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UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, D.C.
    20549
  Form 10-K
  (Mark One)þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    July 3,
    2009oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission File Number
    001-33278
 HARRIS STRATEX NETWORKS,
    INC.
 (Exact name of registrant as
    specified in its charter)
  Delaware(State or other jurisdiction
    of
    incorporation or organization)

20-5961564(I.R.S. Employer
    Identification No.)637 Davis Drive
    Morrisville, North Carolina(Address of principal
    executive offices)

27560(Zip
    Code)   Registrants telephone
    number, including area code:
    (919) 767-3230
 Securities registered pursuant
    to Section 12(b) of the Act:
  Title of Each Class

Name of Each Exchange on Which RegisteredClass A Common Stock, par value $0.01 per share
    Class B Common Stock, par value $0.01 per share
    Warrants

The NASDAQ Stock Market LLC
    None
    None   Securities registered pursuant
    to Section 12(g) of the Act:
  Title of Each Class

Name of Each Exchange on Which RegisteredRights to Purchase Series A Junior Participating Stock, par
    value $0.01 per share

None   o þ
  o þ
  þ o
  Regulation S-T o o
  Regulation S-K þ
  Rule 12b-2
  Large accelerated
    filer o

Accelerated
    filer þ

Non-accelerated
    filer o(Do not check if a smaller
    reporting company)

Smaller reporting
    company o   Rule 12b-2 o þ
    Shares Outstanding as ofClass of Stock


August 28, 2009Class A Common Stock, par value $0.01 per share



58,987,859Class B Common Stock, par value $0.01 per share



Total shares of common stock outstanding



58,987,859   DOCUMENTS
    INCORPORATED BY REFERENCE




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##### 





HARRIS
    STRATEX NETWORKS, INC.
  ANNUAL
    REPORT ON FORM 10-K
  For the
    Fiscal Year Ended July 3, 2009
  TABLE OF
    CONTENTS
   
 PagePART IItem 1.

Business


5Item 1A.

Risk Factors


18Item 1B.

Unresolved Staff Comments


28Item 2.

Properties


28Item 3.

Legal Proceedings


29Item 4.

Submission of Matters to a Vote of Security
    Holders


29PART IIItem 5.

Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


31Item 6.

Selected Financial Data


33Item 7.

Managements Discussion and Analysis of
    Financial Condition and Results of Operations


34Item 7A.

Quantitative and Qualitative Disclosures About
    Market Risk


57Item 8.

Financial Statements and Supplementary Data


58Item 9.

Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


113Item 9A.

Controls and Procedures


113Item 9B.

Other Information


114PART IIIItem 10.

Directors, Executive Officers and Corporate
    Governance


114Item 11.

Executive Compensation


114Item 12.

Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


115Item 13.

Certain Relationships and Related Transactions,
    and Director Independence


115Item 14.

Principal Accountant Fees and Services


115PART IVItem 15.

Exhibits and Financial Statement Schedules


116SIGNATURES


120EX-10.25EX-10.25.1EX-21EX-23EX-31.1EX-31.2EX-32.1EX-32.2    This Annual
    Report on
    Form 10-K
    contains trademarks of Harris Stratex Networks, Inc.
 2




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CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
      
    downturn in the global economy affecting customer spend;
    continued price erosion as a result of increased competition in
    the microwave transmission industry;
    the volume, timing and customer, product and geographic mix of
    our product orders may have an impact on our operating results;
    the ability to achieve business plans for Harris Stratex
    Networks;
    the ability to manage and maintain key customer relationships;
    the ability to maintain projected product rollouts, product
    functionality, anticipated cost reductions or market acceptance
    of planned products;
    the ability to successfully integrate entities acquired by
    Harris Stratex Networks;
    future costs or expenses related to litigation;
    the ability of our subcontractors to perform or our key
    suppliers to manufacture or deliver material;
    customers may not pay for products or services in a timely
    manner, or at all;
    the failure of Harris Stratex Networks to protect its
    intellectual property rights and its ability to defend itself
    against intellectual property infringement claims by others;
    currency and interest rate risks;
    the impact of political, economic and geographic risks on
    international sales;
    the impact of slowing growth in the wireless telecommunications
    market combined with supplier and operator consolidations; 3




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Form 10-K Form 10-K.
  Form 10-K. Form 10-K
 4




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PART I  Item 1.
    Business.  Form 10-K.
  (919) 767-3230.
  Recent
    Developments
      Overview
    and Description of Business by Segment
  802.16d-2004 16e-2005 point-to-point
  North
    America Microwave
   5




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International
    Microwave
  21st-century
    Network
    Operations
  end-to-end ®
    Industry
    Background
      
    Increase in global wireless subscribers and introduction of
    new broadband mobile services.  The number of
    global wireless subscribers and minutes of use per subscriber
    are expected to continue to increase. The primary drivers
    include increased subscription and dramatic growth in demand for
    mobile broadband data services facilitated by the introduction
    of new data-driven smartphones like the iPhone and Palm Pre.
    These Third-generation, or 3G, data applications are
    now widely available in developed countries and this has fueled
    an acceleration of data usage. New mobile standards now being
    deployed including High Speed 6




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Packet Access (HSPA) and mobile WiMAX will further increase the
    demand for mobile data. We believe that growth as a result of
    new data services will continue for the next several years and
    persist with the introduction of the next generation of radio
    technologies, referred to as 4G or LTE (Long Term
    Evolution) for mobile networks starting in 2011. This demand for
    data is straining the capacity and capability of the existing
    mobile infrastructure. To address this problem we expect many
    operators to upgrade their backhaul networks to 100% Internet
    Protocol, or
    IP-based,
    from the current traditional time-division multiplexing, or TDM
    networks, in order to provide higher network capacity and
    increased flexibility at a lower overall operating cost.  
    Broadband Stimulus.  The American Recovery and
    Reinvestment Act (ARRA), widely known as the stimulus bill,
    allocates $7.2 billion in grant and loan funding for
    broadband/wireless initiatives for rural unserved and
    underserved geographies across the country. This funding is
    available to a wide variety of organizations to purchase and
    implement network infrastructure and services to improve
    broadband coverage. In addition to the broadband initiative, the
    Smart Grid Investment Grant Program (SGIG) was recently
    announced with close to $4 billion available to utilities,
    rural electric cooperatives, distribution companies and system
    operators, for smart grid technologies, monitoring solutions and
    infrastructure, and viability analysis. Implementing
    communications infrastructure for intelligent energy initiatives
    is also a key part of this program. Wireless transmission,
    including WiMAX access and microwave
    middle-mile
    transmission, will be a key technology for stimulus related
    projects. Other countries, such as Australia, are also
    implementing broadband programs with government funding to
    simultaneously develop rural broadband services and stimulate
    local economies.
    Increased establishment of mobile and fixed wireless
    telecommunications infrastructures in developing
    countries.  In many places, telecommunications
    services are inadequate or unreliable because of the lack of
    existing infrastructure. To service providers in developing
    countries seeking to increase the availability and quality of
    telecommunications and Internet access services, wireless
    solutions are an attractive alternative to the construction or
    leasing of wireline networks, given their relatively low cost
    and ease of deployment. As a result, there has been an increased
    establishment of mobile and fixed wireless telecommunications
    infrastructures in developing countries. Emerging
    telecommunications markets in Africa, Asia, the Middle East,
    Latin America and Eastern Europe are characterized by a need to
    build out basic telecommunications systems. We believe that
    WiMAX will play a key role in bringing broadband services to
    these countries, which lack sufficient existing telecom
    infrastructure. Mobile operators are also looking at WiMAX
    deployments to augment or leverage their existing national
    networks to add new premium broadband residential and business
    customers to increase subscriber base and boost their average
    revenue per user (ARPU).
    Global deregulation of telecommunications market and
    allocation of radio frequencies for broadband wireless
    access.  Regulatory authorities typically allocate
    different portions of the radio frequency spectrum for various
    telecommunications services. Many countries have privatized the
    state-owned telecommunications monopoly and have opened their
    markets to competitive network service providers. Often these
    providers choose a wireless transmission service, which causes
    an increase in the demand for transmission solutions. Such
    global deregulation of the telecommunications market and the
    related allocation of radio frequencies for broadband wireless
    access transmission have led to increased competition to supply
    wireless-based transmission systems. Many governments and
    regulatory agencies around the world also are examining or are
    in the process of introducing new spectrum band licenses for the
    deployment of broadband services using WiMAX.  Recent
    Trends and Developments in the Industry
    
    Continuing fixed-line to mobile-line substitution;
    The migration of existing telecommunications network
    infrastructure from legacy TDM technologies such as SDH/SONET to
    high speed packet-based networks such as Ethernet/IP/MPLS, etc.
    This migration is 7




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moving faster in some sectors like mobile networks than others,
    but is a clear trend for the future that will drive significant
    network upgrades over the next three to five years;  
    Private networks and public telecommunications operators
    building high-reliability, high-bandwidth networks that are more
    secure and better protected against natural and man-made
    disasters;
    Increase in global wireless subscribers; and
    Re-allocation or public auction of frequency spectrum towards
    commercial applications in wireless broadband and mobility.    Strategy
  end-to-end
  end-to-end end-to-end
    end-to-end best-of-breed
   8




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end-to-end
    Solutions
  end-to-end
  
    Broad product and solution portfolio.  We offer
    a comprehensive suite of wireless systems for 4G/WiMAX broadband
    access and microwave backhaul applications. Our solution
    consists of tailored offerings of our own wireless products and
    integrated ancillary equipment from Harris Stratex or other
    manufacturers, element and network management systems and
    professional services. These solutions address a wide range of
    transmission frequencies, ranging from 400 MHz to
    40 GHz, and a wide range of transmission capacities,
    ranging up to 2.5 gigabits per second. The major product
    families included in these solutions are StarMAX, Eclipse,
    TRuepoint, Constellation, NetBoss and ProVision, which are
    described below.
    Low total cost of ownership.  Wireless-based
    solutions offer a relatively low total cost of ownership,
    including savings on the combined costs of initial acquisition,
    installation and ongoing operation and maintenance. Multiple
    factors work to reduce cost of ownership. Our latest generation
    system designs reduce rack space requirements, require less
    power, are software-configurable to reduce spare parts
    requirements, and are simple to install, operate, upgrade and
    maintain. Our advanced wireless features can also enable
    operators to save on related costs, including spectrum fees and
    tower rental fees.
    Future-proof network.  Our solutions are
    designed to future-proof the network operators investment,
    via software-configurable capacity upgrades and plug-in modules
    that provide a smooth migration path to emerging technologies,
    such as carrier Ethernet and
    IP-based
    networking, without the need for costly equipment change-out.
    Our product roadmaps incorporate key technologies anticipated to
    be needed by operators for their network evolution to support
    new broadband services.
    Flexible, easily configurable products.  We use
    flexible architectures with a high level of software
    configurable features. This design approach produces
    high-performance products with the maximum reuse of components
    while at the same time allowing for a manufacturing strategy
    with a high degree of flexibility, improved cost and reduced
    time to market. The software features of our products give our
    customers a greater degree of flexibility in installing,
    operating and maintaining their networks.
    Comprehensive network management.  We offer a
    range of flexible network management solutions, from element
    management to enterprise-wide network management and service
    assurance  all optimized to 9




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work with our wireless systems. We also offer NetBoss as a
    stand-alone solution for a wide range of communications and
    information networking environments in virtually any industry.  
    Complete professional services.  In addition to
    our product offerings, we provide expert network planning and
    design, site surveys and builds, systems integration,
    installation, maintenance, network monitoring, training,
    customer service and many other professional services. Our
    services cover the entire evaluation, purchase, deployment and
    operational cycle and enable us to be one of the few complete
    turnkey solution providers in the industry.  Product
    Portfolio
  point-to-point
  4G/WiMAX
    Broadband Wireless Access
    802.16d-2004 16e-2005
  Licensed
    Point-to-Point
    Microwave Radios
    point-to-point
  Eclipse
     10




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TRuepoint
  plug-and-play,
    Constellation
  medium-to-high-capacity point-to-point 7 8 10 11
  License-Exempt
    Point-to-Point
    Microwave Radios
    Network
    Management
    NetBoss
    off-the-shelf
 11




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ProVision
    Business
    Operations
  Sales,
    Marketing and Service
          Manufacturing
     12




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Backlog
    July 3,


August 22,2009


2008(In millions)North America Microwave

$
84.0


$
101.1International Microwave


119.1



250.9Network Operations


7.8



11.9$
210.9


$
363.9     Customers
          International
    Business
    Percentageof TotalDescription

RevenueRevenue from U.S. exports or manufactured abroad:Fiscal 2009


69
%Fiscal 2008


73
%Fiscal 2007


67
%   13




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Percentageof Non U.S.Description

RevenueRevenue from U.S. exports:Fiscal 2009


13
%Fiscal 2008


22
%Fiscal 2007


63
%   Percentageof TotalDescription

RevenueRevenue from operations conducted in local international
    currencies:Fiscal 2009


21
%Fiscal 2008


22
%Fiscal 2007


19
%   Percentageof TotalDescription

RevenueRevenue from customers in international countries greater
    than 5%:Fiscal 2009 Nigeria


22
%Fiscal 2009 Poland


5
%Fiscal 2008 Nigeria


19
%Fiscal 2007 Nigeria


11
%Fiscal 2007 Canada


8
%           Form 10-K.
 14




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Competition
            and/or
  Research,
    Development and Engineering
      ,
 15




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Patents
    and Other Intellectual Property
        Environmental
    and Other Regulations
  and/or
  end-of-life and/or
   16




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Raw
    Materials and Supplies
        Employees
    Web
    site Access to Harris Stratex Reports; Available
    Information
  General. http://www.harrisstratex.com. Form 10-K, Form 10-Q, Form 8-K Form 10-K
  http://www.sec.gov. 1-800-SEC-0330.
   17




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Corporate Governance Principles and Committee
    Charters. http://www.harrisstratex.com/cg/default.asp.
  Item 1A.
    Risk
    Factors.      We may
    not be profitable.
    The
    effects of the recession in the United States and general
    downturn in the global economy, including financial market
    disruptions, could have an adverse impact on our business,
    operating results or financial condition.
    
    We may experience declines in revenues, profitability and cash
    flows as a result of reduced orders, payment delays or other
    factors caused by the economic problems of our customers and
    prospective customers. During the last quarter, some customers
    advised us of their intention to slow deployments to conserve
    cash. Such customer attitudes could continue to affect out
    business, financial condition and cash flows adversely.
    We may experience supply chain delays, disruptions or other
    problems associated with financial constraints faced by our
    suppliers and subcontractors.
    We may incur increased costs or experience difficulty either in
    making future borrowings under our credit facility or otherwise
    in obtaining financing for our operating activities, investing
    activities (including the financing of any future acquisitions)
    or financing activities.  Credit
    and commercial risks and exposures could increase if the
    financial condition of our customers declines.
   18




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Our
    customers may not pay for products and services in a timely
    manner, or at all, which would decrease our cash flows and
    adversely affect our working capital.
  Because
    a significant amount of our revenue may come from a limited
    number of customers, the termination of any of these customer
    relationships may adversely affect our business.
  Part
    of our inventory may be written off, which would increase our
    cost of revenues. In addition, we may be exposed to
    inventory-related losses on inventories purchased by our
    contract manufacturers.
  end-of-life
    
    Rapid technological change in the wireless telecommunications
    industry resulting in frequent product changes;
    The need of our contract manufacturers to order raw materials
    that have long lead times and our inability to estimate exact
    amounts and types of items thus needed, especially with regard
    to the frequencies in which the final products ordered will
    operate; and
    Cost reduction initiatives resulting in component changes within
    the products.   19




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We may
    undertake further restructurings which may adversely impact our
    operations, and we may not realize all of the anticipated
    benefits of our prior or any future
    restructurings.
    and/or
  Our
    average sales prices may decline in the future.
    We may
    experience additional impairment charges for our intangible
    assets or goodwill.
   20




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Accounting for the Impairment or Disposal of
    Long-lived Assets Goodwill and Other Intangible Assets
  Our
    effective tax rate could be highly volatile and could adversely
    affect our operating results.
    
