Harris Corporation Reports First Quarter Results; Fiscal 2010 Guidance
Increased on Strong Orders for Tactical Radios
MELBOURNE, Fla., Oct. 27 /PRNewswire-FirstCall/ -- Harris Corporation (NYSE:
HRS) revenue for the first quarter of fiscal 2010 ended October 2, 2009, was
$1.20 billion, compared with $1.17 billion for the first quarter of fiscal
2009. Net income in the first quarter was $105 million, or $.79 per diluted
share, compared with $119 million, or $.89 per diluted share, in the
prior-year quarter. Excluding acquisition-related charges, non-GAAP income
from continuing operations in the first quarter of fiscal 2010 was $109
million, or $.83 per diluted share. New orders in the first quarter of fiscal
2010 were a strong $1.5 billion. A reconciliation of GAAP to non-GAAP
financial measures is provided in Tables 5 through 7, along with the
accompanying notes.
"New orders, revenue and earnings exceeded our expectations in the first
quarter as a result of strong performance in both the RF Communications and
Government Communications Systems segments," said Howard L. Lance, chairman,
president and chief executive officer.
"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," Lance said. "We
also received orders associated with the MRAP-ATV (mine resistant ambush
protected all-terrain vehicle) program and are expecting significant
additional orders in the second quarter.
"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," Lance said.
Increased Earnings Guidance
The company has revised its guidance for non-GAAP income from continuing
operations for fiscal 2010 to a range of $3.85 to $3.95 per diluted share
($3.74 to $3.84 per diluted share on a GAAP basis), compared with a previous
range of $3.40 to $3.50 per diluted share ($3.25 to $3.40 per diluted share on
a GAAP basis). Revenue in fiscal 2010 is now expected to be in a range of
$5.1 billion to $5.2 billion. Fiscal 2010 non-GAAP earnings guidance excludes
acquisition-related costs.
RF Communications
RF Communications segment orders in the first quarter were $709 million,
including $586 million in the Tactical Radio Communications business. The
significant increase in tactical radio orders was driven primarily by the
rebound in U.S. DoD procurements that began in the fourth quarter of fiscal
2009 and by accelerating customer adoption of the JTRS-approved Falcon lll
AN/PRC-117G multiband manpack tactical radio.
During the quarter, Harris received a $165 million order from the U.S. Army as
part of a $419 million Basic Purchasing Agreement (BPA) to provide 117G radios
and vehicular power-amplifier systems. Additional first quarter 117G orders
were received from a broad base of other customers. The 117G is being used in
a wide variety of ground, vehicular and airborne applications, including ISR
(intelligence, surveillance and reconnaissance).
Also in the first quarter, Harris received $180 million in radio orders for
the military's new MRAP-ATVs being shipped to Afghanistan to counter increased
use of IEDs (improvised explosive devices). International orders included
radios for military forces in Mexico, Yemen, Ethiopia, Pakistan and Australia.
Orders in the new Public Safety and Professional Communications business were
$123 million. New orders were driven by continuing trends for frequency
re-banding, new systems, and system upgrades requiring both infrastructure
systems and radio equipment. Customers included the State of Florida,
Ericsson Australia, and the Royal Canadian Mounted Police. Also in the
quarter, Harris received orders for more than 1,000 of its new Unity(TM)
XG-100 radios from a variety of customers. The software-defined, multiband,
handheld radio provides full-spectrum interoperability among federal, state,
and local agencies.
Total backlog in RF Communications at the end of the first quarter was $1.23
billion, including $760 million in Tactical Radio Communications and $470
million in Public Safety and Professional Communications. RF Communications
backlog at the end of fiscal 2009 was $920 million, including $470 million in
Tactical Radio Communications and $450 million in Public Safety and
Professional Communications.
Revenue for the RF Communications segment in the first quarter was $424
million, including $303 million in the Tactical Radio Communications business
and $121 million in the Public Safety and Professional Communications
business. As expected, revenue in the Tactical Radio Communications business
declined compared with first-quarter prior-year revenue of $415 million as a
result of procurement delays by the U.S. government and the Iraq Ministry of
Defense.
