Harris Corporation reports solid fiscal 2012 fourth quarter results

Wednesday, Aug 01, 2012

Harris Corporation (NYSE:HRS) reported revenue in the fourth quarter of fiscal 2012 of $1.44 billion compared with $1.52 billion in the prior-year quarter. GAAP income from continuing operations was $137 million, or $1.20 per diluted share, compared with $134 million, or $1.06 per diluted share, in the prior year. As previously announced, the company approved a plan during the quarter to divest Broadcast Communications, which is now reported as discontinued operations. Non-GAAP income from continuing operations was $162 million, or $1.42 per diluted share, compared with $156 million, or $1.24 per diluted share, in the prior year, representing an increase in non-GAAP earnings per share of 15 percent.

Non-GAAP amounts in this release exclude acquisition-related costs, and a reconciliation of GAAP to non-GAAP financial measures is provided in Tables 5 through 8, along with accompanying notes. Orders in the fourth quarter were $1.48 billion compared with $1.21 billion in the prior year.

“Harris fourth quarter results represented a solid finish to fiscal 2012”

“Harris fourth quarter results represented a solid finish to fiscal 2012,” said William M. Brown, president and chief executive officer. “Both income and earnings per share from continuing operations increased compared with the prior year, driven by operating improvement in all three segments and from a lower share count. Cash flow was particularly strong in the fourth quarter, contributing to excellent full year results.

“Although revenue declined as expected, orders in the quarter were higher than revenue and increased in all three segments with the strongest increase in Integrated Network Solutions. Our recent wins are encouraging as we enter a new fiscal year facing uncertainty in the government spending environment.”

Results for Full Fiscal Year

Revenue in fiscal 2012 was $5.45 billion, a one percent increase compared with $5.42 billion in the prior year. GAAP income from continuing operations was $559 million, or $4.80 per diluted share, compared with $600 million, or $4.69 per diluted share, in the prior year. Non-GAAP income from continuing operations was $605 million, or $5.20 per diluted share, compared with $636 million, or $4.98 per diluted share, in the prior year, representing an increase in non-GAAP earnings per share of 4 percent. Cash flow from operations was $853 million compared with $833 million in the prior year, and free cash flow was $619 million, compared with $508 million in the prior year.

RF Communications

Revenue in the fourth quarter for the RF Communications segment was $584 million compared with $628 million in the prior year. Tactical Communications revenue was $409 million, a decline of 13 percent compared with the prior year. Public Safety and Professional Communications revenue was $175 million, an increase of 12 percent compared with the prior year. Operating income for the RF Communications segment was $196 million compared with $191 million in the prior year. Operating margin was 33.5 percent compared with 30.4 percent in the prior year, improving as a result of lower manufacturing costs and operating expenses.

Orders for the segment totaled $529 million, including $356 million in Tactical Communications and $173 million in Public Safety and Professional Communications. Book-to-bill was .91 for the segment. At the end of the fourth quarter, backlog was $665 million in Tactical Communications and $635 million in Public Safety and Professional Communications.

Source: Business Wire