Company Updates Fiscal 2009 Guidance and Provides Initial Fiscal
2010 Guidance MELBOURNE, Fla., May 5 /PRNewswire-FirstCall/ --
Harris Corporation (NYSE: HRS) reported GAAP net income for the
third quarter of fiscal 2009 of $114 million, or $.86 per diluted
share, compared with GAAP net income of $108 million, or $.78 per
diluted share, in the prior-year quarter. Revenue for the third
quarter of fiscal 2009 was $1.36 billion, compared with $1.33
billion for the prior-year quarter. Excluding the results of Harris
Stratex Networks, Inc., net income was $136 million, or $1.02 per
diluted share, for the third quarter of fiscal 2009, compared with
net income of $106 million, or $.78 per diluted share, in the
prior-year quarter. Revenue on the same basis increased 5 percent
to $1.21 billion in the third quarter, compared with $1.15 billion
for the prior-year quarter. Orders were $1.0 billion for the third
quarter, declining 27 percent compared with $1.4 billion in the
prior-year quarter, primarily as a result of significantly lower
Department of Defense (DoD) orders in the RF Communications segment
and the impact of the weak global economy on the Broadcast
Communications segment. Harris announced on March 31, 2009, that
its Board of Directors approved the spin-off to its shareholders of
all the shares of Harris Stratex Networks owned by Harris, and that
the distribution will take place in the form of a taxable pro rata
dividend of Harris Stratex Networks shares payable on May 27, 2009.
A reconciliation of GAAP to non-GAAP financial measures is provided
in Table 5, along with the accompanying notes. "Our company
performed very well in the third quarter with higher revenue and
strong earnings," said Howard L. Lance, chairman, president and
CEO. "However, order rates declined in the quarter and are expected
to remain weak in the near-term, which will have a significant
impact on expected results in fiscal 2010. Beyond fiscal 2010, our
company is well-positioned to return to growth. We will continue to
invest in acquisitions and new products to expand into adjacent
markets where our advanced technologies and capabilities are
discriminators. For example, feedback from our customers that have
begun fielding our new Falcon lll(R) manpack radios has been
overwhelmingly positive. The Falcon III 117G is JTRS-approved and
offers the most advanced capabilities available in the market,
including wideband networking. We are confident that the radios
will be widely fielded in both the U.S and international markets."
Revenue and Earnings Guidance Harris now expects non-GAAP earnings
from continuing operations in fiscal 2009 to be at the low end of
its previous guidance range of $3.93 to $4.03 per diluted share,
excluding acquisition-related costs ($3.88 to $3.98 on a GAAP
basis), representing a year-over-year increase of approximately 17
percent, compared with non-GAAP earnings from continuing operations
in fiscal 2008 of $3.35 per diluted share ($3.33 on a GAAP basis).
Revenue from continuing operations for fiscal 2009 is now expected
to increase by approximately 7 percent compared with fiscal 2008.
Initial non-GAAP earnings guidance in fiscal 2010 is expected to be
in a range of $3.10 to $3.40 per diluted share, a 16 to 21 percent
decline compared to the low end of fiscal 2009 guidance. Revenue in
fiscal 2010 is expected to be in a range of $4.9 billion to $5.1
billion. Fiscal 2010 earnings per share and revenue guidance
include the expected full-year contribution of the Wireless Systems
and Crucial Security acquisitions and exclude acquisition-related
costs. A reconciliation of GAAP to non-GAAP financial measures is
provided in Table 7, along with the accompanying notes. RF
Communications Third quarter revenue in the RF Communications
segment was $439 million, an increase of 12 percent, compared with
$392 million in the prior-year quarter. Operating income in the
third quarter was $151 million, and operating margin continued to
be strong at 34.5 percent of revenue. Revenue growth was driven by
significantly higher international sales, which represented 43
percent of total revenue in the quarter, compared with 27 percent
for all of fiscal 2008. Revenue in the U.S. market remained strong,
but declined compared to the prior-year quarter. Significant
deliveries in the quarter were made to Norway, Pakistan, the
Philippines, Hungary, Belgium, Iraq, Kyrgyzstan, the Czech
Republic, Armenia, Canada, Ukraine, and Afghanistan. In the U.S.
