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Harris Broadcast Revenue Down in Q3 - Radio World

Harris Broadcast Revenue Down in Q3

Harris Broadcast Revenue Down in Q3
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The Broadcast Communications segment of Harris Corp. reported revenue of $75.9 million in its third quarter, compared to $93.3 million in the same period a year earlier. Operating income was $2.5 million.
"Revenue was lower as U.S. TV broadcast stations delayed planned capital spending," Harris stated. "Coverage of the war in Iraq has temporarily disrupted programming and, consequently, reduced advertising revenues and increased operating costs. As a result, many digital studio upgrades and automation projects were put on hold."
Also, the company said, comments by the FCC that it is considering extending the timetable for digital upgrades to full-power requirements "are dampening near-term capital spending for additional digital television transmission equipment."
A company executive said Harris expects a "gradual resumption in capital spending" as broadcaster advertising revenues improve. "In the meantime, we will implement plans to reduce costs and improve profitability at the current level of business."
The company's latest financial statement also mentioned recent sales of transmitters and exciters to a number of U.S. radio stations making the transition to digital.
For the company overall, Harris Corp.'s third quarter revenue climbed 12 percent to $538.9 million. Its government communications and RF communications businesses were particularly strong.
For the first three quarters combined, Harris revenue was $1.51 billion, an increase of 10 percent. Net income was $58.8 million, compared to $56.0 million in the first three quarters of fiscal 2002.

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