Fourth quarter revenue increased to $174 million driven by strength
in North America and International markets RESEARCH TRIANGLE PARK,
N.C., Aug 7 /PRNewswire-FirstCall/ -- Harris Stratex Networks, Inc.
(NASDAQ:HSTX), the leading independent supplier of turnkey wireless
network solutions, today reported financial results for the fourth
quarter and full year of fiscal 2007, which ended June 29, 2007. On
January 26, 2007, the Harris Microwave Communications Division was
combined with Stratex Networks, Inc. to create a new company -
Harris Stratex Networks, Inc. Revenue for the fourth quarter of
fiscal 2007 was $174.1 million. GAAP net loss was $5.3 million or
$0.09 per share, which includes $23.9 million in pre- tax charges
associated with the merger transaction, integration and stock
compensation expense. Non-GAAP Financial Results For comparative
purposes, Harris Stratex Networks has provided pro forma, non-GAAP
financial information related to revenue and income as if the
former Stratex Networks and the former Harris Microwave
Communications Division had been combined since the beginning of
fiscal 2006. On this basis, revenue for the fourth quarter of
fiscal 2007 increased by 19 percent compared with $146.8 million in
the prior quarter, and decreased slightly from $176.8 million in
the year ago quarter. Non-GAAP net income for the fourth fiscal
quarter of 2007 was $10.3 million or $0.18 per diluted share
compared with $3.7 million or $0.06 per diluted share in the prior
quarter and $10.3 million in the prior-year quarter. A
reconciliation of GAAP to non-GAAP financial measures is provided
on Table 4 along with the accompanying notes. By segment, North
America microwave posted another strong quarter. Revenue increased
20 percent sequentially and 30 percent compared to the prior-year
quarter, reflecting continued market strength in both the U.S. and
Canada. This was driven by leased-line substitution, mobile network
footprint expansion, funding for homeland security initiatives and
some initial microwave relocation spending as a result of the
Advanced Wireless Services (AWS) auction. International microwave
segment revenue increased 20 percent sequentially as orders and
project activity with key customers in Africa, Europe, the Middle
East, Russia and Asia Pacific improved substantially. International
revenue declined by 13 percent compared to a very strong prior-
year quarter. Revenue in the Network Operations segment of the
business declined 10 percent sequentially but increased 7 percent
from the prior-year quarter. Non-GAAP gross margins were 32 percent
in the fiscal 2007 fourth quarter compared with 30 percent in the
prior quarter, with improvement driven by mix and product cost
reduction synergy actions. Non-GAAP operating income was $13.8
million in the fourth quarter of fiscal 2007, improving
sequentially from $5.6 million in the third quarter. These
improvements were partially offset by higher operating costs. "Our
efforts to expand revenue were successful in our fourth quarter,
with a sequential increase of 19 percent," said Guy Campbell,
president and chief executive officer of Harris Stratex Networks.
"Customer orders in Q4 also increased sequentially, positioning us
well as we enter the new fiscal year. Our ability to serve our
customers with turnkey wireless transmission solutions is evident
in the size of our contracts. Since we last reported earnings, we
have announced a North America contract of over $28 million with
the Commonwealth of Kentucky and contracts with two major African
operators totaling over $30 million." In June, the company took a
major step to further bolster its international business when it
opened its international headquarters (IHQ) in Singapore. "This
location will enable us to better serve our customers outside of
North America, improve our logistics and supply chain functions and
expand our R&D activities focused on software development. We
are also seeing substantial improvements in our Asia Pacific orders
and revenue, further validating our decision to open the IHQ," said
Campbell. "Mobile network expansion continues to provide the
greatest opportunity for Harris Stratex Networks. As the clear
technology leader, we will continue to offer innovative products
that exceed the needs of our global customer base and that build
upon the industry-leading Eclipse(TM) and TRuepoint(R) platforms.
The trend to IP, or Internet Protocol, is accelerating and our
product portfolio is well positioned to capture opportunities for
high capacity backhaul and IP transport," said Campbell. "We see
further market investment in IP and have aligned our technology
solutions to take advantage of this future growth." Outlook and
Guidance "In fiscal year 2008, we continue to expect revenue to
range between $670 million and $702 million and non-GAAP earnings
per diluted share of $1.05 to $1.22," said Campbell. "The
leadership team is completely focused on delivering the financial
performance we have set forth for the company in fiscal year 2008."