market, significant deliveries were made to the U.S. Army, Marine
Corps, and Air Force. Year-to-date orders through the third quarter
of fiscal 2009 were $807 million, down 37 percent, compared with
$1.28 billion for the comparable prior-year period. Full-year
fiscal 2009 orders are expected to be $1.2 billion to $1.3 billion,
well below expected revenue, resulting in a segment book-to-bill
ratio of substantially below 1:1. As a result, segment organic
revenue in fiscal 2010 is now expected to be significantly lower
than fiscal 2009. The reduced outlook results from a combination of
factors, including the delay of two significant orders. The company
had expected a $250 million order from the Iraq Ministry of Defence
for HF radios, which is now expected to be received in smaller
increments over several years. Also expected was a $500 million
ceiling IDIQ (Indefinite Delivery/Indefinite Quantity) contract
from the U.S. Army for the purpose of procuring Falcon II(R)
AN/PRC-117F and the new Falcon III AN/PRC-117G multiband radios.
The IDIQ was awarded to Harris in the third quarter, with an
initial $148 million order for 117Gs. Subsequently, it was
determined by the Army that this IDIQ contract could not be used to
procure 117G radios, and the order was cancelled. This decision may
result in significant delays in 117G orders. In addition, pressure
on DoD budgets caused by the global economic crisis and deficit
spending, as well as the lack of clarity surrounding funding
priorities within the new administration, are slowing DoD
procurements for many defense products and systems, including
tactical radios for modernization programs. For Harris, the slower
procurement environment has been compounded by reduced urgency for
radio systems to support operational requirements in Iraq, which
has been only partially offset by additional requirements for
Afghanistan. In the international market, demand remains robust and
should continue to drive significant international revenue growth.
Communications modernization and standardization programs by U.S.
allies are expected to continue. Harris provides Falcon(R) tactical
radios to more than 100 countries. "In spite of the near-term
decline, longer-term growth prospects for the business remain very
positive in both U.S. and international markets," Lance said. "RF
Communications will benefit from positive long-term market trends,
a competitive position that is unmatched, and an industry-leading
new product portfolio." For example, the Falcon lll manpack radio
is the first JTRS-approved tactical radio system that provides
wideband mobile ad-hoc networked communications. The radio has been
fielded by all services of the U.S. Department of Defense and
several international allies. The radio supports secure,
high-bandwidth communications on-the-move, delivering an evolving
picture of the battlefield in real time. Harris continued to expand
its addressable markets through its international integrated
communications systems offering. The company received a $46 million
order in the third quarter from the government of the United Arab
Emirates for an integrated communications system incorporating
Falcon II radios, Falcon III high-capacity data radios (HCDRs),
tactical broadband global area network (BGAN) satellite
communications terminals, and command and control capabilities.
Significant international orders in the quarter were also received
from Poland and Hungary. New orders in the U.S. reflected the
progress Harris is making with its customers to field larger
quantities of the company's new JTRS-approved Falcon III radios
that provide multimission capability and new capabilities such as
wideband networking for high-bandwidth communications on-the-move.
The U.S. Air Force placed an $18 million order for the new Falcon
III 117G wideband networking radio, which includes a Remote
Operated Video Enhanced Receiver (ROVER) interoperable mode that
provides battlefield airmen the ability to receive live video
directly from UAVs. Also in the quarter, over $60 million in orders
for Falcon III multiband handheld and vehicular radios were
received from multiple DoD customers. On April 16, Harris announced
a definitive agreement to acquire the Tyco Electronics Wireless
Systems business (formerly known as M/A-COM), an established
provider of mission-critical wireless communications systems for
law enforcement, fire and rescue, and public service organizations.
