Harris Stratex Networks Provides Preliminary Q3 Results
Monday April 13, 2009, 4:15 pm EDT
Anticipates non-cash impairment due to technology transition; Revenue within guidance; Positive operating cash flow
RESEARCH TRIANGLE PARK, N.C., April 13 /PRNewswire-FirstCall/ -- Harris Stratex Networks, Inc. (Nasdaq: HSTX - News), a leading specialist in backhaul solutions for mobility and broadband networks, today provided preliminary operating results for the third quarter of fiscal year 2009, which ended April 3, 2009. These results are subject to completion of the company's closing process and preparation of its financial statements.
Revenue for the third quarter of fiscal 2009 is expected to be between $150 million and $160 million, which is within the range of $150 million to $170 million revenue expectation provided on February 4, 2009. The company anticipates an increase in operating expenses of $5 million to $7 million primarily due to an increase in the bad debt provision and, to a lesser extent, added expenses associated with the recent acquisition of Telsima. Without these additional charges, Q3 operating expenses are anticipated to be comparable to Q2. Operating cash flow for the quarter is expected to be positive.
Technology Transition Results in Non-Cash Charge
The acceleration towards a common IP-based technology platform is expected to result in a non-cash charge in the range of $30 million to $35 million in the third quarter. This charge is related to provisions for legacy product excess and obsolete inventory, and write-downs of property, plant, manufacturing and test equipment.
"Our Q3 revenue expectations, which are within the guidance we offered in February, reflect our strong market position. Our positive operating cash flow for the quarter validates our focus on cash management and reflects our continuing operational improvements," said Harald Braun, president and chief executive officer of Harris Stratex Networks.
"While the macro-economic situation and the uncertainty in the credit markets have made it more difficult to forecast with assurance, we believe our core capabilities in wireless backhaul solutions, and our future opportunities in 4G applications, position us well in a segment of the market with good potential demand. As a leader in this area, we are accelerating the technology transition to meet our customers' needs," added Braun.
Harris Stratex Networks acknowledges that its anticipated results are preliminary, based on the best information currently available and subject to completion and preparation of its financial statements for the quarter. No further details concerning Q3 results are currently anticipated to be released prior to the Company's regular earnings report.
Conference Call Scheduled for May 5
Harris Stratex Networks will host a conference call on Tuesday May 5th to discuss the company's financial results at 5:30 p.m. Eastern Time. Those wishing to join the call should dial 303-262-2075 (no pass code required) at approximately 5:20 p.m. A replay of the call will be available starting one hour after the call's completion until May 13. To access the replay, dial 303-590-3000 (pass code: 11128852 #). A live and archived webcast of the conference call will also be available via the company's Web site at www.HarrisStratex.com/investors/conference-call. |
