Despite a tough government spending environment, restructuring actions and continuing progress on controlling costs provided solid bottom-line results for Harris Corporation (NYSE:HRS – $60.81). The international communications and information technology provider reported revenue in the first quarter of fiscal 2014 of $1.19 billion and income from continuing operations of $128 million, or $1.18 per diluted share, up from $1.14 in the first quarter of fiscal 2013. Analysts were anticipating revenue of $1.22 billion and EPS of $1.16. Orders in the first quarter were $1.2 billion and HRS generated free cash flow (net cash provided by operating activities less capital expenditures) of $139 million compared with $77 million in the prior year. Management also reaffirmed full-year guidance of $4.65-$4.85 on a 1%-3% decline in revenue, in line with consensus estimates of $4.74. The company should continue to benefit from federal and local agencies focusing on improving their telecommunications infrastructure, which should mitigate lower defense spending somewhat. Melbourne, Florida-based Harris generates strong cash flow to support returning value to shareholders by increasing its quarterly payout at an annualized rate of about 12% over the next few years and buying back stock. The current yield for HRS is 2.8% and the shares, at a 52-week high, can continue to be held in aggressive portfolios.