Operating income for RF Communications was $114 million in the first quarter
compared with $142 million in the prior-year quarter. Excluding $7 million in
charges for acquisition-related expenses, non-GAAP operating income in the
first quarter was $121 million. Non-GAAP operating income declined compared
with the prior-year quarter as a result of reduced tactical radio revenue.
Non-GAAP operating margin was a strong 28 percent for the segment due to
favorable product mix and cost-reduction actions implemented in the second
half of fiscal 2009.
Government Communications Systems
First quarter revenue for the Government Communications Systems segment was
$668 million, a 10-percent increase compared with $609 million in the
prior-year quarter. Operating income was $86 million in the first quarter
compared with $66 million in the prior-year quarter. Operating margin was a
strong 12.8 percent, reflecting excellent performance and favorable award fees
for the FAA Telecommunications Infrastructure (FTI) program. The FTI program
has completed its equipment build-out phase and now is transitioning to its
telecommunication services and maintenance phase.
Segment revenue growth was driven by a broad base of programs including the
FTI program, the WIN-T (Warfighter Information Network-Tactical) program, the
Commercial Broadband Satellite program for the Navy, several classified
programs for national intelligence customers, the Patriot IT services program
for the NRO (National Reconnaissance Office), and the NETCENTS IT services
program for the U.S. Air Force.
Revenue benefited from the start-up of new programs including the 10-year,
potential $736 million GOES-R GS (Geostationary Operational Environmental
Satellite-Series R Ground Segment) program for NOAA (National Oceanic and
Atmospheric Administration) and the 10-year, potential $600 million MET
(Modernization of Enterprise Terminals) program for the U.S. Army.
Also contributing to higher revenue was growth in the Harris Healthcare
Solutions business and the recent acquisitions of Crucial Security and SolaCom
ATC. New contract wins in the quarter included several IT Services programs
with a combined potential value of more than $400 million and new national
intelligence programs with a potential value of $120 million.
Broadcast Communications
First quarter orders in the Broadcast Communications segment were $124 million
and were greater than revenue and about even with orders in the fourth quarter
of the prior year. First quarter revenue in the segment was $119 million,
compared with $130 million in the prior-year fourth quarter and $158 million
in the prior-year first quarter. Continued weakness in the first quarter was
expected and reflects the global economy and delayed capital spending by
broadcast and media customers, as well as seasonally slow spending, primarily
in Europe and the Middle East.
Operating income in the first quarter of fiscal 2010 was $.3 million and was
achieved on substantially lower revenue as a result of significant
cost-reduction actions implemented during fiscal 2009.
Key program wins in the quarter included transmitters for the rollout of DTV
networks in Rwanda and Mexico; complete Harris ONE(TM) solutions for Meredith
Corporation's central-casting hub in Phoenix and the Home Shopping Channel in
South Korea; and multiple orders for China Central Television (CCTV).
Also during the quarter, Harris was awarded a contract from Lockheed Martin to
provide systems for the U.S. Joint Forces Command, which will use highly
advanced broadcast technologies to help collect, manage, process, exploit and
disseminate full-motion video. The system provides increased visibility into
the vast amounts of real-time and archived video that is collected from manned
and unmanned aircraft and ground-based sensors. The Harris system
incorporates its proprietary FAME(TM) (Full-Motion Video Asset Management
Engine) technology, which has broad applications in government and commercial
markets.
Harris will host a conference call today at 4:30 p.m. Eastern Time (ET) to
discuss its first quarter fiscal 2010 financial results. The dial-in number
for the teleconference is (816) 581-1736. The access code is 7224156. Please
allow at least 10 minutes prior to the scheduled start time to connect to the
teleconference. Participants are encouraged to listen via webcast, which will
be broadcast live at www.harris.com/conference-call. A replay of the
teleconference will be available beginning at 8:30 p.m. ET on October 27, and
will run until midnight ET on Tuesday, November 3. To access the replay,
please call (719) 457-0820, access code 7224156. A recording of the call also
will be available on the Harris website beginning at 7:00 p.m. ET on October
27.
About Harris Corporation
Harris is an international communications and information technology company
serving government and commercial markets in more than 150 countries.
