Click here to close now.




















Welcome!

News Feed Item

Harris Corporation Reports Fiscal 2014 Third Quarter Results

Harris Corporation (NYSE:HRS) reported revenue in the third quarter of fiscal 2014 of $1.27 billion and income from continuing operations of $137 million, or $1.27 per diluted share. In the prior year, revenue was $1.20 billion and income from continuing operations was $125 million, or $1.12 per diluted share. Orders in the third quarter were $1.11 billion compared with $1.13 billion in the prior year.

“Third quarter revenue and earnings were higher than the prior year as a result of strong performance in Government Communications Systems and RF Communications’ international tactical radio business,” said William M. Brown, chairman, president and chief executive officer. “Results reflected our continued commitment to operational excellence in a tough U.S. Government spending environment.”

RF Communications

Revenue in the third quarter for the RF Communications segment was $457 million compared with $418 million in the prior year. Tactical Communications revenue was $335 million, increasing 21 percent, and Public Safety revenue was $122 million, decreasing 14 percent. Segment operating income was $144 million compared with $116 million in the prior year.

Orders for the segment totaled $405 million, including $285 million in Tactical Communications and $120 million in Public Safety. Book-to-bill was 0.89 for the segment, and funded backlog was $680 million in Tactical Communications and $578 million in Public Safety.

International tactical radio orders included $82 million and $49 million from two countries in Asia. U.S. government tactical radio orders included $45 million from the U.S. Department of Defense and $11 million from the U.S. Air Force. Public Safety orders included $12 million from the U.S. Marine Corps and a $49 million (CAD) follow-on order from Alberta, Canada, bringing orders to-date to $346 million (CAD).

Following the close of the quarter, Harris was awarded a 5-year, $988 million multi-vendor Indefinite Delivery Indefinite Quantity (IDIQ) contract from the U.S. Army for Soldier Radio Waveform (SRW) vehicular appliqué systems.

Integrated Network Solutions

Revenue in the third quarter for the Integrated Network Solutions segment was $348 million, decreasing 7 percent compared with $375 million in the prior year. Segment operating income was $21 million compared with $31 million in the prior year.

During the quarter, IT Services received a $21 million follow-on order from the Canadian Department of National Defense for the CF-18 Avionics Optimized Weapons System Support program. CapRock Communications orders included $17 million from an international oil and gas drilling company.

Government Communications Systems

Revenue in the third quarter for the Government Communications Systems segment was $477 million, increasing 11 percent compared with $431 million in the prior year. Higher revenue was driven by the Aireon hosted payload program, the FAA’s NextGen DataComm program, the Army’s Modernization of Enterprise Terminals program and the F-35 program. Segment operating income was $77 million compared with $67 million in the prior year.

During the quarter, Harris was awarded an 8-year, single-award IDIQ follow-on contract for $133 million for the U.S. Navy’s Commercial Broadband Satellite Program, bringing total potential program value to more than $250 million. Harris also received awards totaling $59 million from classified customers.

Earnings Guidance

Harris increased its fiscal 2014 guidance for income from continuing operations from a range of $4.80 to $4.90 per diluted share to a range of $4.90 to $5.00 per diluted share. Fiscal 2014 revenue is now expected to decline 2 to 3 percent compared with the prior year.

Harris will host a conference call today, April 29, at 8:30 a.m. Eastern Time (ET) to discuss its third quarter fiscal 2014 financial results. The dial-in numbers for the teleconference are (877) 303-9481 (U.S.) and (760) 666-3582 (International), using participant code 17798393. Please allow at least 10 minutes before the scheduled start time to connect to the teleconference. Participants are encouraged to listen via live webcast and view management’s supporting slide presentation at www.harris.com/conference-call. A recording of the call will be available on the Harris website beginning at approximately 12 p.m. ET on April 29.

About Harris Corporation

Harris is an international communications and information technology company serving government and commercial markets in more than 125 countries. Headquartered in Melbourne, Florida, the company has approximately $5 billion of annual revenue and about 14,000 employees — including 6,000 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.