Wireless Systems had revenue of $463 million for its fiscal year
ending September 26, 2008, and addresses a growing $9 billion
global market for public safety communications. The acquisition is
expected to close by the end of June 2009. Wireless Systems will
operate as the Public Safety business unit under the Harris RF
Communications segment. Government Communications Systems The
Government Communications Systems segment reported fiscal 2009
third quarter revenue of $649 million, a 7 percent increase
compared with $608 million in the prior-year quarter. Operating
income in the third quarter was $74 million, and operating margin
was a strong 11.4 percent. Operating income in the prior-year
quarter was $21 million and was impacted by a $47 million charge
for commercial satellite reflector programs. Seven of the ten
commercial reflectors under contract have now been shipped to
customers. Revenue increased in all four of the segment's
businesses: Defense Programs, National Intelligence Programs, Civil
Programs and IT Services. Revenue growth was primarily driven by:
the FAA Telecommunications Infrastructure (FTI) program, which has
expanded to include the FTI Microwave program in Alaska; a number
of classified programs; the Global Geospatial Intelligence (GGI)
program for the National Geospatial-Intelligence Agency; sales of
surveillance equipment from the company's Wireless Products Group
(WPG); the U.S. Navy Commercial Broadband Satellite Program; and
the Navy/Marine Corps Intranet (NMCI) IT services program. The
ramping of several recent contract awards in the segment's new
Healthcare Solutions business also contributed to higher revenue,
including a significant multi-million-dollar, ten-year contract
with Health First, Inc., a Florida-based healthcare provider.
Harris will provide network management and IT services for its
enterprise-wide operations. The contract includes software and
hardware support, 24/7 network operations center, help desk,
training, and network security services. Also, Harris has joined
forces with a business unit of Siemens Healthcare to provide
solutions critical for Picture Archiving and Communications Systems
(PACS) that support business continuity during the recovery from
natural and man-made disasters. Following the close of the quarter,
Harris was awarded a 10-year, $600 million contract for the U.S.
Army Modernization of Enterprise Terminals (MET) program. The new
satellite communications terminals will represent the worldwide
backbone for high-priority military communications and missile
defense systems and support Internet Protocol (IP) and Dedicated
Circuit Connectivity within the Global Information Grid (GIG),
providing critical reach-back capability for the warfighter. On
April 16, 2009, Harris announced its acquisition of Crucial
Security, Inc., a Washington, D.C.-area provider of
mission-enabling engineering solutions that address both offensive
and defensive IT security challenges for federal law enforcement
and other U.S. government agencies. The acquisition expands Harris
capabilities and customer footprint in the cyber security market.
Broadcast Communications Third quarter revenue in the Broadcast
Communications segment was $132 million, declining 17 percent
compared with $159 million in the prior-year quarter. Operating
income was $2 million in the third quarter compared with $7 million
in the prior-year quarter. The global recession and postponement of
capital projects further weakened demand. However, the impact of
lower revenue on operating performance in the third quarter was
mitigated by on-going cost-reduction actions. Revenue declined in
both U.S. and international markets and was lower primarily as a
result of declining sales in Infrastructure and Networking
Solutions where the impact of the global market softness was most
significant. Transmission Systems sales were modestly lower as a
result of softness in the global radio market. Media and Workflow
sales were flat, with weakness in U.S. and international traffic
systems, offset by higher sales of media server products. At the
recent National Association of Broadcasters show in Las Vegas,
Harris made several announcements related to important new growth
initiatives for the segment. Harris will begin a field trial with
McDonald's this month to launch the fast food chain's unique,
branded TV channel. The field trial includes 20 restaurants around
the country and will feature Harris Digital Signage(TM) solutions
to manage, monitor and play out digital broadcast-quality video
content for the McDonald's Channel. The systems will be designed
and managed through a collaborative effort between Harris Broadcast
Communications and the Harris IT Services business within the
Government Communications Systems segment. In another breakthrough
application, Harris has signed with the National Basketball
Association Orlando Magic to create a first-of-its-kind advanced
media workflow in the team's new arena that will be completed in
2010. The in-arena network will combine IPTV and digital signage
and will be built around file-based workflows that merge broadcast
technology with IT infrastructure. The systems will be designed and
managed by Harris Broadcast Communications and Harris IT Services.
Harris Stratex Networks, Inc. Harris Stratex Networks, Inc.
