InterDigital Inc (IDCC)

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OT:8-K: HARRIS CORP /DE/



RELATED SYMBOLS: (HRS)

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HARRIS CORPORATION 8-K Harris Corporation 8-K


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

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Date of Report (Date of earliest
event reported): January 15, 2003

HARRIS CORPORATION
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(Exact name of registrant as specified in its charter)

Delaware 1-3863 34-0276860
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification No.)

1025 West NASA Blvd., Melbourne, FL 32919
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(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: [phone]


No Change
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(Former name or former address, if changed since last report.)

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Items 1.-4. Not applicable.

Item 5. Other Events and Regulation FD Disclosure.
On January 15, 2003, Harris Corporation ("Harris") reported its
financial results for its second quarter of fiscal 2003.

A copy of the press release is filed herewith as Exhibit 99.1
and is incorporated herein by reference.

Item 6. Not applicable.

Item 7. Financial Statements and Exhibits.

(a) Financial statements.
None.

(b) Pro Forma Financial Information.
None.

(c) Exhibits.

The following document is filed as an Exhibit to this
Report:

99.1 Press Release, dated January 15, 2003.

Items 8.-9. Not applicable.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.


HARRIS CORPORATION

By: /s/ Bryan R. Roub
--------------------------------
Name: Bryan R. Roub
Title: Senior Vice President and
Chief Financial Officer

Date: January 15, 2003

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EXHIBIT INDEX

Exhibit No.
Under Regulation S-K, Item 601 Description
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99.1 Press Release, dated January 15, 2003.