    The jurisdictions in which profits are determined to be earned
    and taxed;
    Adjustments to estimated taxes upon finalization of various tax
    returns;
    Increases in expenses not deductible for tax purposes, including
    write-offs of acquired in-process research and development and
    impairment of goodwill in connection with acquisitions;
    Changes in available tax credits;
    Changes in share-based compensation expense;
    Changes in the valuation of our deferred tax assets and
    liabilities;
    Changes in domestic or international tax laws or the
    interpretation of such tax laws; and
    The resolution of issues arising from tax audits with various
    tax authorities.
    The tax effects of purchase accounting for acquisitions and
    restructuring charges that may cause fluctuations between
    reporting periods.    Termination
    of our transitional services agreements with Harris before we
    have established our own fully independent administrative and
    other support functions could impair our ability to operate our
    business effectively and materially increase our general and
    administrative expenses.
   21




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Because
    a significant amount of our revenue may come from a limited
    number of customers, the termination of any of these customer
    relationships may adversely affect our business.
      We
    will face strong competition for maintaining and improving our
    position in the market, which could adversely affect our revenue
    growth and operating results.
      time-to-market
  Consolidation
    within the telecommunications industry could result in a
    decrease in our revenue.
   22




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Because a
    significant amount of our revenue may come from a limited number
    of customers, the termination of any of these customer
    relationships may adversely affect our business.
  If we
    fail to develop and maintain distribution and licensing
    relationships, our revenue may decrease.
    Our
    success will depend on new product introductions, product
    transitioning and customer acceptance.
    If we
    fail to accurately forecast our manufacturing requirements or
    customer demand, we could incur additional costs which would
    adversely affect our business and results of operations.
  and/or
  If we
    fail to effectively manage our contract manufacturer
    relationships, we could incur additional costs or be unable to
    timely fulfill our customer commitments, which would adversely
    affect our business and results of operations and, in the event
    of an inability to fulfill commitments, would harm our customer
    relationships.
   23




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Our
    industry is volatile and subject to frequent changes, and we may
    not be able to respond effectively or in a timely manner to
    these changes.
  start-up
  Rapid
    changes in the microwave radio industry and the frequent
    introduction of lower cost components for our product offerings
    may result in excess inventory that we cannot sell or may be
    required to sell at distressed prices, and may result in longer
    credit terms to our customers.
    If
    sufficient radio frequency spectrum is not allocated for use by
    our products, and we fail to obtain regulatory approval for our
    products, our ability to market our products may be
    restricted.
     24




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Due to
    the significant volume of international sales we expect, we may
    be susceptible to a number of political, economic and geographic
    risks that could harm our business.
      
    unexpected changes in regulatory requirements;
    fluctuations in international currency exchange rates;
    imposition of tariffs and other barriers and restrictions;
    management and operation of an enterprise spread over various
    countries;
    the burden of complying with a variety of laws and regulations
    in various countries;
    application of the income tax laws and regulations of multiple
    jurisdictions, including relatively low-rate and relatively
    high-rate jurisdictions, to our sales and other transactions,
    which results in additional complexity and uncertainty;
    general economic and geopolitical conditions, including
    inflation and trade relationships;
    war and acts of terrorism;
    natural disasters;
    currency exchange controls; and
    changes in export regulations.    Our
    products are used in critical communications networks which may
    subject us to significant liability claims.
   25




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If we
    are unable to adequately protect our intellectual property
    rights, we may be deprived of legal recourse against those who
    misappropriate our intellectual property.
    We may
    be subject to litigation regarding intellectual property
    associated with our wireless business; this litigation could be
    costly to defend and resolve, and could prevent us from using or
    selling the challenged technology.
    Our
    stock price may be volatile, which may lead to losses by
    investors.
    The
    unpredictability of our
    quarter-to-quarter
    results may harm the trading price of our Class A Common
    Stock.
    
    volume and timing of our product orders received and delivered
    during the quarter;
    our ability and the ability of our key suppliers to respond to
    changes on demand as needed;
    our suppliers inability to perform and deliver on time as
    a result of their financial condition, component shortages or
    other supply chain constraints; 26




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
    our sales cycles can be lengthy;
    continued market expansion through strategic alliances;
    continued timely rollout of new product functionality and
    features;
    increased competition resulting in downward pressures on the
    price of our products and services;
    unexpected delays in the schedule for shipments of existing
    products and new generations of the existing platforms;
    failure to realize expected cost improvement throughout our
    supply chain;
    order cancellations or postponements in product deliveries
    resulting in delayed revenue recognition;
    seasonality in the purchasing habits of our customers;
    war and acts of terrorism;
    natural disasters;
    the ability of our customers to obtain financing to enable their
    purchase of our products;
    fluctuations in international currency exchange rates;
    regulatory developments including denial of export and import
    licenses; and
    general economic conditions worldwide.  quarter-to-quarter
  Anti-takeover
    provisions of Delaware law, provisions in our amended and
    restated certificate of incorporation, amended and restated
    bylaws and our stockholders rights plan, or poison pill,
    could make a third-party acquisition of us
    difficult.
      We may
    face risks related to pending litigation over the restatement of
    our financial statements.
  Form 10-K
 27




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Form 10-K Rule 10b-5
  Item 1B.
    Unresolved
    Staff Comments.    Item 2.
    Properties.      Location

Major Activities

Owned


Leased(Square feet)


(Square feet)San Antonio, Texas

Office, manufacturing


130,000



Wellington, New Zealand

Office, R&D center


58,000



Lanarkshire, Scotland

Office, repair center


52,000



San Jose, California (three facilities)

Offices, R&D center, warehouse






128,000Morrisville, North Carolina

Headquarters, R&D center






60,000India (three facilities)

Office, R&D center






53,000Slovenia

Office, R&D center






20,000Philippine Islands (two facilities)

Office






17,000Republic of Singapore

Office






13,000Peoples Republic of China

Office






8,000Paris, France

Office






8,000Mexico City, Mexico

Office






8,000Montreal, Canada

Office






6,000Other facilities

Offices






67,000Totals




240,000



388,000  28




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Item 3.
    Legal
    Proceedings.  Form 10-K Rule 10b-5
      Item 4.
    Submissions
    of Matters to a Vote of Security Holders.   29




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EXECUTIVE
    OFFICERS OF THE REGISTRANT
    Name and Age

Position Currently Held and Past Business ExperienceHarald J. Braun, 53

Mr. Braun was appointed president and chief executive
    officer of our company in April, 2008 and is a member of our
    Board of Directors. From 2002 to 2008, he worked for Siemens and
    served in several different capacities including president of
    Siemens Carrier Networks Division, president and CEO of Siemens
    Networks LLC and most recently as a senior executive in Nokia
    Siemens Networks North America.Thomas L. Cronan, III, 49

Mr. Cronan joined our company as senior vice president and
    chief financial officer in May 2009. From 2008 to just prior to
    joining Harris Stratex, he served as the chief financial officer
    at AeroScout, Inc. From 2007 to 2008, he served as the chief
    financial officer of Ooma, Inc. In 2003, Mr. Cronan became
    the senior vice president of finance and chief financial officer
    at Redback Networks, Inc.Paul A. Kennard, 58

Mr. Kennard joined our company as chief technology officer
    in January 2007 when Harris MCD and Stratex Networks merged. In
    1996 he joined Stratex Networks as vice president, engineering.Stephen J. Gilmore, 54

Mr. Gilmore joined our company as vice president, human
    resources, in January 2007 when Harris MCD and Stratex Networks
    merged. In June 2005 he was appointed vice president, human
    resources of Harris Corporations Microwave Communications
    Division.Meena L. Elliott, 46

Ms. Elliott was appointed vice president, general counsel
    and secretary of the company in July 2009. She joined our
    company as associate general counsel and assistant secretary in
    January 2007 when Harris MCD and Stratex Networks merged.
    Ms. Elliott joined Harris Corporations Microwave
    Communications Division as division counsel in March 2006. Prior
    to joining MCD, she was chief counsel at the Department of
    Commerce, from
    2002-2006.Heinz H. Stumpe, 54

Mr. Stumpe was appointed chief operating officer and senior
    vice president global operations on June 30, 2008.
    Previously, he was vice president operations. He joined Stratex
    Networks as director, marketing in 1996. He was promoted to vice
    president, global accounts in 1999, vice president, strategic
    accounts in 2002 and vice president, global operations in April
    2006.Shaun McFall, 49

Mr. McFall was named chief marketing officer in July 2008.
    Previously from 2000-2008, he served as vice president,
    marketing for Stratex Networks, Inc. He has been with the
    company since 1989.J. Russell Mincey, 47

Mr. Mincey joined our company in July 2008 as global corporate
    controller. From mid-February through mid-May 2009, he served as
    interim principal financial officer and interim principal
    accounting officer.  In September 2009, he was appointed
    principal accounting officer, along with his continued position
    as global corporate controller.  From October 2005 to April
    2008, Mr. Mincey was chief financial officer at the Industrial
    Components Division of Carlisle Companies. He served as vice
    president and chief financial officer of Draka Comteq
    (previously known as Alcatel Fiber Optic Cable Division) from
    July 2004 through October 2005.Michael Pangia, 48

Mr. Pangia was named senior vice president and chief sales
    officer in March 2009. Prior to joining Harris Stratex,
    Mr. Pangia served as senior vice president, Global Sales
    Operations and Strategy at Nortel. From 2006 through 2008, he
    was president of Nortels Asia region, responsible for
    sales and overall business management for all countries where
    Nortel did business in that region and he was the chief
    operating officer of Nortels Asia region from 2005 to
    2006.    30




---



##### Table of Contents



PART II  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities.  Market
    Information and Price Range of Common Stock
        Fiscal 2009


Fiscal 2008High


Low


High


Low($)


($)


($)


($)First Quarter


11.45



6.85



20.90



15.90Second Quarter


7.85



3.26



19.97



15.41Third Quarter


7.24



3.00



18.75



8.53Fourth Quarter


6.75



3.91



11.44



8.88     Dividend
    Policy
    Sales of
    Unregistered Securities
    Issuer
    Repurchases of Equity Securities
   31




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##### Table of Contents



Performance
    Graph
    COMPARISON
    OF 2 YEAR, 5 MONTH CUMULATIVE TOTAL RETURN*
  Among
    Harris Stratex Networks, Inc., The NASDAQ Composite Index
 and the
    NASDAQ Telecommunications Index
  
  1/29/2007


6/29/2007


6/27/2008


7/3/2009Harris Stratex Networks, Inc.



100.00




89.90




47.90




30.75NASDAQ Composite



100.00




107.65




95.36




75.51NASDAQ Telecommunications



100.00




109.76




93.92




76.99   *
    
    Assumes (i) $100 invested on January 29, 2007 in
    Harris Stratex Networks, Inc. Class A Common Stock, the
    Total Return Index for The NASDAQ Composite Market (U.S.
    companies) and the NASDAQ Telecommunications Index; and
    (ii) immediate reinvestment of all dividends. 32




---



##### Table of Contents



Item 6.
    Selected
    Financial Data.    Fiscal Years EndedJuly 3,


June 27,


June 29,


June 30,


July 1,2009(1)


2008(2)


2007(3)


2006(4)


2005(In millions)Revenue from product sales and services

$
679.9


$
718.4


$
507.9


$
357.5


$
310.4Cost of product sales and services


(505.5
)


(528.2
)


(361.2
)


(275.2
)


(223.5
)Net loss


(355.0
)


(11.9
)


(21.8
)


(38.6
)


(6.8
)Basic and diluted net loss per common share


(6.05
)


(0.20
)


(0.88
)


N/A



N/A   As ofJuly 3,


June 27,


June 29,


June 30,


July 1,2009(1)


2008(2)


2007(3)


2006(4)


2005(In millions)Total assets

$
600.2


$
977.3


$
1,025.5


$
344.9


$
358.1Long-term liabilities


17.9



28.1



65.0



12.6



14.2Total net assets


387.9



748.2



746.4



244.3



275.4       Fiscal Years EndedJuly 3,


June 27,


June 29,


June 30,2009


2008


2007


2006(In millions)Goodwill impairment charges

$
279.0


$



$



$
Impairment charges for the trade name Stratex


32.6











Charges for product transition and product discontinuances


29.8











39.6Restructuring charges


8.2



9.3



9.3



Amortization of developed technology


7.5



7.1



3.0



Amortization of trade names, customer relationships,
    non-competition agreements and contract backlog


5.7



6.7



7.5



Software impairment charges


3.2











Acquired in-process research and development


2.4







15.3



Amortization of the fair value adjustments related to fixed
    assets and inventory


1.7



2.8



9.0



Cost of integration activities undertaken in connection with the
    merger






11.9



5.4



Inventory mark-downs






14.7







Share-based compensation expense


2.9



7.8



5.7



1.7$
373.0


$
60.3


$
55.2


$
41.3  33




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##### Table of Contents



Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.  Overview
    of our Business and Products; Operating Environment and Key
    Factors Impacting Fiscal 2009 and 2010 Results
    802.16d-2004 16e-2005 point-to-point
      
    Profitable revenue growth in all segments
    Maintain an efficient capital structure
    Reduce costs across all aspects of our business
    Focus on increased operational efficiencies  Business
    Overview
       34




---



##### Table of Contents



IP-based
  state-of-the-art
    end-to-end
       35




---



##### Table of Contents



OPERATIONS
    REVIEW
  Revenue
    and Net Loss
  2009/2008





2008/2007% Increase/





% Increase/2009


2008


(Decrease)


2007


(Decrease)(In millions, except percentages)Revenue

$
679.9


$
718.4



(5.4
)%

$
507.9



41.4
%Net loss

$
(355.0
)

$
(11.9
)


N/M


$
(21.8
)


N/M% of revenue


N/M



(1.7
)%






(4.3
)%


       Fiscal
    2009 Compared with Fiscal 2008
      IP-based
 36




---



##### Table of Contents



Fiscal


Fiscal2009


2008(In millions)Goodwill impairment charges

$
279.0


$
Impairment charges for the trade name Stratex


32.6



Charges for product transition


29.8



Restructuring charges


8.2



9.3Amortization of developed technology


7.5



7.1Amortization of trade names, customer relationships and
    non-competition agreements


