likely remain flat, versus the increase in low to mid-single digits previously expected.

“We identify that as an area where we think we can outperform,” Chris Kubasik, L3Harris chief operating officer, said during the interview. “Clearly the global pandemic applies some pressure, especially in the Middle East with the prices of oil and all the countries having their own bailouts or stimulus plans. Just like the U.S., I think the situation is going to call into question how those countries deal with defense going forward. It's going to be one of these areas that we need to monitor, and are probably going to have to take market share to grow.”

An inability to travel has, however, opened doors to new ways of doing business around the world. Kubasik pointed to a particular deal with a customer in a Far East country that was negotiated via Skype.

“Nobody's really closed for business,” he said. “We've just got to be creative and do it differently. You feel pretty good when you do a one- or two-hour Zoom [video conference], where in the old days it would have taken four days by the time you flew to the country, cleared customs, got a good night's rest, held a meeting, met again and flew back.”

For L3Harris, year two post merger will focus on the remaining $1 billion in divestitures and see a continuation of company integration. In the longer term, those efforts will set the company up nicely for additional acquisitions, which Kubasik called “a clear expectation” for spurring growth.

And C4ISR is the area that will likely be the focus of potential buys.

“The value of those capabilities and technologies will be even greater in the future in a near-peer competition,” Brown said. “It's not the platforms, but what the platforms do and how they interoperate that requires networks and new ways of communicating, which is in the sweet spot of the company. So I would imagine that anything we would do through acquisition would happen in that broad C4ISR domain.”

But for now, he added, the company is focusing on “the basic fundamentals."

"And if we do that really well, then we build credibility to go and do another acquisition, another merger over time. The key is earning the right to do that — building the credibility and the muscle to go down that path, and that's what we're doing today.”

https://www.defensenews.com/industry/2020/06/11/year-two-post-merger-l3harris-looks-toward-1b-more-in-divestitures/

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  • 3-D Scanning Technology Makes Splash at NNSY Thanks to Partnership with Puget Sound

    1 août 2019 | International, Naval

    3-D Scanning Technology Makes Splash at NNSY Thanks to Partnership with Puget Sound

