MELBOURNE, Fla., March 16, 2011 /PRNewswire/ -- Harris Corporation
(NYSE: HRS), an international communications and information
technology company, today provided initial non-GAAP net income
guidance for fiscal year 2012, beginning July 2, 2011, of $5.10 to
$5.20 per diluted share ($4.93 to
$5.03 per diluted share on a GAAP basis), an increase of 5
to 7 percent, compared with the mid-point of fiscal 2011 non-GAAP
guidance. Non-GAAP guidance for fiscal 2011 and fiscal 2012
excludes acquisition-related costs. Revenue for fiscal 2012
is expected to be in a range of $6.4 billion
to $6.6 billion, representing an increase of 7 to 10 percent
above the fiscal 2011 guidance stated below. The company
announced the initial guidance in advance of its annual analyst
meeting, scheduled for March 17-18 in
Melbourne, Florida.
Guidance for both fiscal 2011 and 2012 reflects the inclusion of
the Schlumberger Global Connectivity Services business and Carefx
acquisitions, which are expected to close in early April 2011. Including these acquisitions,
fiscal 2011 guidance for non-GAAP net income is expected to be in
the range of $4.80 to $4.90 per
diluted share ($4.61 to $4.71 per
diluted share on a GAAP basis) and revenue is expected to be
approximately $6.0 billion. A
reconciliation of GAAP to non-GAAP financial measures is provided
in Table 1, along with an accompanying note.
"We expect fiscal year 2012 to be another year of growth in
revenue and earnings," said Howard L.
Lance, chairman, president and chief executive officer.
"Our core businesses, recent acquisitions, and expansion of
our core capabilities into adjacent high-growth markets position us
well for fiscal 2012 and beyond."
Harris will host a live audio webcast and listen-only conference
call on Thursday, March 17, at
1 p.m. ET in conjunction with its
annual analyst meeting being held in Melbourne, Florida. The webcast and call will
include Howard L. Lance, chairman,
president and chief executive officer, presenting a business
strategy review, and Gary L.
McArthur, senior vice president and chief financial officer,
providing a financial summary.
The webcast will be broadcast live via the Internet at
http://www.harris.com/webcast. The dial-in numbers for the
conference calls are (866) 383-8008 (U.S.) and (617) 597-5341
(International), using participant code 39104725. A replay of the
conference call will be available on the Harris website beginning
at 4 p.m. ET on March 17.
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
approximately $6 billion of annual
revenue and more than 16,000 employees — including nearly 7,000
engineers and scientists. Harris is dedicated to developing
best-in-class assured communications® products, systems, and
services. Additional information about Harris Corporation is
available at 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 2011 and 2012 guidance for net income per diluted share, and
the percentage increase of fiscal 2012 non-GAAP guidance for net
income per diluted share over fiscal 2011 non-GAAP guidance for net
income per diluted share, in each case excluding
acquisition-related costs. 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.
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: earnings and revenue guidance for fiscal 2011 and
fiscal 2012; statements regarding the expected timing of the
closing of the acquisitions of the Schlumberger Global Connectivity
Services business and Carefx; and statements regarding outlook. 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: the loss of
our relationship with the U.S. government or a shift in U.S.
government funding; potential changes in U.S. government or
customer priorities; risks inherent with large long-term
fixed-price contracts, particularly the ability to contain cost
overruns; financial and government and regulatory risks relating to
international sales and operations; our ability to continue to
develop new products that achieve market acceptance; the
consequences of future geo-political events; strategic acquisitions
and the risks and uncertainties related thereto, including our
ability to manage and integrate acquired businesses; performance of
our subcontractors and suppliers; 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; risks inherent in developing new technologies; changes in
our effective tax rate; the potential impact of natural disasters
or other disruptions on our operations; the potential impact of a
security breach, through cyber attack or otherwise, or other
significant disruptions of our IT networks and systems or those we
operate for customers; the potential impact of satellite bandwidth
constraints on our managed satellite communications services;
changes in future business conditions that could cause business
investments and/or recorded goodwill to become impaired; and the
general downturn in the global economy. 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. The forward-looking statements contained in this
release are made as of the date of this release, and the company
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.
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Table
1
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HARRIS
CORPORATION
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Reconciliation of FY '12 GAAP
Net Income per Diluted Share Guidance
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to FY '11
GAAP Net Income per Diluted Share Guidance
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and FY '12
Non-GAAP Net Income per Diluted Share Guidance
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(Unaudited)
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Fiscal
Year
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2011
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2012
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Percent
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(Guidance)
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(Guidance)
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Change
*
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GAAP net income per diluted
common share
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$4.61 to
$4.71
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$4.93 to
$5.03
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6% to
8%
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Charges associated with
acquisitions (A)
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.19
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.17
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Non-GAAP net income per diluted
common share
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$4.80 to
$4.90
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$5.10 to
$5.20
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5% to
7%
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* Based on mid-point of fiscal
2011 guidance.
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Note to table 1:
Note A – Adjustment for estimated pre-tax charges of
$31.7 million ($.19 per diluted share) for fiscal 2011 and
estimated pre-tax charges of $28.6
million ($.17 per diluted
share) for fiscal 2012 related to integration and other costs
associated with our acquisitions of CapRock Communications and key
infrastructure assets of the government business of Core180, Inc.,
and our pending acquisitions of the Global Connectivity
Services business from Schlumberger Information Solutions (an
operating unit of Schlumberger Limited) and Carefx Corporation.
SOURCE Harris Corporation