Communications equipment and electronics company Harris Corp has become yet another victim of the global slump in the semiconductor market. The Melbourne, Florida-based company has issued a warning that its first quarter earnings will come in about 10% below Wall Street expectations of $0.58 per share. Moreover, the bottom line for the whole year will also be 10% lighter than the expected $3.12. Harris said the shortfall – which began in its semiconductor unit and spread to the communications business at large – is directly attributable to the downturn in the chip making industry as well as uncertainty in world markets, especially in Asia. To make matters worse, Harris said it will be taking a reserve against first-quarter earnings in anticipation of the settlement of a patent infringement suit against the company. A Federal Circuit Court of Appeals ruled that Harris was guilty of infringement and ordered it to pay $15.4m in damages plus attorneys’ fees and interest.
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