Harris Corporation HRS
Q1 2011 Earnings Call Transcript

Transcript Call Date 10/25/2010

Operator: Good day, ladies and gentlemen and welcome to the First Quarter 2011 Harris Earnings Conference Call. My name is Aniseya and I will be your operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session. As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the call over to Ms. Pamela Padgett, Vice President of Investor Relations. Please proceed.

Pamela Padgett - VP, IR: Hello, everyone. Good afternoon. Welcome to Harris Corporation's first quarter fiscal 2011 conference call. I'm Pamela Padgett and on the call with me today is Howard Lance, Chairman, President and CEO; Gary McArthur, Senior Vice President and Chief Financial Officer.

Before start, a few words on forward-looking statements. In the course of this teleconference, management may make forward-looking statements. Forward-looking statements involve assumptions, risks, and uncertainties that could cause actual results to differ materially from those statements. For more information and a discussion of such assumptions, risks and uncertainties please see the press release and filings made by Harris with the SEC.

In addition, in our press release and on this teleconference, we will discuss certain financial measures and information that are non-GAAP financial measures a reconciliation to the comparable GAAP measures is included in the table of our press release, and on the Investor Relations section of our website, which is A replay of this call will also be available on the Investor Relations section.

With that, Howard, I'll turn it over to you.

Howard L. Lance - Chairman, President and CEO: Thanks, Pam and welcome everyone to our first quarter fiscal 2011 earnings call. Harris's first quarter results were very strong quarter, with revenue and income significantly higher than the prior year. Excellent financial performance was driven by continuing strong demand and favorable product mix in our Tactical Radio business.

Results in the Public Safety and Professional Communications business were solid, and following the end of the quarter, Harris was selected to negotiate a potential contract with the government of Alberta, Canada for their province-wide Radio Communication System. This represents a significant multi-year program opportunity for us.

In our Government Communication Systems segment, new program wins as well as additional program scope and follow-on business for existing programs are building a healthy backlog even as the government spending environment has become more challenging and sequential improvement was seen in our Broadcast Communication segment which has been negatively impacted by the global recession.

Consolidated revenue in the first quarter was $1.41 billion, 17% higher than the prior year. On an organic basis excluding the impact of acquisitions revenue increased 10%. Non-GAAP income, which excludes acquisition related cost was $165 million in the first quarter or $1.28 per diluted share, an increase of 56% compared with the prior year quarter. Non-GAAP EBITDA in the first quarter was $318 million compared with a prior year of $228 million.

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