Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
OVERVIEW
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to assist in an understanding of Harris. MD&A is provided as a supplement to, should be read in conjunction with, and is qualified in its entirety by reference to, our Condensed Consolidated Financial Statements (Unaudited) and accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) ("Notes") appearing elsewhere in this Quarterly Report on Form 10-Q. In addition, reference should be made to our audited Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements and MD&A included in our Fiscal 2008 Form 10-K. Except for the historical information contained herein, the discussions in MD&A contain forward-looking statements that involve risks and uncertainties. Our future results could differ materially from those discussed herein. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below in MD&A under "Forward-Looking Statements and Factors that May Affect Future Results."
The following is a list of the sections of MD&A, together with our perspective on the contents of these sections of MD&A, which we hope will make reading these pages more productive:
• Results of Operations - an analysis of our consolidated results of operations and of the results in each of our four operating segments, to the extent the operating segment results are helpful to an understanding of our business as a whole, for the periods presented in our Condensed Consolidated Financial Statements (Unaudited).

• Liquidity and Capital Resources - an analysis of cash flows, common stock repurchases, dividend policy, capital structure and resources, off-balance sheet arrangements and commercial commitments and contractual obligations.

• Critical Accounting Policies and Estimates - information about accounting policies that require critical judgments and estimates and about accounting pronouncements that have been issued but not yet implemented by us and their potential impact.

• Forward-Looking Statements and Factors that May Affect Future Results - cautionary information about forward-looking statements and a description of certain risks and uncertainties that could cause our actual results to differ materially from our historical results or our current expectations or projections.

RESULTS OF OPERATIONS
Highlights
Operations results for the second quarter of fiscal 2009 include:
• Net income decreased from $114.3 million, or $.83 per diluted share, in the second quarter of fiscal 2008 to a net loss of $38.6 million, or $.29 per diluted share, in the second quarter of fiscal 2009. Net loss in the second quarter of fiscal 2009 includes charges in our Harris Stratex Networks segment of $182.5 million (after tax and minority interest, or $1.37 per diluted share) for impairment of goodwill and other intangible assets and for the increase in the valuation allowance for certain deferred tax assets;

• Revenue increased 15.6 percent from $1,317.7 million in the second quarter of fiscal 2008 to $1,523.4 million in the second quarter of fiscal 2009;

• Our RF Communications segment revenue increased 22.7 percent to $438.2 million and operating income increased 16.0 percent to $144.1 million in the second quarter of fiscal 2009 compared with the second quarter of fiscal 2008;

• Our Government Communications Systems segment revenue increased 19.7 percent to $748.0 million and operating income increased 26.6 percent to $85.2 million in the second quarter of fiscal 2009 compared with the second quarter of fiscal 2008;

• Our Broadcast Communications segment revenue, at $163.0 million, was essentially flat compared with the second quarter of fiscal 2008, and operating income increased 46.3 percent to $12.0 million in the second quarter of fiscal 2009 compared with the second quarter of fiscal 2008. The second quarter of fiscal 2008 included $1.8 million of transaction-related costs associated with the acquisition of Zandar;

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• Our Harris Stratex Networks segment revenue increased 5.4 percent to $190.9 million in the second quarter of fiscal 2009 compared with the second quarter of fiscal 2008, while there was an operating loss of $291.5 million in the second quarter of fiscal 2009 compared with an operating loss of $0.8 million in the second quarter of fiscal 2008. The operating loss in the second quarter of fiscal 2009 includes a $301.0 million charge for impairment of goodwill and other intangible assets. The operating loss in the second quarter of fiscal 2008 included $12.1 million of costs associated with the combination with Stratex;

• On December 8, 2008 we announced that we are evaluating strategic alternatives related to our Harris Stratex Networks segment. We expect to provide further details regarding our ownership in Harris Stratex Networks during the third quarter of fiscal 2009; and

• Net cash provided by operating activities was $189.3 million in the first two quarters of fiscal 2009 compared with $192.9 million in the first two quarters of fiscal 2008.