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 and to our Form 8-K Recast, which updates our historical business segment information contained in our Fiscal 2008 Form 10-K to reflect a change in organizational structure and segment reporting effective for fiscal 2009. 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 third quarter of fiscal 2009 include:
• Net income increased from $108.0 million, or $.78 per diluted share, in the third quarter of fiscal 2008 to $114.2 million, or $.86 per diluted share, in the third quarter of fiscal 2009;

• Revenue increased 2.4 percent from $1,329.6 million in the third quarter of fiscal 2008 to $1,361.7 million in the third quarter of fiscal 2009;

• Our RF Communications segment revenue increased 12.0 percent to $439.1 million and operating income increased 7.0 percent to $151.3 million in the third quarter of fiscal 2009 compared with the third quarter of fiscal 2008;

• Our Government Communications Systems segment revenue increased 6.7 percent to $648.7 million in the third quarter of fiscal 2009 compared with the third quarter of fiscal 2008, and operating income increased to $73.9 million in the third quarter of fiscal 2009 compared with $21.4 million in the third quarter of fiscal 2008. Government Communications Systems segment operating income included $46.8 million of charges for schedule and cost overruns on commercial satellite reflector programs in the third quarter of fiscal 2008;

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• Our Broadcast Communications segment revenue decreased 16.6 percent from $158.6 million in the third quarter of fiscal 2008 to $132.2 million in the third quarter of fiscal 2009, and operating income decreased from $7.1 million in the third quarter of fiscal 2008 to $1.9 million in the third quarter of fiscal 2009;

• Our Harris Stratex Networks segment revenue decreased 11.3 percent to $158.1 million in the third quarter of fiscal 2009 compared with the third quarter of fiscal 2008, while there was an operating loss of $34.1 million in the third quarter of fiscal 2009 compared with operating income of $9.2 million in the third quarter of fiscal 2008. The operating loss in the third quarter of fiscal 2009 included $32.7 million of charges, primarily related to inventory and fixed assets, resulting from an acceleration towards a common IP-based technology platform and a $2.4 million charge for the write-off of in-process research and development associated with Harris Stratex Networks' acquisition of Telsima;

• On March 31, 2009, we announced a spin-off to our shareholders of all the shares we own of Harris Stratex Networks. The distribution of our ownership of approximately 56 percent of the outstanding shares of Harris Stratex Networks will take place in the form of a taxable pro rata dividend of our shares of Harris Stratex Networks payable on May 27, 2009 to our shareholders of record at the close of business on May 13, 2009. In accordance with Statement 144, we will report the current and all prior period financial results of Harris Stratex Networks as discontinued operations beginning in the fourth quarter of fiscal 2009, the quarter in which the May 27, 2009 Distribution Date will occur; and

• Net cash provided by operating activities was $404.5 million in the first three quarters of fiscal 2009 compared with $358.0 million in the first three quarters of fiscal 2008.

Consolidated Results of Operations