Harris Sees Higher Earnings, Revenue

The company cites strength in its government segments.
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Communications-gear maker

Harris

(HRS)

said earnings and revenue in its September quarter will exceed existing forecasts because of strength in government segments.

The Melbourne, Fla., company expects to earn 37 cents or 38 cents a share in the quarter, its fiscal first, up from 30 cents a share last year. Analysts surveyed by Thomson First Call were predicting first-quarter earnings of 32 cents a share.

Revenue should be $540 million to $550 million, up from $450.2 million last year. Analysts were forecasting revenue of $517.4 million.

Harris said the quarter was strong because of better-than-expected performance in its government communications and tactical radio segments.

"As expected, fiscal year 2003 cost reductions are having a positive impact across our commercial businesses," Harris said. It said its network support business is expected to be profitable for the quarter on improving revenue, while microwave segment revenue is expected to improve compared with last year and its operating loss will narrow "significantly."

Revenue in the broadcast business is expected to be weaker than the prior-year quarter, principally in studio products and systems, as a result of continued delays in capital spending by broadcast customers.

The shares recently crossed at $35.37 on Island, up from the 4 p.m. EDT close of $34.41.