10.26.2010 10:00 PM
Harris Broadcast Posts Loss on Slightly Higher Revenues
MELBOURNE, FLA.: Harris Broadcast revenues rose during the company’s first
fiscal quarter of 2011, but the division still posted an operating loss
of $9 million. The division generated revenues of $122 million, up $3 million from a year
ago and $11 million sequentially. Orders improved from $124 million in F1Q10
and $111 million in F4Q10 to $135 million for the most recent quarter.
The $9 million operating loss included a $1 million restructuring charge. Harris
expects cost-cutting to generate a total charge of $5 million for the fiscal year.
“Results in the segment continue to reflect market weakness in the traditional
U.S. broadcast capital spending market,” said Harris chairman, president and
CEO, Howard Lance. “And also included are ongoing increased investments in
sales and marketing to address new media and international growth
opportunities. The 1:1 book-to-bill ratio in the quarter, along with
year-over-year revenue growth are both encouraging signs for the segment.”
Harris Broadcast won an $8 million contract during the quarter from Nine
Network Australia for a new play-out center that includes servers, multi-viewers,
routers, digital asset management and automation software. Another $4 million
deal was done with TPBS Thailand for Harris’s Integrated Broadcast Systems.
Australia’s Network Seven ordered $2.5 million in end-to-end file-based
play-out technology, and Saudi Television ordered $2.5 million in transmission
and HD studio gear.
Harris Broadcast, along with Lockheed Martin, last year scored a $29 million
defense contract to bring real-time video processing technology to the
battlefield. Lance said Harris continued to ship systems for the so-called
“Valiant Angel” program.
“But we also are developing and starting to ship lower-cost solutions in that
space. So we're not totally dependent just on the Valiant Angel program,” he
said. “There’s a lot of development going on in general, around providing
enhanced ISR database access and retrieval, and both Broadcast, in partnership
with our Government Systems division, are pursuing those opportunities.”
Harris Corp. reported consolidated revenue for
F1Q11 of $1.41 billion, up 17 percent from a year earlier. Organic
revenue growth was 10 percent after adjusting for acquisitions. GAAP net
income was $164 million, or $1.27 per diluted share, compared to $105 million,
or 79 cents a diluted share last year.
The company increased its forecast for full-year GAAP net income from $4.55 to
$4.65 to $4.75 to $4.85 a diluted share. Full fiscal 2011 revenues are forecast
to be between $5.9 billion and $6 billion.
Harris shares (NYSE: HRS) closed Monday at $44.83 and Tuesday at $45.83. Shares
are down about 4 percent year-to-date.
-- Deborah D. McAdams