[Satellite Today 06-02-09] Harris Corp. will spin-off about 56 percent of its outstanding shares in subsidiary Harris Stratex Networks as part of a company-wide cost-reduction initiative that includes up to $75 million dollars in expense cuts, Harris announced June 1.
    The company said the spin-off will result in a $60 million to $70 million after-tax charge in the fourth quarter of fiscal 2009. Harris will incur a non-cash share-based compensation charge of about $4 million related to the adjustment of outstanding employee stock options to reflect the spin-off of Harris Stratex.
    Harris’ cost-reduction initiatives are expected to result in charges in the fourth quarter of fiscal 2009 that total $24 million to $28 million and are expected to result in annualized cost savings of about $70 million to $75 million.
    The company also announced that the current carrying value of its assets related to its broadcast communications segment is impaired. Harris said a company review indicated that the fair value of goodwill and other intangible assets has been reduced below its carrying value and expects to record a $250 million to $275 million non-cash charge in the fourth quarter of fiscal 2009 to write down a significant portion of these assets.
    Expected revenue from continuing operations in fiscal 2010 will be in a range of $4.9 billion to $5.1 billion, Harris said.