    By Kristi Britt, Public Affairs Specialist, PORTSMOUTH, Va (NNS) -- Although they have only worked at Norfolk Naval Shipyard (NNSY) for less than 10 months, two employees are already involved in the future of innovative technologies in America's Shipyard. Code 268 Engineering Technician Jason Ewick and Code 2340 Assist Shift Test Engineer (ASTE) Joey Hoellerich were brought into the NNSY Technology and Innovation (T&I) Lab, a group dedicated to bringing the real ideas and technologies of the shipyard to the forefront. With their arrival to the team, both were given the unique opportunity to share knowledge with Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS&IMF), using laser scanning to provide accurate measurements for shipboard work. “The USS Dwight D. Eisenhower (CVN 69) was at NNSY in years past, Naval Air Systems Command (NAVAIR) brought Puget Sound representatives to our shipyard to use their laser scanning technology to cut off all added material from four sponsons onboard the vessel,” said NNSY T&I Lab Lead Dan Adams. Sponsons are the projections extending from both sides of the watercraft to provide protection, stability, mounting locations, etc. “During the time, we observed the process and wanted to learn what we could from our sister shipyard team.” The team from PSNS&IMF returned to NNSY to give guidance on the process, with Code 290 representative Dan Hager, and Shop 11 Mold Loft representatives Jason Anderson and Jeremiah Swain taking charge in sharing what they knew to Ewick and Hoellerich. “The team from Puget was absolutely amazing and shared the ins and outs of the 3-D scanning technology with us,” said Ewick. “I had done laser scanning work in the private industry but it was my first time tackling something like this. Hager, Anderson, and Swain guided us through each step, sharing as much knowledge as they could with us about two different processes we could use to get the results we needed.” The first process is photogrammetry, where you place targets an inch apart on a desired object or space for scanning. Once complete, you take multiple photographs which are then compiled into a software to build the 3-D model. The second process is the 3-D laser scanning, which requires more space for a larger read. The targets would be placed and then someone would operate the laser tracker and scanner from the pier to get the scan needed. Once completed, the 3-D model would be compiled in the software for use. With the knowledge provided by PSNS&IMF and USS George H.W. Bush (CVN 77) in drydock, Ewick and Hoellerich were ready to tackle the process for NNSY. “We began at Colonna's Shipyard in Norfolk where the sponsons are being produced,” said Ewick. “We use the scanning technology to analyze where the sponson would meet the shell of the ship. It helps provide an accurate measurement for our workers when it comes to installation and repair.” Next up was scanning after the pieces were installed. At this time three of the four sponsons have been installed onboard the Bush. “The two forward sponsons were scanned using photogrammetry,” said Ewick. “It was a first for us and required coordination across various shops and codes throughout the shipyard.” The Pipefitter Shop (Shop 56), The Optical Diesel Mechanics (Shop 38), the Shipfitter Shop (Shop 11), the Shipyard Operations Department (Code 300), and partners at Puget all played a part in this evolution. “It was a collaborative effort and we were able to be successful thanks to our shipyard family coming together to make it happen.” This process was a first for NNSY and a first for using the software directly in the drydock instead from piers and barges. “It's amazing to see something come together like this, especially when you think that we were two blank slates coming into the project,” said Hoellerich who had no prior experience working with 3-D scanning and metrology before joining the lab. “We were able to partner with our sister shipyard and work with shops and codes that I never thought I'd be able to do when I first joined the ranks of NNSY. Being able to gain that knowledge from our shipyard family and utilize what we've learned in the field is something those of us working in innovation live for.” The team will be completing the rear scans for the Bush in the future and hope to continue to perfect the process. In addition, they hope to continue to work with other shipyard entities to further expand on the technologies of the future. “This partnership has been a major success for us and we hope to continue to build those relationships with the other shipyards and beyond,” said Hoellerich. “We can all learn from each other and build from each other's experiences. We all share a mission and together we can succeed.” Ewick added, “we've also begun expanding more ways we can use the scanning technology at our shipyard. For example, we are looking into a future project where we scan inside the ship and build a path for extracting heavy equipment from within as to avoid interferences. We've seen more interest from others within the shipyard since we began to do work with this technology, seeing what ways it could help improve what we do here. That's what innovation is all about, taking those first steps in seeing what works. Even if what you try doesn't pan out, at least you gave it a shot. But you'll never know if it works or not unless you take that step. Don't be scared to try out something new.” For more information regarding innovation, contact the NNSY T&I Lab at 757-396-7180 or email the REAL Ideas program at NNSY_REALIdeas@navy.mil. https://www.navy.mil/submit/display.asp?story_id=110422

  • Cyberthreat intelligence firms sells for $780M

    3 juin 2019 | International, C4ISR

    Cyberthreat intelligence firms sells for $780M

    By: Kelsey Reichmann Insight Partners, a leading global capital and private equity firm, has acquired Recorded Futures, an intelligence solution company that has made its name in the cybersecurity world in recent years by providing threat intelligence. The cash deal is for $780 million. Recorded Future focuses on information related to public, private, and open source data associated with cyber intrusions. Insight had made a previous investment in the company. Recorded Future claims to be the largest privately held threat intelligence software in the world. The company has ties to the defense and intelligence communities. Recorded Future was awarded a Defense Innovation Unit contract in September 2017. In-Q-Tel, the intelligence community's investment arm, had made an initial investment in the company in 2010. “We have relied heavily on a unique blend of focused data science concepts, advanced machine-enabled collection, and intelligence subject matter expertise, always with an eye toward the usability of the intelligence that we present to our clients — be it government agencies, large corporations, or forward-leaning companies,” said Christopher Ahlberg, co-founder and CEO of Recorded Future, in a May 30 press release. “This deal represents one of the largest security software transactions of the year, and the largest ever in the threat intelligence space. Insight's renewed commitment to our future validates the path that we are on and lays the foundation to drive our collective requirements forward." https://www.fifthdomain.com/industry/2019/05/31/cyberthreat-intelligence-firms-sells-for-780m

