Harris to Repurchase $600 Million in Shares

March 2, 2009

(March 2, 2009) MELBOURNE, FLA.: The board of directors of Harris has approved another $600 million share repurchase, on top of another for an equal amount. Around $50 million remains authorized on the first $600 million repurchase.

Harris (NYSE: HRS) will fund the repurchase with available cash. Cash and equivalents on hand as of Jan. 2 totaled $352.7 million. Cash flow was $189.3 million.

Harris also declared a quarterly cash dividend of 20 cents a share on common stock payable March 18 to shareholders of record as of March 9.

Harris Corp. generated revenues of $1.51 billion for its second quarter of fiscal 2009, an increase of 16 percent over the year-ago period. The company posted a net loss of $38.6 million, compared to a profit of $114.3 million a year ago. The results include a $182.5 million write-down on intangibles related to Harris’s 56 percent share of Stratex Networks.

Second-quarter revenue in the Broadcast Communications segment was flat compared to the previous year, at $163 million. Operating income was $12 million at a 7.4 percent margin, compared to $8 million the previous year.

Shares of Harris dipped from more than $37 on Friday’s close to beneath $34 in mid-day trading Monday, following a trend in the wider market, as the Dow dipped below 7000 for the first time in 12 years. 

Receive regular news and technology updates.
Sign up for our free newsletter here.