Harris Corporation Reports Preliminary Results for Fiscal Year 2008
July 30 2008 - 4:02PM
PR Newswire (US)
MELBOURNE, Fla., July 30 /PRNewswire-FirstCall/ -- Harris
Corporation (NYSE:HRS) reported preliminary results for its 2008
fiscal year and fourth quarter as a result of today's announcement
by Harris Stratex Networks (NASDAQ:HSTX). For fiscal year 2008,
Harris expects revenue of approximately $5.3 billion, an increase
of 25 percent compared to $4.2 billion in the prior year. Organic
revenue increased approximately 13 percent compared to the prior
year, and new orders were significantly higher than sales. As a
result of higher than expected costs and accounting errors as
announced today by Harris Stratex Networks (HSTX), Harris now
expects GAAP net income for fiscal year 2008 of approximately $445
million, or $3.26 per diluted share, and non-GAAP net income of
approximately $463 million, or $3.39 per share. Harris Stratex
Networks is a 56 percent majority-owned subsidiary of Harris.
Previous guidance from Harris did not anticipate the higher costs
and accounting errors announced today by Harris Stratex Networks,
which will be included in Harris fourth quarter results and have an
expected impact of about $.14 per share on a GAAP basis and $.10
per share on a non-GAAP basis. Previously, Harris provided GAAP
guidance for fiscal year 2008 of $3.34 per share and corresponding
non-GAAP guidance of $3.45 per share. The accounting errors are not
considered material to Harris current or prior-period results, will
not result in a restatement of any prior periods, and are currently
being evaluated but not expected to represent a material weakness
in internal controls over financial reporting. For the fourth
quarter, Harris expects revenue of approximately $1.4 billion, an
increase of 19 percent compared to $1.2 billion in the prior-year
quarter. Organic revenue increased approximately 12 percent
compared to the prior-year quarter and new orders were
significantly higher than sales. Harris now expects net income for
its fourth quarter to be approximately $122 million, or $.90 per
share, compared to $87 million or $.63 per share in the prior-year
quarter. Non-GAAP net income for the fourth quarter is now expected
to be approximately $129 million or $.95 per share compared to
non-GAAP net income of $99 million or $.71 per share, in the
prior-year quarter. Non-GAAP net income per share in the fourth
quarter of fiscal year 2008 increased approximately 34 percent
compared to the prior-year quarter. Non-GAAP net income and
earnings per share exclude acquisition-related costs. A
reconciliation of GAAP to non-GAAP financial measures is provided
in Tables 1 and 2. "Although we are disappointed with the
preliminary results announced today by Harris Stratex Networks,
Harris Corporation delivered overall strong consolidated results in
the fourth quarter," said Howard L. Lance, chairman, president and
chief executive officer. "Further, we finished the year with higher
backlog and good momentum, and remain confident in our ability to
achieve our previous fiscal 2009 guidance." Harris Corporation's
fourth quarter conference call will be held on Tuesday, August 5,
2008, at 5:00 p.m. ET. The company will issue a press release
reporting detailed fourth quarter earnings results at approximately
4:00 p.m. ET on August 5. The dial-in number for the teleconference
is (719) 325-4756 and the access code is 1862497. Please allow at
least 10 minutes prior to the scheduled start time to connect to
the teleconference. Harris encourages you to listen via web cast,
which will be broadcast live at
http://www.harris.com/conference-call . A replay of the
teleconference will be available beginning at 8:00 p.m. ET on
August 5 and will run until midnight ET on Tuesday, August 12. To
access the replay, please call (719) 457-0820, access code 1862497.
A recording of the call will also be available on the Harris
website beginning at 7:00 p.m. ET on August 5. About Harris
Corporation Harris is an international communications and
information technology company serving government and commercial
markets in more than 150 countries. Headquartered in Melbourne,
Florida, the company has annual revenue of more than $5.3 billion
and 16,000 employees -- including nearly 7,000 engineers and
scientists. Harris is dedicated to developing best-in-class assured
communications(R); products, systems, and services. 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 net income and
earnings per share for fiscal year and fourth quarter 2008,
excluding the impact of costs associated with our acquisitions and
integration costs associated with the formation of Harris Stratex
Networks. 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 understand Harris performance. In addition, Harris 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. Attachments:
Financial Statements (two tables). Forward-Looking Statements
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: expected revenue and net income results for the fiscal
year 2008 fourth quarter and total year and prospects for 2009. 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
revenue, 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; changes in our effective tax rate that may have an
adverse effect on our results of operations; the impact of the
results of Harris Stratex Networks, which may vary significantly
and may be difficult to forecast; the potential impact of natural
disasters on our significant operations in Florida, California and
other locations; general economic conditions in the markets in
which we operate; changes in future business conditions that could
cause business investments and/or recorded goodwill to become
impaired; and our ability to attract and retain key employees.
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. For additional information, contact
Harris Corporation at . HARRIS CORPORATION RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE To
supplement our condensed consolidated financial statements
presented in accordance with U.S. generally accepted accounting
principles (GAAP), we provide additional measures of segments'
operating income (loss), non-operating income (loss); cost of
product sales and services; engineering, selling and administrative
expenses; income before income taxes and minority interest; income
taxes; minority interest; net income; and net income per diluted
share adjusted to exclude certain costs, expenses, gains and
losses. 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.
Harris management also believes that these non-GAAP financial
measures enhance the ability of investors to analyze Harris
business trends and to understand Harris performance. In addition,
Harris 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. A reconciliation of these non-GAAP financial measures with
the most directly comparable financial measures calculated in
accordance with GAAP follows: Table 1 HARRIS CORPORATION
Reconciliation of GAAP EPS to Non-GAAP EPS (Unaudited) Quarter
Ended Fiscal Year Ended June 27, 2008 June 27, 2008 Net Income EPS
Net Income EPS (in millions except per share amounts) GAAP $122.2
$0.90 $444.7 $3.26 Charges associated with the combination with
Stratex Networks, Inc. 6.0 0.04 15.1 0.11 Charges associated with
the acquisition of Multimax Incorporated 0.3 0.01 1.1 0.01 Charges
associated with the acquisition of Zandar Technologies plc 0.1 -
1.9 0.01 Non-GAAP $128.6 $0.95 $462.8 $3.39 Table 2 HARRIS
CORPORATION FY'08 and FY'08 Fourth Quarter Year Over Year Organic
Revenue Growth (Unaudited) Quarter Ended June 29, June 27, Percent
2007 2008 Growth (In millions) Harris Corporation GAAP Revenue
$1,207.6 $1,434.8 19% Impact of acquisitions 73.7 Organic Revenue
$1,281.3 $1,434.8 12% Fiscal Year Ended June 29, June 27, 2007 2008
Harris Corporation GAAP Revenue $4,243.0 $5,312.6 25% Impact of
acquisitions 453.7 Organic Revenue $4,696.7 $5,312.6 13%
DATASOURCE: Harris Corporation CONTACT: Media inquiries: Jim Burke,
Corporate Headquarters, +1-321-727-9131, , or Investor Relations
inquiries: Pamela Padgett, +1-321-727-9383, , both of Harris
Corporation Web site: http://www.harris.com/
http://www.harris.com/conference-call
Copyright
Harris (NYSE:HRS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Harris (NYSE:HRS)
Historical Stock Chart
From Jul 2023 to Jul 2024