Harris Nets $26M in Q4

Harris Corporation reported fiscal 2002 fourth quarter net income of $26.6 million, or $.40 per share, which was in line with the company’s previous guidance. Prior-year fourth quarter earnings per share on a pro forma basis were $.37, which on a per-share basis excluded a $.32 gain on the sale of a minority interest in GE-Harris Railway Electronics, LLC, a $.19 write-down of marketable securities, and $.06 for amortization of goodwill. Revenues for the fourth quarter of fiscal 2002 were $497.6 million. The company reported strong results in its government, tactical radio, and broadcast businesses, while weakness in telecom equipment markets continued to depress sales of microwave and network support products.
The company’s Broadcast Communications segment reported sales of more than $100 million in Q4. Sales were down 11% compared to last year’s fourth quarter when some broadcasters were scrambling to buy equipment in advance of the FCC’s May 2002 deadline for TV’s conversion to digital standards. Harris said momentum continues to be positive in the TV digital transition. Sequential Broadcast Communications quarterly sales increased 7% while new orders increased 25%.
Income in the fourth quarter was 30% below the prior-year quarter, due to lower sales volume. During Q4, Harris was awarded contracts for several public broadcast stations and for affiliate stations with CBS, Media General Inc., and Granite Broadcasting Corporation to upgrade equipment to digital standards.