Monday, April 28, 2008

Harris Stratex Networks Sees Strongest Wireless Growth in Africa

Harris Stratex Networks, which supplies wireless transmission solutions, reported quarterly revenue of $178.2 million. GAAP net income was $7.3 million or $0.09 per diluted share, which includes $7.3 million in pre-tax charges associated with the merger transaction, integration and stock compensation expense.

n its seasonally softest quarter, North America microwave grew 16 percent year-over-year with revenue of $56.9 million. This compares with $63.8 million in the prior quarter.

International revenue of $117.1 million grew 6 percent from the prior quarter and increased 27 percent compared with the year-ago period. Growth was led by revenue from Africa at $55.9 million, which increased 36 percent sequentially, and 49 percent when compared with the year-ago quarter, reflecting a rebound in capital investment following a series of operator consolidations. Revenue in Europe, the Middle East and Russia was $39.2 million, a sequential increase of 23 percent and an increase of 17 percent compared with the year-ago period. Combined Q3 revenues for Latin America and Asia Pacific were $22.0 million, compared with $37.8 million in the prior quarter and $21.4 million in the year-ago period. Network Operations revenue was $4.2 million compared with $6.5 million in the prior quarter and $5.2 million in the year-ago period.

"I am pleased with our 21 percent year-over-year revenue improvement. In particular, I am pleased with the rebound in Africa as shipments to major operators gained traction," said Harald Braun, president and chief executive officer of Harris Stratex Networks.

The company also noted that it now believes revenue for fiscal 2008 will be at the high end of prior guidance. Due to continued pressure on gross margin, non-GAAP earnings for fiscal 2008 are expected to be at the low end of prior guidance.