EX-99.1 3 l98228aexv99w1.txt EX-99.1 PRESS RELEASE EXHIBIT 99.1 HARRIS CORPORATION REVENUE CLIMBS 16% IN SECOND QUARTER MELBOURNE,
FLORIDA, JANUARY 15, 2003 - Harris Corporation (NYSE: HRS) today reported that second quarter fiscal 2003 revenue climbed 16 percent
to $523.9 million, compared to $451.5 million in the second quarter of the prior year. Quarter highlights included accelerating
growth in Harris' two government businesses and better-than-anticipated improvement in the company's microwave business. New orders
were higher than sales. Second quarter net income was $16.3 million or $.25 per share. Net income and earnings per share were
reduced by expenses related to the previously announced cost reduction actions in the company's microwave business. These expenses
lowered pretax income by $8.3 million and net income per share by $.08. Absent these cost reduction expenses, net income per share
would have been $.33. The $.33 exceeded analysts' consensus expectations of $.26 per share, which was established on the same basis.
GOVERNMENT COMMUNICATIONS SYSTEMS Second quarter sales in the company's Government Communications Systems segment climbed 24 percent
to $272.7 million and orders were higher than sales. Sales growth was all organic and was across all areas of the business.
Operating income increased 21 percent to $24.5 million. The outstanding financial performance resulted from Harris' broad spectrum
of recent wins, solid government funding, and excellent execution by the management team. The expanding backlog includes contracts
with the Department of Defense, FAA, and other government agencies. Harris is providing communication and information products and
systems for the nation's increased emphasis on defense and security. New business during the second quarter included contracts for
classified programs, digital map systems for new aircraft, satellite GPS systems, and technical service contracts. - more - - 2 - RF
COMMUNICATIONS The RF Communications segment reported record sales of $75.3 million, an increase of 17 percent compared to the
prior-year quarter. Segment operating income was also a record, increasing 68 percent to $19.1 million. Income improvement reflected
increased sales volume and manufacturing efficiencies. The War on Terrorism has created unparalleled demand for Harris'
industry-leading Falcon(R) II tactical radios. The division has expanded capacity to meet continuing new demands for its product
line from the U.S., NATO, and Partnership for Peace countries around the world. Development activities at the division are
continuing on schedule for two programs that are redefining the world's tactical radios of the future - the U.S. Joint Tactical
Radio System Program and the United Kingdom's Bowman Tactical Radio Programme. BROADCAST COMMUNICATIONS Broadcast Communications
segment sales of $94.2 million increased 19 percent, compared to the prior-year quarter. As anticipated, new opportunities
materialized in international markets, including China, Germany, Romania, and the Middle East. During the second quarter, Harris won
international contracts for analog transmission, automation, and studio integration products and services, and received a $64
million order for the radio broadcast infrastructure of S.N. Radiocomunicatii S.A., Romania's state-owned broadcast organization.
Digital equipment sales in the U.S. increased modestly compared to the prior-year quarter. While there was some recovery of average
selling prices for digital transmitters compared to the first quarter of fiscal 2003, smaller-market broadcasters continued to
install the minimum amount of equipment necessary to temporarily comply with the FCC's digital conversion mandate. These purchases
of lower-power equipment continue to seed the market in preparation for the full digital transition and support Harris' current
formidable market position for the long term. - more - - 3 - The business reported operating income of $6.0 million, up sharply from
the first quarter's $1.9 million operating income, but a decline of 38 percent from last year's comparable quarter, reflecting a
shift in product mix that included a higher proportion of lower-margin analog products sold primarily in the international market.
MICROWAVE COMMUNICATIONS Sales in the Microwave Communications segment were $75.6 million, up 4 percent compared to the prior-year
quarter and increasing 35 percent compared to the first quarter of fiscal 2003. Strength continued in North America where sales
increased as a result of capacity upgrades by cellular and PCS providers and from Harris' solid position in the private network
business. While capital constraints still remain a concern in the international market, improvement in Harris' international
microwave business was encouraging. Eastern Europe, Africa, and Asia all showed relative strength. The segment reported an operating
loss of $8.2 million. Included in the loss was $8.3 million of expenses related to previously announced cost-reduction actions in
the quarter. Excluding these expenses, the microwave business was essentially breakeven during the second quarter. NETWORK SUPPORT
Second quarter sales were $12.1 million in the company's Network Support segment. The business reported an operating loss of $2.5
million. Continued cost-cutting programs helped to minimize losses in this telecom business. CASH FLOWS The company's financial
position continues to be very strong. Positive cash flow provided by operations in the first two quarters was $63.5 million,
compared to a use of $14.7 million cash in the same period of the prior year. Cash on hand at - more - - 4 - the end of the quarter
was $379.9 million, compared to $226.2 million at the end of fiscal 2002. During the first quarter, Harris improved its cash
position by approximately $145 million with a private placement of convertible debentures. Also in the first quarter, Harris paid
down $30 million in long-term debt which had become due. The company's current debt-to-total-capital ratio is 26.3 percent. FIRST
HALF OF FISCAL 2003 Harris sales in the first two quarters of fiscal 2003 were $974.1 million, versus $894.9 million in the
comparable period of fiscal 2002. Net income was $36.2 million, compared to $33.5 million in the first half of fiscal 2002. OUTLOOK
"Performance in our two government businesses continues to accelerate, responding to national and worldwide requirements for defense
and other secure communications," said Phillip W. Farmer, chairman and CEO. "The growth in these businesses is entirely organic and
builds on the vast communications technologies that represent the core strength of Harris. Harris continues to lead the
infrastructure transition to digital TV and radio, and we are encouraged by this quarter's improvement in our international
microwave business. Our team in microwave has been relentless in driving down costs and, as a result, we have now achieved a
breakeven cost structure in the microwave business. "Given the continuing outstanding performance in our government businesses and
increased expectations for microwave, we have greater confidence with a fiscal 2003 net income per share forecast of $1.30 to $1.40,
and now believe, excluding the impact of the second quarter expenses associated with microwave's cost reduction actions, earnings
could be at the high end of that range." - more - - 5 - HARRIS CORPORATION is an international communications equipment company
focused on providing product, system and service solutions for government and commercial customers. The company's five operating
divisions serve markets for government communications, tactical radio, broadcast, microwave, and network support systems. Additional
information about Harris Corporation is available at www.harris.com. NOTE: In conjunction with the quarterly earnings release, the
company will conduct a conference call on Wednesday, January 15, 2003, at 2 p.m. (ET). Interested individuals are invited to listen
to the call by using a dial-in number: [phone], access code: 152698. The conference call will also be broadcast live via the
Internet at http://www.harris.com/conference-call. FORWARD-LOOKING STATEMENT This press release contains 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. These statements may be identified by their use of forward-looking terminology, such as "believes,"
"expects," "may," "should," "would," "will," "intends," "plans," "estimates," "anticipates," and similar words. 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. Forward-looking statements in
this release include the potential value to the Company of recent program awards, earnings guidance for fiscal 2003, breakeven level
of sales for the telecom businesses and expected cost reductions and their impact. The Company's consolidated results and the
forward-looking statements could be affected by many factors, including but not limited to: uncertain economic conditions which
makes it difficult to estimate growth in the Company's markets and, as a result, future income and expenditures; the severe
telecommunications slow-down, which has and may continue to have a negative impact on the Company's telecom businesses; the ability
to meet cost reduction goals; financial and government and regulatory risks relating to international sales and operations,
including fluctuations in foreign currency exchange rates and the effectiveness of the Company's currency hedging program;
government import and export policies and other government regulations; the fair values of the Company's portfolio of passive
investments, which are subject to significant price volatility or erosion; the Company's ability to continue to develop new products
that achieve market acceptance; strategic acquisitions and the risks and uncertainties related thereto, including the ability to
manage and integrate acquired businesses; potential changes in government or customer priorities due to program reviews or revisions
to strategic objectives, including potential failure to fund government contracts; risks inherent with large long-term fixed price
contracts, particularly the ability to contain cost overruns; termination of government contracts; the performance of critical
subcontractors or suppliers; potential claims that the Company is infringing the intellectual property of third parties; the
successful resolution of patent infringement claims and litigation, and the ultimate outcome of other litigation and legal matters;
the impact of competitive products and pricing; the ability to recruit and retain qualified personnel; and general economic
conditions in the markets in which the Company operates. 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 hereof and Harris disclaims any intention or obligation to update or revise any
forward-looking statements or to update the reasons why actual results could differ materially from those projected in the
forward-looking statements, whether as a result of new information, future events, or otherwise. Attachments: Financial Statements
(four tables) # # # Media inquiries: Tom Hausman at 321-727-9131, or [e-mail] Investor relations inquiries: Pamela
Padgett at 321-727-9383, or [e-mail] For additional information, contact Harris Corporation at [e-mail]
TABLE 1 HARRIS CORPORATION FY'03 SECOND QUARTER SUMMARY CONDENSED CONSOLIDATED STATEMENT OF INCOME



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Received by Edgar Online Jan 15, 2003

CIK Code: 0000202058
Accession Number: 0000950152-03-000401

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