Harris Reports Earnings, Plans to Move U.K. Transmitter Production
August 2, 2005
In its announcement of fiscal year 2005 fourth quarter earnings, Harris reported revenue in its Broadcast Communications segment increases to $114.6 million compared to $89.1 million in the prior year quarter. Operating income increased from $3.9 million in the prior year quarter to $7.9 million in 2005. The announcement said revenue drivers included increased sales of HD Radio transmission equipment and an increase in U.S. DTV transmitter sales as broadcasters worked to meet FCC full power deadlines. However, Harris experienced softness in the international market for both analog and European-standard digital broadcast equipment.
One of the cost reduction actions Harris would take in the first quarter of fiscal year 2006 would be to move European-standard transmitter production from the Huntingdon, U.K. facility to the Harris facility in Quincy, Ill. The company also plans to move radio console assembly and related products from its Mason, Ohio facility to an outside supplier. These actions were taken to address international market weakness and further improve profitability. When combined with other cost reduction actions, these actions could result in the elimination of 150-200 positions within the broadcast division. I visited the Huntingdon facility near Cambridge 16 years ago, before Harris bought TVT, to see its progress on building one of the first MSDC klystron transmitters. I found a wonderful group of people working there and I wish them well!
For information on other Broadcast Communications departments affected and Harris earnings in other segments, refer to the announcement of fiscal year 2005 fourth quarter earnings. Also see the TV Technology News Bytes article Harris Finishes Fiscal 05 with Revenue Up, Cost Cuts Planned.