5.7



6.7Software impairment charges


3.2



Acquired in-process research and development


2.4



Amortization of the fair value adjustments related to fixed
    assets


1.7



2.8Cost of integration activities undertaken in connection with the
    merger






11.9Inventory mark-downs






14.7Share-based compensation expense


2.9



7.8$
373.0


$
60.3       
    Severance, retention and related charges associated with
    reduction in force activities totaling $8.0 million (Fiscal
    2009 Plan).
    Impairment of fixed assets (non-cash charges) totaling
    $0.4 million and facility restoration costs of
    $0.3 million at our Canadian location (Fiscal 2009 Plan).
    Adjustments to the restructuring liability under the 2007
    Restructuring Plans for changes in estimates related to
    sub-tenant
    activity at our U.S. ($0.1 million increase) and Canadian
    locations ($0.3 million decrease).
    Adjustments to the restructuring liability under the 2007
    Restructuring Plans for changes in estimates to reduce the
    severance liability in Canada ($0.3 million decrease).    
    Severance, retention and related charges associated with
    reduction in force activities totaling $3.4 million ($4.0
    in fiscal 2008 charges, less $0.6 million for a reduction
    in the restructuring liability recorded for Canada and France as
    of June 29, 2007).
    Lease impairment charges totaling $1.8 from implementation of
    fiscal 2007 plans and changes in estimates related to
    sub-tenant
    activity at our U.S. and Canadian locations.
    Impairment of fixed assets and leasehold improvements totaling
    $1.9 million at our Canadian location. 37




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##### Table of Contents




    Impairment of a recoverable value-added type tax in Brazil
    totaling $2.2 million resulting from our scaled down
    operations and reduced activity which negatively affected the
    fair value of this recoverable asset (included in Other
    current assets on our consolidated balance sheets).  Fiscal
    2008 Compared with Fiscal 2007
        Fiscal 2008


Fiscal 2007(In millions)Inventory markdowns and impairment from product transitioning

$
14.7


$
Restructuring charges


9.3



9.3Cost of integration activities undertaken in connection with the
    merger


11.9



5.4Amortization of developed technology


7.1



3.0Amortization of trade names, customer relationships and
    non-competition agreements and backlog


6.7



7.5Amortization of the fair value adjustments related to fixed
    assets and inventory


2.8



9.0Write-off of in-process research & development






15.3Share-based compensation expense


7.8



5.7$
60.3


$
55.2      38




---



##### Table of Contents



Gross
    Margin
  2009/2008





2008/2007% Increase/





% Increase/2009


2008


(Decrease)


2007


(Decrease)(In millions, except percentages)Revenue

$
679.9


$
718.4



(5.4
)%

$
507.9



41.4
%Cost of product sales and services

$
505.5


$
528.2



(4.3
)%

$
361.2



46.2
%Gross margin

$
174.4


$
190.2



(8.3
)%

$
146.7



29.7
%% of revenue


25.7
%


26.5
%






28.9
%


   Fiscal
    2009 Compared with Fiscal 2008
        Fiscal
    2008 Compared with Fiscal 2007
      Research
    and Development Expenses
  2009/2008





2008/2007% Increase/





% Increase/2009


2008


(Decrease)


2007


(Decrease)(In millions, except percentages)Research and development expenses

$
40.4


$
46.1



(12.4
)%

$
39.4



17.0
%% of revenue


5.9
%


6.4
%






7.8
%


   Fiscal
    2009 Compared with Fiscal 2008
   39




---



##### Table of Contents



Fiscal
    2008 Compared with Fiscal 2007
    Selling
    and Administrative Expenses
  2009/2008





2008/2007% Increase/





% Increase/2009


2008


(Decrease)


2007


(Decrease)(In millions, except percentages)Selling and administrative expenses

$
138.3


$
141.4



(2.2
)%

$
98.9



43.0
%% of revenue


20.3
%


19.7
%






19.5
%


   Fiscal
    2009 Compared with Fiscal 2008
    Increase/(Decrease)(In millions)Decrease in selling expenses and sales commissions due to lower
    order levels

$
(13.0
)Decrease in integration costs related to acquisition of Stratex
    in fiscal 2007


(10.2
)Decrease in amounts accrued under bonus plans and share-based
    compensation due to lower profitability


(5.1
)Increase due to formation of chief operations officer group
    during fiscal 2009


6.3Increase in administrative costs due to 4G and product
    unification and transition initiatives


5.8Increase in allowance for uncollectible accounts


5.5Increase in software costs, external audit, restatement and SOX
    consulting fees


3.3Increase in marketing costs for channel marketing and tradeshows


1.7Increase due to change in fair value of warrants


(0.6
)Other, net


3.2$
(3.1
)     Fiscal
    2008 Compared with Fiscal 2007
   40




---



##### Table of Contents



Income
    Taxes
  2009/2008





2008/2007% Increase/





% Increase/2009


2008


(Decrease)


2007


(Decrease)(In millions, except percentages)Loss before income taxes

$
(337.2
)

$
(13.9
)


N/M


$
(27.9
)


(50.2
)%Income tax benefit (expense)

$
(17.8
)

$
2.0



N/M


$
6.1



N/M% of loss before income taxes


(5.3
)%


14.4
%






21.9
%


             Discussion
    of Business Segments
  North
    America Microwave Segment
  2009/2008





2008/2007% Increase/





% Increase/2009


2008


(Decrease)


2007


(Decrease)(In millions, except percentages)Revenue

$
227.0


$
232.4



(2.3
)%

$
216.3



7.4
%Segment operating (loss) income

$
(62.7
)

$
(9.4
)


N/M


$
6.3



N/M% of revenue


(27.6
)%


(4.0
)%






2.9
%


   Fiscal
    2009 Compared with Fiscal 2008
    IP-based
 41




---



##### Table of Contents



2009


2008(In millions)Goodwill impairment charges

$
31.8


$
Charges for product transition


25.3



Impairment charges for the trade name Stratex


10.7



Restructuring charges


5.1



4.9Software impairment charges


3.2



Amortization of developed technology, trade names, customer
    relationships and non-compete agreements


3.0



2.7Amortization of the fair value adjustments related to fixed
    assets


0.6



1.1Cost of integration activities undertaken in connection with the
    merger






3.2Inventory mark-downs






12.9Lease impairment






1.8Share-based compensation expense


1.8



7.4$
81.5


$
34.0   Fiscal
    2008 Compared with Fiscal 2007
      2008


2007(In millions)Inventory mark-downs

$
12.9


$
Restructuring charges


4.9



5.1Cost of integration activities undertaken in connection with the
    merger


3.2



2.7Amortization of developed technology, trade names, customer
    relationships and non-compete agreements


2.7



1.4Lease impairment


1.8



Amortization of the fair value adjustments related to fixed
    assets


1.1



0.4Share-based compensation expense


7.4



5.7$
34.0


$
15.3  42




---



##### Table of Contents



International
    Microwave Segment
  2009/2008





2008/2007% Increase/





% Increase/2009


2008


(Decrease)


2007


(Decrease)(In millions, except percentages)Revenue

$
438.3


$
461.7



(5.1
)%

$
272.2



69.6
%Segment operating loss

$
(270.8
)

$
(5.7
)


N/M


$
(31.3
)


N/M% of revenue


(61.8
)%


(1.2
)%






(11.5
)%


   Fiscal
    2009 Compared with Fiscal 2008
        2009


2008(In millions)Goodwill impairment charges

$
247.2


$
Impairment charges for the trade name Stratex


21.9



Amortization of developed technology, trade names, customer
    relationships and non-compete agreements


10.2



11.9Charges for product transition


4.5



Restructuring charges


3.1



2.6Acquired in-process research and development


2.4



Amortization of the fair value adjustments related to fixed
    assets


1.1



1.7Cost of integration activities undertaken in connection with the
    merger






6.1Inventory mark-downs






1.8Share-based compensation expense


1.1



0.4$
291.5


$
24.5   Fiscal
    2008 Compared with Fiscal 2007
   43




---



##### Table of Contents



2008


2007(In millions)Amortization of developed technology, trade names, customer
    relationships and non-compete agreements

$
11.9


$
9.1Cost of integration activities undertaken in connection with the
    merger


6.1



3.6Restructuring charges


2.6



4.2Inventory mark-downs


1.8



Amortization of the fair value adjustments related to fixed
    assets


1.7



8.6Acquired in-process research and development






15.3Share-based compensation expense


0.4



$
24.5


$
40.8   Network
    Operations Segment
  2009/2008





2008/2007% Increase/





% Increase/2009


2008


(Decrease)


2007


(Decrease)(In millions, except percentages)Revenue

$
14.6


$
24.3



(39.9
)%

$
19.4



25.2
%Segment operating income

$
(1.8
)

$
1.4



N/M


$
1.3



7.7
%% of revenue


(12.3
)%


5.8
%






6.7
%


   Fiscal
    2009 Compared with Fiscal 2008
    Fiscal
    2008 Compared with Fiscal 2007
    Related
    Party Transactions
   44




---



##### Table of Contents



5-year
    LIQUIDITY,
    CAPITAL RESOURCES AND FINANCIAL STRATEGIES
  Sources
    of Cash
    Available
    Credit Facility and Repayment of Debt
   45




---



##### Table of Contents



July 3,


June 27,2009


2008(In millions)Long-term borrowings

$



$
8.8Short-term borrowings


10.0



Total


10.0



8.8Less short-term borrowings and current portion of long-term debt


(10.0
)


(5.0
)Long-term debt outstanding

$



$
3.8     Restructuring
    and Payments
   46




---



##### Table of Contents



Contractual
    Obligations
    Obligations Due by Fiscal Year2011


2013Total


2010


and 2012


and 2014


After 2014(In millions)Short-term debt

$
10.0


$
10.0


$



$



$
Interest on short-term debt


0.4



0.4











Purchase obligations(1)


46.1



46.1











Operating lease commitments


28.9



12.0



12.4



3.2



1.3Capital lease obligation to Harris Corporation and others


1.8



0.7



1.1







Restructuring and severance liabilities


8.5



5.3



3.2







Redeemable preference shares(2)


8.3















8.3Dividend requirements on redeemable preference shares(3)


7.6



1.0



2.0



2.0



2.6Current liabilities on the balance sheet


194.4



194.4











Total contractual cash obligations

$
306.0


$
269.9


$
18.7


$
5.2


$
12.2     (1)
    
    From time to time in the normal course of business we may enter
    into purchasing agreements with our suppliers that require us to
    accept delivery of, and remit full payment for, finished
    products that we have ordered, finished products that we
    requested be held as safety stock, and work in process started
    on our behalf in the event we cancel or terminate the purchasing
    agreement. It is not our intent, nor is it reasonably likely,
    that we would cancel a purchase order that we have executed.
    Because these agreements do not specify fixed or minimum
    quantities, do not specify minimum or variable price provisions,
    and do not specify the approximate timing of the transaction, we
    have no basis to estimate any future liability under these
    agreements.(2)
    
    Assumes the mandatory redemption will occur more than five years
    from July 3, 2009.(3)
    
    The dividend rate is 12% and assumes no redemptions for five
    years from July 3, 2009. 47




---



##### Table of Contents



Commercial
    Commitments
    Expiration of Commitments by Fiscal YearAfterTotal


2010


2011


2012


2012(In millions)Standby letters of credit used for:Bids

$
2.5


$
2.5


$



$



$
Down payments


5.1



5.1











Performance


11.1



9.5



1.1



0.1



0.4Warranty


0.1







0.1







18.8



17.1



1.2



0.1



0.4Surety bonds used for:Bids


7.4



7.4











Warranty


2.0



1.7



0.2



0.1



Payment guarantees


0.3



0.3











Performance


71.3



53.3



18.0







81.0



62.7



18.2



0.1



Total commitments

$
99.8


$
79.8


$
19.4


$
0.2


$
0.4       Off-Balance
    Sheet Arrangements
  Regulation S-K),
  
    Any obligation under certain guarantee contracts;
    A retained or contingent interest in assets transferred to an
    unconsolidated entity or similar entity or similar arrangement
    that serves as credit, liquidity or market risk support to that
    entity for such assets;
    Any obligation, including a contingent obligation, under certain
    derivative instruments; and
    Any obligation, including a contingent obligation, under a
    material variable interest held by the registrant in an
    unconsolidated entity that provides financing, liquidity, market
    risk or credit risk support to the registrant, or engages in
    leasing, hedging or research and development services with the
    registrant. 48




---



##### Table of Contents



Financial
    Risk Management
    Exchange
    Rate Risk
           49




---



##### Table of Contents



ContractContract Amount


Amount(Local Currency)


(USD)(In millions)Australian dollar (AUD) net contracts to receive
    (pay) USD


(AUD
)


10.8


$
8.6Canadian dollar (CAD) net contracts to receive (pay)
    USD


(CAD
)


(5.7
)

$
(5.0
)Euro (EUR) net contracts to receive (pay) USD


(EUR
)


10.4


$
14.6Polish zloty (PLN) net contracts to receive (pay) USD


(PLN
)


31.2


$
9.6All other currencies net contracts toreceive (pay) USD









$
1.4Total of all currencies









$
29.2   Cash Flow
    Hedges
      Non-Designated
    Hedges
    Credit
    Risk
   50




---



##### Table of Contents



Interest
    Rate Risk
    Exposure
    on Cash Equivalents and Short-term Investments
          Exposure
    on Borrowings
    Impact
    of Foreign Exchange
   51




---



##### Table of Contents



Seasonality
    Critical
    Accounting Estimates
    
    Revenue Recognition
    Provision for Excess and Obsolete Inventory Losses
    Goodwill and Intangible Assets
    Income Taxes and Tax Valuation Allowances       52




---



##### Table of Contents



Revenue
    Recognition
          percentage-of-completion percentage-of-completion cost-to-cost
   53




---



##### Table of Contents



Provisions
    for Excess and Obsolete Inventory Losses
      Goodwill
    and Intangible Assets
       54




---



##### Table of Contents



55




---



##### Table of Contents



Income
    Taxes and Tax Valuation Allowances
           56




---



##### Table of Contents



Impact of
    Recently Issued Accounting Pronouncements
    Item 7A.
    Quantitative
    and Qualitative Disclosures About Market Risk.   57




---



##### 



Item 8.
    Financial
    Statements and Supplementary Data.   
 Index to Financial Statements

PageReport of Independent Registered Public
    Accounting Firm


59Report of Independent Registered Public
    Accounting Firm


60Consolidated Statements of Operations 
    Fiscal Years ended July 3, 2009; June 27, 2008; and
    June 29, 2007


61Consolidated Balance Sheets 
    July 3, 2009 and June 27, 2008


62Consolidated Statements of Cash Flows 
    Fiscal Years ended July 3, 2009; June 27, 2008; and
    June 29, 2007


63Consolidated Statements of Shareholders
    Equity and Comprehensive Loss  Fiscal Years ended
    July 3, 2009; June 27, 2008; and June 29, 2007


64Notes to Consolidated Financial Statements


65For each of the Fiscal Years ended July 3,
    2009; June 27, 2008; and June 29, 2007
    Schedule II  Valuation and Qualifying
    Accounts


121   58




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm             
    59




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm                 
    60




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES



CONSOLIDATED
    STATEMENTS OF OPERATIONS  Fiscal Years EndedJuly 3,


June 27,


June 29,2009


2008


2007(In millions, except per share amounts)Revenue from product sales and services:Revenue from external product sales

$
559.5


$
591.7


$
409.1Revenue from product sales with Harris Corporation


6.0



3.5



1.9Total revenue from product sales


565.5



595.2



411.0Revenue from services


114.4



123.2



96.9Total revenue from product sales and services


679.9



718.4



507.9Cost of product sales and services:Cost of external product sales


(383.5
)


(427.1
)


(286.3
)Charges for product transition


(29.8
)






Cost of product sales with Harris Corporation


(2.4
)


(1.3
)


(1.3
)Total cost of product sales


(415.7
)


(428.4
)


(287.6
)Cost of services


(81.4
)


(87.9
)


(65.2
)Cost of sales billed from Harris Corporation


(0.9
)


(4.8
)


(5.4
)Amortization of purchased technology


(7.5
)


(7.1
)