(NASDAQ:HSTX) revenue for the third quarter of fiscal 2009 was $158
million, a decrease of 11 percent compared with $178 million in the
prior-year quarter. The segment reported an operating loss of $34
million in the quarter as a result of impairment charges of $33
million related to the acceleration towards a common IP-based
technology platform and a $2 million write-off of in-process
research and development related to an acquisition. Harris will
host a conference call today at 4:30 p.m. Eastern Time (ET) to
discuss its third quarter fiscal 2009 financial results. The
dial-in number for the teleconference is (913) 312-1492 and the
access code is 3442695. Please allow at least 10 minutes prior to
the scheduled start time to connect to the teleconference. Harris
encourages you to listen via webcast, which will be broadcast live
at http://www.harris.com/conference-call. A replay of the
teleconference will be available beginning at 8:30 p.m. ET on May 5
and will run until midnight ET on Tuesday, May 12. To access the
replay, please call (719) 457-0820, access code 3442695. A
recording of the call will also be available on the Harris website
beginning at 7:00 p.m. ET on Tuesday, May 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 $5.4 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, net
income per diluted share and revenue for the third quarter of
fiscal 2009 and the third quarter of fiscal 2008, and net income
per diluted share and revenue for fiscal 2009 and fiscal 2008, in
each case excluding the results of Harris Stratex Networks, and
fiscal 2009 and fiscal 2010 guidance 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. Attachments:
Financial Statements (seven 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: earnings and revenue guidance for fiscal 2009 and
fiscal 2010; the potential value of contract awards; and statements
regarding outlook, including expected revenue and orders. 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; customer credit risk; risks inherent in developing new
technologies; changes in our effective tax rate; 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; changes in future business conditions that could
cause business investments and/or recorded goodwill to become
impaired; and the recession in the United States and 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 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. Table 1 HARRIS CORPORATION FY '09
Third Quarter Summary condensed Consolidated Statement of Income
(Unaudited) Three Quarter Ended Quarters Ended April 3, March 28,
April 3, March 28, 2009 2008 2009 2008 (In millions, except per
share amounts) Revenue from product sales and services $1,361.7
$1,329.6 $4,252.8 $3,877.8 Cost of product sales and services
(952.3) (933.9) (2,941.9) (2,691.7) Engineering, selling and
administrative expenses (240.1) (236.4) (717.0) (683.6) Impairment
of goodwill and other intangible assets --- --- (301.0) ---
Non-operating income (loss) 6.6 2.8 (2.2) 8.7 Interest income 0.8
1.9 3.7 5.5 Interest expense (13.4) (13.9) (41.0) (42.8) Income
before income taxes and minority interest 163.3 150.1 253.4 473.9
Income taxes (65.8) (38.9) (214.2) (149.0) Minority interest in
Harris Stratex Networks, Inc., net of tax 16.7 (3.2) 155.1 (2.4)
Net income $114.2 $108.0 $194.3 $322.5 Net income per common share
Basic $.87 $.80 $1.47 $2.41 Diluted $.86 $.78 $1.46 $2.35 Cash
dividends paid per common share $.20 $.15 $.60 $.45 Basic weighted
average shares outstanding 132.0 134.6 132.5 134.0 Diluted weighted
average shares outstanding 132.8 136.2 133.5 136.9 Table 2 HARRIS
CORPORATION FY '09 Third Quarter Summary Business Segment
Information (Unaudited) Three Quarter Ended Quarters Ended April 3,
March 28, April 3, March 28, 2009 2008 2009 2008 (In millions)
Revenue RF Communications $439.1 $391.9 $1,292.5 $1,065.5
Government Communications Systems 648.7 608.2 2,005.8 1,836.8
Broadcast Communications 132.2 158.6 453.4 468.9 Harris Stratex
Networks 158.1 178.2 544.8 531.6 Corporate eliminations (16.4)
(7.3) (43.7) (25.0) $1,361.7 $1,329.6 $4,252.8 $3,877.8 Income
Before Income Taxes and Minority Interest Segment Operating Income
