Broadcast revenue at Harris grew 6 percent in the past quarter compared to a year earlier, to $164 million.
Operating margin was lower in broadcast, Harris said, due to higher manufacturing and supply chain costs; it expects margin to improve in the second half of its fiscal year.
The manufacturer cited growth in its Video Infrastructure & Digital Media businesses, the result of sales of high-definition servers, routing systems, graphics equipment and the launch of a new line of multiviewers. Software Systems also posted revenue growth, while transmission revenue was off.
“Demand for digital TV transmission systems is expected to be significantly stronger in the second half as broadcasters begin their final migration to comply with the February 2009 FCC mandate,” Harris stated. It did not report trends in digital radio in its quarterly financial summary.
Overall, parent company Harris Corp. reported revenue for the second quarter of $1.3 billion, an increase of 30 percent compared to a year earlier, though that growth includes acquisitions. Organic revenue increased 13 percent; sequentially, revenue increased 7 percent compared to the first quarter.
Chairman/President/CEO Howard Lance said he expects every segment to have higher revenue and better operating income in fiscal 2008, but: “Our improved revenue and earnings outlook for the fiscal year is largely being driven by increasing strength in our RF Communications tactical radio business.”