(3.0
)Total cost of product sales and services


(505.5
)


(528.2
)


(361.2
)Gross margin


174.4



190.2



146.7Research and development expenses


(40.4
)


(46.1
)


(39.4
)Selling and administrative expenses


(132.8
)


(134.4
)


(92.1
)Selling and administrative expenses with Harris Corporation


(5.5
)


(7.0
)


(6.8
)Total research, development, selling and administrative expenses


(178.7
)


(187.5
)


(138.3
)Acquired in-process research and development


(2.4
)






(15.3
)Amortization of identifiable intangible assets


(5.6
)


(7.1
)


(7.5
)Software impairment charges


(3.2
)






Restructuring charges


(8.2
)


(9.3
)


(9.3
)Goodwill impairment charges


(279.0
)






Trade name impairment charges


(32.6
)






Corporate allocations expense from Harris Corporation










(3.7
)Operating loss


(335.3
)


(13.7
)


(27.4
)Interest income


0.9



2.4



1.8Interest expense


(2.8
)


(2.6
)


(2.3
)Loss before provision for or benefit from income taxes


(337.2
)


(13.9
)


(27.9
)(Provision for) benefit from income taxes


(17.8
)


2.0



6.1Net loss

$
(355.0
)

$
(11.9
)

$
(21.8
)Net loss per common share of Class A and Class B
    Common Stock (Notes 1 and 2):Basic and diluted

$
(6.05
)

$
(0.20
)

$
(0.88
)Basic and diluted weighted average shares outstanding


58.7



58.4



24.7     (1)
    
    The net loss per common share amounts are the same for
    Class A and Class B because the holders of each class
    are legally entitled to equal per share distributions whether
    through dividends or in liquidation.(2)
    
    Prior to January 26, 2007, the Company was a division of
    Harris Corporation and there were no shares outstanding for
    purposes of income or loss calculations. Basic and diluted
    weighted average shares outstanding are calculated based on the
    daily outstanding shares, reflecting the fact that no shares
    were outstanding prior to January 26, 2007.   61




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
  July 3,


June 27,2009


2008(In millions, except share amounts)ASSETSCurrent AssetsCash and cash equivalents

$
136.8


$
95.0Short-term investments


0.3



3.1Receivables


142.9



199.7Unbilled costs


27.8



37.1Inventories


98.6



93.5Deferred income taxes






12.6Due from Harris Corporation


3.0



Other current assets


26.7



19.1Total current assets


436.1



460.1Long-Term AssetsProperty, plant and equipment


57.4



75.6Goodwill


3.2



284.2Identifiable intangible assets


84.1



130.1Capitalized software


9.3



9.5Non-current portion of notes receivable


0.4



2.5Non-current deferred income taxes


8.0



13.7Other assets


1.7



1.6Total long-term assets


164.1



517.2Total assets

$
600.2


$
977.3LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesShort-term debt

$
10.0


$
Current portion of long-term debt






5.0Accounts payable


69.6



81.1Compensation and benefits


16.6



19.5Other accrued items


54.9



42.1Advance payments and unearned income


37.3



30.1Restructuring liabilities


5.3



5.1Current portion of long-term capital lease obligation to Harris
    Corporation and others


0.7



1.3Due to Harris Corporation






16.8Total current liabilities


194.4



201.0Long-Term LiabilitiesLong-term debt






3.8Long-term portion of capital lease obligation to Harris
    Corporation and others


1.1



1.3Restructuring and other long-term liabilities


3.2



7.4Redeemable preference shares


8.3



8.3Warrants






0.6Reserve for uncertain tax positions


4.4



3.0Deferred income taxes


0.9



3.7Total Liabilities


212.3



229.1Commitments and contingenciesShareholders EquityPreferred stock, $0.01 par value; 50,000,000 shares
    authorized; none issued






Common stock, Class A, $0.01 par value;
    300,000,000 shares authorized; issued and outstanding
    58,903,177 shares as of July 3, 2009 and
    25,556,134 shares as of June 27, 2008


0.6



0.3Common stock, Class B, $0.01 par value;
    100,000,000 shares authorized; issued and outstanding zero
    shares as of July 3, 2009 and 32,913,377 shares as of
    June 27, 2008






0.3Additional
    paid-in-capital


783.2



779.9Accumulated deficit


(391.1
)


(36.1
)Accumulated other comprehensive (loss) income


(4.8
)


3.8Total Shareholders Equity


387.9



748.2Total Liabilities and Shareholders Equity

$
600.2


$
977.3    62




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
  Fiscal Years EndedJuly 3,


June 27,


June 29,2009


2008


2007(In millions)Operating ActivitiesNet loss

$
(355.0
)

$
(11.9
)

$
(21.8
)Adjustments to reconcile net loss to net cash provided by (used
    in) operating activities:Amortization of identifiable intangible assets acquired in the
    Stratex acquisition and other


13.8



13.9



25.8Other noncash charges related to the Stratex acquisition










7.9Depreciation and amortization of property, plant and equipment
    and capitalized software


24.3



19.8



14.5Goodwill impairment charges


279.0







Trade name impairment charges


32.6







Noncash share-based compensation expense


2.8



6.4



3.9Noncash charges for product transition, restructuring and
    inventory mark-downs


29.3



14.7



Acquired in-process research and development


2.4







Decrease in fair value of warrant liability


(0.6
)


(3.3
)


(0.6
)Deferred income tax (benefit) expense


16.0



(7.5
)


(13.0
)Changes in operating assets and liabilities, net of effects from
    acquisition:Receivables


61.1



(13.7
)


(23.8
)Unbilled costs and inventories


(9.6
)


15.9



(33.1
)Accounts payable and accrued expenses


(18.7
)


1.3



10.1Advance payments and unearned income


7.2



7.8



12.8Due to Harris Corporation


(19.9
)


0.4



4.6Other assets and liabilities, net


6.6



(3.8
)


(0.4
)Net cash provided by (used in) operating activities


71.3



40.0



(13.1
)Investing ActivitiesCash payments for Telsima acquisition, net of $1.0 million
    acquisition costs and cash acquired


(4.3
)






Cash acquired from the Stratex acquisition, net of acquisition
    costs of $12.7 million










20.4Purchases of short-term investments


(1.2
)


(9.2
)


(30.7
)Sales and maturities of short-term investments


4.0



26.6



35.8Additions of property, plant and equipment


(15.8
)


(9.2
)


(8.3
)Additions of capitalized software


(5.8
)


(10.3
)


(2.9
)Net cash (used in) provided by investing activities


(23.1
)


(2.1
)


14.3Financing ActivitiesProceeds from issuance of short-term debt


10.0



1.2



10.8Payments on short-term debt






(2.4
)


(9.8
)Payments on long-term debt


(9.8
)


(10.7
)


(5.2
)Payments on long-term capital lease obligation to Harris
    Corporation and others


(1.3
)


(3.7
)


Proceeds from exercise of former Stratex stock options






1.5



3.1Excess tax benefits from share-based compensation






0.7



Proceeds from issuance of redeemable preference shares










8.3Proceeds from issuance of Class B Common Stock to Harris
    Corporation










26.9Registration costs for Class A common stock issued in
    Stratex acquisition










(1.1
)Proceeds from exercise of former Stratex warrants










0.2Net cash and other transfers from (to) Harris Corporation prior
    to the Stratex acquisition










24.1Net cash (used in) provided by financing activities


(1.1
)


(13.4
)


57.3Effect of exchange rate changes on cash and cash equivalents


(5.3
)


1.3



(3.1
)Net increase in cash and cash equivalents


41.8



25.8



55.4Cash and cash equivalents, beginning of year


95.0



69.2



13.8Cash and cash equivalents, end of year

$
136.8


$
95.0


$
69.2Supplemental disclosure of cash flow information:Cash paid during the year for:Interest

$
2.8


$
2.7


$
2.0Income taxes

$
2.6


$
2.2


$
6.6    63




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF SHAREHOLDERS
    EQUITY AND COMPREHENSIVE LOSS
  AccumulatedCommon


Common


Additional








Other


TotalStock


Stock


Paid-in


Division


Accumulated


Comprehensive


ShareholdersClass A


Class B


Capital


Equity


Deficit


(Loss) Income


Equity(In millions, except share amounts)Balance as of June 30, 2006

$



$



$



$
245.7


$
$


$
(1.4
)

$
244.3Net income for the period from July 1, 2006 through
    January 26, 2007














2.4











2.4Net loss for the period from January 27, 2007 through
    June 29, 2007


















(24.2
)






(24.2
)Foreign currency translation






















1.5



1.5Net unrealized loss on hedging activities






















(0.1
)


(0.1
)Comprehensive loss


























(20.4
)Net increase in investment from Harris Corporation














8.5











8.5Return of capital to Harris Corporation














(14.4
)










(14.4
)Reclassification of division equity to additional paid-in
    capital on January 26, 2007










242.2



(242.2
)










Issuance of Class B Common Stock to Harris Corporation
    (32,913,377 shares)






0.3



26.6















26.9Issuance of Class A Common Stock to former Stratex
    shareholders (24,782,153 shares)


0.3







477.3















477.6Vested Stratex equity awards










15.5















15.5Employee stock option exercises, net of tax (324,181 shares)










3.1















3.1Stock option tax benefits










0.3















0.3Exercise of warrants










0.2















0.2Compensatory stock awards (294,522 shares)










4.8















4.8Balance as of June 29, 2007


0.3



0.3



770.0







(24.2
)






746.4Net loss


















(11.9
)






(11.9
)Foreign currency translation






















4.1



4.1Net unrealized loss on hedging activities






















(0.3
)


(0.3
)Comprehensive loss


























(8.1
)Adjustment to capital from Harris Corporation










1.3















1.3Employee stock option exercises, net of tax (129,038 shares)










1.5















1.5Stock option tax benefits










0.7















0.7Compensatory stock awards (73,740 shares)










6.4















6.4Balance as of June 27, 2008


0.3



0.3



779.9







(36.1
)


3.8



748.2Net loss


















(355.0
)






(355.0
)Foreign currency translation






















(8.5
)


(8.5
)Net unrealized loss on hedging activities






















(0.1
)


(0.1
)Comprehensive loss


























(363.6
)Adjustment to capital from Harris Corporation










0.5















0.5Employee stock option exercises, net of tax (688 shares)


























Conversion of 32,913,377 Class B shares to Class A
    shares


0.3



(0.3
)


















Compensatory stock awards (432,978 shares)










2.8















2.8Balance as of July 3, 2009

$
0.6


$



$
783.2


$



$
(391.1
)

$
(4.8
)

$
387.9    64




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
  AS OF
    JULY 3, 2009 AND JUNE 27, 2008 AND
    FOR EACH OF THE THREE FISCAL YEARS IN THE PERIOD ENDED JULY 3,
    2009
  Note A 
    Nature of
    Operations and Basis of Presentation    Nature of Operations right-of-way
  Basis of Presentation
  tm Note C 
    Business Combinations  Acquisition of Telsima and
    Stratex, Goodwill and Identifiable Intangible Assets
         65




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note P  Related Party Transactions
    with Harris
    Note B 
    Significant
    Accounting Policies and New Accounting Pronouncements  Use of
    Estimates
        
    Revenue recognition
    Provision for doubtful accounts
    Inventory reserves
    Fair value of goodwill and intangible assets
    Useful lives of intangible assets, property, plant and equipment
    Valuation allowances for deferred tax assets
    Uncertainties in income taxes
    Software development costs
    Restructuring obligations
    Product warranty obligations
    Share-based awards
    Contingencies  Cash
    and Cash Equivalents
   66




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Short-Term
    Investments
  available-for-sale
    Note D  Fair
    Value Measurements of Financial Assets and Financial Liabilities
  Accounts
    Receivable, Major Customers and Other Significant
    Concentrations
    Note E  Receivables
     67




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
        Inventories
  first-in, Note F  Inventories
  Income
    Taxes and Related Uncertainties
     68




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
      Income Taxes
  Property,
    Plant and Equipment
        Buildings and leasehold improvements

2 to 45 yearsSoftware developed for internal use

3 to 5 yearsMachinery and equipment

2 to 10 years   Note G  Property, Plant and
    Equipment
 69




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Capitalized
    Software
    product-by-product
    Identifiable
    Intangible Assets, Goodwill and Impairment of Long-Lived
    Assets
       70




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
             71




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Note C  Business Combinations
     Acquisition of Telsima and Stratex, Goodwill and
    Identifiable Intangible Assets
  Note G  Property, Plant and Equipment
  Note P  Related Party Transactions with
    Harris
  Other
    Accrued Items and Other Assets
    Warranties
      30-day 90-day agreed-upon
  Note I  Accrued Warranties
  Capital
    Lease Obligation and Operating Leases
  5-year
 72




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Liability
    for Warrants and the Related Changes in Fair Value
  Note D  Fair Value Measurements of Financial
    Assets and Financial Liabilities
  Contingent
    Liabilities
  Note P  Income Taxes Note S  Legal Proceedings
    Foreign
    Currency Translation
   73




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
      Retirement
    Benefits
    U.S.-based
    Financial
    Guarantees, Commercial Commitments and
    Indemnifications
       74




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Revenue
    Recognition
        percentage-of-completion percentage-of-completion cost-to-cost
     75




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Cost
    of Product Sales and Services
      Presentation
    of Taxes Collected from Customers and Remitted to Government
    Authorities
    Share-Based
    Compensation
        True-ups
  Note M  Share-Based
    Compensation
  Earnings
    (Loss) per Share and Description of
    Shares Outstanding
   76




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
          Restructuring
    and Related Expenses
  Note K  Restructuring
    Activities
  Research
    and Development Costs
   77




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    percentage-of-completion
  Segment
    Information
    Note N  Business
    Segments
  Initial
    Application of Standards, Interpretations and Amendments to
    Standards and Interpretations
  Disclosures
    about Derivative Instruments and Hedging Activities
   78




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Fair
    Value Measurements
  No. FAS 157-2, FAS 157-2), FAS 157-2, Note E  Fair Value Measurements of Financial
    Assets and Financial Liabilities
  instrument-by-instrument
  Disclosure
    of Subsequent Events
  Form 10-K.
  Standards,
    Interpretations and Amendments Issued, but not yet
    Adopted
  Accounting
    for Business Combinations
   79




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    No. FAS 141R-1, FAS 141R-1). FAS 141R-1, FAS 141R-1 FAS 141R-1
  Disclosures
    about Fair Value of Financial Instruments
  No. FAS 107-1 28-1, FAS 107-1). FAS 107-1 FAS 107-1 FAS 107-1 FAS 107-1
  Earnings
    per Share
  03-6-1, EITF 03-6-1). EITF 03-6-1 states EITF 03-6-1 EITF 03-6-1
 80




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  EITF 03-6-1
  Useful
    Life of Intangible Assets
  No. FAS 142-3, FAS 142-3). FAS 142-3 FAS 142-3 FAS 142-3 FAS 142-3 FAS 142-3 FAS 142-3
  Note C 
    Business
    Combinations  Acquisition of Telsima and Stratex,
    Goodwill and Identifiable Intangible Assets  tm
  minus plus
  tm
    end-to-end
 81




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Telsima


StratexFebruary 27,


January 26,Calculation of Allocable Purchase Price

2009


2007(In millions)Value of Harris Stratex Networks shares issued to stockholders

$



$
464.9Cash paid and to be paid for acquisition of shares


12.0



Value of vested options assumed






15.5Acquisition costs


1.0



12.7Total allocable purchase price

$
13.0


$
493.1     Balance Sheet as of the Acquisition Date (In millions)