Headquartered in Melbourne, Florida, the company has approximately $5 billion
of annual revenue and more than 15,000 employees -- including nearly 7,000
engineers and scientists. Harris is dedicated to developing best-in-class
assured communications® products, systems, and services. Additional
information about Harris Corporation is available at www.harris.com.
Non-GAAP Financial Measure
This press release contains non-GAAP financial measures within the meaning of
Regulation G promulgated by the SEC, including income from continuing
operations and income from continuing operations per diluted share for the
first quarter of fiscal 2010, in each case excluding charges for
acquisition-related expenses; operating income and margins for the RF
Communications segment, excluding acquisition-related expenses; and fiscal
2010 guidance for earnings from continuing operations, excluding
acquisition-related costs. Harris management believes that these non-GAAP
financial measures, when considered together with the GAAP financial measures,
provide information that is useful to investors in understanding
period-over-period operating results separate and apart from items that may,
or could, have a disproportionately positive or negative impact on results in
any particular period. Management also believes that these non-GAAP financial
measures enhance the ability of investors to analyze Harris business trends
and to understand Harris performance. In addition, Harris may utilize
non-GAAP financial measures as a guide in its forecasting, budgeting, and
long-term planning process and to measure operating performance for some
management compensation purposes. Any analysis of non-GAAP financial measures
should be used only in conjunction with results presented in accordance with
GAAP.
Attachments:Financial Statements (seven tables).
Forward-Looking Statements
Statements in this press release that are not historical facts are
forward-looking statements that reflect management's current expectations,
assumptions, and estimates of future performance and economic conditions.
Such statements are made in reliance upon the safe harbor provisions of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements in this release include but
are not limited to: earnings and revenue guidance for fiscal 2010; the
potential value of contract awards; and statements regarding outlook,
including expected revenue and orders. The company cautions investors that
any forward-looking statements are subject to risks and uncertainties that may
cause actual results and future trends to differ materially from those matters
expressed in or implied by such forward-looking statements. The company's
consolidated results and the forward-looking statements could be affected by
many factors, including but not limited to: the loss of our relationship with
the U.S. government or a shift in U.S. government funding; potential changes
in U.S. government or customer priorities; risks inherent with large long-term
fixed-price contracts, particularly the ability to contain cost overruns;
financial and government and regulatory risks relating to international sales
and operations; our ability to continue to develop new products that achieve
market acceptance; the consequences of future geo-political events; strategic
acquisitions and the risks and uncertainties related thereto, including our
ability to manage and integrate acquired businesses; performance of our
subcontractors and suppliers; potential claims that we are infringing the
intellectual property rights of third parties; the successful resolution of
patent infringement claims and the ultimate outcome of other contingencies,
litigation and legal matters; customer credit risk; risks inherent in
developing new technologies; changes in our effective tax rate; the potential
impact of natural disasters on our operations; changes in future business
conditions that could cause business investments and/or recorded goodwill to
become impaired; and the recession in the United States and general downturn
in the global economy. Further information relating to factors that may
impact the company's results and forward-looking statements are disclosed in
the company's filings with the SEC. The forward-looking statements contained
in this release are made as of the date of this release, and the company
disclaims any intention or obligation, other than imposed by law, to update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise.