Conference Call Harris Stratex Networks will host a conference call
today to discuss the company's financial results at 5:30 p.m.
Eastern Time. Those wishing to join the call should dial
303-262-2141, (no pass code required) at approximately 5:20 p.m. A
replay of the call will be available starting one hour after the
call's completion until August 14. To access the replay, dial
303-590-3000 (pass code: 11092904 #). A live and archived webcast
of the conference call will also be available via the company's Web
site at http://www.harrisstratex.com/investors/conference-call.
Non-GAAP Measures and Comparative Financial Information Tables
reconciling financial results for the Microwave Communications
Division of Harris Corporation and Stratex Networks for each
quarter of fiscal 2006 and the first two quarters of fiscal 2007
are posted on the investor relation page of the company Web site at
http://www.harrisstratex.com/. Harris Stratex Networks, Inc. and
the Microwave Communications Division of Harris Corporation report
information in accordance with U.S. Generally Accepted Accounting
Principles ("GAAP"). The GAAP information presented in this press
release consists of the results of operations and financial
position of Harris Stratex Networks, Inc. for the quarter and four
quarters ended June 29, 2007 and the quarter and four quarters
ended June 30, 2006. On January 26, 2007, the Microwave
Communications Division of Harris Corporation and Stratex Networks,
Inc. merged into Harris Stratex Networks, Inc. and became one
reporting entity. Accordingly, management of Harris Stratex
Networks will monitor revenues, cost of product sales and services,
research and development expenses, selling and administrative
expenses, operating income or loss, tax expense or benefit, net
income or loss, and net income per diluted share for the new
combined entity for planning and forecasting results in future
periods, and may use these measures for some management
compensation purposes. As such, historical non-GAAP combined
information has been included in this press release for comparative
purposes. These measures exclude certain costs and expenses as
discussed herein. As a result, management is presenting these
non-GAAP measures in addition to results reported in accordance
with GAAP to better communicate underlying operational and
financial performance in each period. Management believes these
non-GAAP 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 disproportionate
positive or negative impact on results in any given period.
Management also believes that these non-GAAP measures enhance the
ability of an investor to analyze trends in Harris Stratex
Networks' business and to better understand our performance. Harris
Stratex Networks management does not, nor does it suggest that
investors should, consider such non-GAAP financial measures in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Harris Stratex Networks presents
such non-GAAP financial measures in reporting its financial results
to provide investors with an additional tool to evaluate the
Company's financial performance. Reconciliations of these non- GAAP
financial measures with the most directly comparable financial
measures calculated in accordance with GAAP are included in the
tables below. About Harris Stratex Networks Harris Stratex
Networks, Inc. (NASDAQ:HSTX) is the world's leading independent
supplier of turnkey wireless transmission solutions. The company
offers reliable, flexible and scalable wireless network solutions,
backed by comprehensive professional services and support. Harris
Stratex Networks serves all global markets, including mobile
network operators, public safety agencies, private network
operators, utility and transportation companies, government
agencies and broadcasters. Customers in more than 135 countries
depend on Harris Stratex Networks to build, expand and upgrade
their voice, data and video solutions. Harris Stratex Networks is
recognized around the world for innovative, best-in-class wireless
networking solutions and services. For more information, visit
http://www.harrisstratex.com/. Forward-Looking Statement The
information contained in this document includes forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 21E of the Securities Exchange Act and
Section 27A of the Securities Act. All statements, trend analyses
and other information contained herein about the markets for the
services and products of Harris Stratex Networks and trends in
revenue, as well as other statements identified by the use of
forward-looking terminology, including "anticipate", "believe",
"plan", "estimate", "expect", "goal", "will", "seeing",
"continues", "delivering", and "intend", or the negative of these
terms or other similar expressions, constitute forward-looking
statements. These forward-looking statements are based on estimates
reflecting the current beliefs of the senior management of Harris
Stratex Networks. These forward-looking statements involve a number
