Harris Corporation (HRS) has reported 8.11 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $160 million, or $1.27 a share in the quarter, compared with $148 million, or $1.18 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $175 million, or $1.39 a share compared with $163 million or $1.31 a share, a year ago.
Revenue during the quarter dropped 3.15 percent to $1,754 million from $1,811 million in the previous year period. Gross margin for the quarter expanded 38 basis points over the previous year period to 33.01 percent. Total expenses were 84.72 percent of quarterly revenues, down from 85.53 percent for the same period last year. This has led to an improvement of 81 basis points in operating margin to 15.28 percent.
"First quarter performance provided a solid start to our fiscal year," said William M. Brown, chairman, president and chief executive officer. "Despite the revenue headwind, earnings were higher in the quarter as we maintained our focus on operational excellence and realized acquisition synergies while investing to meet the needs of our customers. The business reported strong book-to-bill and backlog grew in all four segments including in our tactical radio business."
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $5.53 to $5.73. The company forecasts diluted earnings per share to be in the range of $5.70 to $5.90 on adjusted basis.
Operating cash flow drops significantlyHarris Corporation has generated cash of $43 million from operating activities during the quarter, down 32.81 percent or $ 21 million, when compared with the last year period. The company has spent $46 million cash to meet investing activities during the quarter as against cash outgo of $24 million in the last year period.
The company has spent $201 million cash to carry out financing activities during the quarter as against cash outgo of $192 million in the last year period.
Cash and cash equivalents stood at $284 million as on Sep. 30, 2016, down 11.25 percent or $36 million from $320 million on Oct. 02, 2015.
Debt comes down
Harris Corporation has recorded a decline in total debt over the last one year. It stood at $4,486 million as on Sep. 30, 2016, down 11.71 percent or $595 million from $5,081 million on Oct. 02, 2015. Total debt was 38.09 percent of total assets as on Sep. 30, 2016, compared with 40.44 percent on Oct. 02, 2015. Debt to equity ratio was almost stable at 1.47 as on Sep. 30, 2016, when compared with the last year. Interest coverage ratio improved to 6.09 for the quarter from 5.46 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
