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Harris Beats the Street
8/13/2009

MELBOURNE, FLA.: Harris finished its fourth fiscal quarter with a loss of $156.4 million, but the stock price jumped on adjusted earnings. A one-time impairment drove the loss, which otherwise would have been income of $120 million, or 91 cents a share. Reuters analysts had Harris (NYSE: HRS) coming in with profit of 81 cents a share, excluding one-time items.

Shares of Harris leaped from around $30 yesterday to hold at about $35 today.

Combined revenues rose 4 percent to $1.29 billion for the quarter ending July 3. The one-time charge included $256 million non-cash impairment in the broadcast division, and $10 million in acquisition expenses.

Revenues in the broadcast division fell 25 percent to $130 million for the quarter compared to last year. Operating loss totaled $257 million, including the $256 million charge. Non-GAAP operating loss was $2 million without the charge, but including $8 million in charges on cost reductions. The division posted operating income of $8 million a year ago.

Orders for the division were $127 million, up from the previous quarter by 18 percent; down 29 percent compared to last year.

Harris posted income of $37.9 million, or 27 cents a share, on revenues of $5 billion, for the full fiscal year. Income the previous year was $444.2 million, on revenues of $4.6 billion.

More TVB coverage of Harris results:
May 5, 2009: Harris Broadcast Revenue Drops in Q3
"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."
February 5, 2009: Harris Broadcast Revenue is Flat in 2Q
Order momentum “slowed significantly in the U.S. market during the first half of fiscal 2009 and is expected to remain weak during the next several quarters. The outlook for international business is more positive, aided by several large project opportunities.” 
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