Having given its semiconductor business gravitas by acquiring most of General Electric Co’s semiconductor businesses, Harris Corp is carrying out a major house-cleaning exercise, discontinuning its venerable 3270-compatible business in Dallas, Texas, and the personal computer-based office systems business it acquired with Lanier Inc. with several potential buyers. Harris says that it is in talks with potential buyers of the businesses to be sold, and comments on the 3270 business that while it has been good to Harris, Harris is still only number three in the market. It is likely that Memorex Telex International NV will be interested in the unit, if it can find the cash needed, and might like the personal computer line as well. Annual sales of the two businesses, together with three smaller businesses also up for sale, are about $240m. The proposed sale will leave Harris with four core businesses: advanced electronic systems, semiconductors, communications and office equipment distribution. The Electronic Systems Sector comprises Computer Systems, Aerospace Systems, Air Traffic Control Systems, Controls and Composition, Government Communication, Electronic and Information Systems divisions, and Scientific Calculations Inc. The Semiconductor Sector comprises Commercial Products, Commercial ASIC, Discrete Power, Military & Aerospace, Manufacturing and Marketing divisions. The Communications Sector comprises Broadcast, Allied Broadcast, Digital Telephone Systems – so the company is keeping its PABX business (CI No 1,239), Dracon, Farinon, Long Range Radio and RF Systems divisions. And Lanier Worldwide Inc comprises Copying Systems, Facsimile, Voice Products, European and Intercontinental divisions. All of which suggests that at $2,300m a year, Harris Corp is still in an unnervingly wide range of businesses for such a small company, and is much smaller than the major players in most of them, apart from the semiconductor business. The aim of the restructuring is to increase financial returns and shareholder value, and Harris describes the four core groupings as profitable and growth-oriented.
