Harris Broadcast Posts Revenue Gain in First Quarter

October 31, 2008

Broadcast revenue was up 8 percent in the first business quarter at Harris Corp. compared to a year ago.

It said revenue in the Broadcast Communications segment was $158 million. "Sales of transmission systems increased at double-digit rates in the first quarter, driven by the over-the-air digital TV rollout in U.S. markets," the company said.

"The continuing global broadcast and media transition to digital and HD (high definition) operations drove higher year-over-year revenue for infrastructure and networking solutions, including multiviewers and video networking equipment. Media and workflow revenue was slightly lower than in the prior-year quarter, with stronger sales of server products offset by lower sales of automation and software systems." The financial report did not mention trends in radio broadcast business specifically and the company typically does not break those out.

The broadcast operation took $4 million in charges for cost-cutting actions that it expects will improve its operating performance; those actions included staff reductions, facility consolidations and supply chain and operations cost reductions.

"The segment continues to redirect spending to support expansion in growing international markets in the Middle East, Asia Pacific, Eastern Europe and Latin America," Harris stated, adding that it is "localizing more sales and marketing resources in international markets" and has also announced a number of products optimized for international applications, citing examples in TV and digital signage.

Overall, the parent company had revenue of $1.37 billion in its quarter ended Sept. 26, up 11 percent; net income was $119 million.

Chairman Howard Lance also described the company's financial position as "very strong," noting it had $345 million in cash and short-term investments and no long-term debt due until 2016 and a new revolving credit line. "Harris is in an excellent position to weather the current financial crisis," he said.

(Radio World)

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