Telsima


Stratex(In millions)Cash, cash equivalents and short-term investments

$
0.6


$
58.6Accounts and notes receivable


2.2



39.1Inventories


1.8



44.2In-process research and development


2.4



15.3Identifiable intangible assets


7.6



149.5Goodwill


3.2



295.0Property, plant and equipment


2.0



33.0Other assets


4.0



11.1Total assets

$
23.8


$
645.8Current portion of long-term debt

$



$
11.3Short-term debt


1.0



Capital lease obligations


0.5



Accounts payable and accrued expenses


9.3



56.1Advance payments and unearned income






0.3Income taxes payable






9.2Liability for severance payments






7.9Long-term debt






13.4Deferred tax liabilities






41.3Long-term restructuring liabilities






8.7Warrants






4.5Total liabilities


10.8



152.7Net assets acquired

$
13.0


$
493.1    82




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  tm
    Telsima


StratexEstimated




EstimatedExpense Type

Useful Life

Amount


Useful Life

Amount(Years)

(In millions)


(Years)

(In millions)Developed technology

Cost of product sales and services

6

$
6.9


10

$
70.1Stratex trade name

Selling and administrative







Indefinite


33.0Other trade names

Selling and administrative

1


0.1


5


11.4Customer relationships

Selling and administrative

7


0.6


4 to 10


28.8Contract backlog

Selling and administrative







0.4


4.3Non-competition agreements

Selling and administrative







1


1.9$
7.6




$
149.5        83




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
      Pro
    Forma Results
    2009


2008(In millions, except per share data)Revenue from product sales and services  as reported

$
679.9


$
718.4Revenue from product sales and services  pro forma

$
698.9


$
728.8Net loss  as reported

$
(355.0
)

$
(11.9
)Net loss  pro forma

$
(380.3
)

$
(49.5
)Net loss per diluted common share  as reported

$
(6.05
)

$
(0.20
)Net loss per diluted common share  pro forma

$
(6.48
)

$
(0.85
)     Summary
    of Goodwill
    2009


2008North








NorthAmerica


International


Total


America


International


Total(In millions)Balance as of the beginning of fiscal year

$
36.2


$
248.0


$
284.2


$
1.9


$
322.8


$
324.7Goodwill from the Telsima acquisition






3.2



3.2











Reduction of deferred tax liabilities and other adjustments
    established in purchase accounting


















(41.9
)


(41.9
)Reclassification of Stratex goodwill














34.3



(34.3
)


Impairment charges


(31.8
)


(247.2
)


(279.0
)










Translation adjustments related to acquisitions in prior years


(4.4
)


(0.8
)


(5.2
)






1.4



1.4$



$
3.2


$
3.2


$
36.2


$
248.0


$
284.2  84




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Summary
    of Identifiable Intangible Assets
    TotalNon-


IdentifiableDeveloped





Customer


Contract


Compete


IntangibleTechnology


Tradenames


Relationships


Backlog


Agreements


Assets(In millions)Gross identifiable intangible assets as of June 30, 2006

$
12.8


$



$



$



$



$
12.8Less accumulated amortization


(6.4
)


















(6.4
)Net identifiable intangible assets as of June 30, 2006


6.4



















6.4Add: acquired fair value of Stratex identifiable intangible
    assets


70.1



44.4



28.8



4.3



1.9



149.5Less: amortization expense fiscal 2007


(4.1
)


(1.0
)


(1.4
)


(4.3
)


(0.8
)


(11.6
)Foreign currency translation fiscal 2007


0.2



















0.2Net identifiable intangible assets as of June 29, 2007


72.6



43.4



27.4







1.1



144.5Less: amortization expense fiscal 2008


(7.9
)


(2.2
)


(3.3
)






(1.1
)


(14.5
)Foreign currency translation fiscal 2008


0.1



















0.1Net identifiable intangible assets as of June 27, 2008


64.8



41.2



24.1











130.1Add: acquired fair value of Telsima identifiable intangible
    assets


6.9



0.1



0.6











7.6Less: amortization expense fiscal 2009


(8.1
)


(2.3
)


(3.3
)










(13.7
)Impairment charge fiscal 2009






(32.6
)














(32.6
)Tax adjustments related to valuation allowance


(3.8
)


(3.0
)














(6.8
)Foreign currency translation fiscal 2009


(0.5
)


















(0.5
)Net identifiable intangible assets as of July 3, 2009

$
59.3


$
3.4


$
21.4


$



$



$
84.1Gross identifiable intangible assets as of July 3, 2009

$
87.9


$
11.9


$
29.3


$



$



$
129.1Less accumulated amortization


(28.6
)


(8.5
)


(7.9
)










(45.0
)Net identifiable intangible assets as of July 3, 2009

$
59.3


$
3.4


$
21.4


$



$



$
84.1Amortization expense fiscal 2009


8.1



2.3



3.3











13.7Amortization expense fiscal 2008


7.9



2.2



3.3







1.1



14.5Amortization expense fiscal 2007


4.1



1.0



1.4



4.3



0.8



11.6Weighted Average Estimated Useful Life (in years)


7.3



2.5



7.3







  85




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    At July 3, 2009, we estimate our future amortization of
    identifiable intangible assets with definite lives by year as
    follows:  Years Endingin June(In millions)2010

$
13.82011


13.02012


11.92013


10.62014


10.4Thereafter


24.4$
84.1   Note D 
    Fair
    Value Measurements of Financial Assets and Financial
    Liabilities    
    Level 1  Observable inputs such as quoted prices
    in active markets for identical assets or liabilities;
    Level 2  Observable market-based inputs or
    observable inputs that are corroborated by market data;
    Level 3  Unobservable inputs reflecting our own
    assumptions.    Level 1


Level 2


Level 3


Total(In millions)Financial Assets:Short-term investments

$
0.3


$



$



$
0.3Foreign exchange forward contracts






1.1







1.1Financial Liabilities:Foreign exchange forward contracts






0.9







0.9Warrants














  86




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    July 3,2009(In millions)Financial Assets:Short-term investments

$
0.3Foreign exchange forward contracts


1.1Total financial assets

$
1.4Financial Liabilities:Foreign exchange forward contracts

$
0.9Warrants


0.0Total financial liabilities

$
0.9     July 3,


June 27,2009


2008Dividend yield


0.0
%


0.0
%Expected volatility


79.8
%


58.9
%Risk-free interest rate


0.17
%


2.31
%Expected holding period


0.23
year


0.67
year       (In millions)Balance as of June 27, 2008

$
0.6Transfers during the period


Repurchases during the period


Realized gains (losses) during the period


Unrealized gain during the period


(0.6
)Balance as of July 3, 2009

$
  87




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    July 3, 2009Gross


GrossUnrealized


Unrealized


MarketCost


Gain


Loss


Value(In millions)Certificates of deposit

$



$



$



$
Commercial paper














Corporate notes


0.3











0.3Total short-term investments

$
0.3


$



$



$
0.3   June 27, 2008Gross


GrossUnrealized


Unrealized


MarketCost


Gain


Loss


Value(In millions)Certificates of deposit

$
0.6


$



$



$
0.6Commercial paper


1.4











1.4Corporate notes


1.1











1.1Total short-term investments

$
3.1


$



$



$
3.1     Note E 
    Receivables    July 3, 2009


June 27, 2008(In millions)Accounts receivable

$
163.1


$
205.5Notes receivable due within one year  net


6.8



6.8169.9



212.3Less allowances for collection losses


(27.0
)


(12.6
)$
142.9


$
199.7    88




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
   Note F 
    Inventories    July 3, 2009


June 27, 2008(In millions)Finished products

$
69.9


$
55.5Work in process


13.6



14.4Raw materials and supplies


65.0



59.2148.5



129.1Inventory reserves


(49.9
)


(35.6
)$
98.6


$
93.5       Note G 
    Property,
    Plant and Equipment    July 3, 2009


June 27, 2008(In millions)Land

$
1.2


$
1.3Buildings


21.5



29.1Software developed for internal use


11.6



13.9Machinery and equipment


94.8



121.6129.1



165.9Less allowances for depreciation and amortization


(71.7
)


(90.3
)$
57.4


$
75.6      89




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
   Note H 
    Credit
    Facility and Debt    July 3, 2009


June 27, 2008(In millions)Long-term borrowings

$



$
8.8Short-term borrowings


10.0



Total


10.0



8.8Less short-term borrowings and current portion of long-term debt


(10.0
)


(5.0
)Long-term debt outstanding

$



$
3.8            90




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
   Note I 
    Accrued
    Warranties    Fiscal Year EndedJuly 3, 2009


June 27, 2008(In millions)Balance as of the beginning of the fiscal year

$
6.9


$
6.7Acquisition of Telsima


0.3



Warranty provision for sales made during the fiscal year


4.0



8.5Settlements made during the fiscal year


(5.7
)


(8.4
)Other adjustments to the liability including foreign currency
    translation during the fiscal year






0.1Balance as of the end of the fiscal year

$
5.5


$
6.9   Note J 
    Redeemable
    Preference Shares               91




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
      Note K 
    Restructuring
    Activities      
    Severance, retention and related charges associated with
    reduction in force activities totaling $8.0 million (Fiscal
    2009 Plan).
    Impairment of fixed assets (non-cash charges) totaling
    $0.4 million and facility restoration costs of
    $0.3 million at our Canadian location (Fiscal 2009 Plan).
    Adjustments to the restructuring liability under the 2007
    Restructuring Plans for changes in estimates related to
    sub-tenant
    activity at our U.S. ($0.1 million increase) and Canadian
    locations ($0.3 million decrease).
    Adjustments to the restructuring liability under the 2007
    Restructuring Plans for changes in estimates to reduce the
    severance liability in Canada ($0.3 million decrease).      sub-tenant
       92




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Severance


Facilitiesand


andBenefits


Other


Total(In millions)Total restructuring liability balance as of June 30, 2006

$
1.9


$
0.3


$
2.2Acquisition of Stratex restructuring liability on
    January 26, 2007






12.0



12.0Provision in fiscal 2007


9.3







9.3Cash payments in fiscal 2007


(3.4
)


(1.5
)


(4.9
)Total restructuring liability as of June 29, 2007


7.8



10.8



18.6Provision in fiscal 2008


4.0



5.9



9.9Release of accrual to statement of operations in fiscal 2008


(0.6
)






(0.6
)Amount credited to goodwill in fiscal 2008






(1.1
)


(1.1
)Other adjustments to liability, including foreign currency
    translation during fiscal 2008


0.6



0.2



0.8Non-cash charges in fiscal 2008






(4.1
)


(4.1
)Cash payments in fiscal 2008


(10.0
)


(3.2
)


(13.2
)Total restructuring liability as of June 27, 2008


1.8



8.5



10.3Provision in fiscal 2009 (Fiscal 2009 Plan)


7.9



0.3



8.2Reversal of accrual in fiscal 2009 to statement of operations
    for changes in estimates (Fiscal 2007 Plans)


(0.2
)


(0.2
)


(0.4
)Non-cash charges in fiscal 2009 (Fiscal 2009 Plan)






(0.4
)


(0.4
)Cash payments in fiscal 2009


(7.0
)


(2.9
)


(9.9
)Total restructuring liability as of July 3, 2009

$
2.5


$
5.3


$
7.8Current portion of restructuring liability as of July 3,
    2009

$
2.5


$
2.8


$
5.3Long-term portion of restructuring liability as of July 3,
    2009






2.5



2.5Total restructuring liability as of July 3, 2009

$
2.5


$
5.3


$
7.8    93




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
   Note L 
    Accumulated
    Other Comprehensive (Loss) Income    TotalAccumulatedForeign








OtherCurrency


Hedging


Short-Term


ComprehensiveTranslation


Derivatives


Investments


(Loss) Income(In millions)Balance as of June 30, 2006

$
(1.5
)

$
0.1


$



$
(1.4
)Foreign currency translation


1.5











1.5Net unrealized loss on hedging activities, net of tax






(0.1
)






(0.1
)Balance as of June 29, 2007














Foreign currency translation


4.1











4.1Net unrealized loss on hedging activities, net of tax






(0.3
)






(0.3
)Balance as of June 27, 2008


4.1



(0.3
)






3.8Foreign currency translation


(8.5
)










(8.5
)Net unrealized loss on hedging activities, net of tax






(0.1
)






(0.1
)Balance as of July 3, 2009

$
(4.4
)

$
(0.4
)

$



$
(4.8
)   Note M 
    Share-Based
    Compensation         94




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    2009


2008


2007(In millions)Cost of product sales and services

$
0.3


$
1.2


$
0.3Research and development expenses


0.7



1.3



2.0Selling and administrative expenses


1.9



5.3



3.4Total compensation expense


2.9



7.8



5.7Less related income tax benefit recognized






(0.7
)


Total net of income tax benefits

$
2.9


$
7.1


$
5.7   Stock
    Options Awarded Under our 2007 Stock Equity Plan
        Grant Date

2009


2008


2007Expected dividends


0.0
%


0.0
%


0.0
%Expected volatility


54.2
%


55.6
%


62.5
%Risk-free interest rate


2.36
%


3.14
%


4.56
%Expected term (years)


4.375



4.375



4.375Stock price on date of grant

$
5.68


$
13.68


$
20.15Number of stock options granted


1,043,405



20,050



312,200Fair value per option on date of grant

$
2.60


$
6.55


$
11.47  95




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    WeightedWeighted


Weighted


AverageAverage


Average


Remaining


AggregateExercise


Grant Date


Contractual


IntrinsicPrice


Fair Value


Life


ValueShares


($)


($)


(Years)


($ in millions)Stock options outstanding as of June 27, 2008


289,750



19.67



11.23Stock options forfeited


(229,978
)


12.50



6.68Stock options granted


1,043,405



5.68



2.60Stock options exercised










Stock options outstanding as of July 3, 2009


1,103,177



7.94



10.81



6.2


$
0.5Stock options exercisable as of July 3, 2009


132,845



19.70



11.19



4.7



Stock options vested and expected to vest as of July 3,
    2009(1)


1,048,109



8.04



10.81



6.2


$
0.4     (1)
    
    The options expected to vest are the result of applying the
    pre-vesting forfeiture rate assumptions to total outstanding
    options.  in-the-money
    Weighted-AverageGrant-DateShares


Fair ValueNonvested stock options as of June 27, 2008


142,050


$
10.90Stock options granted


1,043,405


$
2.60Stock options forfeited or expired


(165,878
)

$
4.83Stock options vested


(49,245
)

$
10.77Nonvested stock options as of July 3, 2009


970,332


$
3.02     Restricted
    Stock Awards Under our 2007 Stock Equity Plan
   96




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
      Weighted-AverageGrant DateShares


Fair ValueRestricted stock outstanding as of June 27, 2008


144,457


$
16.89Restricted stock granted


98,819


$
4.25Restricted stock vested and released


(44,301
)

$
8.35Restricted stock forfeited


(22,000
)

$
20.40Restricted stock outstanding as of July 3, 2009


176,975


$
11.53     Performance
    Share Awards
  30-month
  3-year
     97




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Weighted-AverageGrant DateShares


Fair ValuePerformance shares outstanding as of June 27, 2008


124,800


$
19.80Performance shares granted


556,111


$
5.64Performance shares vested and released


Performance shares forfeited due to target thresholds not
    achieved


(124,800
)

$
19.80Performance shares forfeited due to terminations


(63,602
)

$
5.97Performance shares outstanding as of July 3, 2009


492,509


$
5.60     Stock
    Options Assumed in the Stratex Acquisition
    WeightedAverageWeighted


