Kollsman Fine to Cost Elbit Systems Most of Q2 Profit

Last month a court in Memphis, Tennessee ruled against Kollsman in a suit filed by Innovative Solutions and Support.

Nathan Sheva
Nathan Sheva

Defense electronics developer Elbit Systems has made a second-quarter profit thanks to increased revenues from contracts with short delivery dates - but it won't get to keep the money.

Most of the earnings will have to be set aside for damages imposed by an American court following a conviction for the improper use of commercial secrets by subsidiary Kollsman.

Elbit Systems says it hopes it profits will be up by between $8 million and $11 million over the $700,000 loss recorded for the second quarter last year, but the net impact from the $23.2 million court ruling is $10 million.

Last month a court in Memphis, Tennessee ruled against Kollsman in a suit filed by Innovative Solutions and Support, concerning two models of computers installed in planes used in civil aviation.

The ruling includes direct damages and exemplary damages because the court determined that Kollsman's actions were deliberate. Kollsman plans to appeal the decision.

Elbit Systems will be publishing its financial statement for the second quarter of 2008 on August 12.



Automatic approval of subscriber comments.

Subscribe today and save 40%

Already signed up? LOG IN


Yair Lapid.

Yair Lapid Is the Most Israeli of All

An El Al jet sits on the tarmac at John C. Munro International Airport in Hamilton, Thursday, in 2003.

El Al to Stop Flying to Toronto, Warsaw and Brussels

An anti-abortion protester holds a cross in front of the U.S. Supreme Court in Washington, D.C.

Roe v. Wade: The Supreme Court Leaves a Barely United States

A young Zeschke during down time, while serving with the Wehrmacht in Scandinavia.

How a Spanish Beach Town Became a Haven for Nazis

Ayelet Shaked.

What's Ayelet Shaked's Next Move?

A Palestinian flag is taken down from a building by Israeli authorities after being put up by an advocacy group that promotes coexistence between Palestinians and Israelis, in Ramat Gan, Israel earlier this month

Israel-Palestine Confederation: A Response to Eric Yoffie