Harris Broadcast Revenue Is Flat in Q2
February 5, 2009
Harris reported that broadcast revenue in its second financial quarter was $163 million, flat compared to the same three months of last year.
“Operating income in the second quarter of fiscal 2009 was $12 million and operating margin was 7.4%. Segment operating performance improved in the second quarter as a result of cost reduction actions taken over the past several quarters. In the prior-year quarter, operating income was $8 million, and non-GAAP operating income, excluding acquisition-related costs, was $10 million.”
The company, which does not break out TV vs. radio revenue within the broadcast division reports, said sales of transmission systems increased, helped by the over-the-air digital TV transition in the United States and Brazil. “Strong sales of infrastructure and networking solutions and media and workflow software in international markets were more than offset by weak market demand in the North America market. Weak economic conditions in the U.S. have prompted many broadcast and media customers to delay capital spending.”
It said order momentum “slowed significantly in the U.S. market during the first half of fiscal 2009 and is expected to remain weak during the next several quarters. The outlook for international business is more positive, aided by several large project opportunities.” It said Harris has recently received significant orders in Qatar, Iraq, India, Australia, Lebanon, Turkey, Nigeria, Russia, Bulgaria, Slovenia, Italy, Germany, Belgium, Switzerland, and Mexico.
Overall, parent Harris Corp. reported revenue of $1.52 billion in the second quarter, an increase of 16%. However it posted a net loss of $38.6 million, citing a financial charge related to subsidiary Harris Stratex Networks. In December the company said it is “evaluating strategic alternatives” related to its ownership of Harris Stratex. Excluding that charge, Harris overall reported non-GAAP net income in the second quarter up 24 percent. “We are very pleased with the strong year-over-year organic revenue growth and operating performance in the second quarter,” said Chairman Howard L. Lance, chairman, president and chief executive officer.