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 2014; potential contract opportunities and awards; the potential value of contract awards; 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 the company’s relationship with the U.S. Government or a change or reduction in U.S. Government funding; potential changes in U.S. Government or customer priorities and requirements (including potential deferrals of awards, terminations, reductions of expenditures, changes to respond to the priorities of Congress and the Administration, budgetary constraints, debt ceiling implications, and cost-cutting initiatives); the potential impact of a security breach, through cyber attack or otherwise, or other significant disruptions of the company’s IT networks and systems or those the company operates for customers; 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; the continued effects of the general weakness in the global economy and U.S. Government’s budget deficits and national debt; the company’s 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 the company’s ability to manage and integrate acquired businesses; performance of the company’s subcontractors and suppliers; potential claims that the company is 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 the company’s effective tax rate; the potential impact of natural disasters or other disruptions on the company’s operations; the potential impact of changes in the regulatory framework that applies to, or of satellite bandwidth constraints on, the company’s managed satellite and terrestrial communications solutions; and changes in future business or other market conditions that could cause business investments and/or recorded goodwill or other long-term assets to become impaired. 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.

For additional information, contact Harris Corporation at [email protected].

 
Table 1
HARRIS CORPORATION
FY '14 Third Quarter Summary
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
       
Quarter Ended Three Quarters Ended
March 28, March 29, March 28, March 29,
2014 2013 2014 2013
 
(In millions, except per share amounts)
Revenue from product sales and services $ 1,267.5 $ 1,203.7 $ 3,682.6 $ 3,752.1
 
Cost of product sales and services (841.0 ) (803.5 ) (2,410.9 ) (2,497.2 )
Engineering, selling and administrative expenses (203.2 ) (202.5 ) (615.7 ) (613.8 )
Non-operating income (loss) 0.2 (0.5 ) 4.7 (1.6 )
Interest income 0.7 0.8 2.0 1.8
Interest expense   (23.2 )   (27.6 )   (70.6 )   (83.1 )
 
Income from continuing operations before income taxes 201.0 170.4 592.1 558.2
Income taxes   (63.9 )   (45.8 )   (190.5 )   (166.8 )
Income from continuing operations 137.1 124.6 401.6 391.4
Discontinued operations, net of income taxes   4.1     (30.3 )   1.4     (338.3 )
Net income 141.2 94.3 403.0 53.1
Noncontrolling interests, net of income taxes   0.2     0.5     0.4     4.4  
Net income attributable to Harris Corporation $ 141.4   $ 94.8   $ 403.4   $ 57.5  
 
Net income per common share attributable to
Harris Corporation common shareholders
Basic
Continuing operations $ 1.28 $ 1.12 $ 3.75 $ 3.52
Discontinued operations   0.04     (0.27 )   0.02     (3.01 )
$ 1.32   $ 0.85   $ 3.77   $ 0.51  
 
Diluted
Continuing operations $ 1.27 $ 1.12 $ 3.72 $ 3.50
Discontinued operations   0.04     (0.27 )   0.01     (2.99 )
$ 1.31   $ 0.85   $ 3.73   $ 0.51  
 
Cash dividends paid per common share $ 0.42 $ 0.37 $ 1.26 $ 1.11
 
Basic weighted average common shares outstanding 106.2 110.6 106.3 111.5
Diluted weighted average common shares outstanding 107.4 111.2 107.4 112.1
 
 
Table 2
HARRIS CORPORATION
FY '14 Third Quarter Summary
BUSINESS SEGMENT INFORMATION
(Unaudited)
       
Quarter Ended Three Quarters Ended
March 28, March 29, March 28, March 29,
2014 2013 2014 2013
 