Remaining


AggregateNumber of


Average


Contractual


IntrinsicOptions


Exercise Price


Life (Years)


ValueStock options outstanding as of June 27, 2008


2,518,464


$
23.36Stock options forfeited or expired


(823,956
)

$
18.93Stock options exercised


(688
)

$
8.13Stock options outstanding as of July 3, 2009


1,693,820


$
25.52



2.3


$
Stock options exercisable as of July 3, 2009


1,685,366


$
25.56



2.3


$
Stock options vested and expected to vest as of July 3,
    2009(1)


1,693,537


$
25.52



2.3


$
     (1)
    
    The options expected to vest are the result of applying the
    pre-vesting forfeiture rate assumptions to total outstanding
    options.  in-the-money
   98




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    WeightedAverageGrant DateShares


Fair ValueNonvested stock options as of June 27, 2008


159,102


$
9.38Stock options forfeited and expired


(13,911
)

$
9.45Stock options vested


(136,737
)

$
9.39Nonvested stock options as of July 3, 2009


8,454


$
9.07     Summary
    of All Harris Stratex Stock Options
    Options Outstanding


Options ExercisableWeightedAverageRemaining


Weighted





WeightedNumber


Contractual


Average


Number


AverageActual Range of Exercise Prices

Outstanding


Life (Years)


Exercise Price


Exercisable


Exercise Price$ 0.91 - $  9.96


1,316,413



4.9


$
6.32



392,640


$
7.89$10.40 - $ 17.96


906,368



2.8


$
16.77



890,796


$
16.78$18.04 - $ 27.76


406,031



3.7


$
22.74



366,590


$
22.98$28.12 - $148.00


168,185



0.9


$
114.33



168,185


$
114.33$ 0.91 - $148.00


2,796,997



3.8


$
18.59



1,818,211


$
25.14   Note N 
    Business
    Segments    2009


2008


2007(In millions)RevenueNorth America Microwave

$
227.0


$
232.4


$
216.3International Microwave


438.3



461.7



272.2Network Operations


14.6



24.3



19.4Total Revenue

$
679.9


$
718.4


$
507.9   99




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  2009


2008


2007(In millions)Loss Before Income TaxesSegment Operating (Loss) Income:North America Microwave(1)

$
(62.7
)

$
(9.4
)

$
6.3International Microwave(2)


(270.8
)


(5.7
)


(31.3
)Network Operations


(1.8
)


1.4



1.3Corporate allocations expense from Harris










(3.7
)Net interest expense


(1.9
)


(0.2
)


(0.5
)Loss before income taxes

$
(337.2
)

$
(13.9
)

$
(27.9
)     (1)
    
    The following tables summarize certain charges and expenses
    included in the North America Microwave segment operating
    results during fiscal 2009, 2008 and 2007:  2009


2008


2007(In millions)Goodwill impairment charges

$
31.8


$



$
Charges for product transition


25.3







Impairment charges for the trade name Stratex


10.7







Restructuring charges


5.1



4.9



5.1Software impairment charges


3.2







Amortization of developed technology, trade names, customer
    relationships and non-compete agreements


3.0



2.7



1.4Amortization of the fair value adjustments related to fixed
    assets


0.6



1.1



0.4Cost of integration activities undertaken in connection with the
    merger






3.2



2.7Inventory mark-downs






12.9



Lease impairment






1.8



Share-based compensation expense


1.8



7.4



5.7$
81.5


$
34.0


$
15.3  100




---



##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
   (2)
    
    The following tables summarize certain charges and expenses
    included in the International Microwave segment operating
    results during fiscal 2009, 2008 and 2007:  2009


2008


2007(In millions)Goodwill impairment charges

$
247.2


$



$
Impairment charges for the trade name Stratex


21.9







Amortization of developed technology, trade names, customer
    relationships and non-compete agreements


10.2



11.9



9.1Charges for product transition


4.5







Restructuring charges


3.1



2.6



4.2Acquired in-process research and development


2.4







15.3Amortization of the fair value adjustments related to fixed
    assets


1.1



1.7



8.6Cost of integration activities undertaken in connection with the
    merger






6.1



3.6Inventory mark-downs






1.8



Share-based compensation expense


1.1



0.4



$
291.5


$
24.5


$
40.8     2009


% of Total


2008


% of Total


2007


% of Total(In millions)United States

$
208.6



30.7
%

$
192.3



26.8
%

$
168.7



33.2
%Nigeria


145.9



21.5
%


137.6



19.2
%


55.4



10.9
%Poland


36.5



5.4
%


29.6



4.1
%


16.6



3.3
%Canada


9.2



1.4
%


32.2



4.5
%


39.9



7.8
%Other


279.7



41.0
%


326.7



45.4
%


227.3



44.8
%Total

$
679.9



100.0
%

$
718.4



100.0
%

$
507.9



100.0
%     2009


2008(In millions)United States

$
60.4


$
219.8Singapore


71.0



237.1United Kingdom


22.8



12.4Canada


4.7



32.6Other countries


5.2



19.6Total

$
164.1


$
521.6  101




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
   Note O 
    Income
    Taxes    2009


2008


2007(In millions)United States

$
(188.0
)

$
(69.9
)

$
(33.4
)Foreign


(149.2
)


56.0



5.5Total

$
(337.2
)

$
(13.9
)

$
(27.9
)     2009


2008


2007(In millions)Current provision:United States

$



$



$
Foreign


1.7



5.5



6.9State and local


0.1







Total current provision


1.8



5.5



6.9Deferred provision (benefit):United States


22.1



(16.5
)


(11.7
)Foreign


(9.0
)


10.8



(0.8
)State and local


2.9



(1.8
)


(0.5
)Total deferred provision (benefit)


16.0



(7.5
)


(13.0
)$
17.8


$
(2.0
)

$
(6.1
)     2009


2008


2007(In millions)Statutory U.S. Federal tax rate


(35.0
)%


(35.0
)%


(35.0
)%U.S. valuation allowances


15.1



113.2



9.0State and local taxes, net of U.S. Federal tax benefit


(0.8
)


(12.9
)


(1.9
)Goodwill impairment not deductible


16.3







Foreign income taxed at rates less than the U.S. statutory rate


7.4



(85.5
)


4.2Other


2.3



5.8



1.8Effective tax rate


5.3
%


(14.4
)%


(21.9
)%  102




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    July 3, 2009


June 27, 2008Current


Non-Current


Current


Non-Current(In millions)Deferred tax assets:Inventory

$
18.0


$



$
18.7


$
Accruals


3.1







5.7



Unrealized impairment loss






1.2



0.1



1.1Other reserves and accruals


0.2



0.8



1.9



Bad debts


6.1







2.6



Warranty reserve


2.4







2.5



0.2Deferred costs










0.5



Depreciation






4.8







2.0Amortization






17.2







Other foreign


6.0







3.0



Stock options






3.3







3.1Severance and restructuring costs


2.3







2.9



5.0Deferred revenue






3.4







Unrealized exchange gain/loss


1.4











Other






1.2



0.3



1.1Capital loss carryforward






5.8







7.6Tax credit carryforwards






28.0







25.2Tax loss carryforwards






90.2







95.0Total deferred tax assets


39.5



155.9



38.2



140.3Valuation allowance


(39.5
)


(129.4
)


(24.2
)


(92.7
)Net deferred tax assets






26.5



14.0



47.6Deferred tax liabilities:Amortization














1.8Purchased identifiable intangible assets






19.4







30.5Internally developed software














5.3Unrealized exchange gain/loss










1.4



Total deferred tax liabilities






19.4



1.4



37.6Net deferred tax asset (liability)

$



$
7.1


$
12.6


$
10.0    103




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HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
                 104




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
          Unrecognized tax benefit as of June 27, 2008

$
29.6Additions for tax positions in prior periods


1.5Decreases for tax positions in prior periods


(0.2
)Unrecognized tax benefit as of July 3, 2009

$
30.9   Note P 
    Related
    Party Transactions with Harris           105




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    5-year
    Note Q 
    Operating
    Lease Commitments    month-to-month
    Fiscal Years Endingin June(In millions)2010

$
12.02011


8.72012


3.72013


2.02014


1.2Thereafter


1.3Total

$
28.9     Note R 
    Risk
    Management, Derivative Financial Instruments and Hedging
    Activities   106




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
        ContractContract Amount


Amount(Local Currency)


(USD)(In millions)Australian dollar (AUD) net contracts to receive
    (pay) USD


(AUD
)


10.8


$
8.6Canadian dollar (CAD) net contracts to receive (pay)
    USD


(CAD
)


(5.7
)

$
(5.0
)Euro (EUR) net contracts to receive (pay) USD


(EUR
)


10.4


$
14.6Polish zloty (PLN) net contracts to receive (pay) USD


(PLN
)


31.2


$
9.6All other currencies net contracts to receive (pay) USD









$
1.4Total of all currencies









$
29.2     Asset Derivatives


Liability DerivativesBalance Sheet




Balance SheetLocation

Fair Value


Location

Fair Value(In millions)Derivatives designated as hedging instruments under Statement
    133:Foreign exchange forward contracts

Other current assets

$
0.2


Other current liabilities

$
0.0Derivatives not designated as hedging instruments under
    Statement 133:Foreign exchange forward contracts

Other current assets

$
0.9


Other current liabilities

$
0.9Total derivatives



$
1.1




$
0.9    107




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HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Amount of Gain (Loss)Recognized onDerivativesFiscalYearEndedJuly 3,Locations of Gains (Losses) Recorded From Derivatives
    Designated as Cash Flow Hedges Under Statement 133

2009Amount of gain of effective hedges recognized in Other
    Comprehensive Income

$
2.6Amount of gain of effective hedges reclassified from Other
    Comprehensive Income into:Revenue


2.6Cost of Products Sold


Amount of loss recorded into Cost of Products Sold associated
    with excluded time value


Amount of gain (loss) recorded into Cost of Products Sold due to
    hedge ineffectiveness


     Cash Flow
    Hedges
         108




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
      Non-Designated
    Hedges
    Fiscal Year


Location of GainEnded


(Loss) RecognizedJuly 3,


in Income on2009


DerivativesDerivatives not designated as hedging instruments:Foreign exchange forward contracts

$
5.4


Cost of products sold   Credit
    Risk
     109




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
   Note S 
    Legal
    Proceedings  Form 10-K Rule 10b-5
      Note T 
    Quarterly
    Financial Data (Unaudited)      Form 10-Q Form 10-Q Form 10-Q
 110




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    1st Quarter


2nd Quarter


3rd Quarter


4th Quarter09-26-2008


01-02-2009


04-03-2009


07-03-2009(In millions, except share amounts)Fiscal 2009Revenue

$
195.8


$
190.9


$
158.0


$
135.2Gross margin

$
59.1


$
51.1


$
16.5


$
47.7Income (loss) from operations

$
7.7


$
(294.8
)

$
(35.2
)

$
(13.0
)Net income (loss)

$
6.5


$
(318.7
)

$
(39.4
)

$
(3.4
)Per share data(1):Basic net income (loss) per share of Class A and
    Class B Common Stock

$
0.11


$
(5.43
)

$
(0.67
)

$
(0.06
)Diluted net income (loss) per share of Class A and
    Class B Common Stock(2)

$
0.10


$
(5.43
)

$
(0.67
)

$
(0.06
)Market price range of one share of Class A Common Stock:High

$
11.45


$
7.85


$
7.24


$
6.75Low

$
6.85


$
3.26


$
3.00


$
3.91   1st Quarter


2nd Quarter


3rd Quarter


4th Quarter09-28-2007


12-28-2007


03-28-2008


06-27-2008(In millions, except share amounts)Fiscal 2008Revenue

$
172.3


$
181.1


$
178.2


$
186.8Gross margin

$
47.0


$
49.0


$
50.3


$
43.9(Loss) income from operations

$
(0.0
)

$
(4.4
)

$
5.8


$
(15.1
)Net (loss) income

$
(0.2
)

$
(3.2
)

$
5.2


$
(13.7
)Per share data(1):Basic net (loss) income per share of Class A and
    Class B Common Stock

$
(0.0
)

$
(0.05
)

$
0.09


$
(0.23
)Diluted net (loss) income per share of Class A and
    Class B Common Stock(2)

$
(0.0
)

$
(0.05
)

$
0.05


$
(0.23
)Market price range of one share of Class A Common Stock:High

$
20.90


$
19.97


$
18.75


$
11.44Low

$
15.90


$
15.41


$
8.53


$
8.88     (1)
    
    The net income (loss) per common share amounts are the same for
    Class A and Class B because the holders of each class are
    legally entitled to equal per share distributions whether
    through dividends or in liquidation. Net income (loss) per share
    are computed independently for each of the quarters presented.
    Therefore, the sum of the quarterly per share totals may not
    equal the total for the year.(2)
    
    During the first quarter of fiscal 2009 and third quarter of
    fiscal 2008, the calculations of diluted earnings per share
    include a potential deduction to net income of $0.2 million
    and $2.1 million for the assumed after-tax effect of the
    change in fair value of warrants using the treasury
    stock method.(3)
    
    Prior to January 26, 2007, the Company was a division of
    Harris Corporation and there were no shares outstanding for
    purposes of net income or loss per share calculations. Basic and
    diluted weighted average shares 111




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##### Table of Contents



HARRIS
    STRATEX NETWORKS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  outstanding are calculated based on the daily outstanding
    shares, reflecting the fact that no shares were outstanding
    prior to January 26, 2007. Our Class A Common Stock
    began trading on the NASDAQ Global Market on January 30,
    2007 under the symbol HSTX. Therefore, the sum of the quarterly
    net loss per share totals will not equal the total for the year.   112




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##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure.    Item 9A.
    Controls
    and Procedures.  Evaluation
    of Disclosure Controls and Procedures
    Rules 13a-15(e) 15d-15(e)
  Managements
    Report on Internal Control over Financial Reporting
  Rules 13a-15(f) 15d-15(f)
      Remediation
    of Material Weaknesses in Internal Control over Financial
    Reporting
      and/or
 113




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##### Table of Contents




    We now generate and review a project work in process exposure
    report each quarter to ensure work in process is properly
    relieved of costs.
    We have trained appropriate personnel in the methods of review
    of the project costs and created a high-level awareness of the
    importance of more thorough project cost reviews.
    We conduct regular reviews to ensure the timely closing of
    projects.
    We ensure that project costs are properly reconciled and aged
    balances are evaluated on a quarterly basis.  and/or
  
    We accelerated the on-going implementation of software tools to
    track the account reconciliation process with all major
    subsidiaries now tracked.
    We instituted procedures to ensure the timely completion of
    account reconciliations supported by a
    sub-ledger
    or other independent documentation or calculation with 100% of
    key account reconciliations now prepared, reviewed, and approved
    prior to filing financial statements.
    We dedicated additional resources to ensure timely reviews of
    account reconciliations and resolution of aged balances and
    reconciling items.  Changes
    in Internal Control over Financial Reporting
    Item 9B.
    Other
    Information.   PART III  10-K
  Item 10.
    Directors,
    Executive Officers and Corporate Governance.  www.harrisstratex.com www.harrisstratex.com
    Item 11.
    Executive
    Compensation.   114




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##### Table of Contents



Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters.  Equity
    Compensation Plan Summary
    Number of SecuritiesNumber of Securities to





