DOW JONES NEWSWIRES
Harris Corp. (HRS) swung to a fiscal fourth-quarter loss on a
$255.5 million goodwill write-down as core results topped analysts'
expectations as orders rebounded 22% from the prior quarter.
Shares jumped 8.4% to $33.04 in after-hours trading as the
communications-products company also raised the lower end of its
forecast for the new fiscal year.
Harris' business generally has been resilient during the
recession, partly because of its government contracts. But its
tactical-radio business, which once was the main growth driver, has
seen a steep drop in orders in the past year. Delays in orders at
several defense companies have been blamed on the change in
presidential administrations and the military's shift in focus to
Afghanistan from Iraq.
For the quarter ended July 3, the maker of a digital multiband
radio used by the military reported a loss of $156.4 million, or
$1.19 a share, compared with a year-earlier profit of $121.7
million, or 90 cents a share. Excluding the write-down in the
broadcast business and restructuring impacts, earnings from
continuing operations fell to 91 cents from $1.
Revenue rose 3.8% to $1.29 billion.
Analysts' estimates were for per-share earnings of 81 cents on
revenue of $1.21 billion, according to a poll by Thomson
Reuters.
In the RF Communications radio business, profit fell 10% while
revenue grew 6.1% on an acquisition. Both earnings and sales rose
modestly in the larger government communications-systems
segment.
Harris' recent acquisitions include Tyco Electronics Ltd.'s
(TEL) wireless systems business for $675 million in May and the air
traffic control unit of SolaCom Technologies Inc. in June. It also
spun off Harris Stratex Networks Inc. (HSTX) in March.
-By Kathy Shwiff and Kevin Kingsbury, Dow Jones Newswires;
212-416-2357; Kathy.Shwiff@dowjones.com