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Harris Corporation

26 Jan 11. Harris Corporation (NYSE:HRS – News) reported revenue for the second quarter of fiscal 2011 of $1.44bn, an 18 percent increase compared with $1.22bn in the prior-year quarter. Organic revenue growth was 9 percent after adjusting for the impact from acquisitions. GAAP net income for the second quarter of fiscal 2011 was $151m, or $1.18 per diluted share, compared with $140m, or $1.06 per diluted share, in the prior-year quarter. Earnings benefited $0.05 per diluted share in the quarter from the extension of the federal research and development tax credit, including its catch-up effect. Non-GAAP net income in the second quarter of fiscal 2011 was $155m, or $1.20 per diluted share, a 12 percent increase compared with the prior-year quarter of $142 m, or $1.07 per diluted share. Non-GAAP net income excludes acquisition-related costs in both quarters. Orders in the second quarter were $1.41bn, compared with $1.42bn in the prior-year quarter. The prior year benefited significantly from tactical radio orders for MRAPs and M-ATVs for the U.S. Department of Defense.

“Our second quarter results were excellent, driven by strength in RF
Communications, solid results at Government Communications Systems and
significant improvement at Broadcast Communications. Organic year-over-year revenue growth was strong at 9 percent with all of our businesses contributing,” said Howard L. Lance, chairman, president and chief executive officer. “In the second quarter, we announced a definitive agreement to acquire Schlumberger’s Global Connectivity Services business, adding scale to our global managed satellite communications services capabilities, increasing our international footprint and further diversifying the company into faster-growing markets. The acquisition is expected to close in our fiscal 2011 third quarter. This crossover strategy allows the company to provide the same trusted assured communications® solutions to both government and commercial customers alike.”

“Fiscal 2011 is shaping up to be another strong year for revenue and earnings growth, even in the face of the U.S. Government’s continuing budget resolution and challenging state and local budget environments. We are continuing to invest in attractive growth markets for the longer term, including energy, cyber, healthcare and international. We expect fiscal 2012 to benefit from these investments along with an improving economy.”

RF Communications

Second quarter orders for the RF Communications segment totalled $391m, including $300m in Tactical Radio Communications and $91m in Public Safety and Professional Communications. At the end of the second quarter, total backlog for the RF Communications segment was $1.52bn, including $1.06bn in Tactical Radio Communications and $457m in Public Safety and Professional Communications. New orders reflected excellent international growth driven by a key tactical radio win valued at greater than $300m, with an initial order in the second quarter exceeding $100m. This key win, along with other large, multi-year program awards such as the province-wide Alberta First Responders Radio Communications System and the state-wide Oregon Wireless Interoperability Network (OWIN) program will all lead to future order bookings. Revenue for RF Communications in the second quarter was $545m, compared with $463m in the prior-year quarter. Revenue included $426m in Tactical Radio Communications and $119m in Public Safety and Professional Communications. Revenue for the segment increased 18 percent, driven by strong international deliveries to Pakistan, Australia and Iraq and an uptake in the U.S. Department of Defense adoption of the company’s new Falcon III® radios. Tactical radio deliveries for equipping MRAPs and M-ATVs declined significantly.

Operating income for RF Communications was $189m in the second quarter, compared with $169m in the prior-year quarter. In the prior-year quarter, non-GAAP operating income wa

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