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P> Total Contracts $375,278,000

http://www.harris.com/

Harris Corp. executives aren't wasting time reminiscing about the company's 100-year history. They're concentrating on emerging markets -- in part, by applying technologies developed for the military in emerging commercial markets.

Playing on core strengths, Harris boosted earnings in three of its four sectors to end the year with sales exceeding $3.44 billion. Excellent performance in data and satellite communications, avionics, information processing and classified applications for the military kept Harris rallying in both domestic and international fronts.

However, the Electronic Systems Sector reported $1.035 billion in sales, a slight decrease over the previous year to close with an income of $35.3 million in 1995. Nevertheless, Harris rebounded from last year's defense cuts in part by using electronic systems developed for federal markets in health-care information systems.

By merging technology and integration capabilities from the Electronic Systems Sector, the Harris subsidiary Lanier Worldwide Inc. will develop computer-based patient record systems for hospitals. It also will provide document imaging and work flow solutions, as well as integrated network tools, network design and management services.

For the first time in its 61-year history, Lanier surpassed $1 billion in revenue to finish the year at $1.024 billion, a 9 percent increase over 1994.

In the meantime, Harris has expanded its presence in electronic systems for trains by forming a joint venture with General Electric Co. Together, they will develop positive train separation systems using GPS satellites to prevent accidents by monitoring and controlling trains. The venture, a key test of technology transfer, will apply command and control systems developed in the military to the civilian rail transportation market -- which has recently had a rash of bad accidents. The global market for train control systems is estimated at $6 billion annually.

Harris continues to install voice switching and control systems at the nation's 22 air route traffic control centers to provide communications for pilots and controllers. Also, the same weather satellites deployed during military operations in Bosnia are being repackaged as weather data processing systems and small tactical terminals for a wider market.

Harris also has ventured into the airport integration market by providing integrated communications and information systems for airports including Dulles International and Washington National airports.

But in 1995, the Communication Sector, by far, was the star performer with $724 million in sales -- 15 percent higher than 1994. Last year, Harris continued to look abroad, investing $18 million for a 25 percent equity position in Chile-based Compania de Telefonos. The investment is part of Harris' strategy to expand its presence in the worldwide telecommunications market by seeking emerging markets that require sophisticated communications infrastructures.

Finally, the company's Semiconductor Sector reported $658.7 million in sales, a 4 percent boost from 1994. With $42.4 million in income, the 37 percent increase over last year highlights Harris as one of the largest merchant manufacturers and suppliers of integrated circuits to the federal government.

The sector is pressing forward into state and local markets by focusing on transit and fleet/management/location systems. Standard products developed for federal agencies, such as criminal booking stations, are being introduced beyond the federal level as well.

The Semiconductor Sector will focus on communications, automotive and power control products. Officials anticipate the products will generate high-growth opportunities during the next five years. The sector also has announced plans to build a new power semiconductor plant in Pennsylvania and a new test and assembly facility in China to increase its capacity in this fast-growing market.