Harris Corporation Increases Fiscal Year 2007 Earnings Per Share Guidance to Reflect Lower Tax Rate
September 22 2006 - 5:28PM
PR Newswire (US)
MELBOURNE, Fla., Sept. 22 /PRNewswire-FirstCall/ -- Harris
Corporation (NYSE:HRS) today reported an increase in its earnings
per share guidance for the current fiscal year 2007 ending June 29,
2007, to reflect a lower tax rate. The company will record a
reduction in the company's tax expense in the first quarter of
fiscal year 2007 of $12 million, or $.08 per diluted share. The
reduction in tax expense results from a favorable settlement that
was approved by the United States Joint Committee on Taxation and
related matters between Harris and the Internal Revenue Service
concerning the tax audit for fiscal years 2001, 2002 and 2003. The
favorable impact of this settlement and related matters is expected
to lower the company's full fiscal year 2007 tax rate from 34% to
33%. Based on the reduction in tax expense, Harris increased
non-GAAP earnings per share guidance for its fiscal year ending
June 29, 2007, from a previous range of $2.60 to $2.70 per diluted
share to a new range of $2.65 to $2.75 per diluted share. The
non-GAAP earnings guidance excludes the impact of a previously
disclosed potential impairment associated with its equity
investment in Terion, Inc. 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
$3.5 billion and nearly 14,000 employees - including more than
6,000 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 excluding the impact of the potential
impairment of our equity investment in Terion. 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 earnings
guidance for fiscal 2007 and the fiscal 2007 expected tax rate. 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, and 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. DATASOURCE: 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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