Tuesday, communications and IT company Harris Corp. (HRS) posted lower profit for the first quarter, reflecting higher expenses, as sales increased on strong performance in both the RF Communications and Government Communications Systems segments. However, the company raised its full-year outlook, citing higher-than-expected tactical radio orders from the U.S. Department of Defense.
The Melbourne, Florida-based company's net income was $104.5 million or $0.79 per share, down from $118.7 million or $0.89 per share a year earlier.
Excluding acquisition-related charges of $4.5 million or $0.04 per share, non-GAAP income from continuing operations was $109.0 million or $0.83 per share. On average, fourteen analysts polled by Thomson Reuters expected the company to report earnings of $0.77 per share for the first quarter. Analysts' estimates typically exclude special items.
Harris Corp's quarterly revenue rose to $1.20 billion from $1.17 billion last year, but came in below eleven analysts' revenue consensus estimate of $1.21 billion.
Chairman, president and chief executive officer Howard Lance said in a statement, "During the quarter, Harris received $220 million in orders for the new Falcon III® AN/PRC-117G multiband manpack radio, marking a significant milestone toward widespread customer adoption. The 117G is being deployed to the U.S. Army in Afghanistan, becoming the first JTRS-approved ground tactical radio to be used in a wideband networking battlefield application."
In the fourth quarter, the company posted a net loss of $156.4 million or $1.19 per share, compared to net income of $121.7 million or $0.90 per share in the prior-year quarter, impacted by special charges, as well as weak results from the Government Communications Systems segment and the Broadcast Communications segment.
However, on adjusted basis, fourth-quarter income from continuing operations was $120 million or $0.91 per share, down from $134.8 million or $1.00 per share in the year-ago quarter. Revenues for the fourth quarter increased 4% to $1.29 billion from $1.25 billion in the same quarter last year.
For the quarter under review, RF Communications segment's revenue totaled $424 million, including $303 million in the Tactical Radio Communications business and $121 million in the Public Safety and Professional Communications business. Orders for the segment totaled $709 million, including $586 million in the Tactical Radio Communications business.
Government Communications Systems' revenue increased 10% to $668 million from $609 million a year earlier, helped by favorable award fees for the FAA Telecommunications Infrastructure or FTI, the company said.
First-quarter revenue in the Broadcast Communications segment was $119 million, down from $158 million in the year-ago quarter, impacted by delayed capital spending by broadcast and media customers, as well as seasonally slow spending, primarily in Europe and the Middle East.
New orders in the first quarter were a strong $1.5 billion, compared with the prior quarter's $1.29 billion.
Amongst others in the industry, Comtech Telecommunications Corp. (CMTL), on September 23, reported fourth-quarter net income of $6.18 million or $0.21 per share, down from $16.96 million or $0.61 per share in the previous year. The company's net sales declined to $122.03 million from $126.47 million last year.
Yet another competitor, Lockheed Martin Corp. (LMT), on October 20, reported third-quarter net earnings of $797 million or $2.07 per share, up from $782 million or $1.92 per share last year. Quarterly net sales increased to $11.056 billion from $10.577 billion in the year-ago quarter.
Looking ahead to fiscal year 2010, Harris now expects non-GAAP income per share from continuing operations of $3.85 - $3.95 and GAAP income per share from continuing operations of $3.74 - $3.84 per share. This compares with prior outlook for non-GAAP income per share of $3.40 - $3.50 and GAAP income per share of $3.25 - $3.40.
The company also raised its 2010 revenue outlook to $5.1 billion - $5.2 billion from its prior range of $5.0 billion - $5.1 billion. Analysts expect earnings of $3.37 per share, on revenues of $5.02 billion, for the year.
Commenting on the outlook Lance said, "We have significantly increased our full-year fiscal 2010 guidance to reflect much higher than expected tactical radio orders from the U.S. Department of Defense and the positive impact on expected revenue and earnings."
Tuesday, HRS closed at $37.94, down $1.02 or 2.62%, on a volume of 2.59 million shares on NYSE. In after hours, the stock moved up 5.38% and was trading at $39.98. In the past 52 weeks, the stock trended in a broad range of $26.11 - $45.25, with a three-month average volume of 1.37 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.