Harris Stratex falls 27% on restatement of financial reports, bleak business update
Wireless networking solutions maker Harris Stratex Networks Inc. (Nasdaq:HSTX) is off 27% today after providing a business update ahead of the opening that said fourth-quarter results will be hurt by higher costs and accounting discrepancies. The Morrisville, N.C.-based company said it will have to restate its financial results for fiscal years 2005 throught 2007. The company expects the total amount of the restated charges to be in a range of $18 million to $25 million. Expenses in the fourth quarter ended June 27 increased by about $13 million to $14 million. As a result, fourth quarter earnings per share will not meet previous estimates of $0.82, the company said.
Shares are at $8.20 at 10:59 a.m. ET, down $3.04 from Wednesday’s close. The shares have ranged from today’s low – achieved shortly after the opening – of $8.17 and a high of $20.90.
For detailed price information and recent news stories about Harris Stratex Networks Inc., click HSTX.
