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EXHIBIT 99
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HARRIS CORPORATION REVISES FISCAL 2001 EARNINGS ESTIMATES
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MELBOURNE, Florida. - February 26, 2001 - Harris Corporation (NYSE: HRS), a
worldwide communications equipment company, today said that with the continued
slowdown in capital spending on wired networks, the company expects fiscal 2001
earnings per share to be within the range of $1.10 and $1.15. The estimate is
below the company's prior target of $1.36 per share. Sales and earnings for all
periods presented are compared on a pro forma basis as described in the
company's second quarter earnings release.
Harris Chairman and CEO Phillip W. Farmer said, "We reported in our second
quarter earnings release that CLEC (Competitive Local Exchange Carrier)
financing problems and an abrupt slowdown in their DSL infrastructure buildouts
were significantly impacting the line test portion of our network support
operation. Although we expected some continued weakness in the second half of
the year, market conditions have worsened. In addition to the CLEC collapse, the
other portions of our network support business, including hand-held tool and
test and network management product lines, are experiencing some impact from the
general slowdown in telecom capital spending for wired networks.
"Naturally we have taken actions to reduce costs in this business. We are also
intensifying our efforts to expand in overseas markets where network build-outs
are continuing, and to further leverage our strength in the traditional ILEC
(Incumbent Local Exchange Carrier) market," Mr. Farmer added.
Despite the difficulties in the wired network market, Mr. Farmer said, "We
continue to see strong capital spending for wireless networks, a market served
by our microwave radio products. In addition, our businesses that serve the
broadcast, secure radio and government communications markets are all performing
very well.
"We expect continued strong growth in our point-to-point microwave business and
the introduction of new point-to-multipoint products will add to that growth in
the next fiscal year. In Broadcast, recent positive rulings by the FCC ensure
that
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the digital television transition that is already underway will proceed as
planned, fueling strong growth for Harris. Also, our government division
continues to raise its performance in the steadily-improving government market.
The division is also successfully providing state-of-the-art technology and
engineering expertise to help create advanced products for our commercial
businesses," he added.
On a comparative basis, the company expects sales for the year to grow 10 - 15
percent over fiscal 2000, and earnings per share to grow 20 - 24 percent,
excluding the first-year dilution from its WavTrace operation, which was
acquired during the first quarter.
Harris Corporation is an international communications equipment company focused
on providing product, system, and service solutions that take its customers to
the next level. The company provides a wide range of products and services for
wireless, broadcast, network support, and government markets. The company has
sales and service facilities in nearly 90 countries. Additional information
about Harris Corporation can be found at http://www.harris.com.
NOTE: In conjunction with this press release, the company will conduct a
conference call on Tuesday, February 27th at 8:30 a.m. Eastern. Interested
individuals are invited to listen to the call by dialing: (800) 231-9012. In
addition, a replay of the teleconference will be available at (888) 203-1112,
conference code 493273, beginning at 10:30 a.m. Eastern on Tuesday, February
27th, and will run until Monday, March 5th at midnight Eastern.
FORWARD-LOOKING STATEMENT
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This press release contains forward-looking statements that reflect management's
current expectations, assumptions and estimates of future performance and
economic conditions. 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. The company's consolidated results and the
forward-looking statements could be affected by many factors, including: general
economic conditions in the markets in which the company operates; economic
developments that have a particularly adverse effect on one or more of the
markets served by the company; continuing weakness in the CLEC market and in the
financial condition of service providers; continuing challenges and the exit of
its telecom switching business; stability of key markets for communications
products, particularly Asia and Brazil; fluctuation in foreign currency exchange
rates and the effectiveness of the company's currency hedging program;
fluctuations in the U.S. and worldwide defense and space budgets; effect of the
consolidation in the U.S. defense industry on the company's direct and indirect
business with the U.S. government; the company's ability to receive government
contract awards; continued development and market acceptance of new products,
especially digital television broadcast products and broadband wireless access
products; ability to be successful in the management and integration of acquired
businesses; ability to achieve further product cost reductions and efficiencies
in the company's commercial manufacturing operations; ability to continue
liquidation of its marketable securities portfolio; and the successful
resolution of patent infringement and other general litigation. Other factors
that may impact the company's results and forward-looking statements may be
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.
Investor relations inquiries: Pamela Padgett at 321-727-9383, or
ppadge01@harris.com