Harris Corp.oration saw an 14 percent increase in revenue in the second quarter of fiscal year 2006 to $842 million. This was, in part, due to acquisition of Leitch Technology in October. 2005 and Encoda Systems in November. 2004.
According to the company’s earnings announcement, revenue in the Broadcast Communications segment was $135.4 million in the second quarter of 2006, as compared to $98.9 million in the same quarter of the previous year. Excluding charges related to cost reduction actions previously reported and charges related to the acquisition of Leitch Technology, the operating margin reached 11 percent.
Harris reported that major orders for the broadcast segment during the second quarter of 2006 included DTV transmission equipment for Gray Communications and Entravision Communications; TV equipment for Radiocomunicatii in Romania; digital radio transmitters and exciters for Clear Channel Communications and digital software systems for Swisscom Broadcasting, BridgeNetworks in Australia and KUB Telekomunikasi in Malaysia.
Howard L. Lance, chairman, president and CEO of Harris, commented, " Demand is improving for digital products, systems, and software at our Microwave and Broadcast businesses, and cost-reduction actions are delivering increased margins.” He added that financial performance in the first half of the fiscal year exceeded expectations and that recent acquisitions were performing on plan and contributing to growth and earnings. He said that the company forecast strength in demand and continuing profitability and that further improvements were expected in the second half of the fiscal year.
