Harris Corporation realigns its business segments


The broadcast product businesses at Harris Corporation are now part of a new Integrated Network Solutions division at the company. Harris announced Tuesday that it had strategically reorganized its businesses into three divisions.
“Harris has established a strong reputation and track record for delivering innovative solutions across an increasingly broad spectrum of markets.  This strategic business realignment will enable each of our segments to more effectively combine technologies, products and services from throughout the company into integrated solutions tailored for the specific markets that they serve,” said CEO Howard Lance.

Here is how the company describes the three Harris segments:

RF Communications – no change; includes the Tactical Communications and Public Safety and Professional Communications businesses.  Provides tactical and land mobile radios, systems and networking applications for global defense, security, public safety and public service, transportation, and utility markets.  

Government Communications Systems – includes the Civil Programs, Defense Programs and National Intelligence Programs businesses.  Provides communications and information technology and systems integration for mission-critical government applications.  

Integrated Network Solutions – includes the Harris IT Services, Harris CapRock Communications, Healthcare Solutions, and Cyber Integrated Solutions businesses (all of which were previously part of the Government Communications Systems segment), and the Broadcast Communications business.  Provides IT services, managed services, cyber integration, interoperability, imaging, and digital media management solutions to support government, energy, healthcare, broadcast, and enterprise networks.  

“Integrated Network Solutions represents a new segment that combines the resources and capabilities of existing and recently acquired operations into a powerful organization targeting the fast-growing global market for highly reliable and secure communications and IT networks,” the company said.
“The new segment will leverage the company’s strong and expanding technology and service capabilities – along with its growing global presence – to provide integrated solutions to meet individual customer and market needs.   Harris is unique in its ability to integrate advanced technology and services to capture, aggregate, distribute, and analyze any type of communications or information – including voice, video, data, and imaging,” said the announcement.

“Commercial businesses and government customers around the globe are increasingly seeking total solutions – combining innovative technology with managed services,” said Dan Pearson, Executive Vice President and COO, and acting group president for the new segment.  “With a flexible technology and managed services approach, Integrated Network Solutions is uniquely positioned to create tailored end-to-end solutions for customers seeking a trusted communications and IT partner,” he said.
The company will report its financial results under the new segment structure effective with its third quarter of fiscal 2011, which ends April 1, 2011. The company reiterated its fiscal 2011 guidance, saying fiscal 2011 revenue is still expected to be at the high end of the $5.9 to $6.0 billion range, which represents a year-over-year increase of about 15%.

In the new Integrated Network Solutions segment, fiscal 2011 revenue is expected to be in the range of 33-35% higher, which represents organic revenue growth in the range of 7-9. Non-GAAP operating margin in the segment is expected to be in the range of 5-6%.

RBR-TVBR observation: Radio and TV may be “old media” but their current equipment demands are nothing of the sort. Broadcasting now is all about digital creation, storage and distribution, including multi-platform management. So, it’s an IT network and an important growth area for Harris just like all other types of IT networks.