10.28.2009 12:00 PM
Harris Broadcast Fiscal 1Q Revenues Down 25 Percent
MELBOURNE, FLA: The Harris Broadcast division generated $119
million in revenues for the company’s first fiscal 2010 quarter, ending Oct. 2,
2009. The total was down from $158 million during the same period a year ago,
and $130 million in 4Q09.
“Continued weakness in the first quarter was expected and reflects the global
economy and delayed capital spending by broadcast and media customers, as well
as seasonally slow spending, primarily in Europe and the Middle East,” Harris
said in its earnings announcement.
Orders for 1Q10 totaled $124 million, about even with 4Q09. Operating income
was $300,000 and was “achieved on substantially lower revenue as a result of
significant cost-reduction actions implemented during fiscal 2009.”
Harris said key program wins in the quarter included transmitters for DTV
networks in Rwanda and Mexico; Harris ONE systems for the Meredith Corp.
centralcasting hub in Phoenix and the Home Shopping Channel in South Korea; and
multiple orders for China Central Television. Harris also scored a contract
from Lockheed Martin to provide video systems for the U.S. Joint Forces
Command. The system will use Harris’s proprietary Full-Motion Video Asset
Management Engine to sort through files collected from aerial and ground-based
Combined revenues for Harris (NYSE:HRS) were $1.2 billion, compared with $1.17
billion for the first quarter of fiscal 2009. Net income was $105 million, or
79 cents a diluted share, compared with $119 million, or 89 cents per diluted
share a year ago.
Excluding acquisition-related charges, non-GAAP income from continuing
operations in was $109 million, or 83 cents per diluted share. New orders
totaled $1.5 billion.
The company increased its guidance for full-year, fiscal 2010 results “to
reflect much higher than expected tactical radio orders from the U.S.
Department of Defense and the positive impact on expected revenue and earnings,
said Howard L. Lance, chairman, president and CEO of Harris.
Harris now expects non-GAAP income from continuing operations for FY2010 to a
range of $3.85 to $3.95 per diluted share (GAAP $3.74 to $3.84), compared with
a previous range of $3.40 to $3.50 per diluted share (GAAP $3.25 to $3.40).
Revenue in fiscal 2010 is now expected to be in a range of $5.1 billion to $5.2
billion. Fiscal 2010 non-GAAP earnings guidance excludes acquisition-related
Harris finished the quarter with $231 million in cash and equivalents and $1.2
billion in long-term debt. Shares of Harris jumped 10 percent on the earnings
news, from closing yesterday at around $38 to trading at $41.75 mid-day today.
More TVB coverage of Harris results:
August 13, 2009: “Harris Beats the Street”
Harris finished its fourth fiscal quarter with a loss of $156.4 million,
but the stock price jumped on adjusted earnings.
1, 2009: “Harris Plans for Broadcast
As of the fiscal third quarter ended April 3, 2009, the book value of the
goodwill and other intangible assets in the Broadcast Communications segment
was $928 million. Harris expects to record a $250 million to $275 million non-cash
charge in fiscal 4Q09.
May 5, 2009: “Harris Broadcast Revenue
Drops in Q3”
“The impact of lower revenue on operating performance in the third quarter
was mitigated by on-going cost-reduction actions.”
February 5, 2009: “Harris Broadcast Revenue is
Flat in 2Q”
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