Harris Sales Are Up; Company Cites HD Radio

Harris said HD Radio equipment sales helped drive improved broadcast business in its fiscal third quarter. The company also said it believes its market share in HD Radio broadcast transmission equipment is greater than 50 percent.
The company said Broadcast Communications revenue was $103.2 million, compared to $73.3 million in the same quarter last year. The latest figures include sales by Encoda Systems, which Harris recently acquired; the company said Encoda has “contributed significantly” to orders, revenue and operating income.
“Revenue drivers included increased sales in the U.S. of HD Radio transmission equipment. Revenue was dampened, however, by soft international market conditions for both analog and European-standard
digital broadcast equipment. U.S. orders for digital TV transmission equipment increased in the quarter, reflecting measured progress in the domestic rollout of digital TV.”
Overall, the parent corporation said its revenue was up 18 percent to $772 million, and net income increased 57 percent, in the third quarter of 2005. The company increased its fiscal year 2005 earnings guidance and said that, in 2006, it expects revenue growth 8 to 10 percent higher than 2005.
“Operating income in our two commercial businesses has improved, while not at the pace we had anticipated due to somewhat weaker international revenue,” CEO Howard Lance said. “We will continue to take actions to lower our cost structure as appropriate.”