05.07.2009 03:25 PM
Harris Broadcast Revenues Dip
MELBOURNE, FLA.: Revenues for the broadcast division of Harris were down 17 percent for the company’s third fiscal quarter compared to a year ago. Revenues came in at $132 million versus $159 million last year. Operating income was $2 million compared to $7 million a year ago.
“The global recession and postponement of capital projects further weakened demand,” the company stated. “However, the impact of lower revenue on operating performance in the third quarter was mitigated by on-going cost-reduction actions.”
Harris said revenue declined in both U.S. and international markets and was lower “primarily as a result of declining sales in infrastructure and networking solutions where the impact of the global market softness was most significant. Transmission systems sales were modestly lower as a result of softness in the global radio market. Media and workflow sales were flat, with weakness in U.S. and international traffic systems, offset by higher sales of media server products.”
Harris noted that the broadcast division signed an agreement with the NBA’s Orlando Magic to create a media workflow in the team’s new arena due for completion next year. The network will combine IPTV and digital signage, and be designed around file-based technologies merging Internet and broadcast technologies.
The parent company this week reported net income for the quarter of $114 million, compared with $108 million a year ago. Revenue for the third quarter overall was $1.36 billion compared with $1.33 billion for the prior-year quarter. Orders came in at $1 billion, a 27 percent drop from last year attributed to fewer orders from the Defense Department for radio frequency technology.
Harris shares followed the rest of the market down in early trading this morning to around $29 after rising above $32 yesterday.