10.31.2008 09:55 AM
Harris Broadcast Posts Revenue Gain in First Quarter
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.