Harris Corporation Provides Fiscal Year 2007 Guidance of $2.45 to $2.55 EPS in Advance of Annual Analyst Meeting
March 13 2006 - 4:46PM
PR Newswire (US)
MELBOURNE, Fla., March 13 /PRNewswire-FirstCall/ -- Harris
Corporation (NYSE:HRS) today provided initial earnings guidance for
its fiscal year beginning July 1, 2006, of $2.45 to $2.55 per
diluted share, representing an increase of approximately 20
percent, compared to the company's current non- GAAP earnings
guidance for fiscal year 2006 (55 percent on a GAAP basis). The
announcement was made in advance of the company's annual analyst
meeting scheduled for March 14 and 15 in Melbourne. "In fiscal year
2007, we expect to achieve organic revenue growth above 10
percent," said Howard L. Lance, chairman, president and chief
executive officer of Harris. "Including the full-year contribution
of Leitch Technology, acquired in October 2005, total revenue is
expected to be $3.8 billion to $3.9 billion. Our optimism is driven
by expectations for continuing growth in our government-related
businesses and improving market demand and growth for commercial
communications products. Demand and funding for secure tactical
radios from our RF Communications Division remains very strong as
U.S. and international markets modernize communications equipment
to support interoperability and more modular, self-sustaining
defense forces. We believe investments in secure communications,
information technology and information processing will remain high
priorities for U.S. government investment. In the Broadcast
segment, we expect growth to be driven by demand for digital
technologies to support digital television, digital radio and new
applications, including mobile television. In our Microwave
segment, increasing demand for bandwidth in support of wireless
voice, data and video is creating numerous growth opportunities
around the world." Harris will host a live audio webcast and
listen-only conference call on Tuesday, March 14, 2006, at 1 p.m.
ET in conjunction with its annual analyst meeting. The webcast and
call will include presentations on the company's strategy and
financial outlook by Mr. Lance and Gary L. McArthur, vice president
and chief financial officer. The webcast is available via the
Internet at http://www.harris.com/webcast . The dial-in number for
the conference call is 913-981-4910, access code 5048525. A replay
of the conference call is available at 719-457-0820, access code
5048525 from 5 p.m. (ET) March 14 through midnight (ET) on Tuesday,
March 21. A replay of the webcast will be available on the
company's website. Harris is an international communications and
information technology company serving government and commercial
markets in more than 150 countries. With headquarters in Melbourne,
Florida, the company has annual sales of over $3 billion and has
more than 13,000 employees -- including 5,500 engineers and
scientists -- dedicated to the development of best-in-class assured
communications(TM) products, systems, and services. The company's
operating divisions serve markets for government communications, RF
communications, broadcast communications, and microwave
communications. Additional information about Harris Corporation is
available at http://www.harris.com/ . Non-GAAP Financial Measures
This press release contains non-GAAP financial measures within the
meaning of Regulation G promulgated by the SEC, including fiscal
2007 earnings-per-share guidance percentage increase from the
current fiscal 2006 non-GAAP earnings guidance, which for fiscal
2006 guidance excludes the impact of any charges associated with
inventory write-downs in the Microwave segment, cost-reduction
items in our Broadcast Communications segment, and the
acquisition-related costs associated with our Leitch acquisition.
Harris management believes that these non-GAAP financial measures,
when considered together with the GAAP financial measures, provide
information that is useful to investors in understanding
period-over-period operating results separate and apart from items
that may, or could, have a disproportionately positive or negative
impact on results in any particular period. Management also
believes that these non-GAAP financial measures enhance the ability
of investors to analyze Harris business trends and to better
understand the company's performance. In addition, the company may
utilize non-GAAP financial measures as a guide in its forecasting,
budgeting, and long-term planning process and to measure operating
performance for some management compensation purposes. Any analysis
of non-GAAP financial measures should be used only in conjunction
with results presented in accordance with GAAP. Forward-Looking
Statement Statements in this press release that are not historical
facts are forward-looking statements that reflect management's
current expectations, assumptions, and estimates of future
performance and economic conditions. Such statements are made in
reliance upon the safe harbor provisions of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements in this release include but
are not limited to: earnings guidance for fiscal 2007 and
statements regarding outlook, including expected revenue growth.
The Company cautions investors that any forward-looking statements
are subject to risks and uncertainties that may cause actual
results and future trends to differ materially from those matters
expressed in or implied by such forward-looking statements. The
Company's consolidated results and the forward-looking statements
could be affected by many factors, including, but not limited to:
our participation in markets that are often subject to uncertain
economic conditions, which makes it difficult to estimate growth in
our markets and, as a result, future income and expenditures; our
dependence on the U.S. government for a significant portion of our
revenues, as the loss of this relationship or a shift in U.S.
government funding could have adverse consequences on our future
business; potential changes in U.S. government or customer
priorities due to program reviews or revisions to strategic
objectives, including termination of or potential failure to fund
U.S. government contracts; risks inherent with large long-term
fixed-price contracts, particularly the ability to contain cost
overruns; the performance of critical subcontractors or suppliers;
financial and government and regulatory risks relating to
international sales and operations, including fluctuations in
foreign currency exchange rates and the effectiveness of our
currency hedging program; our ability to continue to develop new
products that achieve market acceptance; the consequences of future
geo-political events, which may affect adversely the markets in
which we operate, our ability to insure against risks, our
operations or our profitability; strategic acquisitions and the
risks and uncertainties related thereto, including our ability to
manage and integrate acquired businesses; potential claims that we
are infringing the intellectual property rights of third parties;
the successful resolution of patent infringement claims and the
ultimate outcome of other contingencies, litigation and legal
matters; customer credit risk; the fair values of our portfolio of
passive investments, which values are subject to significant price
volatility or erosion; risks inherent in developing new
technologies; the potential impact of hurricanes on our operations
in Florida and the potential impact of earthquakes on our
operations in California; the ability to recruit and retain
qualified personnel; and general economic conditions in the markets
in which we operate. Further information relating to factors that
may impact the Company's results and forward-looking statements are
disclosed in the Company's filings with the SEC. Harris disclaims
any intention or obligation, other than imposed by law, to update
or revise any forward-looking statements, whether as a result of
new information, future events, or otherwise. Table 1
Reconciliation of Non-GAAP Financial Measures Fiscal 2007 Initial
Guidance Organic Growth ($ in millions except per share amounts and
ratios) Organic Revenue Growth FY '06 FY '07 Growth Midpoint of
guidance $3,420.0 $3,850.0 Add revenue to annualize sales from
Leitch 60.0 -- Organic calendar year revenue $3,480.0 $3,850.0
10.6% Non-GAAP EPS Growth FY '06 FY '07 Growth Midpoint of guidance
$1.61 $2.50 55.3% Adjustments .49 (1) -- Non-GAAP earnings per
share $2.10 $2.50 19.0% (1) Adjustments relate to the impact of
product discontinuances in our Microwave Communications segment,
cost-reduction actions in our Broadcast Communications segment and
costs associated with our acquisition of Leitch Technology
Corporation. http://www.harris.com/webcastDATASOURCE: Harris
Corporation CONTACT: Investor Relations, Pamela Padgett,
+1-321-727-9383, or , or Media, Brent Dietz, +1-321-724-3554, or ,
both of Harris Corporation Web site: http://www.harris.com/
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