Remaining Available forbe Issued Upon Exercise





Further Issuance Under Equityof Options and Vesting of


Weighted-Average


Compensation PlansRestricted Stock and


Exercise Price of


(Excluding Securities ReflectedPlan Category

Performance Shares


Outstanding Options(1)


in the First Column)Equity Compensation plan approved by security holders(2)


1,857,381


$
7.94



3,058,363Equity Compensation plans not approved by security holders(3)


1,693,820


$
25.52



Total


3,551,201


$
18.59



3,058,363     (1)
    
    Excludes weighted average fair value of restricted stock and
    performance shares at issuance date.(2)
    
    Consists solely of our 2007 Stock Equity Plan.(3)
    
    Consists of common stock that may be issued pursuant to option
    plans and agreements assumed pursuant to the Stratex
    acquisition. The Stratex plans were duly approved by the
    shareholders of Stratex prior to the merger with us. No shares
    are available for further issuance.      Item 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence.    Item 14.
    Principal
    Accountant Fees and Services.   115




---



##### 



PART IV  Item 15.
    Exhibits
    and Financial Statement Schedules.  10-K
   
 Page(1) List of Financial Statements Filed as Part of this
    Annual Report on Form
    10-KThe following financial statements and reports of Harris Stratex
    Networks, Inc. and its consolidated subsidiaries are included in
    Part II, Item 8. of this Annual Report on Form
    10-K at the page
    numbers referenced below: Report of Independent Registered Public Accounting
    Firm


58 Report of Independent Registered Public Accounting
    Firm


59 Consolidated Statements of Operations 
    Fiscal Years ended July 3, 2009; June 27, 2008; and
    June 29, 2007


60 Consolidated Balance Sheets  July 3,
    2009 and June 27, 2008


61 Consolidated Statements of Cash Flows 
    Fiscal Years ended July 3, 2009; June 27, 2008; and
    June 29, 2007


62 Consolidated Statement of Shareholders Equity
    and Comprehensive Loss  Fiscal Years ended
    July 3, 2009; June 27, 2008; and June 29, 2007


63 Notes to Consolidated Financial Statements


64(2) Financial Statement Schedules:For each of the Fiscal Years ended July 3, 2009;
    June 27, 2008; and June 29, 2007 
    Schedule II  Valuation and Qualifying Accounts
    and Reserves


121      Exhibits:
    Ex. #


Description2.1


Amended and Restated Formation, Contribution and Merger
    Agreement, dated as of December 18, 2006, among Harris
    Corporation, Stratex Networks, Inc., Harris Stratex Networks,
    Inc. and Stratex Merger Corp. (incorporated by reference to
    Appendix A to the proxy statement/prospectus forming a part
    of the Registration Statement on
    Form S-4
    of Harris Stratex Networks, Inc. filed with the Securities and
    Exchange Commission on January 3, 2007, File
    No. 333-137980)2.2


Letter Agreement, dated as of January 26, 2007, among
    Harris Corporation, Stratex Networks, Inc., Harris Stratex
    Networks, Inc. and Stratex Merger Corp. (incorporated by
    reference to Exhibit 2.1.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007,
    File No. 001-33278)2.3


Agreement and Plan of Merger by and among Harris Stratex
    Networks Operating Corporation, Eagle Networks Merger
    Corporation, Telsima Corporation and the Holder Representative
    dated as of February 27, 2009 (incorporated by reference to
    Exhibit 2.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    March 6, 2009, File
    No. 001-33278)3.1


Amended and Restated Certificate of Incorporation of Harris
    Stratex Networks, Inc. as filed with the Secretary of State of
    the State of Delaware on January 26, 2007 (incorporated by
    reference to Exhibit 3.1 to the Registration Statement on
    Form 8-A
    filed with the Securities and Exchange Commission on
    January 26, 2007, File
    No. 001-33278)3.2


Amended and Restated Bylaws of Harris Stratex Networks, Inc.,
    (incorporated by reference to Exhibit 3.1 to the Report on Form
    8-K filed with the Securities and Exchange Commission on
    September 3, 2008, File No. 001-33278) 116




---



##### Table of Contents



Ex. #


Description4.1


Specimen common stock certificates (incorporated herein by
    reference to Exhibit 4.1 to the Companys Annual
    Report on
    Form 10-K
    for the fiscal year ended June 29, 2007 filed with the
    Securities and Exchange Commission on August 27, 2007, File
    No. 001-33278)4.2


Registration Rights Agreement between Harris Stratex Networks,
    Inc. and Harris Corporation dated January 26, 2007
    (incorporated by reference to Exhibit 10.3 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)4.3


Certificate of Designations of Series A Junior
    Participating Preferred Stock of Harris Stratex Networks, Inc.,
    dated April 20, 2009 (incorporated by reference to
    Exhibit 4.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    April 22, 2009, File
    No. 001-33278)10.1


Investor Agreement between Harris Stratex Networks, Inc. and
    Harris Corporation dated January 26, 2007 (incorporated by
    reference to Exhibit 10.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.2


Non-Competition Agreement among Harris Stratex Networks, Inc.,
    Harris Corporation and Stratex Networks, Inc. dated
    January 26, 2007 (incorporated by reference to
    Exhibit 10.2 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.3


Intellectual Property Agreement between Harris Stratex Networks,
    Inc. and Harris Corporation dated January 26, 2007
    (incorporated by reference to Exhibit 10.4 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.4


Trademark and Trade Name License Agreement between Harris
    Stratex Networks, Inc. and Harris Corporation dated
    January 26, 2007 (incorporated by reference to
    Exhibit 10.5 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.5


Lease Agreement between Harris Stratex Networks, Inc. and Harris
    Corporation dated January 26, 2007 (incorporated by
    reference to Exhibit 10.6 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.6


Transition Services Agreement between Harris Stratex Networks,
    Inc. and Harris Corporation dated January 26, 2007
    (incorporated by reference to Exhibit 10.7 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.6.1


Amendment to Transition Services Agreement between Harris
    Stratex Networks, Inc. and Harris Corporation dated
    December 12, 2008 (incorporated by reference to
    Exhibit 10.1 to the Companys Quarterly Report on
    Form 10-Q
    for the fiscal quarter ended January 2, 2009 filed with the
    Securities and Exchange Commission on February 10, 2009,
    File
    No. 001-33278)10.7


Warrant Assumption Agreement between Harris Stratex Networks,
    Inc. and Stratex Networks, Inc. dated January 26, 2007
    (incorporated by reference to Exhibit 10.8 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.8


NetBoss Service Agreement between Harris Stratex Networks, Inc.
    and Harris Corporation dated January 26, 2007 (incorporated
    by reference to Exhibit 10.9 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.9


Lease Agreement between Harris Stratex Networks Canada ULC and
    Harris Canada, Inc. dated January 26, 2007 (incorporated by
    reference to Exhibit 10.10 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.10


Tax Sharing Agreement between Harris Stratex Networks, Inc. and
    Harris Corporation dated January 26, 2007 (incorporated by
    reference to Exhibit 10.11 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.11


Intentionally omitted.10.12
*

Employment Agreement, effective as of April 8, 2008,
    between Harris Stratex Networks, Inc. and Harald J. Braun
    (incorporated by reference to Exhibit 10.15.1 to the
    Companys Quarterly Report on
    Form 10-Q
    for the quarter ended March 28, 2008 filed with the
    Securities and Exchange Commission on May 6, 2008, File
    No. 001-33278)10.13
*

Restated Employment Agreement, dated as of May 14, 2002, by
    and between Stratex Networks, Inc. and Charles D. Kissner
    (incorporated by reference to Exhibit 10.7 to the Annual
    Report on
    Form 10-K
    of Stratex Networks, Inc. for the Fiscal Year Ended
    March 31, 2003 filed with the Securities and Exchange
    Commission on May 19, 2003, File
    No. 000-15895) 117




---



##### Table of Contents



Ex. #


Description10.13.1
*

Third Amendment to Employment Agreement, dated as of
    December 15, 2006, by and between Stratex Networks, Inc.
    and Charles D. Kissner (incorporated by reference to
    Exhibit 10.29 to Amendment No. 2 to the Registration
    Statement on
    Form S-4
    filed with the Securities and Exchange Commission on
    December 19, 2006, File
    No. 333-137980)10.14
*

Standard Form of Executive Employment Agreement between Harris
    Stratex Networks, Inc. and certain executives (incorporated by
    reference to Exhibit 10.16 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.15


Form of Indemnification Agreement between Harris Stratex
    Networks, Inc. and its directors and certain officers
    (incorporated by reference to Exhibit 10.16 to the
    Registration Statement on
    Form S-1
    of Stratex Networks, Inc., File
    No. 33-13431)10.16


Sublicense Agreement, effective as of January 26, 2007,
    between Harris Stratex Networks, Inc. and Harris Stratex
    Networks Operating Corporation (incorporated by reference to
    Exhibit 10.22 to the Companys Annual Report on
    Form 10-K
    for the fiscal year ended June 29, 2007 filed with the
    Securities and Exchange Commission on August 27, 2007. File
    No. 001-33278)10.17
*

Harris Stratex Networks, Inc. Annual Incentive Plan
    (incorporated by reference to Exhibit 10.17 to the
    Companys Annual Report on
    Form 10-K
    for the fiscal year ended June 27, 2008 filed with the
    Securities and Exchange Commission on September 25, 2008,
    File
    No. 001-33278)10.18*


Harris Stratex Networks, Inc. 2007 Stock Equity Plan
    (incorporated by reference to Exhibit 4.9 to the
    Registration Statement on
    Form S-8
    filed with the Securities and Exchange Commission on
    February 5, 2007, File
    No. 333-140442)10.19


Credit Agreement between Harris Stratex Networks, Inc., Harris
    Stratex Networks Operating Corporation, Harris Stratex
    Networks(S) Pte. Ltd., Bank of America, N.A., Silicon Valley
    Bank, Banc of America Securities Asia Limited and Banc of
    America Securities LLC, dated June 30, 2008 (incorporated
    by reference to Exhibit 10.19 to the Companys Annual
    Report on
    Form 10-K
    for the fiscal year ended June 27, 2008 filed with the
    Securities and Exchange Commission on September 25, 2008,
    File
    No. 001-33278)10.20


Amended and Restated Loan and Security Agreement between Stratex
    Networks, Inc. and Silicon Valley Bank, dated January 21,
    2004 (incorporated by reference to Exhibit 10.1 to the
    Report on
    Form 8-K
    of Stratex Networks, Inc. on January 22, 2004, File
    No. 000-15895)10.20.1


Amendment No. 5 to Amended and Restated Loan and Security
    Agreement between Harris Stratex Networks Operating Corporation,
    a wholly owned subsidiary of Harris Stratex Networks, Inc. and
    the successor to Stratex Networks, Inc. and Silicon Valley Bank,
    dated February 23, 2007 (incorporated herein by reference
    to Exhibit 10.28.5 to the Companys Annual Report on
    Form 10-K
    for the fiscal year ended June 29, 2007 filed with the
    Securities and Exchange Commission on August 27, 2007.
    File No. 001-33278)10.21


Rights Agreement, dated as of April 20, 2009, between
    Harris Stratex Networks, Inc. and Mellon Investor Services LLC,
    as Rights Agent, which includes the Form of Certificate of
    Designations of Series A Junior Participating Preferred
    Stock (Exhibit A), the Form of Right Certificate
    (Exhibit B) and the Summary of Rights to Purchase
    Preferred Shares (Exhibit C) (incorporated by reference to
    Exhibit 4.2 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    April 22, 2009, File
    No. 001-33278)10.22
*

Employment Agreement, effective as of May 4, 2009, between
    Harris Stratex Networks, Inc. and Thomas L. Cronan III
    (incorporated by reference to Exhibit 10.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on May 5,
    2009, File
    No. 001-33278)10.23
*

Employment Agreement, dated as of April 1, 2006, between
    Harris Stratex Networks, Inc. and Heinz Stumpe (incorporation by
    reference to Exhibit 10.15.2 to the Companys
    Quarterly Report on
    Form 10-Q
    for the fiscal quarter ended March 30, 2007 filed with the
    Securities and Exchange Commission on May 8, 2007, File
    No. 001-33278)10.24
*

Employment Agreement, dated as of May 14, 2002, between
    Stratex Networks, Inc. and Paul Kennard (incorporated by
    reference to Exhibit 10.1 to the Stratex Networks, Inc.
    Quarterly Report on
    Form 10-Q
    for the fiscal quarter ended June 30, 2006 filed with the
    Securities and Exchange Commission on August 9, 2006, File
    No. 000-15895) 118




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##### Table of Contents



Ex. #


Description10.24.1
*

Amendment A, effective as of April 1, 2006, to Employment
    Agreement, dated May 14, 2002, between Stratex Networks,
    Inc. and Paul Kennard (incorporated by reference to
    Exhibit 10.2 to the Stratex Networks, Inc. Quarterly Report
    on
    Form 10-Q
    for the fiscal quarter ended June 30, 2006 filed with the
    Securities and Exchange Commission on August 9, 2006, File
    No. 000-15895)10.24.2
*

Amendment B, effective as of April 1, 2006, to Employment
    Agreement, dated May 14, 2002, between Stratex Networks,
    Inc. and Paul Kennard (incorporated by reference to
    Exhibit 10.3 to the Stratex Networks, Inc. Quarterly Report
    on
    Form 10-Q
    for the fiscal quarter ended June 30, 2006 filed with the
    Securities and Exchange Commission on August 9, 2006, File
    No. 000-15895)10.25
*

Employment Agreement, dated as of May 14, 2002, between
    Stratex Networks, Inc. and Shaun McFall10.25.1
*

Amendment, effective April 1, 2006, to Employment
    Agreement, dated May 14, 2002, between Stratex Networks,
    Inc. and Shaun McFall21


List of Subsidiaries of Harris Stratex Networks, Inc.23


Consent of Ernst & Young LLP, Independent Registered
    Public Accounting Firm31.1


Rule 13a-14(a)/15d-14(a)
    Certification of Chief Executive Officer.31.2


Rule 13a-14(a)/15d-14(a)
    Certification of Chief Financial Officer.32.1


Section 1350 Certification of Chief Executive Officer.32.2


Section 1350 Certification of Chief Financial Officer.     *
    
    Management compensatory contract, arrangement or plan required
    to be filed as an exhibit pursuant to Item 15(b) of this
    report. 119




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##### Table of Contents



SIGNATURES                Signature

Title

Date/s/  Harald
    J. BraunHarald
    J. Braun

President, Chief Executive Officer and Director (Principal
    Executive Officer)

September 3, 2009/s/  Thomas
    L. Cronan, IIIThomas
    L. Cronan, III

Senior Vice President and Chief Financial Officer (Principal
    Financial Officer)

September 3, 2009/s/  J.
    Russell MinceyJ.
    Russell Mincey

Vice President, Corporate Controller and Principal Accounting
    Officer (Principal Accounting Officer)

September 3, 2009/s/  Charles
    D. KissnerCharles
    D. Kissner

Chairman of the Board

September 3, 2009/s/  Eric
    C. EvansEric
    C. Evans

Director

September 3, 2009/s/  William
    A. HaslerWilliam
    A. Hasler

Director

September 3, 2009/s/  Clifford
    H. HiggersonClifford
    H. Higgerson

Director

September 3, 2009/s/  Dr. Mohsen
    SohiDr. Mohsen
    Sohi

Director

September 3, 2009/s/  James
    C. StoffelJames
    C. Stoffel

Director

September 3, 2009/s/  Edward
    F. ThompsonEdward
    F. Thompson

Director

September 3, 2009  120




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##### Table of Contents



SCHEDULE II 
    VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
    HARRIS STRATEX NETWORKS, INC. AND SUBSIDIARIES
    Years Ended July 3, 2009, June 27, 2008 and
    June 29, 2007  Additions(1)


(2)Balance at


Charged to


Charged to


(Additions)


Balance atBeginning


Costs and


Other Accounts


Deductions


End ofof Period


Expenses


Describe


Describe


Period($)


($)


($)


($)


($)(In millions)Allowances for collection losses:Year ended July 3, 2009


12.6



9.9







(4.5
)(A)


27.0Year ended June 27, 2008


8.5



3.7







(0.4
)(B)


12.6Year ended June 29, 2007


8.1



1.5







1.1
(C)


8.5Inventory reserves:Year ended July 3, 2009


35.6



23.1







8.8
(D)


49.9Year ended June 27, 2008


14.2



24.6







3.2
(E)


35.6Year ended June 29, 2007


18.2



3.2







7.2
(F)


14.2Deferred tax asset valuation allowance(H):Year ended July 3, 2009


116.9



50.8



1.2
(G)






168.9Year ended June 27, 2008


96.9



15.6



4.4
(G)






116.9Year ended June 29, 2007


69.2



2.6



25.1
(G)






96.9Warranty reserves:










Year ended July 3, 2009


6.9



4.0







5.4
(I)


5.5Year ended June 27, 2008


6.7



8.5







8.3
(J)


6.9Year ended June 29, 2007


3.9



2.8








(K)


6.7     Note A 
    
    Consists of changes to allowance for collection losses of
    $0.1 million for foreign currency translation losses,
    $6.4 million in additions from the acquisition of Telsima
    and $1.8 million for uncollectible accounts charged off, net of
    recoveries on accounts previously charged off.

