05.03.2010 10:00 AM
Harris Plans Cost Reduction in Broadcast Division
MELBOURNE, FLA.: The broadcast division of Harris Corp. logged
a sequentially higher quarter, but weak U.S. performance is driving plans to
streamline the division, the company said in its quarterly release.
Revenues totaled $123 million compared to $117 million in F2Q10, but down from
$132 million a year ago. Orders for the segment were $130 million for fiscal
3Q10; up from $108 million a year ago, but lower than F2Q10 sales of $139
million. Operating loss was $5 million, as it was in F2Q10, and compared to
operating income of $2 million a year earlier.
“Operating performance for the segment is being impacted by a still relatively
weak U.S. broadcaster market and continued investment to pursue opportunities
in the international and new media markets,” Harris said. “Additional
cost-reduction actions will be implemented in the fourth quarter, which are
expected to improve operating performance and allow continued investment in
opportunity rich international and new media markets.”
The company went on to say that orders during the second and third quarters “suggest
that the market is bottoming and showing signs of improvement,” particularly
overseas. New orders during the quarter included two for $4 million from Abu
Dhabi and Rwanda. Cox Broadcasting placed a $12 million order for a traffic and
“New media growth initiatives--such as the in-arena network for the National
Basketball Association Orlando Magic that will combine IPTV and digital signage
and will merge broadcast technology with IT infrastructure--are beginning to
contribute to revenue,” the company said.
Harris reported combined revenues for its broadcast, RF and government
divisions of $1.33 billion compared to $1.21 billion a year ago. Income was
$166 million, or $1.27 a diluted share, compared to $126 million, or $1.02 a
share last year.
Shares of Harris (NYSE: HRS) were trading at $51.87, maintaining a 23 percent
jump in price since F3Q10 results were announced last Thursday. Harris today
a $13 million orders for its RF division today.
-- Deborah D. McAdams