Harris Write-Down Results in Loss on Higher Revenues
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 Melbourne, Fla., communications giant posted a net loss of $38.6 million for the quarter, 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 piece 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.
Harris sold more transmission systems in the quarter, “driven by the over-the-air digital TV transition in the U.S. and Brazil,” the company said. Infrastructure and networking solutions and workflow software was strong internationally, but offset by weak demand in North America
“Weak economic conditions in the U.S. have prompted many broadcast and media customers to delay capital spending,” Harris said in its results release.
Orders in the United States “slowed significantly” during the first half of Harris’s fiscal 2009, ending Jan. 2, 2009. Conditions are expected to persist “during the next several quarters.”
The international picture is rosier for Harris, which has several large projects in the works, including orders for its ONE solution from Qatar, Iraq, India, Australia, Lebanon, Turkey, Nigeria, Russia, Bulgaria, Slovenia, Italy, Germany, Belgium, Switzerland, and Mexico.