Harris Stratex Says 3Q Net Loss Widened
Wednesday May 2, 10:40 am ET
Shares of Harris Stratex Tumble on Big 3rd-Quarter Loss
RESEARCH TRIANGLE PARK, N.C. (AP) -- Shares of Harris Stratex Networks Inc. tumbled Wednesday after the wireless transmissions systems supplier said its third-quarter net loss widened more than threefold as higher-than-expected expenses offset strong sales growth.
Harris Stratex was formed in late January from the combination of Harris Corp.'s microwave communications division and Stratex Networks, so the company compared its third-quarter earnings to those of the division's earnings from the same quarter last year. Harris Stratex said this quarter's results exclude Stratex's January results.
For the quarter ending March 30, the company's net loss widened 236 percent, coming in at $23.2 million, or 58 cents per share, compared to $6.9 million in the year-ago quarter, when Harris was not publicly traded. Excluding certain items, profit rose year-over-year to $3.7 million, or 6 cents per share.
Harris Stratex's quarterly revenue totaled $139 million, compared with $73.6 million in the same quarter last year. Adjusted sales totaled $146.8 million, compared with adjusted sales of $137.6 million in the year-earlier period.
Analysts polled by Thomson Financial expected the company to report adjusted sales of $169.1 million with adjusted earnings of 21 cents per share.
Harris Stratex shares lost $4.36, or 22 percent, to a year low of $15.48 in morning trading on the Nasdaq Stock Market. During the past year, the stock has traded between $18.23 and $21.25.
The company said earnings were hit by higher engineering, selling and administrative expenses, which grew to $40.1 million from $24.3 million in the year-ago period.
Harris Stratex also had $15.3 million in acquired in-process research and development charges and $3 million in amortization expenses, neither of which it logged in last year's third quarter.
In addition, the company said the sales drive of both companies was interrupted more than expected as they integrated. Harris Stratex said it thinks the setbacks are temporary, and that it is doing what it needs to speed growth. |
