MELBOURNE, Fla. and SAN JOSE, Calif., Jan. 26 /PRNewswire-FirstCall/ -- Harris Corporation and Stratex Networks, Inc. today announced the completion of the transaction that has created a new company -- Harris Stratex Networks, Inc. The new company brings together the former Harris Microwave Communications Division and Stratex Networks, Inc. The new company, with calendar year 2006 revenue of about $650 million, is the largest independent provider of wireless transmission network solutions, with customers in over 150 countries.
Harris Stratex Networks will be listed on the NASDAQ Global Market, effective January 29, 2007, at market open. Principal headquarters of the new company are in Research Triangle Park, North Carolina, with additional headquarters functions located in San Jose, California. President and chief executive officer of Harris Stratex Networks is Guy M. Campbell, who was the former president of Harris Corporation's Microwave Communications Division. Chief operating officer is Tom Waechter, formerly chief executive officer of Stratex Networks, and chief financial officer is Sally Dudash, formerly vice president and controller of Harris Corporation's Microwave Communications Division.
"Combining these two businesses creates much greater scale, complementary global distribution channels, and an unmatched end-to-end product portfolio," said Howard L. Lance, chairman, president and chief executive officer of Harris Corporation. "The integration of the combined technology, leadership, and market knowledge of the two businesses creates a powerful new company capable of delivering a unique value proposition to a growing base of customers worldwide."
"The new company will be a larger, more competitive, pure-play wireless technology company that is capable of achieving stronger financial performance than as two stand-alone companies," said Charles D. Kissner, chairman of Stratex Networks. "As a result, Harris Stratex Networks will have the financial capacity to invest in new technologies and adjacent wireless markets to fuel future growth."
Harris Corporation is the majority shareholder of the new company, with about 56 percent ownership. Harris will consolidate the results of Harris Stratex Networks in its financial statements, and reflect minority interest for the portion of the company that it does not own. The combination resulted in a gain to Harris, during the third quarter of fiscal year 2007, of approximately $131 million or $.92 per diluted share. Excluding this one-time gain and anticipated integration and acquisition costs, estimated at $.16 per diluted share, the combination is expected to be neutral to Harris Corporation earnings per share in fiscal year 2007 and accretive by approximately $.07 per diluted share in fiscal year 2008.
Financial Results Call Scheduled for January 30, 2007
At 5:30 p.m. Eastern Time on Tuesday, January 30, 2007, Harris Stratex Networks will host a conference call to discuss the financial results for the quarter ended December 2006 for Stratex Networks Inc., and pro forma information for the new company, Harris Stratex Networks. Those wishing to join the call should dial 303-262-2138 (no pass code required). A replay of the call will be available starting one hour after the call's completion, and will run until midnight, Eastern Time, on Tuesday, February 6, 2007. To access the replay, dial 303-590-3000 (pass code: 11082112#). A live and an archived webcast of the conference call will also be available via the Internet at http://www.harrisstratex.com/.
About Harris Corporation
Harris Corporation is an international communications and information technology company serving government and commercial markets in more than 150 countries. Headquartered in Melbourne, Florida, the company has annual sales of about $4 billion and more than 14,000 employees -- including more than 6,000 engineers and scientists. Harris is dedicated to developing best-in- class assured communications(TM) products, systems, and services for global markets, including government communications, RF communications, broadcast communications, and wireless transmission network solutions. Additional information about Harris Corporation is available at http://www.harris.com/
About Harris Stratex Networks, Inc.
Harris Stratex Networks is the world's leading independent supplier of turnkey wireless network solutions. The company offers reliable, flexible and scalable wireless network solutions, backed by comprehensive professional services and support. Harris Stratex Networks serves all global markets, including mobile network operators, public safety agencies, private network operators, utility and transportation companies, government agencies, and broadcasters. Customers in more than 150 countries depend on Harris Stratex Networks to build, expand and upgrade their voice, data and video solutions. Harris Stratex Networks is recognized around the world for innovative, best- in-class wireless networking solutions and services. For more information, visit http://www.harrisstratex.com/.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this release constitute "forward-looking statements." Forward-looking statements in this release include, but are not limited to, the expected impact of the transaction to Harris Corporation's earnings; any statements of plans, strategies, objectives, and any statements of expectation or belief. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected or forecast in the forward-looking statements. The factors that could cause actual results to differ materially include the following: the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the transaction within the expected time-frames or at all; integration of the operations of Harris' Microwave Communications Division with those of Stratex Networks now may be more difficult, time-consuming or costly than expected and may not be as successful as the parties anticipate; revenues of the combined business following the transaction may be lower than expected; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) of the combined business may be greater than expected following the transaction; the ability to retain key employees subsequent to the completion of the transaction; in the future third parties may assert claims, including intellectual property infringement claims that could materially adversely affect the operating results of the combined company. Further information relating to factors that may impact the Company's results and forward-looking statement are disclosed in the Company's filings with the SEC. Harris disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