of risks and uncertainties that could cause actual results to
differ materially from those suggested by the forward-looking
statements. Forward-looking statements should therefore be
considered in light of various important factors, including those
set forth in this document. Important factors that could cause
actual results to differ materially from estimates or projections
contained in the forward-looking statements include the following:
- the failure to obtain and retain expected synergies from the
merger; - the ability to successfully integrate the operations,
personnel and businesses of the former Stratex Networks, Inc. with
those of the former Microwave Communications Division of Harris
Corporation; - the ability to minimize the disruption of the merger
and related integration on direct and indirect sales channels; -
continued price erosion as a result of increased competition in the
microwave transmission industry; - the ability to achieve business
plans for Harris Stratex Networks; - the ability to manage and
maintain key customer relationships; - the effect of technological
changes on Harris Stratex Networks' businesses; - the ability to
maintain projected product rollouts, product functionality or
market acceptance of planned products; - the failure of Harris
Stratex Networks to protect its intellectual property rights and
its ability to defend itself against intellectual property
infringement claims by others; - currency and interest rate risks;
- the impact of political, economic and geographic risks on
international sales; and - the impact of slowing growth in the
wireless telecommunications market combined with supplier and
operator consolidations; - pricing pressure on Harris Stratex
Networks products and services. For more information regarding the
risks and uncertainties of the microwave communications business as
well as risks relating to the combination of the former Harris
Corporation Microwave Communications Division and the former
Stratex Networks, see "Risk Factors" in the proxy
statement/prospectus included in the Company's registration
statement on Form S-4, as amended, as well as other reports filed
by Harris Stratex Networks with the U.S. Securities and Exchange
Commission from time to time. Harris Stratex Networks undertakes no
obligation to update publicly any forward-looking statement for any
reason, except as required by law, even as new information becomes
available or other events occur in the future. Financial Tables
Attached. Table 1 HARRIS STRATEX NETWORKS, INC. FY'07 Year End
Summary CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
Quarter Ended Year Ended June 29, June 30, June 29, June 30, 2007
2006 2007 2006 (In millions, except net loss per share) Revenue
from product sales and services $174.1 $110.5 $507.9 $357.5 Cost of
product sales and services (121.4) (71.3) (352.2) (272.5)
Amortization of purchased technology (1.8) -- (3.0) -- Gross margin
50.9 39.2 152.7 85.0 Research and development expenses (12.6) (7.7)
(39.4) (28.8) Selling and administrative expenses (36.6) (22.1)
(98.9) (68.5) Acquired in-process research and development -- --
(15.3) -- Amortization of intangible assets (4.5) -- (7.5) --
Restructuring charges (7.3) (3.8) (9.3) (3.8) Corporate allocations
expense -- (2.3) (3.7) (12.4) Operating (loss) income (10.1) 3.3
(21.4) (28.5) Interest income 0.6 -- 1.8 0.5 Interest expense (0.8)
(0.2) (2.3) (1.0) (Loss) income before income taxes (10.3) 3.1
(21.9) (29.0) Income tax benefit (expense) 5.0 (0.3) 4.0 (6.8) Net
(loss) income $(5.3) $2.8 $(17.9) $(35.8) Net loss per common share
Basic and diluted $(0.09) * $(0.72) * Basic and diluted weighted
average shares outstanding 58.2 * 24.7 * *Prior to January 26,
2007, the Company was not a public reporting entity and there were
no shares outstanding for purposes of earnings (loss) per share
calculations. Table 2 HARRIS STRATEX NETWORKS, INC. FY'07 Year End
Summary CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) June 29,
June 30, 2007 2006 (1) (In millions) Assets Cash and cash
equivalents $69.2 $13.8 Short-term investments 20.4 - Receivables
185.3 123.9 Inventories and unbilled costs 169.8 97.4 Current
deferred taxes 1.0 - Other current assets 21.7 6.7 Property, plant
and equipment 80.0 52.2 Goodwill 323.6 28.3 Identifiable intangible
assets 144.5 6.4 Non-current deferred taxes - 9.6 Other assets 16.2
14.3 $1,031.7 $352.6 Liabilities and Shareholders' Equity
Short-term debt $1.2 $0.2 Current portion of long-term debt 10.7 -
Accounts payable 88.9 42.1 Accrued expenses and other current
liabilities 93.0 45.7 Current deferred taxes 7.0 - Due to Harris
Corporation 16.1 12.6 Long-term debt 8.8 - Restructuring and other
long-term liabilities 11.8 - Warrants outstanding 3.9 - Redeemable
preference shares 8.3 - Non-current deferred taxes 24.0 -
Shareholders' equity 758.0 252.0 $1,031.7 $352.6 (1) Derived from
audited financial statements. Table 3 HARRIS STRATEX NETWORKS, INC.