  • France’s new cyber defense ‘conductor’ talks retaliation, protecting industry

    1 octobre 2019 | International, C4ISR, Sécurité

    France’s new cyber defense ‘conductor’ talks retaliation, protecting industry

    By: Christina Mackenzie PARIS — Maj. Gen. Didier Tisseyre is France's new cyber defense force commander — the “conductor” of an orchestra made up of military officials and the domestic defense industry, as he puts it. Cyber Defence Command was created in 2017 and was expanded in January when Armed Forces Minister Florence Parly announced France will develop and deploy offensive cyber weapons. Tisseyre took on the lead role Sept. 1 from his predecessor and most recently served as the deputy to that former commander. He spoke to Defense News earlier this month in a meeting room at the Armed Forces Ministry. What is your role as the head of Cyber Defence Command? I am a conductor, and my orchestra is made up of the Army, Navy and Air Force chiefs of staff, ANSSI [France's National Agency for the Security of Information Systems], and defense industry leaders. We must protect our systems, be robust, be resilient because if France's vital interests are attacked, then the armed forces must be able to react. Our weapons systems, our command systems are all computer-controlled. This makes them powerful and effective but also vulnerable, so we must be able to protect them. And today this protection must be as global and end-to-end as possible. This means that everyone in the Ministry of the Armed Forces must work together, and there must be a conductor to coordinate the protection and the defense of our interconnected networks. That is my job I have a staff and a number of specialized units who contribute to this defense and coordinate it. But within each armed force — the Navy, the Army, the Air Force — there are cyberwarriors who liaise with us to defend their systems. We work very closely with ANSSI, exchanging information so that we can anticipate future attacks. We also work closely with our fellow NATO members, our bilateral partners and other international organizations. The idea is to be able to anticipate and not just to react. What does France consider a top cyberthreat? Cyberspace is a very positive place for bringing people together and is wonderful for the economy, for arts and so on. But precisely because it brings thousands of people into contact with each other, it is also used to get money fraudulently, to influence, to destabilize, to spread ideologies. And even if we must maintain freedom of expression, there are certain things in France which cannot be said publicly — [incitement to ethnic and racial hatred, for example]. Our principle is that everything that happens in real life is transposable into cyberspace, so for France and many other countries, the law is just as applicable in cyberspace as it is in real life. But because there is a general impression that no rules apply in cyberspace, then individuals and groups use it for criminal activities, spying, destabilizing electoral processes. And the question arises as to whether these individual or groups are being backed by states. As a member of the armed forces, my duty is to be paranoid and assume that the cyber enemy may have a strong, state-backed criminal intent to prepare conflicts, and so that is what we must be prepared for. How do you anticipate the ways imaginative hackers will act? By hiring imaginative youngsters ourselves. Our cyberwarriors have to be extremely motivated to protect the ministry's systems and France, obviously. They must have very specialist IT technical or social media know-how, or be brilliant intelligence gatherers. A lot of what is said on social networks allows us to learn about our enemy, to anticipate possible attacks, or even enables us to hinder their propaganda, particularly on our theaters of operation in Africa or the Levant, for example, where part of our mission is to stop jihadist groups from recruiting. Our cyberwarriors have to have a particular frame of mind because we are not asking them to configure the network or equipment, we are really in a combat situation in cyberspace. We work on operations to defend or to undertake offensive actions to protect our systems, our freedom to act, to guarantee the sovereignty of our systems. Is France confronting specific threats that are different from those faced by other countries? Fundamentally, no, because we are all cyberattacked by people trying to block our computers, and attackers are becoming increasingly sophisticated in their ways of hacking. How does France respond? We must be prepared to react. But France considers that attributing an attack — notably where advanced persistent threats, [or APT], are concerned — is a very political, highly sensitive thing to do. APT can be the work of individuals seeking ways to make money, or being paid by others and potentially linked to intelligence services of other nations. If an organization such as NATO is attacked, then France is, by principle, against collective attribution. Each member of the organization must agree that the attacking individual or group is taking its orders from a state because attribution of blame, as I said, is highly political: You're designating a state as being responsible for attacking another one, and that has a very strong impact. You have to be able to prove it, and the state that has been blamed might not appreciate having the finger pointed at it. In the physical world when an aircraft crosses into another nation's airspace or a vehicle crosses a border, there is concrete proof: radar, photographs and so on. The difficulty in cyberspace is that it's very easy to pass oneself off as somebody else and