Harris Stratex Networks Announces Completion of Merger
January 26 2007 - 5:45PM
PR Newswire (US)
Combination Creates Largest Independent Global Provider of Wireless
Transmission Network Solutions RESEARCH TRIANGLE PARK, N.C., Jan.
26 /PRNewswire-FirstCall/ -- Harris Stratex Networks, Inc.
(NASDAQ:HSTX), today announced the completion of the combination of
Stratex Networks and Harris Corporation's Microwave Communications
Division. Harris Stratex Networks will be listed on the NASDAQ
Global Market under the stock symbol HSTX, effective January 29,
2007, at market open. With calendar year 2006 revenue of about $650
million, Harris Stratex Networks is the largest independent
provider of wireless transmission network solutions, with customers
in over 150 countries. Harris Stratex Networks offers end-to-end
wireless transmission solutions for mobile and fixed wireless
service providers, and private networks. The new company's
solutions offering will be the broadest in the industry, including
microwave radios for access and trunking applications,
carrier-grade Ethernet transmission systems, network management
software, and turnkey field services that include network planning,
engineering and implementation. "As Harris Stratex Networks, we
expect to have a significant impact on the wireless transmission
market through our comprehensive product line and field services,
our market-leading technology, and a truly global geographic
footprint," said Guy Campbell, president and chief executive
officer of Harris Stratex Networks. "For us, this means increased
revenue opportunities in every region and market segment -- across
the globe." With this combination, the new company also expects to
gain significant manufacturing cost synergies due to increased
volume leverage, more streamlined supply-chain processes, and
increased use of outsourced contract manufacturing in low-cost
locations. "Our international sales structure has been defined, we
have a stronger presence, and we're ready today to provide enhanced
service to our customers," said Tom Waechter, chief operating
officer of Harris Stratex Networks. Financial Results Call
Scheduled for January 30, 2007 At 5:30 p.m. Eastern Time on
Tuesday, January 30, 2007, Harris Stratex Networks will host a
conference call to discuss the financial results for the quarter
ended December 2006 for Stratex Networks, Inc., and pro forma
information for the new company, Harris Stratex Networks. Those
wishing to join the call should dial 303-262-2138 (no pass code
required). A replay of the call will be available starting one hour
after the call's completion and will run until midnight, Eastern
Time, on Tuesday, February 6, 2007. To access the replay, dial
303-590-3000 (pass code: 11082112#). A live and an archived webcast
of the conference call will also be available via the Internet at
http://www.harrisstratex.com/. About Harris Stratex Networks, Inc.
Harris Stratex Networks is the world's leading independent supplier
of turnkey wireless network 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 150 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 and trends in revenue, as
well as other statements identified by the use of forward-looking
terminology, including "anticipate", "believe", "plan", "estimate",
"expect", "goal" 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.
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 transactions
contemplated by the combination agreement; rates of success in
executing, managing and integrating key acquisitions and
transactions, including the integration of the operations,
personnel and businesses of the Stratex Networks, Inc. with those
of the former Microwave Communications Division of Harris
Corporation; the ability to achieve business plans for Harris
Stratex; the ability to manage and maintain key customer
relationships; the ability to fund debt service obligations through
operating cash flow; the ability to obtain additional financing in
the future and react to competitive and technological changes; the
ability to comply with restrictive covenants in Harris Stratex's
indebtedness; the ability to compete with a range of other
providers of microwave communications products and services; the
effect of technological changes on Harris Stratex's businesses; the
functionality or market acceptance of new products that Harris
Stratex may introduce; the extent to which Harris Stratex's future
earnings will be sufficient to cover its fixed charges; Harris
Stratex will be subject to intense competition; the failure of
Harris Stratex to protect its intellectual property rights;
currency and interest rate risks; the impact of political, economic
and geographic risks on international sales; the ability to retain
the principal sources of revenue of Stratex Networks, Inc. and
Harris Microwave Communications Division; and future changes in
prices for Harris Stratex's 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 Harris Microwave Communications Division and
Stratex, see "Risk Factors" in the proxy statement/ prospectus
included in the registration statement on Form S-4, as well as
other reports filed by Harris Stratex with the U.S. Securities and
Exchange Commission from time to time. Harris Stratex 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. DATASOURCE: Harris
Stratex Networks, Inc. CONTACT: Media, Kami Spangenberg of Harris
Stratex Networks, +1-919-767-5238, or ; or Investors, Mary McGowan
of Summit IR Group Inc., +1-408-404-5401, or Web site:
http://www.harris.com/ http://www.harrisstratex.com/
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