FY'07 Year End Summary CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS (Unaudited) Quarter Ended June 29, 2007 Cash flow used in
Operations $ (1.6) Cash flows from Investing Activities: Sales of
short-term investments, net 20.4 Purchases of capital assets (4.0)
Net cash provided by Investing Activities 16.4 Cash flows from
Financing Activities: Proceeds from issuance of short-term debt,
net of repayments 1.1 Proceeds from exercise of former Stratex
stock options 1.7 Payments on long-term debt (2.7) Net cash
provided by Financing Activities 0.1 Effect of exchange rate
changes on cash and cash equivalents (0.1) Net increase in cash and
cash equivalents 14.8 Cash and cash equivalents, beginning of
quarter 54.4 Cash and cash equivalents, end of year $ 69.2 HARRIS
STRATEX NETWORKS, INC. FY'07 Year End Summary RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE To
supplement our consolidated financial statements presented in
accordance with accounting principles generally accepted in the
United States (GAAP), we provide additional measures of revenue,
gross margin, operating income (loss), non-operating income (loss);
cost of product sales and services; research and development
expenses, selling and administrative expenses; income before income
taxes; income taxes; net income, and net income per diluted share
adjusted to exclude certain costs, expenses, gains and losses.
Management of Harris Stratex Networks, Inc. (the "Company" or
"Harris Stratex") believes that these non-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 disproportionate positive or negative
impact on results in any particular period. Management also
believes that these non-GAAP measures enhance the ability of an
investor to analyze trends in Harris Stratex' business and to
better understand our performance. In addition, the Company may
utilize non- GAAP financial measures as a guide in its 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 4 HARRIS STRATEX NETWORKS, INC. FY'07 Year End Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Condensed
Consolidated Statement Of Operations (Unaudited) Quarter Ended
Quarter Ended June 29, 2007 June 30, 2006 MCD and Stratex Non-GAAP
Combined Non-GAAP As Adjust- as Adjust- Reported ments Non-GAAP
Reported ments Non-GAAP (In millions, except for net loss per
share) Revenue from product sales and services $174.1 $-- $174.1
$176.8 $-- $176.8 Cost of product sales and services (B) (121.4)
2.9 (118.5) (117.7) 0.3 (117.4) Amortization of purchased
technology (C) (1.8) 1.8 -- -- -- -- Gross margin 50.9 4.7 55.6
59.1 0.3 59.4 Research and development expenses (D) (12.6) 0.4
(12.2) (11.6) 0.7 (10.9) Selling and administrative expenses (E)
(36.6) 7.0 (29.6) (35.8) 2.5 (33.3) Acquired in-process research
and development (F) -- -- -- -- -- -- Amortization of intangible
assets (G) (4.5) 4.5 -- -- -- -- Restructuring charges (H) (7.3)
7.3 -- (3.8) 3.8 -- Corporate allocations expense(I) -- -- -- (2.3)
2.3 -- Operating (loss) income (10.1) 23.9 13.8 5.6 9.6 15.2
Interest income 0.6 -- 0.6 0.5 -- 0.5 Interest expense (0.8) --
(0.8) (0.6) -- (0.6) Other expense, net -- -- -- (0.4) -- (0.4)
(Loss) income before income taxes (10.3) 23.9 13.6 5.1 9.6 14.7
Income taxes (J) 5.0 (8.3) (3.3) (0.5) (3.9) (4.4) Net (loss)
income $(5.3) $15.6 $10.3 $4.6 $5.7 $10.3 Net (loss) income per
common share: Basic and diluted $(0.09) $0.18 * * Basic and diluted
weighted average shares outstanding: Basic and diluted 58.2 58.2 *
* *Prior to January 26, 2007, the Company was not a public
reporting entity and there were no shares outstanding for purposes
of earnings (loss) per share calculations. Table 4 (Continued)