to hide one's tracks; [just] because an APT is perpetrated by attackers physically present in one country, that [doesn't mean] they were taking their orders from that country. Here's an example to illustrate my point: They could use a server in Germany to send the data to the U.K., which then rebounds in France and finally attacks the United States. So Washington would try and work back to see where the attack came from and would eventually discover that it came from Germany, but that doesn't mean the order to attack came from Germany. In cyberspace, leads very quickly get entangled. So we really have to be extremely careful about a hack-back before thorough due diligence has been undertaken. What France wants is that each member state validates the blame before the finger is pointed. We are against the idea that just because one member blames a state for attacking it, that NATO takes it as a given and invokes Article 5 of the NATO treaty, [which calls for collective action if a member state is attacked]. What would happen if France is attacked? It depends. If France thinks that the attack came from a state and wants a collective reaction from NATO, then there'd be a whole lot of discussions about the risk of escalation, Article 5, the right to self-defend and so on. These notions involve significant commitments for countries, and so we want things to be clearly defined where cyberspace is concerned: What is an attack? Who was targeted? What are the consequences of the attack? Did it touch the physical integrity of nationals of the country? Were the operating systems of a hospital or a power station impacted? We want to take into account the economic or human impact of the attack and the nature of the attacker: Was it an individual having fun? Was it a group, and what were its motivations? Was it a jihadist group with terrorist intent, or was it outright a state pre-positioning itself for future conflicts or trying to wield influence? France wants things to be clear. We want to establish how international laws apply to cyberspace, and as I mentioned earlier, we insist on due diligence. Could you explain what you mean by “due diligence”? If, for example, France sees that it has been attacked via a server in Germany, then “due diligence” means that instead of us simply hacking Germany back, we would ask the authorities in Berlin to act to stop that server being used. So even if, within NATO, a member state is attacked, then France holds that that state is not authorized to hack back without due diligence being undertaken first. It's a bit complex, but we've listed the types of attack, the principle of digital sovereignty, the references to the Tallinn Manual — [the independent academic research product authored by an international group of about 20 experts to guide how international law applies to cyber conflicts and cyberwarfare]. And we've positioned ourselves with regards to this, and in certain particular cases have said, “Be careful, our interpretation of X is slightly different for these reasons,” and we explain why. We also explain that we consider an attack on information systems in France is an attack on our national sovereignty. That gives us the right to riposte, not necessarily in a cyber way but it could be a diplomatic response or an economic one ― it depends on the nature of the attack and the impact it has and on the attacker himself, what his motivations were and in what framework the attack took place. How does the ministry work with industry? The ministry knows how to defend itself, and we have the right, within a very strict framework, to undertake offensive cyberattacks in foreign operations. The attacker knows that a direct attack on us is thus likely to fail. So he will ruse. He'll attack the weak link: the defense industry, notably the subcontractors that may only make a small component of a weapon or an IT system. He'll put a virus or malware in that subcontractor's system, and it will progressively make its way into the major contractor's system and then into the weapon system. And as all these are interconnected, then this is how we would be attacked. So we need to have confidence in the entire supply chain, and we are on the verge of signing a convention with industry aimed at raising general awareness of this risk at every level of industry. France has allocated €1.6 billion (U.S. $1.8 billion) to cyber defense in its 2019-2025 military program law. What are the main spending priorities? To ensure that the system is protected and defendable. Until recently, we concentrated on the functionality of the system: what it was designed to do and who for (the Air Force, the Navy, the Army, etc.). And making the systems secure was an additional layer to the basic functions, so if funds ran out, then sometimes the layer would be only half done or had holes in it. Today we are aware that there is such vulnerability in computer systems that security has to be built in by design. It's part and parcel of the functionality of the system. We're also spending money on the detection of attacks. Our network has sensors in it to detect whether anyone is using the network who shouldn't be. We're working on the characterization of attacks, which means we're collecting data on malware — a bit like a laboratory that might keep a sort of library of viruses and bacteria — to be able to quickly establish what type of attack is being undertaken and therefore what the best “medicine” is for it. And of course we'll be hiring another 1,000 cyberwarriors between now and 2025. https://www.fifthdomain.com/international/2019/09/30/frances-new-cyber-defense-conductor-talks-retaliation-protecting-industry/

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