Loss-making Harris pulls plug on broadcast communications
Editor ©RapidTVNews | 02-05-2012
On the back of disappointing third quarter results, Harris has decided to call time on its broadcast communications division.
For the quarter ended 30 March 2012, Harris reported revenue of $1.48 billion compared with $1.41 billion in the prior-year quarter. GAAP loss from continuing operations in the third quarter was $255 million, which compared rather badly with the loss of $142 million twelve months earlier.
Following the close of the quarter, the company has subsequently decided to divest its broadcast communications division.
“The decision to divest broadcast communications resulted from a thorough review of our business portfolio, which determined that the business is no longer aligned with the company's long-term strategy. The plan to sell these assets supports our disciplined approach to capital allocation, and we intend to use the proceeds to return cash to shareholders and invest in growing our core businesses," explained William M. Brown, president and CEO.
Despite the announcement, Harris Morris, president of the broadcast communications division, insisted that going alone would improve the firm’s standing. “Harris has supported us by investing in our business, allowing us to develop some of the market’s most innovative, solution-based technologies. However, over time broadcast communications has become less aligned with the Harris core businesses and long term strategy. Operating independently or as part of a broadcast or media-focused enterprise will provide us with strategic investment, increased competitive flexibility, and customer focus to lead the continuing transformation in this competitive marketplace,” he said.
In the interim, the broadcast communications division will continue to be a part of Harris Corporation and operate ‘business as usual’ the company said