HARRIS STRATEX NETWORKS, INC. FY'07 Year End Summary RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES Condensed Consolidated Statement Of
Operations (Unaudited) Year Ended Year Ended June 29, 2007 June 30,
2006 MCD and Stratex Non-GAAP Combined Non-GAAP As Adjust- as
Adjust- Reported ments Non-GAAP Reported ments Non-GAAP (In
millions, except for net loss per share) Revenue from product sales
and services (A) $507.9 $145.8 $653.7 $599.9 $- $599.9 Cost of
product sales and services (B) (352.2) (91.2) (443.4) (444.0) 35.4
(408.6) Amortization of purchased technology (C) (3.0) 3.0 -- -- --
-- Gross margin 152.7 57.6 210.3 155.9 35.4 191.3 Research and
development expenses (D) (39.4) 2.0 (37.4) (43.3) 0.7 (42.6)
Selling and administrative expenses (E) (98.9) (22.0) (120.9)
(117.2) 5.9 (111.3) Acquired in-process research and development
(F) (15.3) 15.3 -- -- -- -- Amortization of intangible assets (G)
(7.5) 7.5 -- -- -- -- Restructuring charges (H) (9.3) 8.6 (0.7)
(3.8) 3.8 - Corporate allocations expense(G) (3.7) 3.4 (0.3) (12.4)
12.4 - Operating (loss) income (21.4) 72.4 51.0 (20.8) 58.2 37
Interest income 1.8 1.8 3.6 2.0 -- 2.0 Interest expense (2.3) (1.4)
(3.7) (3.1) -- (3.1) Other expense, net -- (0.9) (0.9) (1.9) --
(1.9) (Loss) income before income taxes (21.9) 71.9 50.0 (23.8)
58.2 34.4 Income taxes (H) 4.0 (18.2) (14.2) (8.3) (2.0) (10.3) Net
(loss) income $ (17.9) $53.7 $35.8 $(32.1) $56.2 $24.1 Net
(loss)income per common share: Basic and diluted $(0.72) $0.62 * *
Basic and diluted weighted average shares outstanding: Basic and
diluted 24.7 57.9 * * *Prior to January 26, 2007, the Company was
not a public reporting entity and there were no shares outstanding
for purposes of earnings (loss) per share calculations. Notes to
tables 4 and 6: Note A - Revenue - Adjustment to revenue for the
fiscal year ended June 29, 2007 of $145.8 million to add Stratex
Networks, Inc. revenue for the 7 months ended January 26, 2007,
prior to the merger. Note B - Cost of sales and services -
Adjustments to cost of product sales and services for the fiscal
year ended June 29, 2007 to add $100.3 million to add Stratex
Networks cost of product sales and services for the 7 months ended
January 26, 2007, prior to the merger, and to remove merger related
charges including amortization of the step-up in inventory and
fixed assets ($2.7 million for the quarter ended June 29, 2007 and
$8.3 million for fiscal year 2007) and write-off of deferred costs
($0.1 million for the fiscal year ended June 29, 2007). Adjustments
to cost of product sales and services to remove FAS 123R expense
($0.2 million for the quarter ended June 29, 2007 and $0.7 million
for fiscal year ended June 29, 2007). Adjustments to the Microwave
Communications Division of Harris Corporation's cost of product
sales and services for the year ended June 30, 2006 to remove $34.9
million for inventory write-downs related to product
discontinuances. Adjustment to Stratex Networks, Inc. cost of
product sales and services to remove $0.2 million of APB No. 25
stock-based compensation expense prior to the adoption of FAS 123R
and $0.3 million for the quarter ended June 29, 2006 for a total of
$0.5 million for fiscal year 2006. Note C - Amortization of
purchased technology - Adjustment for the quarter and fiscal year
ended June 29, 2007 to remove amortization of purchased intangibles
incurred in connection with the merger. Note D - Research and
development expenses - Adjustment for the quarter and fiscal year
ended June 29, 2007 to remove FAS 123R expenses of $0.4 million and
$2.0 million. Upon the adoption of FAS 123R by Stratex Networks in
the June 2006 quarter, adjustment for the quarter and fiscal year
ended June 30, 2006 to remove FAS 123R expenses of $0.7 million.
