Harris Stratex Reports Q4

Harris Stratex Networks reports fourth-quarter fiscal-2008 financial results

September 18, 2008

3 Min Read

RESEARCH TRIANGLE PARK, N.C. -- Harris Stratex Networks, Inc. (NASDAQ: HSTX), the leading independent supplier of turnkey wireless transmission solutions, today reported complete financial results for the fourth quarter and full year of fiscal 2008, which ended June 27, 2008.

The Company also released restated financial statements for prior periods to correct accounting errors discovered in the course of the fiscal 2008 year-end close. Prior period financial results included in this press release have been restated.

Revenue for the fourth quarter of fiscal 2008 was $186.8 million, an increase of 7 percent compared to $174.1 in the year ago period. GAAP net loss was $13.7 million or $0.23 per share, which includes $21.0 million in pre-tax charges associated with inventory impairment, amortization of purchase related assets, merger integration and restructuring, and stock compensation expense. The net loss for the fourth quarter of fiscal 2007 was $7.2 million.

Non-GAAP Financial Results

Non-GAAP gross margin was 30.6 percent in the fourth quarter of fiscal 2008, operating income was $5.9 million, and net income was $4.8 million or $0.08 per diluted share.

A reconciliation of GAAP to non-GAAP financial measures is provided on Tables 4 and 5 along with the accompanying notes.

Fourth Quarter Revenue by Segment

North America microwave revenue was $55.1 million in the fourth quarter of fiscal 2008, compared with $58.8 million in the year ago period and $56.9 million in the prior quarter. International revenue was $124.6, compared with $110.6 million in the year ago period and $117.1 million in the prior quarter. Strong year-over-year growth was achieved in both Africa, which increased 16 percent, and Europe, Middle East and Russia, which increased 26 percent. Combined fourth quarter revenues for Latin America and Asia Pacific were $21.1 million, compared with $25.1 million in the year ago period and $22.0 million in the prior quarter. Network Operations revenue was $7.1 million compared with $4.7 million in the year ago period and $4.2 million in the prior quarter.

Fiscal 2008 Results

For fiscal year 2008, the Company reported GAAP and non-GAAP revenue of $718.4 million, compared with non-GAAP revenue of $653.7 million in the prior year, an increase of 10 percent, and compared with GAAP revenue of $507.9 million in the prior year, an increase of 41 percent. GAAP net loss for fiscal year 2008 was $11.9 million, or a loss per share of $0.20, compared to a net loss of $21.8 million in the 2007 fiscal year. On a non-GAAP basis, net income was $34.3 million or $0.59 per diluted share.

“We believe the strength of our revenue growth year-over-year, the gains made in all of our segments in fiscal 2008 compared with fiscal 2007, along with our increasing percentage of higher-capacity IP-capable product sales, attest to our leadership position in the wireless transmission solution market,” said Harald Braun, president and chief executive officer of Harris Stratex Networks. “We also are pleased to have completed the restatement to correct accounting errors we discovered during our year-end close. We have identified the root causes of the restatement, initiated corrective actions, and are in the process of remediating the control deficiencies that led to the errors. Further, we anticipate that we will file our 2008 annual report on Form 10-K and all restated financial statements by September 25.”

Harris Stratex Networks Inc. (Nasdaq: HSTX)

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