Harris 1Q profit falls as revenue rises

Harris 1Q profit falls, weighed by acquisition charges, as revenue rises

• On 5:55 pm EDT, Tuesday October 27, 2009

MELBOURNE, Fla. (AP) -- Harris Corp., a communications and information technology company, posted a 12 percent drop in profit in its fiscal first quarter, weighed down by acquisition-related charges.

The Melbourne, Fla., company's revenue increased 2.6 percent on stronger sales of radio and government communications systems and Harris increased its full-year 2010 guidance due to higher-than-expected military radio orders.

Net income of $104.5 million, or 79 cents per share, compared with $118.7 million, or 88 cents per share in the same quarter last year.

Excluding charges related to the company's acquisition of Tyco Electronics Wireless Systems, income was $109 million, or 83 cents per share, Harris said.

Analysts surveyed by Thomson Reuters expected, on average, earnings of 76 cents per share. Analysts typically do not include one-time charges.

Revenue for the quarter ended Oct. 2 was $1.2 billion, up from $1.17 billion in the same period last year.

Harris increased its fiscal 2010 guidance to between $3.85 and $3.95 per share from its previous guidance of $3.40 per share to $3.50 per share.

Analysts expect earnings to be $3.37 per share, according to Thomson Reuters.

Shares gained $2.04, or 5.4 percent, to $39.98 in after-hours trading following the release of the earnings report. In regular trading, the stock fell $1.02, or 2.6 percent, to close at $37.94.

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