(Loss): RF Communi- cations $151.3 $141.4 $437.5 $376.4 Government
Communi- cations Systems 73.9 21.4 225.4 152.5 Broadcast Communi-
cations 1.9 7.1 19.2 25.7 Harris Stratex Networks (34.1) 9.2
(317.7) 7.4 Unallocated Corporate expense (18.8) (18.2) (56.8)
(55.2) Corporate eliminations (4.9) (1.6) (14.7) (4.3)
Non-operating income (loss) 6.6 2.8 (2.2) 8.7 Net interest expense
(12.6) (12.0) (37.3) (37.3) $163.3 $150.1 $253.4 $473.9 Table 3
HARRIS CORPORATION FY '09 Third Quarter Summary CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) Three Quarters
Ended April 3, March 28, 2009 2008 (In millions) Operating
Activities Net income $194.3 $322.5 Adjustments to reconcile net
income to net cash provided by (used in) operating activities:
Depreciation and amortization 127.5 125.8 Purchased in-process
research and development write-off 2.4 1.4 Share-based compensation
27.5 29.8 Non-current deferred income taxes (7.6) 2.3 Gain on the
sale of securities available-for-sale --- (4.8) Impairment of
securities available-for-sale 7.6 --- Impairment of goodwill and
other intangible assets 301.0 --- Minority interest in Harris
Stratex Networks, Inc., net of tax (155.1) 2.4 (Increase) decrease
in: Accounts and notes receivable (30.0) (96.7) Inventories (48.0)
(90.3) Increase (decrease) in: Accounts payable and accrued
expenses (66.2) 67.4 Advance payments and unearned income 24.0 13.8
Income taxes (3.6) (19.2) Other 30.7 3.6 Net cash provided by
operating activities 404.5 358.0 Investing Activities Cash paid for
acquired businesses (9.1) (12.8) Additions of property, plant and
equipment (78.4) (84.2) Additions of capitalized software (18.5)
(24.7) Cash paid for short-term investments available-for-sale
(1.2) (8.4) Proceeds from the sale of short-term investments 3.7
25.4 available-for-sale Proceeds from the sale of securities
available-for-sale --- 7.1 Net cash used in investing activities
(103.5) (97.6) Financing Activities Proceeds from borrowings 78.5
450.2 Repayment of borrowings (80.5) (541.3) Payment of treasury
lock --- (8.8) Proceeds from exercise of employee stock options 7.6
31.6 Repurchases of common stock (132.2) (209.3) Cash dividends
(80.1) (61.3) Net cash used in financing activities (206.7) (338.9)
Effect of exchange rate changes on cash and cash equivalents (12.3)
2.1 Net increase (decrease) in cash and cash equivalents 82.0
(76.4) Cash and cash equivalents, beginning of year 370.0 368.3
Cash and cash equivalents, end of quarter $452.0 $291.9
Supplemental disclosure of noncash investing and financing
activities: Common stock issued in exchange for 3.5% convertible
debentures, due fiscal 2023 $--- $163.5 Table 4 HARRIS CORPORATION
FY '09 Third Quarter Summary CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited) April 3, June 27, 2009 2008 ---- ---- (In millions)
Assets Cash and cash equivalents $452.0 $370.0 Short-term
investments 0.6 3.1 Marketable equity securities 3.4 19.3
Receivables 886.3 859.0 Inventories 660.7 610.4 Current deferred
income taxes 111.7 117.2 Other current assets 72.8 73.5 Property,
plant and equipment 467.1 482.2 Goodwill 1,210.0 1,547.3
Identifiable intangible assets 304.8 367.0 Other non-current assets
162.6 178.5 ----- ----- $4,332.0 $4,627.5 ======== ========
Liabilities and Shareholders' Equity Short-term debt $18.4 $8.5
Accounts payable 339.7 390.8 Compensation and benefits 177.9 191.9
Other accrued items 276.8 239.1 Advance payments and unearned
income 170.5 146.4 Income taxes payable 12.9 22.9 Current portion
of long-term debt 0.8 5.7 Non-current deferred income taxes 24.2
29.8 Long-term debt 827.5 831.8 Other long-term liabilities 128.2
156.3 Minority interest in Harris Stratex Networks, Inc. 175.8
330.3 Shareholders' equity 2,179.3 2,274.0 ------- ------- $4,332.0
$4,627.5 ======== ======== HARRIS CORPORATION FY '09 Third Quarter
Summary 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); cost of product
sales and services; engineering, selling and administrative
expenses; income (loss) before income taxes and minority interest;
income taxes; minority interest; net income (loss); and net income
(loss) per diluted share adjusted to exclude certain costs,
