Harris to Repurchase $600 Million in Shares
(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.