Harris Corporation Reports Fourth Quarter
Results
August 13, 2009
Source: Harris Broadcast
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Harris Corporation revenue for the fiscal 2009 fourth quarter
ended July 3, 2009, was $1.29 billion, an increase of 4 percent
compared with $1.25 billion for the fourth quarter of fiscal
2008.
GAAP operating loss from continuing operations in the fourth
quarter of fiscal 2009 was $84 million, or $.64 per diluted
share. GAAP income from continuing operations in the prior-year
quarter was $135 million, or $.99 per diluted share.
Non-GAAP income from continuing operations in the fourth quarter
of fiscal 2009 was $120 million, or $.91 per diluted share,
and excludes previously announced pre-tax charges of $256
million for a non-cash impairment of goodwill and intangible
assets in the Broadcast Communications segment and $10 million
for acquisition-related expenses. Non-GAAP income from continuing
operations includes charges of $22 million for cost-reduction
actions and $4 million related to the spin-off of Harris Stratex
Networks. A reconciliation of GAAP to non-GAAP financial measures
is provided in Tables 5 through 8, along with the accompanying
notes.
New orders booked in the fourth quarter were $1.29 billion.
Excluding acquisitions, new orders in the quarter were $1.25
billion, an increase of 22 percent compared with the sequential
third quarter, and essentially flat with a strong prior-year
fourth quarter.
"We saw a nice sequential rebound in orders in the fourth
quarter in each of the Harris operating segments — RF
Communications, Government Communications Systems, and Broadcast
Communications," said Howard L. Lance, chairman, president
and chief executive officer. "In addition, our Government
Communications Systems business was awarded two new long-term
contracts in the fourth quarter with a combined potential
value of $1.3 billion. The new contract wins, improving order
rates, and a solid pipeline of additional opportunities provide
us with increased confidence in our outlook for fiscal 2010.
As a result, we have raised the lower end of our range for
fiscal 2010 earnings and revenue guidance."
Results for Full Fiscal Year
Full-year revenue in fiscal 2009 was $5.0 billion, a 9 percent
increase compared with $4.6 billion in the prior year. GAAP
income from continuing operations in fiscal 2009 was $312
million, or $2.35 per diluted share. GAAP income from continuing
operations in the prior year was $454 million, or $3.33 per
diluted share.
Non-GAAP income from continuing operations in fiscal 2009
was $516 million, or $3.87 per diluted share, and excludes
fourth quarter charges of $256 million for a non-cash impairment
of goodwill and intangible assets in the Broadcast Communications
segment and $10 million for acquisition-related expenses.
Non-GAAP income from continuing operations includes charges
of $29 million for cost-reduction actions during the year
and $4 million related to the spin-off of Harris Stratex Networks.
Non-GAAP income from continuing operations in fiscal 2009
was 13 percent higher compared with non-GAAP income from continuing
operations in fiscal 2008 of $457 million, or $3.35 per diluted
share.
For the full year, the company generated cash flow from operations
of $667 million, an all-time high. Cash flow from operations
in fiscal 2008 was $556 million.
Broadcast Communications
Orders in the fourth quarter were $127 million, up sequentially
by 18 percent compared with $108 million in the third quarter
of fiscal 2009. Orders were down 29 percent compared with
$179 million in the prior-year quarter.
Fourth quarter revenue in the Broadcast Communications segment
was $130 million, a 25 percent decline compared with $174
million in the prior-year quarter, but was about flat compared
with $132 million in the third quarter of fiscal 2009. Operating
loss in the fourth quarter was $257 million. Non-GAAP operating
loss was $2 million and excludes the $256 million non-cash,
pre-tax charge for impairment of goodwill and intangible assets,
but includes $8 million in charges for cost-reduction actions.
Operating income was $8 million in the prior-year quarter
and $2 million in the third quarter of fiscal 2009.
Fourth quarter revenue declined in both U.S. and international
markets and across the product lines compared with the prior-year
quarter. Although significantly lower advertising revenue
in the broadcast industry continued to postpone many capital
investments, Harris continued to have success in deploying
its ONE™ Solution for interoperable workflows that depend
on IT-centric systems, integrated infrastructure, and enterprise
software.
Key ONE Solution wins in the fourth quarter included Meredith
Broadcasting in the U.S., CTV in Canada, Die Fernsehwert in
Germany, First Gulf in the Middle East, Century Sage Scientific
Group and Cimax International in China, and TV Banderantes
in Brazil.
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here for financial tables
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