Harris Corporation to Acquire Optimal Solutions, Inc.
April 17 2006 - 12:00PM
PR Newswire (US)
Expands Broadcast Communications Division Software Offering and
Complements Harris Next-Generation H-Class(TM) Total Content
Delivery Platform MELBOURNE, Fla., April 17 /PRNewswire-FirstCall/
-- Harris Corporation (NYSE:HRS) has signed a definitive agreement
to acquire Optimal Solutions, Inc. (OSi), a privately held provider
of air-time sales, traffic and billing software systems to over 350
call-letter broadcast stations in North America. The scalability of
OSi's Windows(R)-based platform is unmatched in the industry and
can support a single call-letter station or scale to support the
largest station groups and network/affiliate relationships with one
software installation. "The acquisition of OSi will further
strengthen our portfolio and commitment to provide Total Content
Delivery solutions to the industry," said Howard Lance, chairman,
president and chief executive officer of Harris Corporation. "OSi
expands our capabilities in enterprise-wide software for managing
and scheduling advertising and programming for broadcasters, and
complements the Harris next-generation H-Class(TM) platform." The
H-Class(TM) platform will serve the diverse business models of
broadcast networks, cable networks and media content providers as
well as the emergence of new services such as IPTV, mobile TV, and
on-demand video delivery. "The combination of OSi and Harris will
offer the industry unprecedented value -- across the widest range
of customers and business models," said Ed Adams, president of OSi.
"We are proud to add our software offering and talent to the Harris
team. Both customers and employees will benefit from the size and
resources of Harris, and the long-term commitment Harris has made
to the media industry." OSi was founded in 1996 and is based in
Kansas City, Missouri. Revenue for the 12 months ended March 31,
2006, was approximately $5 million and the company currently has
approximately $27 million in revenue under contract. Harris will
acquire OSi for approximately $32 million in cash, subject to
customary closing conditions, and OSi's shareholders may receive
additional payments over the next three years if certain operating
goals are achieved. The transaction is expected to close in early
May. The acquisition is expected to be neutral to Harris fiscal
year 2006 earnings per share, excluding acquisition-related
charges, and accretive in fiscal year 2007. 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 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/ . 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 the timing and anticipated benefits to the Company
related to the acquisition of Optimal Solutions, Inc. 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, except as imposed by law, to update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. DATASOURCE: Harris
Corporation CONTACT: Pam Padgett, Harris Investor Relations,
+1-321-727-9383, or , or Brent Dietz, Harris Media Relations,
+1-321-724-3554, or Web site: http://www.harris.com/
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