Table 1
HARRIS CORPORATION
FY '10 First Quarter Summary
condensed Consolidated Statement of Income
(Unaudited)
Quarter Ended
-------------
October 2, September 26,
2009 2008
---- ----
(In millions, except per
share amounts)
Revenue from product sales and services $1,203.0 $1,172.6
Cost of product sales and services (812.1) (791.9)
Engineering, selling and administrative
expenses (212.1) (189.6)
Non-operating loss (0.2) (8.1)
Interest income 0.4 1.0
Interest expense (18.2) (12.4)
----- -----
Income from continuing operations before
income taxes 160.8 171.6
Income taxes (56.3) (52.2)
----- -----
Income from continuing operations 104.5 119.4
Discontinued operations, net of income
taxes -- (0.7)
---- ----
Net income $104.5 $118.7
====== ======
Net income per common share
Basic
Continuing operations $.79 $.89
Discontinued operations -- --
---- ----
$.79 $.89
==== ====
Diluted
Continuing operations $.79 $.89
Discontinued operations -- (.01)
---- ----
$.79 $.88
==== ====
Cash dividends paid per common share $.22 $.20
Basic weighted average shares outstanding 131.8 134.0
Diluted weighted average shares
outstanding 131.9 134.7
Table 2
HARRIS CORPORATION
FY '10 First Quarter Summary
Business Segment Information
(Unaudited)
Quarter Ended
October 2, September 26,
2009 2008
---- ----
(In millions)
Revenue
RF Communications $423.7 $415.2
Government Communications Systems 667.7 609.1
Broadcast Communications 118.7 158.2
Corporate eliminations (7.1) (9.9)
----- -----
$1,203.0 $1,172.6
======== ========
Income From Continuing Operations
Before Income Taxes
Segment Operating Income:
RF Communications $114.0 $142.1
Government Communications Systems 85.7 66.3
Broadcast Communications 0.3 5.3
Unallocated corporate expense (19.2) (18.9)
Corporate eliminations (2.0) (3.7)
Non-operating loss (0.2) (8.1)
Net interest expense (17.8) (11.4)
------ ------
$160.8 $171.6
====== ======
Table 3
HARRIS CORPORATION
FY '10 First Quarter Summary
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Quarter Ended
October 2, September 26,
2009 2008
---- ----
(In millions)
Operating Activities
Net income $104.5 $118.7
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 42.1 42.5
Share-based compensation 11.1 9.0
Non-current deferred income taxes 6.4 (3.1)
Impairment of securities
available-for-sale -- 7.6
Noncontrolling interest in
discontinued operations, net of
income taxes -- (0.6)
(Increase) decrease in:
Accounts and notes receivable 29.2 (121.4)
Inventories (29.8) (66.8)
Increase (decrease) in:
Accounts payable and accrued
expenses (106.0) 33.4
Advance payments and unearned income 34.1 (14.4)
Income taxes 45.1 35.9
Other (2.2) (3.3)
--- ----
Net cash provided by operating activities 134.5 37.5
----- ----
Investing Activities
Cash adjustments related to acquired
businesses 1.0 --
Additions of property, plant and equipment (18.6) (27.8)
Additions of capitalized software (2.0) (3.9)
Cash paid for short-term investments
available-for-sale -- (1.2)
Proceeds from the sale of short-term
investments available-for-sale -- 1.8
---- ----
Net cash used in investing activities (19.6) (31.1)
----- -----
Financing Activities
Proceeds from borrowings -- 78.5
Repayment of borrowings (81.1) (9.2)
Proceeds from exercise of employee
stock options 0.1 5.3
Repurchases of common stock (55.3) (81.6)
Cash dividends (29.0) (26.9)
----- -----
Net cash used in financing activities (165.3) (33.9)
------ -----
Effect of exchange rate changes on cash
and cash equivalents 0.3 (0.3)
--- ----
Net decrease in cash and cash equivalents (50.1) (27.8)
Cash and cash equivalents, beginning of year 281.2 370.0
----- -----
Cash and cash equivalents, end of quarter 231.1 342.2
Less cash and cash equivalents of
discontinued operations -- (94.4)
----- -----
Cash and cash equivalents of continuing
operations, end of quarter $231.1 $247.8
====== ======
Table 4
HARRIS CORPORATION
FY '10 First Quarter Summary
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
October 2, July 3,
2009 2009
---- ----
(In millions)
Assets
Cash and cash equivalents $231.1 $281.2
Receivables 742.7 770.8
Inventories 633.5 607.2
Income taxes receivable -- 21.0
Current deferred income taxes 124.8 117.2
Other current assets 65.7 62.0
Property, plant and equipment 532.2 543.2