charges, 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 5 HARRIS CORPORATION FY '09
Third Quarter Summary Revenue, Net Income and Net Income per
Diluted Share, Excluding the Results of Harris Stratex Networks,
Inc. (Unaudited) Three Quarter Ended Quarters Ended April 3, March
28, Percent April 3, March 28, Percent 2009 2008 Change 2009 2008
Change (In millions, except per share amounts) Revenue $1,361.7
$1,329.6 $4,252.8 $3,877.8 Harris Stratex Networks revenue, net of
elimin- ations (A) (156.6) (176.6) (541.9) (528.6) Revenue,
excluding the results of Harris Stratex Net- works $1,205.1
$1,153.0 5% $3,710.9 $3,349.2 11% Net income $114.2 $108.0 $194.3
$322.5 Harris Stratex Networks impact to net income (A) 21.7 (1.8)
201.6 (3.5) Net income, exclud- ing the results of Harris Stratex
Net- works $135.9 $106.2 28% $395.9 $319.0 24% Income per diluted
share $0.86 $0.78 $1.46 $2.35 Harris Stratex Networks impact to
income per diluted share (A) 0.16 --- 1.51 (0.02) Income per
diluted share, excluding the results of Harris Stratex Net- works
$1.02 $0.78 31% $2.97 $2.33 27% Table 6 HARRIS CORPORATION FY '09
Third Quarter Summary Comparison of Harris Stratex Networks Segment
GAAP and Non-GAAP Operating Income to that Reported by Harris
Stratex Networks, Inc. (Unaudited) Quarter Ended Quarter Ended
April 3, 2009 March 28, 2008 As Reported by As Reported by Harris
Harris Stratex Stratex Harris Networks Harris Networks (In
millions) Operating Income (Loss) - As Reported $(34.1) $(34.1)
$9.2 $9.2 Adjustments: Stratex combination- related costs --- 0.3
1.5 1.5 Acquisition- related costs --- 2.4 --- --- FAS 123R expense
--- 0.5 --- 2.1 Restructuring costs --- 0.5 --- --- Other
identifiable intangible amortization --- 3.2 --- 3.7 Impairment of
assets --- 32.7 --- --- Operating Income - Non-GAAP $(34.1) $5.5
$10.7 $16.5 Table 7 HARRIS CORPORATION FY '09 Third Quarter Summary
Reconciliation of FY '08 GAAP Income per Diluted Share and FY '09
GAAP Income per Diluted Share Guidance to Non-GAAP Income per
Diluted Share, Excluding the Results of Harris Stratex Networks
(Unaudited) Fiscal Year 2008 Fiscal Year 2009 (Actual) (Guidance)
Percent Change GAAP income per diluted share $3.26 $1.50 to $1.60
(54)% to (51)% Harris Stratex Networks impact to GAAP income per
diluted share (A) $0.07 $2.38 GAAP income per diluted share -
excluding Harris Stratex Networks $3.33 $3.88 to $3.98 17% to 20%
Charges associated with the acquisition of Multimax Incorporated
(B) $0.01 --- Charges associated with the acquisition of Zandar
Technologies plc (C) $0.01 --- Charges associated with the
acquisition of Tyco Electronics Wireless Systems (D) --- $0.05
Non-GAAP income per diluted share - excluding Harris Stratex
Networks $3.35 $3.93 to $4.03 17% to 20% HARRIS CORPORATION FY '09
Third Quarter Summary RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (Unaudited) Notes to tables 5 through 7: Note A - Assumes
Harris Stratex Networks will become a discontinued operation prior
to the end of fiscal 2009. As a result, guidance and actual results
have been adjusted to exclude the results of Harris Stratex
Networks. Note B - Adjustment for the $.01 per diluted share impact
of integration and other charges associated with our acquisition of
Multimax Incorporated. Note C - Adjustment for the $.01 per diluted
share impact of integration and other charges associated with our
acquisition of Zandar Technologies plc. Note D - Adjustment for the
estimated impact of $.05 per diluted share for fiscal 2009 related
to integration and other charges associated with our pending
acquisition of Tyco Electronics Wireless Systems business.
Additional Note Relating to Non-GAAP Earnings per Share Guidance
for Fiscal 2010: Non-GAAP earnings per share guidance for fiscal
2010 excludes acquisition-related costs. At this time a
reconciliation to GAAP earnings per share guidance for fiscal 2010
is not available without unreasonable effort. DATASOURCE: Harris
Corporation CONTACT: Investor Relations inquiries: Pamela Padgett,
+1-321-727-9383, , Media inquiries: Jim Burke, +1-321-727-9131, ,
For additional information, contact Harris Corporation at Web Site:
http://www.harris.com/
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