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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest
event reported): September 23, 1998
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HARRIS CORPORATION
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(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Delaware 1-3863 34-0276860
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification No.)
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1025 West NASA Blvd., Melbourne, FL 32919
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (407) 727-9100
No Change
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(Former name or former address, if changed since last report.)
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Items 1-4. Not Applicable.
Item 5. Other Events.
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On September 23, 1998, Harris Corporation announced that it
expects its first quarter earnings from operations to be slightly below last
year's first quarter and about 10% below the analysts' consensus estimate of
$.58 per share. Similarly, fiscal 1999 operating results are also expected to
be slightly below fiscal 1998 results and about 10% below the analysts'
consensus estimate of $3.12 per share. A copy of the press release is filed
herewith as Exhibit 99 and is incorporated herein by reference.
Item 6. Not Applicable.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
The following document is filed as an Exhibit to this Report:
99. Press Release, dated September 23, 1998, announcing
expected lower first quarter and fiscal 1999 earnings
from operations.
Items 8-9. Not Applicable.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
HARRIS CORPORATION
By: /s/ Bryan R. Roub
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Name: Bryan R. Roub
Title: Senior Vice President & Chief
Financial Officer
Date: September 24, 1998
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EXHIBIT INDEX
Exhibit No.
Under Reg.
S-K, Item 601 Description
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99 Press Release, dated September 23, 1998,
announcing expected lower first quarter
and fiscal 1999 earnings from operations.
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EXHIBIT 99
HARRIS CORPORATION EARNINGS IMPACTED
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BY WORLD MARKET CONDITIONS
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MELBOURNE, Fl., September 23, 1998 -- Harris Corporation expects its
first quarter earnings from operations to be slightly below last year's first
quarter and about 10% below the analysts' consensus estimate of $.58 per share.
Similarly, total year operating results will likely follow the same pattern -
slightly below FY98 results and about 10% below the analysts' consensus estimate
of $3.12 per share.
Phillip W. Farmer, Harris chairman and CEO, said, "The semiconductor
market has continued its unprecedented downturn and has been joined by general
market weaknesses that started in Asia, but have now spread to Russia, eastern
Europe and South America. For Harris, the impact is now being felt in
communications businesses as well as semiconductor, primarily in the form of
decreasing prices and, to a lesser extent, in demand.
"A restructuring program, announced in July, is being vigorously
implemented to reduce costs and maintain profit margins. These actions will
balance near-term results and long-term positioning to retain and grow market
share for Harris businesses in communications products, semiconductors,
government and defense, and Lanier office products," Mr. Farmer added.
The company also announced plans to take a reserve against first
quarter earnings to reflect the potential settlement of a lawsuit. As recently
reported in the business press, the Federal Circuit Court of Appeals upheld a
lower court
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ruling of infringement by Harris of a competitor's patent for an analog
television transmitter circuit. The award totaled $15.4 million plus attorneys
fees and interest and relates to an older product no longer manufactured by
Harris. Harris continues to maintain that no infringement took place and is
evaluating what further actions it may take.
This press release contains forward-looking statements made in reliance
upon the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve a number of assumptions, risks
and uncertainties that could cause actual results of the company to differ
materially from those matters expressed in or implied by such forward-looking
statements. The Company's consolidated results and the forward-looking
statements could be affected by, among other things, general economic conditions
in the markets in which the Company operates; ability to execute management's
internal operating plans (specifically management's announced restructuring plan
which includes employee reductions, cost reductions in its commodity
semiconductor product lines, particularly logic, consolidations of
administration, technical sales and marketing functions, and manufacturing
facilities, and the successful exit of several product lines and a program);
fluctuation in foreign currency exchange rates and the effectiveness of the
Company's currency hedging program; worldwide demand and product pricing for
integrated semiconductor circuits, particularly power products; reductions in
the U.S. and worldwide defense and space budgets; effect of continuing
consolidation in the U.S. defense industry on the Company's business with the
U.S. government; the Company's ability to recover costs incurred on fixed price
contracts; continued development and market acceptance of new products,
especially digital broadcast products and semiconductor wireless products;
continued success of the Company's patent licensing programs, particularly as it
relates to the Semiconductor and
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Communications segments; and the successful resolution of patent infringement
and other general litigation. Harris disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
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