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HARRIS REPORTS HIGHER EARNINGS IN FISCAL SECOND QUARTER

 HARRIS REPORTS HIGHER EARNINGS IN FISCAL SECOND QUARTER
 MELBOURNE, Fla., Jan. 21 /PRNewswire/ -- Harris Corporation (NYSE: HRS) reported that net income in the second quarter ended Dec. 27 was $19.2 million or 49 cents per share, compared with a net loss of $55.8 million or $1.43 per share in the second quarter of last year. Last year's quarter included an after-tax charge of $72.9 million or $1.87 per share in connection with the restructuring of the company's Semiconductor Sector. Sales for the quarter were $755.7 million, compared with $765.4 million the previous year.
 John T. Hartley, Harris chairman and chief executive, said that earnings were up substantially in the Communications Sector on strong sales growth. The company's Electronic Systems Sector also reported a strong increase in earnings and good sales growth for the quarter.
 Hartley said Lanier Worldwide's earnings were at the same level as last year's strong quarter despite recessionary conditions in the U.S. and overseas that resulted in somewhat lower sales. He also reported that Lanier's European operations returned to profitability in the quarter.
 Harris Semiconductor reported a significant loss on sharply lower sales. However, the loss was smaller than the first quarter even though sales were below that quarter's level.
 Total company orders for the second quarter were down from last year and were below shipments. While Communications Sector orders were up significantly, bookings were lower in the Electronic Systems Sector and down substantially in the Semiconductor Sector.
 Immediately following the close of the quarter, the Electronic Systems Sector was awarded a 15-year, $1.7 billion contract by the Federal Aviation Administration for a sophisticated Voice Switching and Control System (VSCS), which will be installed at Air Route Traffic Control Centers and other FAA facilities. VSCS, a major component in the FAA's air traffic control modernization program, will provide computer-controlled voice communications among air traffic controllers and between controllers and flight crews.
 Net income for the six months was $32.0 million or 82 cents per share, compared with a net loss of $38.3 million or 97 cents a share the previous year. Sales for the six months were $1,441.6 million, compared with $1,484.7 million last year.
 Looking ahead, Hartley said, "The FAA win by the Electronic Systems Sector together with other major awards such as the F-22 Advanced Tactical Fighter and the Comanche Light Helicopter underline the fundamental strength of this sector, and we feel very good about its prospects going forward.
 "Our Communications Sector is making excellent progress under difficult market conditions, and the outlook is promising in this part of our business.
 "Lanier Worldwide has done an outstanding job of managing costs and expenses and turning around loss operations in a severe recession, and the business is well-positioned to benefit from a resumption of economic growth.
 "While we are encouraged by operational improvements in our Semiconductor Sector, order levels continue to be adversely affected by weak conditions in the markets we serve," Hartley continued. "We were pleased to see that orders in the second quarter were higher than the first quarter and exceeded sales -- by a significant margin -- for the first time in 12 months. As a result, we expect the sector to report a reduced loss in the third quarter based on higher sales. Assuming a recovery in our markets, we continue to expect the Semiconductor Sector to return to profitability by the end of the fiscal year.
 "For the company as a whole, given a positive trend in the economy and continued improvement in Harris Semiconductor results, we expect to report consecutive quarter-to-quarter earnings growth for the second half of the year, leading to a strong improvement in earnings in fiscal 1993," Hartley concluded.
 HARRIS CORPORATION
 FY'92 Second Quarter Summary
 Condensed Consolidated Statement of Income
 (In thousands except per share amounts)
 Quarter Ended Two Quarters Ended
 Dec. 27, Dec. 28, Dec. 27, Dec. 28,
 1991 1990 1991 1990
 Revenue
 Revenue from sales,
 rentals and
 services $755,718 $765,374 $1,441,618 $1,484,697
 Interest 7,795 10,374 20,091 20,537
 763,513 775,748 1,461,709 1,505,234
 Costs and Expenses
 Cost of sales, rentals
 and services 523,197 510,521 997,270 987,551
 Engineering,
 selling and
 administrative
 expenses 194,374 225,391 381,454 435,502
 Interest 16,863 19,364 34,597 37,246
 Restructuring
 expenses --- 115,000 --- 115,000
 Other -- net 1,626 (1,336) 2,708 (1,891)
 Income (loss) before
 income taxes 27,453 (93,192) 45,680 (68,174)
 Income taxes 8,230 (37,381) 13,699 (29,875)
 Net income (loss) $ 19,223 $ (55,811) $ 31,981 $ (38,299)
 Net income (loss)
 per share $.49 $(1.43) $.82 $(.97)
 Cash dividends paid per
 common share $.26 $ .26 $.52 $ .52
 Average shares
 outstanding 39,069 39,046 38,991 39,531
 HARRIS CORPORATION
 FY'92 Second Quarter Summary
 Condensed Consolidated Balance Sheet
 (In thousands)
 Dec. 27, Dec. 28,
 1991 1990
 Assets
 Cash and short-term securities $ 46,490 $ 93,989
 Trade receivables 618,055 643,955
 Unbilled costs and accrued earnings 275,458 255,579
 Inventories 429,114 454,898
 Deferred income taxes 71,180 112,665
 Plant and equipment -- net 592,058 644,171
 Non-current notes receivable -- net 132,248 134,515
 Intangibles resulting
 from acquisitions 148,372 144,368
 Other assets 104,426 110,769
 Liabilities and Shareholders' Equity
 Short-term debt $ 86,285 $ 429,559
 Trade payables and accrued expenses 498,107 569,718
 Advance payments and unearned income 163,361 171,538
 Income taxes 18,922 23,190
 Current portion of long-term debt 5,972 19,108
 Non-current deferred income taxes 40,014 45,732
 Long-term debt 559,647 333,678
 Shareholders' equity 1,045,093 1,002,386
 $2,417,401 $2,594,909
 -0- 1/21/92
 /CONTACT: Jim Burke of Harris Corporation, 407-727-9126/
 (HRS) CO: Harris Corporation ST: Florida IN: ARO SU: ERN


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Date:Jan 21, 1992
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