Goodwill 1,522.2 1,507.1
Intangible assets 319.9 335.6
Non-current deferred income taxes 78.1 85.3
Other non-current assets 140.8 134.5
----- -----
$4,391.0 $4,465.1
======== ========
Liabilities and Shareholders' Equity
Short-term debt $25.0 $105.7
Accounts payable 305.5 368.0
Compensation and benefits 160.6 224.9
Other accrued items 302.6 288.7
Advance payments and unearned income 155.8 121.7
Income taxes payable 32.2 --
Current portion of long-term debt 0.8 0.7
Long-term debt 1,177.1 1,177.3
Long-term contract liability 142.3 145.6
Other long-term liabilities 168.3 163.4
Shareholders' equity 1,920.8 1,869.1
------- -------
$4,391.0 $4,465.1
======== ========
HARRIS CORPORATION
FY '10 First Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE
To supplement our condensed consolidated financial statements presented in
accordance with U.S. generally accepted accounting principles (GAAP), we
provide additional measures of segments' operating income; cost of
product sales and services; engineering, selling and administrative
expenses; income from continuing operations before income taxes; income
taxes; income from continuing operations; and income from continuing
operations per diluted share adjusted to exclude certain costs, charges,
expenses and losses. Harris management believes that these non-GAAP
financial measures, when considered together with the GAAP financial
measures, provide information that is useful to investors in
understanding period-over-period operating results separate and apart
from items that may, or could, have a disproportionately positive or
negative impact on results in any particular period. Harris management
also believes that these non-GAAP financial measures enhance the ability
of investors to analyze Harris business trends and to understand Harris
performance. In addition, Harris may utilize non-GAAP financial measures
as a guide in its forecasting, budgeting, and long-term planning process
and to measure operating performance for some management compensation
purposes. Any analysis of non-GAAP financial measures should be used
only in conjunction with results presented in accordance with GAAP. A
reconciliation of these non-GAAP financial measures with the most
directly comparable financial measures calculated in accordance with
GAAP follows:
Table 5
HARRIS CORPORATION
FY '10 First Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Condensed Consolidated Statement of Income
(Unaudited)
Quarter Ended Quarter Ended
October 2, 2009 September 26, 2008
--------------- ------------------
As Adjust- Non- As Adjust- Non-
Reported ment GAAP Reported ment GAAP
---------------------- -----------------------
(In millions, except per share amounts)
Revenue from product
sales and services $1,203.0 $ -- $1,203.0 $1,172.6 $ -- $1,172.6
Cost of product sales
and services (A) (812.1) 3.6 (808.5) (791.9) -- (791.9)
Engineering, selling and
administrative
expenses(B) (212.1) 3.6 (208.5) (189.6) -- (189.6)
Non-operating loss (0.2) -- (0.2) (8.1) -- (8.1)
Interest income 0.4 -- 0.4 1.0 -- 1.0
Interest expense (18.2) -- (18.2) (12.4) -- (12.4)
----- ----- ----- ----- ----- -----
Income from continuing
operations before income
taxes 160.8 7.2 168.0 171.6 -- 171.6
Income taxes (56.3) (2.7) (59.0) (52.2) -- (52.2)
----- ---- ----- ----- ----- -----
Income from continuing
operations $104.5 $4.5 $109.0 $119.4 $ -- $119.4
====== ==== ====== ====== ==== ======
Income from continuing
operations per diluted
common share $.79 $.04 $.83 $.89 $ -- $.89
Table 6
HARRIS CORPORATION
FY '10 First Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Business Segment Information
(Unaudited)
Quarter Ended Quarter Ended
October 2, 2009 September 26, 2008
--------------- ------------------
As Adjust- Non- As Adjust- Non-
Reported ment GAAP Reported ment GAAP
---------------------- -----------------------
(In millions)
Revenue
RF Communications $423.7 $ -- $423.7 $415.2 $ -- $415.2
Government
Communications 667.7 -- 667.7 609.1 -- 609.1
Systems
Broadcast
Communications 118.7 -- 118.7 158.2 -- 158.2
Corporate
eliminations (7.1) -- (7.1) (9.9) -- (9.9)
---- ---- ---- ---- ---- ----
$1,203.0 $ -- $1,203.0 $1,172.6 $ -- $1,172.6
======== ==== ======== ======== ==== ========
