Please note that today's presentation and webcast will include certain projections and statements that are forward-looking. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including those detailed on Slide 2 of this webcast presentation and, from time to time, in the company's Securities and Exchange Commission filings. These forward-looking statements are made as of today, and the company assumes no obligation to update any forward-looking statement.
With that, I'll turn the call over to Clay.
Clayton M. Jones
Thanks, Steve, and good morning, everybody. With the first and, I'd say, the most difficult half of our fiscal year complete, I'm pleased that the second quarter results came in just as we had expected. Even though second quarter revenue declined 5% from last year as headwinds facing Government Systems were only partially offset by growth in Commercial Systems, net income rose 7%, resulting from a 90-basis-point increase in operating margins and a lower tax rate. The increased net income, when combined with the share repurchases year-to-date that reduced our outstanding shares by 5%, resulted in earnings per share of $1.09, which is up 14% increase from last year.Now looking a little deeper into the results of our 2 businesses, we saw our performance continue to improve in Commercial Systems, with revenue growth across both market segments. In the air transport market, the robust backlog at Boeing and Airbus is enabling both OEMs to increase production rates. In addition, Boeing continues to ramp up production for the 787 according to their latest schedule, and we've increased our 787 rates to 4 ship sets per month. In the air transport aftermarket, revenue growth is predominantly being driven by spares provisioning as the airlines that take initial deliveries of 787 and 747-8. So far, the 7 airlines -- sorry, so far 7 airlines have made their 787 sparing decisions regarding their products. There are 3 choosing to purchase spares directly, and the other 4 are choosing power-by-the-hour alternative for spares asset management. We expected a relatively even split between the 2 option, and that seems to be exactly how it's playing out.
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