Note B 
    
    Consists of changes to allowance for collection losses of
    $0.5 million for foreign currency translation gains and
    $0.1 million for uncollectible accounts charged off, net of
    recoveries on accounts previously charged off.

Note C 
    
    Consists of additions to allowance for collection losses of
    $0.2 million for foreign currency translation gains,
    $0.8 million in additions from the acquisition of Stratex
    Networks and deductions of $2.1 million for uncollectible
    accounts charged off, net of recoveries on accounts previously
    charged off.

Note D 
    
    Consists of additions to inventory reserves of $0.2 million
    for foreign currency translation losses, $8.6 million in
    deductions from obsolescence and excess inventory charged off.

Note E 
    
    Consists of additions to inventory reserves of $0.3 million
    for foreign currency translation gains, $4.9 million in
    deductions from obsolescence and excess inventory charged off
    and $1.4 million in other inventory reserve adjustments.

Note F 
    
    Consists of additions to inventory reserves of $7.2 million
    in deductions from obsolescence and excess inventory charged off.

Note G 
    
    Deferred tax asset recorded as an adjustment to goodwill and
    identified intangible assets under purchase accounting and
    reclass of Harris Corporation Intercompany deferred tax assets.

Note H 
    
    Additions to deferred tax valuation allowance are recorded as
    expense.

Note I 
    
    Consists of warranty settlements of $5.7 million, partially
    offset by $0.3 million from the Telsima acquisition.

Note J 
    
    Consists of warranty settlements of $8.4 million, partially
    offset by $0.1 million in foreign currency translation
    adjustments.

Note K 
    
    Consists of warranty settlements of $4.7 million, offset by
    $4.6 million from the Stratex acquisition and
    $0.1 million in foreign currency translation adjustments. 121




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##### Table of Contents



EXHIBIT INDEX
    Ex. #


Description2.1


Amended and Restated Formation, Contribution and Merger
    Agreement, dated as of December 18, 2006, among Harris
    Corporation, Stratex Networks, Inc., Harris Stratex Networks,
    Inc. and Stratex Merger Corp. (incorporated by reference to
    Appendix A to the proxy statement/prospectus forming a part
    of the Registration Statement on
    Form S-4
    of Harris Stratex Networks, Inc. filed with the Securities and
    Exchange Commission on January 3, 2007, File
    No. 333-137980)2.2


Letter Agreement, dated as of January 26, 2007, among
    Harris Corporation, Stratex Networks, Inc., Harris Stratex
    Networks, Inc. and Stratex Merger Corp. (incorporated by
    reference to Exhibit 2.1.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007,
    File No. 001-33278)2.3


Agreement and Plan of Merger by and among Harris Stratex
    Networks Operating Corporation, Eagle Networks Merger
    Corporation, Telsima Corporation and the Holder Representative
    dated as of February 27, 2009 (incorporated by reference to
    Exhibit 2.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    March 6, 2009, File
    No. 001-33278)3.1


Amended and Restated Certificate of Incorporation of Harris
    Stratex Networks, Inc. as filed with the Secretary of State of
    the State of Delaware on January 26, 2007 (incorporated by
    reference to Exhibit 3.1 to the Registration Statement on
    Form 8-A
    filed with the Securities and Exchange Commission on
    January 26, 2007, File
    No. 001-33278)3.2


Amended and Restated Bylaws of Harris Stratex Networks, Inc.,
    (incorporated by reference to Exhibit 3.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    September 3, 2008, File No.
    001-33278)4.1


Specimen common stock certificates (incorporated herein by
    reference to Exhibit 4.1 to the Companys Annual
    Report on
    Form 10-K
    for the fiscal year ended June 29, 2007 filed with the
    Securities and Exchange Commission on August 27, 2007, File
    No. 001-33278)4.2


Registration Rights Agreement between Harris Stratex Networks,
    Inc. and Harris Corporation dated January 26, 2007
    (incorporated by reference to Exhibit 10.3 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)4.3


Certificate of Designations of Series A Junior
    Participating Preferred Stock of Harris Stratex Networks, Inc.,
    dated April 20, 2009 (incorporated by reference to
    Exhibit 4.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    April 22, 2009, File
    No. 001-33278)10.1


Investor Agreement between Harris Stratex Networks, Inc. and
    Harris Corporation dated January 26, 2007 (incorporated by
    reference to Exhibit 10.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.2


Non-Competition Agreement among Harris Stratex Networks, Inc.,
    Harris Corporation and Stratex Networks, Inc. dated
    January 26, 2007 (incorporated by reference to
    Exhibit 10.2 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.3


Intellectual Property Agreement between Harris Stratex Networks,
    Inc. and Harris Corporation dated January 26, 2007
    (incorporated by reference to Exhibit 10.4 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.4


Trademark and Trade Name License Agreement between Harris
    Stratex Networks, Inc. and Harris Corporation dated
    January 26, 2007 (incorporated by reference to
    Exhibit 10.5 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.5


Lease Agreement between Harris Stratex Networks, Inc. and Harris
    Corporation dated January 26, 2007 (incorporated by
    reference to Exhibit 10.6 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.6


Transition Services Agreement between Harris Stratex Networks,
    Inc. and Harris Corporation dated January 26, 2007
    (incorporated by reference to Exhibit 10.7 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278) 122




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##### Table of Contents



Ex. #


Description10.6.1


Amendment to Transition Services Agreement between Harris
    Stratex Networks, Inc. and Harris Corporation dated
    December 12, 2008 (incorporated by reference to
    Exhibit 10.1 to the Companys Quarterly Report on
    Form 10-Q
    for the fiscal quarter ended January 2, 2009 filed with the
    Securities and Exchange Commission on February 10, 2009,
    File
    No. 001-33278)10.7


Warrant Assumption Agreement between Harris Stratex Networks,
    Inc. and Stratex Networks, Inc. dated January 26, 2007
    (incorporated by reference to Exhibit 10.8 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.8


NetBoss Service Agreement between Harris Stratex Networks, Inc.
    and Harris Corporation dated January 26, 2007 (incorporated
    by reference to Exhibit 10.9 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.9


Lease Agreement between Harris Stratex Networks Canada ULC and
    Harris Canada, Inc. dated January 26, 2007 (incorporated by
    reference to Exhibit 10.10 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.10


Tax Sharing Agreement between Harris Stratex Networks, Inc. and
    Harris Corporation dated January 26, 2007 (incorporated by
    reference to Exhibit 10.11 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.11


Intentionally omitted.10.12
*

Employment Agreement, effective as of April 8, 2008,
    between Harris Stratex Networks, Inc. and Harald J. Braun
    (incorporated by reference to Exhibit 10.15.1 to the
    Companys Quarterly Report on
    Form 10-Q
    for the quarter ended March 28, 2008 filed with the
    Securities and Exchange Commission on May 6, 2008, File
    No. 001-33278)10.13
*

Restated Employment Agreement, dated as of May 14, 2002, by
    and between Stratex Networks, Inc. and Charles D. Kissner
    (incorporated by reference to Exhibit 10.7 to the Annual
    Report on
    Form 10-K
    of Stratex Networks, Inc. for the Fiscal Year Ended
    March 31, 2003 filed with the Securities and Exchange
    Commission on May 19, 2003, File
    No. 000-15895)10.13.1
*

Third Amendment to Employment Agreement, dated as of
    December 15, 2006, by and between Stratex Networks, Inc.
    and Charles D. Kissner (incorporated by reference to
    Exhibit 10.29 to Amendment No. 2 to the Registration
    Statement on
    Form S-4
    filed with the Securities and Exchange Commission on
    December 19, 2006, File
    No. 333-137980)10.14
*

Standard Form of Executive Employment Agreement between Harris
    Stratex Networks, Inc. and certain executives (incorporated by
    reference to Exhibit 10.16 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    February 1, 2007, File
    No. 001-33278)10.15


Form of Indemnification Agreement between Harris Stratex
    Networks, Inc. and its directors and certain officers
    (incorporated by reference to Exhibit 10.16 to the
    Registration Statement on
    Form S-1
    of Stratex Networks, Inc., File
    No. 33-13431)10.16


Sublicense Agreement, effective as of January 26, 2007,
    between Harris Stratex Networks, Inc. and Harris Stratex
    Networks Operating Corporation (incorporated by reference to
    Exhibit 10.22 to the Companys Annual Report on
    Form 10-K
    for the fiscal year ended June 29, 2007 filed with the
    Securities and Exchange Commission on August 27, 2007. File
    No. 001-33278)10.17
*

Harris Stratex Networks, Inc. Annual Incentive Plan
    (incorporated by reference to Exhibit 10.17 to the
    Companys Annual Report on
    Form 10-K
    for the fiscal year ended June 27, 2008 filed with the
    Securities and Exchange Commission on September 25, 2008,
    File
    No. 001-33278)10.18
*

Harris Stratex Networks, Inc. 2007 Stock Equity Plan
    (incorporated by reference to Exhibit 4.9 to the
    Registration Statement on
    Form S-8
    filed with the Securities and Exchange Commission on
    February 5, 2007, File
    No. 333-140442)10.19


Credit Agreement between Harris Stratex Networks, Inc., Harris
    Stratex Networks Operating Corporation, Harris Stratex
    Networks(S) Pte. Ltd., Bank of America, N.A., Silicon Valley
    Bank, Banc of America Securities Asia Limited and Banc of
    America Securities LLC, dated June 30, 2008 (incorporated
    by reference to Exhibit 10.19 to the Companys Annual
    Report on
    Form 10-K
    for the fiscal year ended June 27, 2008 filed with the
    Securities and Exchange Commission on September 25, 2008,
    File
    No. 001-33278) 123




---



##### Table of Contents



Ex. #


Description10.20


Amended and Restated Loan and Security Agreement between Stratex
    Networks, Inc. and Silicon Valley Bank, dated January 21,
    2004 (incorporated by reference to Exhibit 10.1 to the
    Report on
    Form 8-K
    of Stratex Networks, Inc. on January 22, 2004, File
    No. 000-15895)10.20.1


Amendment No. 5 to Amended and Restated Loan and Security
    Agreement between Harris Stratex Networks Operating Corporation,
    a wholly owned subsidiary of Harris Stratex Networks, Inc. and
    the successor to Stratex Networks, Inc. and Silicon Valley Bank,
    dated February 23, 2007 (incorporated herein by reference
    to Exhibit 10.28.5 to the Companys Annual Report on
    Form 10-K
    for the fiscal year ended June 29, 2007 filed with the
    Securities and Exchange Commission on August 27, 2007.
    File No. 001-33278)10.21


Rights Agreement, dated as of April 20, 2009, between
    Harris Stratex Networks, Inc. and Mellon Investor Services LLC,
    as Rights Agent, which includes the Form of Certificate of
    Designations of Series A Junior Participating Preferred
    Stock (Exhibit A), the Form of Right Certificate
    (Exhibit B) and the Summary of Rights to Purchase
    Preferred Shares (Exhibit C) (incorporated by reference to
    Exhibit 4.2 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    April 22, 2009, File
    No. 001-33278)10.22
*

Employment Agreement, effective as of May 4, 2009, between
    Harris Stratex Networks, Inc. and Thomas L. Cronan III
    (incorporated by reference to Exhibit 10.1 to the Report on
    Form 8-K
    filed with the Securities and Exchange Commission on May 5,
    2009, File
    No. 001-33278)10.23
*

Employment Agreement, dated as of April 1, 2006, between
    Harris Stratex Networks, Inc. and Heinz Stumpe (incorporation by
    reference to Exhibit 10.15.2 to the Companys
    Quarterly Report on
    Form 10-Q
    for the fiscal quarter ended March 30, 2007 filed with the
    Securities and Exchange Commission on May 8, 2007, File
    No. 001-33278)10.24
*

Employment Agreement, dated as of May 14, 2002, between
    Stratex Networks, Inc. and Paul Kennard (incorporated by
    reference to Exhibit 10.1 to the Stratex Networks, Inc.
    Quarterly Report on
    Form 10-Q
    for the fiscal quarter ended June 30, 2006 filed with the
    Securities and Exchange Commission on August 9, 2006, File
    No. 000-15895)10.24.1
*

Amendment A, effective as of April 1, 2006, to Employment
    Agreement, dated May 14, 2002, between Stratex Networks,
    Inc. and Paul Kennard (incorporated by reference to
    Exhibit 10.2 to the Stratex Networks, Inc. Quarterly Report
    on
    Form 10-Q
    for the fiscal quarter ended June 30, 2006 filed with the
    Securities and Exchange Commission on August 9, 2006, File
    No. 000-15895)10.24.2
*

Amendment B, effective as of April 1, 2006, to Employment
    Agreement, dated May 14, 2002, between Stratex Networks,
    Inc. and Paul Kennard (incorporated by reference to
    Exhibit 10.3 to the Stratex Networks, Inc. Quarterly Report
    on
    Form 10-Q
    for the fiscal quarter ended June 30, 2006 filed with the
    Securities and Exchange Commission on August 9, 2006, File
    No. 000-15895)10.25
*

Employment Agreement, dated as of May 14, 2002, between
    Stratex Networks, Inc. and Shaun McFall10.25.1
*

Amendment, effective April 1, 2006, to Employment
    Agreement, dated May 14, 2002, between Stratex Networks,
    Inc. and Shaun McFall21


List of Subsidiaries of Harris Stratex Networks, Inc.23


Consent of Ernst & Young LLP, Independent Registered
    Public Accounting Firm31.1


Rule 13a-14(a)/15d-14(a)
    Certification of Chief Executive Officer.31.2


Rule 13a-14(a)/15d-14(a)
    Certification of Chief Financial Officer.32.1


Section 1350 Certification of Chief Executive Officer.32.2


Section 1350 Certification of Chief Financial Officer.     *
    
    Management compensatory contract, arrangement or plan required
    to be filed as an exhibit pursuant to Item 15(b) of this
    report. 124