Exhibit 99.1
HARRIS CORP. PROVIDES FISCAL 2005 GUIDANCE OF 15% TO 20% EPS GROWTH
MELBOURNE, FLORIDA, MARCH 10, 2004 - Harris Corporation (NYSE:HRS) today
provided guidance for its initial range of earnings per share expectations for
fiscal 2005 of $2.15 to $2.30 per diluted share. The company also reiterated
previously provided guidance of $1.85 to $1.95 per diluted share for fiscal
2004, which ends July 2, 2004.
"The outlook for our Government Communications Systems and RF Communications
segments is strong. Both businesses are expected to continue to deliver solid
revenue growth in fiscal 2005, and have operating margins similar to those
achieved in fiscal 2004" said Howard L. Lance, chairman and CEO. Harris is
working on a broad base of strategic programs that support a wide range of U.S.
Government agencies and international customers. We expect recent program wins
to continue to ramp up in fiscal 2005, and we are pursuing a large pool of new
opportunities in both businesses."
"We have made good progress in driving revenue growth, cost reductions, and
improved profitability, in our commercial segments, and further improvement is
expected in both revenue growth and profitability," Lance said. "The global
economic climate is improving, and we expect higher demand for broadcast and
telecom products. We are well positioned as a leader in these markets. We have
invested in new products for the international market and are expanding
distribution channels to increase our focus on international sales."
Lance's comments were made in advance of the company's annual analyst meeting
being held in Melbourne, March 11 and 12, 2004. At the meeting, Lance and Bryan
R. Roub, chief financial officer, will present a strategic overview and
financial summary, which will include a discussion of the guidance. The
presentations will be available via webcast, and presented as a listen-only
conference call on March 11 beginning at 1:00 p.m. (ET). The webcast will be
broadcast live via the Internet at http://www.harris.com/webcast. The dial-in
number for the conference call is 719-457-2637, access code 314248. A replay of
the conference call is available at 719-457-0820, access code 314248, from 5
p.m. March 11 (ET) through midnight ET on Wednesday, March 17. A replay of the
webcast will be available on the company's website.
Harris Corporation is an international communications equipment and systems
company focused on providing assured communications(TM) solutions for government
and commercial customers in more than 150 countries. The company's five
operating divisions serve markets for government communications, tactical radio,
broadcast, microwave, and network support. Additional information about Harris
Corporation is available at www.harris.com.
# # #
FORWARD-LOOKING STATEMENT
Statements in this press release that are not historical facts are
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. Forward-looking statements in this release include but are not limited to:
expectations for strong performance in our government-related businesses,
expected improvement in revenue growth and profitability for broadcast and
telecom products, and earnings per share guidance for fiscal 2004 and fiscal
2005. 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 but not
limited to: uncertain economic conditions which make it difficult to estimate
growth in our markets and, as a result, future income and expenditures; the
severe telecommunications slow-down, which has had and may continue to have a
negative effect on our telecom businesses; our dependence on the U.S. Government
for a significant portion of our revenues, as the loss of this relationship or a
shift in U.S. Government funding could have adverse consequences on our future
business; financial and government and regulatory risks relating to
international sales and operations, including fluctuations in foreign currency
exchange rates and the effectiveness of our currency hedging program; the fair
values of our portfolio of passive investments, which values are subject to
significant price volatility or erosion; our ability to continue to develop new
products that achieve market acceptance; the consequences of future
geo-political events, which may affect adversely the markets in which we
operate, our ability to insure against risks, our operations or our
profitability; strategic acquisitions and the risks and uncertainties related
thereto, including our ability to manage and integrate acquired businesses;
potential changes in U.S. Government or customer priorities due to program
reviews or revisions to strategic objectives, including termination of or
potential failure to fund U.S. Government contracts; risks inherent with large
long-term fixed price contracts, particularly the ability to contain cost
overruns; the performance of critical subcontractors or suppliers; potential
claims that we are infringing the intellectual property rights of third parties;
the successful resolution of patent infringement claims and the ultimate outcome
of other contingencies, litigation and legal matters; customer demand for
financing and customer credit risk; cost reductions, which may not yield the
benefits we expect and could have adverse effects on our future business; the
impact of competitive products and pricing; risks inherent in developing new
technologies; the ability to recruit and retain qualified personnel; and general
economic conditions in the markets in which we operate. 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. Harris disclaims
any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
MEDIA INQUIRIES: Tom Hausman at 321-727-9131, or tom.hausman@harris.com
INVESTOR RELATIONS INQUIRIES: Pamela Padgett at 321-727-9383, or
pamela.padgett@harris.com
For additional information, contact Harris Corporation at webmaster@harris.com.