Harris Stratex Networks a subsidiary of Harris is to be spun off as a separate company. The company said that it was considering a sale or spin-off last year as the company no longer fitted the parent company portfolio. The Harris Board of Directors has approved the spin-off to Harris shareholders of its 56% majority position in the company.
“We look forward to the next chapter of Harris Stratex Networks as a fully independent company. There is no question that the future of broadband wireless communications presents us with significant growth opportunities. Coupled with the significant progress we have made across our business, we believe that our ability to strengthen our position in this market space and execute on our strategy is now enhanced as an independent company. The decision by the Harris Corporation board to pursue an orderly distribution of its Harris Stratex shares will present to a broader investor base the opportunity to unlock greater shareholder value over time,” said Harald Braun, Harris Stratex president and CEO.
“We continue to execute our growth strategy by making the game-changing transition to IP networks. In addition, we recently acquired Telsima Corporation to accelerate our expansion into new and emerging markets and to enhance our 4G networking strategy,” added Braun.
Harris Corporation announced December 8, 2008, that it was evaluating strategic alternatives related to Harris Stratex Networks, which was formed January 26, 2007, through the combination of Harris Corporation’s Microwave Communications Division and Stratex Networks.
Harris Stratex Networks swung into a quarterly loss after it wrote down its goodwill in light of the ongoing economic downturn last month. The firm reported revenue for the second quarter of fiscal 2009 of US$190.9 million, an increase of 5 percent compared with $181.1 million in the year ago period. The GAAP net loss was $315.4 million, compared with a net loss of $3.2 million.