Harris Q2 Revenue Climbs 16%

Harris Corp. reported that second quarter fiscal 2003 revenue climbed 16% to $523.9 million, compared to $451.5 million in the second quarter of the prior year. According to a statement released by the company, Harris cites accelerating growth in Harris’ two government businesses and better-than-anticipated improvement in the company’s microwave business for the uptick. New orders were higher than sales, according to the company.
Second quarter net income was $16.3 million or $.25 per share.
The company’s broadcast-related division reported segment sales of $94.2 million, a 19% increase over the prior-year quarter. New opportunities
materialized in international markets, including China, Germany, Romania, and the Middle East. During the second quarter, Harris won international contracts for analog transmission, automation, and studio integration products and services, and received a $64 million order for the radio broadcast infrastructure of S.N. Radiocomunicatii S.A., Romania’s state-owned broadcast organization.
Harris officials said TV digital equipment sales in the U.S. increased modestly compared to the prior-year quarter. While there was some recovery of average selling prices for digital transmitters compared to the first quarter of fiscal 2003, smaller-market broadcasters continued to install the minimum amount of equipment necessary to temporarily comply with the FCC’s digital conversion mandate.
Positive cash flow provided by operations in the first two quarters was $63.5 million, compared to a use of $14.7 million cash in the same period of the prior year. Cash on hand at the end of the quarter was $379.9 million, compared to $226.2 million at the end of fiscal 2002.
Looking ahead through this year, Phillip Farmer, chairman and CEO stated, “Harris continues to lead the infrastructure transition to digital TV and radio, and we are encouraged by this quarter’s improvement in our international microwave business.”