(In millions)
Revenue
RF Communications $ 457.2 $ 417.7 $ 1,334.8 $ 1,348.4
Integrated Network Solutions 348.0 375.0 1,089.5 1,163.6
Government Communications Systems 476.6 430.6 1,321.2 1,313.3
Corporate eliminations   (14.3 )   (19.6 )   (62.9 )   (73.2 )
$ 1,267.5   $ 1,203.7   $ 3,682.6   $ 3,752.1  
Income From Continuing Operations Before Income Taxes
Segment Operating Income:
RF Communications $ 143.7 $ 116.1 $ 421.0 $ 401.2
Integrated Network Solutions 21.4 30.7 83.8 96.7
Government Communications Systems 77.4 66.5 207.9 197.7
Unallocated corporate expense (17.0 ) (14.0 ) (47.4 ) (48.4 )
Corporate eliminations (2.2 ) (1.6 ) (9.3 ) (6.1 )
Non-operating income (loss) 0.2 (0.5 ) 4.7 (1.6 )
Net interest expense   (22.5 )   (26.8 )   (68.6 )   (81.3 )
$ 201.0   $ 170.4   $ 592.1   $ 558.2  
 
 
Table 3
HARRIS CORPORATION
FY '14 Third Quarter Summary
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
   
Three Quarters Ended
March 28, March 29,
2014 2013
 
(In millions)
Operating Activities
Net income $ 403.0 $ 53.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 148.6 164.3
Share-based compensation 28.5 25.6
Non-current deferred income taxes 29.8 2.9
Gain on sale of securities available-for-sale (9.0 )
(Gain) loss on sale of discontinued operations (1.4 ) 23.6
Impairment of assets of discontinued operations 320.7
(Increase) decrease in:
Accounts and notes receivable (75.8 ) 88.0
Inventories (5.3 ) (31.7 )
Increase (decrease) in:
Accounts payable and accrued expenses (46.2 ) (145.3 )
Advance payments and unearned income (9.7 ) 78.6
Income taxes (10.8 ) (66.5 )
Other   (6.7 )   8.9  
Net cash provided by operating activities   454.0     513.2  
 
Investing Activities
Cash paid for intangible assets (3.3 )
Cash paid for cost-method investment (0.8 )
Additions of property, plant and equipment (139.7 ) (124.9 )
Additions of capitalized software (6.6 )
Proceeds from sale of discontinued operations 27.0 147.4
Proceeds from sale of securities available-for-sale     11.9  
Net cash provided by (used in) investing activities   (116.0 )   27.0  
 
Financing Activities
Proceeds from borrowings 5.6 17.1
Repayments of borrowings (82.4 ) (140.9 )
Proceeds from exercises of employee stock options 133.9 84.7
Repurchases of common stock (222.1 ) (274.6 )
Cash dividends   (135.5 )   (124.6 )
Net cash used in financing activities   (300.5 )   (438.3 )
 
Effect of exchange rate changes on cash and cash equivalents   (8.9 )   1.1  
 
Net increase in cash and cash equivalents 28.6 103.0
 
Cash and cash equivalents, beginning of year   321.0     356.0  
 
Cash and cash equivalents, end of quarter $ 349.6   $ 459.0  
 
 
Table 4
HARRIS CORPORATION
FY '14 Third Quarter Summary
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
   
March 28, June 28,
2014 2013
 
(In millions)
Assets
 
Cash and cash equivalents $ 349.6 $ 321.0
Receivables 772.7 696.8
Inventories 674.0 668.7
Income taxes receivable 53.8 36.2
Current deferred income taxes 113.4 121.2
Other current assets 89.8 77.2
Current assets of discontinued operations 27.0
Property, plant and equipment 685.5 653.2
Goodwill 1,703.6 1,692.0
Intangible assets 270.8 308.1
Non-current deferred income taxes 87.9 124.8
Other non-current assets   157.5   132.2
$ 4,958.6 $ 4,858.4
Liabilities and Equity
 
Short-term debt $ 81.3 $ 144.6
Accounts payable 355.5 339.5
Compensation and benefits 176.7 234.3
Other accrued items 261.9 255.8
Advance payments and unearned income 298.2 308.0
Current deferred income taxes 0.9 1.8
Current portion of long-term debt 1.4 13.4
Long-term debt 1,575.8 1,577.1
Long-term contract liability 87.3 96.8
Other long-term liabilities 324.6 325.9
Equity   1,795.0   1,561.2
$ 4,958.6 $ 4,858.4

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...