Harris Revenue Is Up; Broadcast Numbers Down

Harris Corp. posted good quarterly numbers, but revenue at its broadcast communications segment was off almost 30% over the same quarter a year earlier.
The broadcast segment reported revenue of $66.4 million and operating income of $2.6 million in the second quarter of fiscal 2004, compared with $94.2 million and $6 million, respectively, last year.
“The second quarter of fiscal 2003 benefited from a large radio order in Romania and from significant sales of digital TV equipment,” the company stated. “Sequentially, revenue in the quarter increased 14 percent and operating income improved, primarily due to improvement in the segment’s studio products and systems business.”
During the recent quarter, Harris said, sales increased for studio products and systems, “an area that had been heavily impacted by the economic downturn in the broadcast industry.” The company said it was “further encouraged by the launch of several digital radio receivers” at the recent CES show. And the company recently won a major $96 million contract to modernize the Iraqi Media Network.
Harris Corp. overall reported a 103 percent increase in net income for the quarter and a 16 percent gain in revenue, citing growth in its government businesses. Revenue in the quarter was $608.6 million, compared to $523.9 million in the year-ago quarter.
“We have made great strides in reducing operating expenses in our three commercial businesses, and each of these businesses had sequential revenue growth in the quarter,” said Howard L. Lance, chairman, president and CEO. “We are encouraged by meaningful progress.”
He promised further cost reductions as well as growth programs.