Henrietta-based RF Communications will cut 75 to 125 local positions by the end of its fiscal year in June due to what the company is calling a challenging business outlook, particularly in its U.S. Department of Defense business.
The firm announced a voluntary early retirement program Tuesday for eligible employees. The company said depending on the outcome of that program, it would look to take additional actions as needed, to reduce the workforce by up to 125 employees.
The news comes the same day RF Communications reported a drop in third-quarter sales, due to a decrease in tactical communications orders.
The Henrietta firm reported revenue of $538 million, down from $550 million for the period last year. Tactical communications revenue was $398 million, down 8 percent. Revenue from its public safety and professional communications unit was $140 million, up 18 percent.
Operating income was $182 million, compared with $179 million in third quarter a year ago, and operating margin was 33.8 percent compared with 32.5 percent.
Orders for the segment totaled $629 million, including $534 million in tactical communications and $95 million in public safety and professional communications.
For fiscal 2013, the company said it expects revenue at RF Communications to drop three to four percent year-over-year, due to the wind-down of military operations in Afghanistan and Iraq, along with the uncertain timing of other military orders.
RF Communications employs some 2,300 workers.
The results were part of Florida-based Harris’s financial results released on Tuesday.
Including special charges, the business reported a net loss of $354.1 million, or $3.15 a share. Excluding special items, the company posted net income of $159 million, or $1.39 a share, compared with $151 million, or $1.18 a share, a year ago.
Revenue was up 5 percent to $1.48 billion, from $1.41 billion a year ago.
Harris also reported plans to sell its broadcast communications business.
Shares of Harris (NYSE: HRS) were trading midday at $45.04, down roughly 1percent from Monday’s close of $45.54.
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
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