INTEGRATED DEFENSE SYSTEMS (IDS), which
reported sales of $2.9 billion in 2003, emerged as an industry-leading
mission systems integrator during the year with major domestic
and international awards and solid performance on existing
contracts.
 In support of their customers, employees from IDS
deployed alongside U.S. soldiers during both Operation Enduring
Freedom and Operation Iraqi Freedom. Engineers and support personnel
volunteered to train military personnel on new equipment,
assist with repairs and provide logistics support for our military customers.
 The U.S. Navy awarded Raytheon a $1 billion contract for
the Cobra Judy Replacement Mission Equipment program. Under the
contract, Raytheon will replace the existing Cobra Judy, a surveillance
and data collection system that supports U.S. treaty monitoring activities,
with a dual-band radar suite consisting of X-band and S-band
active phased array sensors and other related mission equipment.
 Under a three-year $1.3 billion contract, Raytheon serves as the
electronics and weapons systems integrator for DD(X), the next
generation destroyer being developed for the U.S. Navy. During
2003, DD(X) passed critical milestones with the successful completion
of the Navy’s System Requirements Review, and major ship subsystems
successfully passed Preliminary Design Reviews on
schedule.
 Late in the year, Raytheon was selected by the U.S.
Army to enter into negotiations for development of the Surface-Launched AMRAAM air defense system, SLAMRAAM , that will
provide air defense capability against the emerging cruise missile
threat, tactical ballistic missiles, unmanned aircraft and helicopters.
 The U.S. Missile Defense Agency awarded Raytheon a $350 million
contract to design, integrate and test a forward-deployable Ballistic
Missile Defense System radar. The radar will be a transportable, X-band,
phased array radar with sufficient sensitivity to detect, track and
discriminate threat missiles.
 Raytheon’s radar and integration
expertise was rewarded when the U.S. Space and Missile Defense
Command awarded the company an $894 million contract to produce
two Joint Land Attack Cruise Missile Defense Elevated Netted
Sensor systems. The systems will be used to counter the growing
cruise missile threat.
 Major international awards included a U.S.
Navy Foreign Military Sales contract from the Royal Australian Navy
to develop five Combat Control System Mk 2 weapons control systems
for the Australian Navy’s Collins-class diesel submarines.
 Raytheon also received a contract for 24 Mk 54 torpedoes,
demonstrating a renewed commitment by the U.S. Navy to the U.S.
industrial base for torpedoes and reinforcing Raytheon’s position as
the sole U.S. supplier of lightweight and heavyweight torpedoes.
 During 2003, Raytheon completed the acquisition of Solipsys
Corporation of Laurel, Md., a specialist in DoD data integration
and display.
 Combining world-class people with flawless performance,
strong customer relationships and innovative solutions,
Raytheon Integrated Defense Systems is defining its position as a
mission systems integrator of choice.
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