Harris CEO: Broadcast Results Disappointing

Harris Corp. said its net income grew 31 percent in the first quarter of its fiscal 2004, and revenue increased 24 percent. It credited “continuing strong performances” in government-related businesses.
However, the company’s chairman, president and CEO, Howard L. Lance, described first-quarter results in the Harris Broadcast Communications segment as “disappointing.”
“There is still weakness in many of our commercial markets and, as a result, visibility is limited,” he stated. “Cost-reductions implemented in our commercial businesses during fiscal 2003 are having a positive impact on fiscal 2004 operating results.”
The Broadcast Communications segment reported sales of $58.4 million in the quarter, a 14 percent decline from the prior-year quarter.
“This tends to be a seasonally weak revenue quarter in our Broadcast segment; however results were clearly disappointing, especially in our studio products and systems business,” Lance said. “Capital spending by both TV and radio broadcasters did not pick up during the first quarter.”
DTV equipment sales remain weak, he said, although that was partially offset by increased shipments of international analog radio transmitters.
Overall, he said, the company is “off to a very good start in our first fiscal quarter.”