Harris Cuts Broadcast Loss
January 27, 2011
MELBOURNE, FLA.: The broadcast business at Harris showed signs of improvement during the second quarter of the company’s fiscal year. The division turned in revenues of $130 million for the fiscal quarter ending Dec. 31, 2010, up from $117 million a year earlier and $122 million in F1Q10.
Operating loss was $1 million compared to $5 million the year before. Both quarters included $1 million in one-time charges. Harris said aggregate cost-reduction charges for F2011 are still expected come in at around $5 million for the full year.
Orders in the broadcast segment were $134 million in the second quarter, compared with $139 million in a year prior and $135 million in the first quarter of fiscal 2011. Orders in the quarter included $4 million from CTV Television for transmitters to support Canada’s digital transition, $4 million from Mustafa Sultan Security Co. to build out a video distribution network, and $3.4 million from Viditec S.A. in Argentina to assist in the roll-out of digital television services throughout the country.
Harris said that “year-over-year and sequential revenue growth, near break-even operating results, and a book-to-bill ratio greater than 1.0 were all promising signs” for the broadcast business.
Consolidated revenues for the broadcast, government communications and RF divisions totaled $1.44 billion, up 18 percent over F1Q10. Net income was $151.1 million versus $139.5 million a year earlier. Earnings per diluted share were $1.18 versus $1.06.
Harris said it expects fiscal 2011 net earnings per diluted share to come in between $4.73 and $4.83, with revenues at the “high end of the $5.9 billion to $6 billion range,” up 15 percent over 2010. Harris had cash and equivalents of $740.8 million as of Dec. 31, 2010, and long-term debt of $1.876 billion.
Shares of Harris (NYSE: HRS) dipped briefly this morning before edging back up to around $48.32, down 47 cents from open. Year-to-date, the stock has gained nearly 7 percent, or around $3.
-- Deborah D. McAdams