Harris Corporation's Microwave Communications Division and Stratex Networks, Inc. Complete Merger Creating a New Company - Harris Stratex Networks, Inc.
Combination Creates Largest Independent Global Provider of Wireless Transmission Network Solutions
MELBOURNE, Fla. and SAN JOSE, Calif., Jan. 26 -- Harris Corporation (NYSE:HRS) and Stratex Networks, Inc. (NASDAQ:STXN) 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 (NASDAQ:HSTX) 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 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 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 www.HarrisStratex.com.
Source: Harris Corporation
CONTACT: Investor Relations inquiries: Pamela Padgett, +1-321-727-9383, or pamela.padgett@harris.com, Media inquiries: Jim Burke, +1-321-727-9131, or jim.burke@harris.com, both of Harris Corporation; or Mary McGowan of Summit IR Group Inc., +1-408-404-5401, or mary@summitirgroup.com, for Stratex Networks, Inc.
Web site: http://www.harrisstratex.com/
http://www.harris.com/