Note E - Selling and administrative expenses - Adjustment to
selling and administrative expenses for the year ended June 29,
2007 of $41.5 million to add Stratex Networks selling and
administrative expenses for the 7 months ended January 26, 2007,
prior to the merger. Adjustments for the quarter and year ended
June 29, 2007 to remove merger related charges including
amortization of the step-up fixed assets ($0.4 million for the
quarter and $0.8 million for the year ended June 29, 2007),
integration and severance costs ($4.7 million for the quarter and
$11.8 million for the year ended June 29, 2007), and FAS 123R
expense ($1.9 million for the quarter and $6.9 million for the year
ended June 29, 2007). Adjustments to the Microwave Communications
Division of Harris Corporation's selling and administrative
expenses to remove FAS 123R expense ($0.5 million for the quarter
and $1.9 million for the year ended June 30, 2006), and to remove
severance costs associated with product discontinuance in the
Microwave Communications Division ($0.9 million for the fiscal year
ended June 30, 2006). Adjustment to Stratex Networks, Inc. selling
and administrative expenses for the year ended June 30, 2006 to
remove $1.1 million of APB No. 25 stock compensations expense prior
to the adoption of FAS 123R, plus $2.0 million upon adoption of FAS
123R by Stratex in the June 2006 quarter. Note F - Acquired
in-process research and development - Adjustment for the fiscal
ended June 29, 2007 to remove write off of in-process research and
development incurred in connection with the merger. Note G -
Amortization of intangible assets - Adjustment for the quarter and
fiscal year ended June 29, 2007 to remove amortization of purchased
intangibles incurred in connection with the merger. Note H -
Charges for restructuring - Adjustment to remove charges for
restructuring incurred during the fiscal years ended June 29, 2007
and June 30, 2006 and each of the quarters ended June 29, 2007 and
June 30, 2006. Note I - Corporate allocation expenses - Adjustment
for the year ended June 29, 2007 and for the quarter and fiscal
year ended June 30, 2006 to remove Corporate allocation expenses
from Harris Corporation through December 31, 2006, which did not
continue after the merger. Note J - Income taxes - Adjustment to
reflect a pro-forma 26 percent tax rate for the second half of
fiscal 2007 which for the fiscal year 2007 makes for an effective
tax rate of 28.5 percent and 30 percent tax rate for the fiscal
year ended June 30, 2006. Table 5 HARRIS STRATEX NETWORKS, INC.
FY'07 Year End Summary GAAP REVENUE BY SEGMENT INFORMATION
(Unaudited) Quarter Ended Year Ended June June June June 2007 2006
2007 2006 (In millions) Revenue North America microwave $58.8 $41.6
$216.3 $168.1 International microwave 110.6 64.5 272.2 172.3
Network operations 4.7 4.4 19.4 17.1 $174.1 $110.5 $507.9 $357.5
Table 6 HARRIS STRATEX NETWORKS, INC. FY'07 Year End Summary
SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA (Unaudited)
Quarter Ended Quarter Ended June 29, 2007 June 30, 2006 As Non-GAAP
Non- MCD Stratex Combined Reported Adjustments GAAP Actual Actual
Non-GAAP (In millions) North America $58.8 $-- $58.8 $41.6 $3.5
$45.1 International: Africa 41.3 -- 41.3 47.9 17.1 65.0 Europe,
Middle East and Russia 44.2 -- 44.2 8.5 26.8 35.3 Latin America and
AsiaPac 25.1 -- 25.1 8.1 18.9 27.0 Total International 110.6 --
110.6 64.5 62.8 127.3 Network Operations 4.7 -- 4.7 4.4 -- 4.4 $
174.1 $-- $174.1 $110.5 $66.3 $176.8 Table 6 (Continued) HARRIS
STRATEX NETWORKS, INC. FY'07 Year End Summary SUPPLEMENTAL SCHEDULE
OF REVENUE BY GEOGRAPHICAL AREA (Unaudited) Year Ended Year Ended
June 29, 2007 June 30, 2006 As Non-GAAP Non- MCD Stratex Combined
Reported Adjustments GAAP Actual Actual Non-GAAP (In millions)
North America $216.3 $7.0 $223.3 $168.1 $19.1 $187.2 International:
Africa 126.7 44.1 170.8 98.6 47.9 146.5 Europe, Middle East and
Russia 87.1 59.2 146.3 29.7 102.0 131.7 Latin America and AsiaPac
58.4 35.5 93.9 44.0 73.4 117.4 Total International 272.2 138.8
411.0 172.3 223.3 395.6 Network Operations 19.4 -- 19.4 17.1 --
17.1 $507.9 $145.8 $653.7 $357.5 $242.4 $599.9 DATASOURCE: Harris
Stratex Networks, Inc. CONTACT: Investors, Mary McGowan, Summit IR
Group Inc., +1-408-404-5401, ; or Media, Kami Spangenberg of Harris
Stratex Networks, Inc., +1-919-767-5238, Web site:
http://www.harrisstratex.com/
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