MELBOURNE, Fla. (AP) -- Harris Corp., which sells tactical radio communications systems used by the military, said Tuesday that its net income slipped 3 percent in its fiscal fourth quarter as revenue declined.
CEO William Brown noted that orders during the quarter were encouraging, however, even as the company heads into a fiscal year with an uncertain environment for government spending.
The Melbourne, Fla.-based company stood by its guidance for the year.
For the three months ended June 29, the company said its net income slipped to $129.1 million, or $1.13 per share, down from $133.5 million, or $1.06 per share, in the year-ago period, when there were fewer shares outstanding.
Not including one-time acquisition costs, the company said its income from continuing operations was $1.42 per share. That was a penny more than analysts expected on average, according to FactSet.
Revenue fell to $1.44 billion from $1.52 billion a year ago and shy of the $1.45 billion Wall Street expected.
In the RF Communications unit, revenue fell to $584 million from $628 million a year ago. But the company noted that operating margin for the unit improved to 33.5 percent, from 30.4 percent, as a result of lower manufacturing costs and expenses.
The company reaffirmed that it expects earnings of $5.10 to $5.30 per share from continuing operations for the year. Revenue is expected to be flat to up 2 percent from the $5.45 billion in its year ended in June.
Analysts expect earnings of $5.16 per share on revenue of $5.43 billion.
Shares of Harris fell 37 cents per share to $41.79 at midday Tuesday. They are down 8.7 percent from a 52-week high of $45.79 in late April.
