MELBOURNE, FLA.: The broadcast division of Harris Corp. logged a sequentially higher quarter, but weak U.S. performance is driving plans to streamline the division, the company said in its quarterly release.
Revenues totaled $123 million compared to $117 million in F2Q10, but down from $132 million a year ago. Orders for the segment were $130 million for fiscal 3Q10; up from $108 million a year ago, but lower than F2Q10 sales of $139 million. Operating loss was $5 million, as it was in F2Q10, and compared to operating income of $2 million a year earlier.
“Operating performance for the segment is being impacted by a still relatively weak U.S. broadcaster market and continued investment to pursue opportunities in the international and new media markets,” Harris said. “Additional cost-reduction actions will be implemented in the fourth quarter, which are expected to improve operating performance and allow continued investment in opportunity rich international and new media markets.”
The company went on to say that orders during the second and third quarters “suggest that the market is bottoming and showing signs of improvement,” particularly overseas. New orders during the quarter included two for $4 million from Abu Dhabi and Rwanda. Cox Broadcasting placed a $12 million order for a traffic and billing system.
“New media growth initiatives--such as the in-arena network for the National Basketball Association Orlando Magic that will combine IPTV and digital signage and will merge broadcast technology with IT infrastructure--are beginning to contribute to revenue,” the company said.
Harris reported combined revenues for its broadcast, RF and government divisions of $1.33 billion compared to $1.21 billion a year ago. Income was $166 million, or $1.27 a diluted share, compared to $126 million, or $1.02 a share last year.
Shares of Harris (NYSE: HRS) were trading at $51.87, maintaining a 23 percent jump in price since F3Q10 results were announced last Thursday. Harris today announced a $13 million orders for its RF division today.
-- Deborah D. McAdams
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