KFDA - NewsChannel 10 / Amarillo, TX: newschannel10.comHarris Stratex Networks reports fiscal 1Q loss

Harris Stratex Networks reports fiscal 1Q loss

RESEARCH TRIANGLE PARK, N.C. (AP) - Harris Stratex Networks Inc., which makes wireless equipment, said Thursday it swung to a fiscal first-quarter loss, mostly due to restructuring and other one-time charges.

Sales results fell short of what Wall Street was expecting, and shares slid 6 percent in aftermarket electronic trading.

The company reported a loss of $7.8 million, or 13 cents per share, compared with a year-ago profit of $6.5 million, or 10 cents per share. Excluding some one-time items including restructuring and stock-based compensation charges, the company would have lost $800,000, or a penny per share, compared with a year-ago profit of $11.9 million, or 20 cents per share. The company was spun off from Harris Corp. earlier this year.

Revenue fell to $120 million, from $195.8 million in the same quarter a year ago.

Analysts polled by Thomson Reuters, who generally exclude one-time items from their estimates, were expecting a loss of 4 cents per share on $130.1 million in sales.

"The macroeconomic environment remains challenging and continues to constrain our revenue growth potential. However, we are seeing stabilization in North America, continued strength in Asia Pacific and even early indications of potential growth in countries hardest hit by this downturn," said President and CEO Harald Braun in a statement.

The company's current revenue expectations for the second quarter of its 2010 fiscal year range between $120 million and $130 million, below analysts' consensus estimate of $136.9 million.

Shares rose 21 cents, or 3.3 percent to close at $6.60 in the regular session, but fell 40 cents to $6.20 after-hours following the report.

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