...were weaker than expected and reduced its fiscal year 2013 guidance, primarily due to delays in tactical radio procurements resulting from government budget uncertainty and the increased likelihood that key international tactical radio orders will be awarded later in the year than previously expected or pushed into early next fiscal year. Additionally, operating performance in the Integrated Network Solutions segment was weaker than expected as a result of a delayed software release in Healthcare Solutions and slower revenue growth in CapRock Communications.

Third quarter fiscal 2013 income from continuing operations is expected to be approximately $1.12 per diluted share. Revenue in the third quarter of fiscal 2013 is expected to be approximately $1.20 billion. The tax rate is expected to be about 27 percent for the third quarter and about 31 percent for the fiscal year. Fiscal 2013 guidance for income from continuing operations has been reduced from a previous range of $5.00 to $5.20 per diluted share to a range of $4.60 to $4.70, excluding charges related to restructuring and other actions ($3.95 to $4.33 per diluted share on a GAAP basis). Revenue is now expected to decline 6 to 7 percent compared to the prior year.

“Operating under a continuing resolution followed by sequestration and the related indecision surrounding how sequestration budget cuts will be implemented has delayed U.S. Government procurement decisions and reduced spending,” said William M. Brown, president and chief executive officer. “The uncertainty is unprecedented, and the political budgetary process is progressing slowly. As a result, we are not anticipating a return to typical procurement processes before the end of our fiscal year.”

To align resources with the current business outlook, the company expects to implement company-wide restructuring and other actions primarily in the fourth quarter, including workforce reductions, facility consolidation, and prepayment of debt, resulting in pre-tax charges in the range of $65 to $115 million and generating net annualized cost savings of approximately $40 to $50 million.

“These cost actions, in addition to our ongoing focus on operational excellence and reducing discretionary spending, show our determination to adapt to the challenging fiscal environment while continuing to invest in R&D and strategic growth initiatives,” said Brown. “The delayed international tactical radio orders continue to be solid opportunities in our pipeline, and we remain keenly focused on integrating and improving execution in Healthcare Solutions and CapRock Communications. We strongly believe that the technology, innovation and affordable solutions that Harris brings to the marketplace are well-aligned with our customers’ priorities and are at the core of what will continue to make Harris a success.”