Englewood, CO (May 2, 2012)—Harris Corporation has announced that its Broadcast Communications business is for sale.
In the company's Q3 fiscal 2012 report, released May 1, William M. Brown, president/CEO, Harris Corp., stated: "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."
Harris Corp. reported revenue of $1.48 billion for the quarter compared with $1.41 billion in the prior-year quarter. According to the quarterly report, declining revenue in Broadcast Communications--"as a result of weaker demand in North America and longer international sales lead times"--offset strong growth in its Harris CapRock Communications and Healthcare Solutions units.
In a statement, Harris Morris, president, Harris Broadcast Communications, wrote: "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."
As a result of the plan to divest Broadcast Communications, current and prior period financial results for the division will be reported as discontinued operations beginning with the fourth quarter of fiscal 2012.
"In the interim," according to Morris, "Broadcast Communications will continue to be a part of Harris Corporation and operate business as usual. Our valued relationships, both longstanding and new, remain our top priority."
Broadcast Communications' product offerings includes routers, processors, master control and branding systems, multiviewers, video servers, network monitoring and control, broadcast graphics systems, test and measurement tools and video networking systems. The company has earned more than 50 awards for technical innovation, including eight Emmy Awards, and its equipment is reportedly used in all of the top 90 broadcast TV and radio stations in North America.
Harris Broadcast Communications