Harris Corp. posts fiscal 1Q loss on charges
MELBOURNE, Fla. (AP) — Harris posted a fiscal first-quarter loss Monday as the communications and information technology company booked hefty impairment charges from discontinued operations in broadcast communications and cloud-computing data services.
Harris, whose technologies are used by military, government and commercial clients, reported a net loss of $85.8 million, or 76 cents per share, for the three months ended Sept. 28. That compares with net income of $121.6 million, or $1.01 per share, in the year-ago period.
Harris, based in Melbourne, Fla., recorded non-cash impairment charges totaling $222 million from discontinued operations in its broadcast communications and its cyber integrated solutions businesses.
Earlier this year, the company said it would divest its broadcast communications operations, and report them as discontinued operations. It also announced plans to discontinue operations that provide data-hosting services and sell a facility that it opened in Harrisonburg, Va. to support that business.
The impairment charges in the latest quarter are in addition to a $407 million charge in the fiscal third quarter for a writedown related to the broadcast communications business.
Harris said on Monday that it recorded the additional charges "based on recent indicators of value" during the latest quarter, "including market, financial performance and indications of value from interested parties."
Excluding the charges, Harris reported income from continuing operations of $129 million, or $1.14 per share. That was 2 cents per share more than analysts expected on average, according to FactSet.
Revenue fell nearly 6 percent to $1.26 billion from about $1.34 billion. Analysts had expected slightly higher revenue of nearly $1.3 billion.
In the RF Communications unit, revenue fell 10 percent to $445 million. The operating margin for the unit also declined.
The integrated network solutions business also posted a revenue decline of 10 percent, to $376 million.
Those declines were partly offset by a 5 percent revenue increase in the government communications unit, to $465 million.
The company reaffirmed that it expects earnings from continuing operations of $5.10 to $5.30 per share for fiscal 2013. Revenue is expected to be flat to up 2 percent from the $5.45 billion in its year ended in June.
Analysts expect earnings of $5.14 per share on revenue of $5.42 billion.
A number of companies postponed earnings reports Monday because Hurricane Sandy shut down financial markets. There was no trading in shares of Harris Corp. Monday.