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Harris Reports Q1 Earnings, Lowers Projections

Harris Reports Q1 Earnings, Lowers Projections

Harris Corp., parent to the broadcast equipment supplier, reported fiscal 2003 first-quarter net income of $19.9 million compared to $17.1 million in the same period last year. Earnings per share were 30 cents compared to 26 cents in the prior-year quarter. But the company lowered its fiscal 2003 earnings per share forecast to a range of $1.30 to $1.40 from a previous range of $1.50 to $1.60.
Among its several business sectors, the company reported “weaker than expected” results in its broadcast business from postponed digital television equipment purchases.
“Many of the smaller-market (TV) broadcasters are installing the minimum amount of equipment necessary to temporarily comply with the FCC’s digital conversion mandate, thereby delaying purchases of more expensive systems that eventually will be required,” Harris stated. “As a result, the Broadcast Communications segment reported a 17% decline in first-quarter sales, compared to strong performance in the first quarter of the prior year.”
It said the decline in sales reduced first-quarter operating income to $1.9 million, compared to the prior year’s $7.5 million. Chairman/CEO Phillip Farmer expressed optimism about Harris’ broadcast fundamentals and its competitive position in the digital TV transition, and he noted that “the digital conversion for radio broadcasting is now underway” as well.