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Harris Releases First Quarter Numbers

Harris Releases First Quarter Numbers

Harris said broadcast revenue was $87.7 million in its first business quarter of fiscal 2006, up from $67.4 million in the same period last year. But it posted an operating loss of $12 million, including charges of $18 million for cost-reduction actions; without that adjustment, operating income was $6 million.
Its revenue figures include contributions from its Software Systems business unit, which was acquired in fiscal 2005.
Broadcast sales increased for U.S. HD Radio and digital television transmission equipment, Harris said, but “weak market conditions for international analog TV and radio broadcast equipment persisted.”
The $18 million in charges were due to previously announced moves to improve profitability, including closing a U.K. plant, moving manufacturing of Euro transmission products to Illinois, outsourcing manufacture of radio consoles and cutting staff from the Software Systems business unit. The company said the costs of those moves will total $30 million, which it expects to make it back in two years’ time.
Overall, the parent company said it had “significant” increases in revenue, net income and operating cash flow in the first quarter. Harris revenue was up 13 percent to $760 million. It said it expects revenue growth for the total company in fiscal 2006 to be in the range of 13 to 15 percent above 2005.