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HARRIS REPORTS LOWER EARNINGS IN THIRD QUARTER

 HARRIS REPORTS LOWER EARNINGS IN THIRD QUARTER
 MELBOURNE, Fla., April 21 /PRNewswire/ -- Harris Corporation


(NYSE: HRS) reported that net income in the third quarter ended March 27 was $18.4 million or 47 cents per share, compared with $27.1 million or 70 cents in the third quarter of last year. This year's third quarter included an after-tax charge of $3.0 million or 8 cents per share in connection with the early redemption of $81 million of the company's 11 1/2 percent debentures. Sales for the quarter were $734.6 million vs. $750.3 million last year.
 Reporting on the company's four business sectors, John T. Hartley, Harris chairman and chief executive, said the Electronic Systems Sector reported increased sales, while earnings were slightly lower than the strong performance posted last year. Lanier Worldwide's earnings were more than double last year's weak third quarter on relatively level sales. The Communications Sector reported higher sales and a slight increase in earnings for the quarter.
 Harris Semiconductor sales were down substantially from last year and the sector reported a loss for the quarter. Hartley said the third-quarter loss was significantly smaller than in the first and second quarters of the year, reflecting major reductions in costs and expenses.
 Total orders for the third quarter were up over last year and exceeded shipments. A major increase in bookings in the Electronic Systems Sector more than offset a decline in Harris Semiconductor orders. Communications Sector and Lanier Worldwide orders were essentially level for the quarter.
 For the nine months, the company reported net income of $50.4 million or $1.29 per share, compared with a net loss of $11.2 million or 29 cents per share the previous year. Last year's nine-month period included an after-tax charge in the second quarter of $72.9 million or $1.86 per share in connection with the restructuring of Harris Semiconductor. Sales for the nine months were $2,176.2 million, compared with $2,235.0 million last year.
 Looking ahead, Hartley said, "Reductions in costs and expenses in the Semiconductor Sector have resulted in a significantly lower break-even point, providing a good base for earnings leverage from higher sales as the sector's markets recover. While Semiconductor orders were weak in January and February, we are encouraged by a good pick-up in the order rate in March. Assuming this order trend continues, we expect further improvement in Harris Semiconductor results in the fourth quarter and a return to profitability by the end of the fiscal year."
 "In the Electronic Systems Sector, overall orders have shown a strong increase and the sector has a healthy backlog," Hartley continued. "However, orders and revenue in one of the sector's businesses -- government automatic test equipment and support systems -- have been weaker than anticipated and we are reviewing various options for improving results in this business. The fourth-quarter outlook for the Communications Sector and Lanier Worldwide continues to be encouraging."
 In a further comment on the fourth quarter, Hartley noted that Syntrex, Inc., a company that purchased one of Harris' discontinued businesses in January 1990, is in bankruptcy proceedings. He said, "While it is premature to estimate what the final effect might be on Harris and other creditors, it appears likely that Harris will incur a charge against discontinued operations when the bankruptcy court makes a decision on the disposition of Syntrex assets, probably before the end of the fiscal year."
 Looking to next fiscal year, Hartley said, "We are encouraged by the strength of orders in our Electronic Systems Sector, the outlook for a return to profitability in our Semiconductor Sector, the continuing strength of our Communications Sector and Lanier Worldwide, and by the growing signs of economic recovery. As a result, we look forward to a year of strong earnings improvement in fiscal 1993."
 HARRIS CORPORATION
 FY'92 Third Quarter Summary
 Condensed Consolidated Statement of Income
 (In thousands except per share amounts)
 Quarter Ended Three Quarters Ended
 Mar. 27, Mar. 29, Mar. 27, Mar. 29,
 1992 1991 1992 1991
 Revenue
 Revenue from sales,
 rentals and services $734,611 $750,346 $2,176,229 $2,235,043
 Interest 9,241 9,908 29,332 30,445
 743,852 760,254 2,205,561 2,265,488
 Costs and Expenses
 Cost of sales, rentals
 and services 495,854 505,781 1,493,124 1,510,049
 Engineering,
 selling and
 administrative
 expenses 204,709 209,526 586,163 628,311
 Interest 15,819 19,343 50,416 56,589
 Restructuring
 expenses -- -- -- 115,000
 Other - net (3,199) (13,192) (491) (15,083)
 Income (loss) before
 income taxes and
 extraordinary item 30,669 38,796 76,349 (29,378)
 Income taxes 9,204 11,734 22,903 (18,141)
 Income before
 extraordinary item 21,465 27,062 53,446 (11,237)
 Extraordinary loss from
 early retirement of
 debt - net of income
 taxes (3,020) -- (3,020) --
 Net income (loss) $ 18,445 $ 27,062 $ 50,426 $ (11,237)
 Net income (loss) per
 share
 Before extraordinary
 item $.55 $.70 $1.37 $(.29)
 Extraordinary loss (.08) -- (.08) --
 $.47 $.70 $1.29 $(.29)
 Cash dividends
 paid per share $.26 $.26 $.78 $.78
 Average shares
 outstanding 39,118 38,887 39,031 39,265
 HARRIS CORPORATION
 FY'92 Third Quarter Summary
 Condensed Consolidated Balance Sheet
 (In thousands)
 Mar. 27, Mar. 29,
 1992 1991
 Assets
 Cash and short-term securities $ 55,243 $ 86,516
 Trade receivables 616,414 658,776
 Unbilled costs and accrued earnings 278,510 250,215
 Inventories 456,899 453,855
 Deferred income taxes 81,566 114,366
 Plant and equipment - net 578,171 631,512
 Non-current notes receivable - net 134,938 139,040
 Intangibles resulting
 from acquisitions 146,903 148,675
 Other assets 103,948 102,160
 $2,452,592 $2,585,115
 Liabilities and Shareholders' Equity
 Short-term debt $ 50,018 $ 342,162
 Trade payables and accrued expenses 480,077 560,011
 Advance payments and
 unearned income 170,217 147,984
 Income taxes 31,002 32,164
 Current portion of long-term debt 4,679 11,346
 Non-current deferred income taxes 37,016 42,988
 Long-term debt 628,291 433,232
 Shareholders' equity 1,051,292 1,015,228
 $2,452,592 $2,585,115
 -0- 4/21/92
 /CONTACT: Jim Burke of Harris Corporation, at 407-727-9126/
 (HRS) CO: Harris Corporation ST: Florida IN: CPR ARO SU: ERN


SS-JJ -- FL006 -- 0452 04/21/92 09:41 EDT
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