Income From
Continuing Operations
Before Income Taxes
Segment Operating
Income:
RF Communications
(C) $114.0 $6.5 $120.5 $142.1 $ -- $142.1
Government
Communications
Systems (D) 85.7 0.7 86.4 66.3 -- 66.3
Broadcast
Communications 0.3 -- 0.3 5.3 -- 5.3
Unallocated corporate
expense (19.2) -- (19.2) (18.9) -- (18.9)
Corporate
eliminations (2.0) -- (2.0) (3.7) -- (3.7)
Non-operating loss (0.2) -- (0.2) (8.1) -- (8.1)
Net interest expense (17.8) -- (17.8) (11.4) -- (11.4)
----- ----- ----- ----- ----- -----
$160.8 $7.2 $168.0 $171.6 $ -- $171.6
====== ==== ====== ====== ==== ======
Table 7
HARRIS CORPORATION
FY '10 First Quarter Summary
Reconciliation of FY '10 GAAP Income from Continuing Operations
per Diluted Share Guidance to FY '09 GAAP Income from
Continuing Operations per Diluted Share and FY '10 Non-GAAP
Income from Continuing Operations per Diluted Share Guidance
(Unaudited)
Fiscal Year Guidance for Percent
2009 Fiscal Year 2010 Change
------------ ---------------- ---------
GAAP income from
continuing operations per
diluted share (H) $2.34 $3.74 to $3.84 60% to 64%
Impairment of our
Broadcast Communications
segment goodwill and
other long-lived assets (E) $1.48 $--
Charges associated with
the acquisition of Tyco
Electronics Wireless
Systems (F) $0.04 $0.10
Charges associated with
the acquisitions of
Crucial Security, Inc.
and the ATC Business Unit
of SolaCom Technologies
Inc. (G) $-- $0.01
---- -----
Non-GAAP income from
continuing operations per
diluted share (H) $3.86 $3.85 to $3.95 0% to 2%
===== ==============
HARRIS CORPORATION
FY '10 First Quarter Summary
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
Notes to tables 5 through 7:
Note A - Adjustments to cost of product sales and services for the quarter
ended October 2, 2009 are due to integration costs and the impact of a step up
in inventory associated with our acquisition of the Tyco Electronics Wireless
Systems business ("Wireless Systems") ($3.6 million).
Note B - Adjustments to engineering, selling and administrative expenses for
the quarter ended October 2, 2009 are due to integration and other costs
associated with our acquisitions of Wireless Systems ($2.9 million), Crucial
Security, Inc. ("Crucial") ($0.4 million) and the Air Traffic Control business
unit of SolaCom Technologies Inc. ("SolaCom ATC") ($0.3 million).
Note C - Adjustments to our RF Communications segment operating income for the
quarter ended October 2, 2009 are due to integration costs and the impact of a
step up in inventory associated with our acquisition of Wireless Systems ($6.5
million).
Note D - Adjustments to our Government Communications Systems segment
operating income for the quarter ended October 2, 2009 are due to integration
costs associated with our acquisitions of Crucial ($0.4 million) and SolaCom
ATC ($0.3 million).
Note E - Adjustment for pre-tax charges of $255.5 million ($1.48 per diluted
share) for impairment of goodwill and other long-lived assets in our Broadcast
Communications segment.
Note F - Adjustment for pre-tax charges of $9.5 million ($.04 per diluted
share) for fiscal 2009 and estimated pre-tax charges of $20.0 million ($.10
per diluted share) for fiscal 2010, related to integration and other costs
associated with our acquisition of Wireless Systems.
Note G - Adjustment for estimated pre-tax charges of $2.5 million ($.01 per
diluted share) for fiscal 2010 related to integration costs associated with
our acquisitions of Crucial and SolaCom ATC.
Note H - The fiscal 2009 GAAP and non-GAAP income from continuing operations
per diluted share have been restated from $2.35 and $3.87, respectively, to
$2.34 and $3.86, respectively. The restatement reflects the impact of adopting
a new accounting standard that requires unvested share-based payment awards
that contain rights to receive nonforfeitable dividends to be treated as
participating securities and included in the calculations of income per basic
and diluted share.
SOURCE Harris Corporation
Investor Relations inquiries: Pamela Padgett, +1-321-727-9383, or
pamela.padgett@harris.com, Media inquiries: Jim Burke, +1-321-727-9131, or
jim.burke@harris.com, or For additional information, contact Harris
Corporation at webmaster@harris.com.
